The flaw in trying to change a company's culture

Stop saying "we have to change the culture".

Deciding you have to change the culture of an institution is apparently exactly the wrong way to go about changing the culture of an institution.

Here's Harvard Business review on the long, expensive, and ultimately ineffective process that happens when a manager says the dreaded sentence: "We have to change the culture around here."

Not many of them feel they know how to do that, so an army of consultants has obliged by creating processes for help. Most of these experts recommend beginning with a diagnosis of the present culture. After the diagnosis you need to get clear about where you want to head. That's another piece of work. Then you have to plan how you are going to get there.

Finally, when you are ready to get moving, the consultants are happy to jump aboard to help implement a multitude of programs — training, re-organization, systems redesign, and communications campaigns. A Google search on the term "organizational culture change programs" yields 273,000,000 entries.

The total effort generated by these processes is guaranteed to be complex and to cost huge amounts of time, money and effort. Some of these interventions may prove useful at an individual level, but sweeping, large-scale culture change efforts rarely cure those aspects of culture that were so frustrating in the first place.

There is another way, though. HBR write that as a company's culture comes from a range of dynamics that can only be dealt with one at a time.

The moral of the story is that a company need never sink resources into "culture change" programs. If they keep advancing an increasing number of performance improvements that empower their people — and if they distill and exploit the learning from their achievements — they'll wake up one day and discover that they are working in a radically new culture.

Try changing small things. Photograph: Getty Images
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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.