However, since the real culture of the organization makes certain statements dangerous, leading to self-censorship, the theory espoused is at variance with the theory in use. As a result, group members often say one thing while believing another. A graphic example of this type of behavior are the discussions that took place within the central planning units in the old Soviet Union. Not only did leaders there fail to admit that they had economic problems, they even produced data supporting the view that everything was fine. The Soviet Union fell, in large measure, because its organizational culture forced it to deal almost exclusively with invalid knowledge.
Breakthroughs occur when theories are overturned, updated or replaced.
But if companies are locked into situations in which their theories in use differ from their theories espoused, nothing gets overturned and no conceptual breakthroughs can occur. Creating Model II companies takes work and discipline. People must feel secure about offering information, meaning that organizations must be transformed into places where it is safe to tell the truth. When that happens, managers can go about their real business, which is managing a company's knowledge, through its people.