Organisational Change
There are a couple of ways an organisation can improve:
1. It can change its strategy
A company can change what it does. This type of change is sometimes called a “stroke of the pen change”, because any chief executive can, with enough money, make it happen. It could be a change in product mix, a change in supplier, a move into a new market or an investment in a new facility.
These changes are far from easy, but with a big enough budget, any organisation can push them through.
2. It can change its culture
A company can change the way its employees behave. It can change their attitude towards customers. It can make them more cooperative with each other. It can make them become more creative and more likely to try something new.
Changing culture for the worse is easy — just throw a little blame about — but changing culture in a positive way is much more difficult. Money won’t buy you positive behavioural change. No matter how much you throw at it.
Which change is best?
Spending money is easy. If you want to install the latest computer system, acquire a competitor or to build a spacious new warehouse, there are plenty of people who will help you do it… Provided you sign a check.
But anybody with a big enough bank balance can copy what you do. Spending money won’t give you a long-term advantage.
Changing behaviour is difficult. It takes management clarity, relentless reinforcement, positive H.R. practices and a sound understanding of why people behave the way that they do. Banging in a quarterly target and a sales incentive simply won’t cut it.
Changing behaviour is hard to do, but it is also hard to copy.
If you want to get better
You probably need both. There is no point investing in a great new facility if your employees treat customers like dirt. Your new system is only a pile of code if your staff are engaged in endless turf wars. Money invested in a big strategic change is wasted if you don’t have a culture that can catch it.
Culture eats strategy for breakfast ~ Peter Drucker
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