The Economics of Culture Change

Atkinson, Philip
November 2004
Management Services;Nov2004, Vol. 48 Issue 11, p8
Academic Journal
This article discusses the economics of culture change. The purpose of culture change is to secure the future of the organisation and this can only be achieved by examining the impact it can deliver. The way culture change can contribute to organisational success is by adding value to existing customers and winning new ones for the business. Culture change is about developing a strong competitive edge, developing core competencies and attracting and retaining the best people. Culture change can also reverse the polarity of the organisation and move from fire-fighting mode to a planning mode where prevention of problems rather than reacting after the event consumes employees' time. Healthy Positive Cultures are characterised by a long term perspective, with a focus on tactics to resolve immediate short term problems. The dominant culture should support and reward cross organisational working, and processes should rule over turf wars that exist between and within functions. Investing time preventing problems so they will bring down rework is not easy. There is a need to create a culture where investment in prevention is the norm. By investing in prevention, there must be a focus on the vital processes that are subject to failure or that create risk for the business. INSETS: Case Study 1 -- 57 ways to Open an Account;Case Study 2 -- Insurance Sales -- Creating Rework;Case Study 3 -- Patient Records Duplicated 9 Times.


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