For many reasons, maintaining a great organizational culture is seen as best for business entities. However, don't you think organizations may want to continue in status just to avoid the expenditures that may arise as a result of craving for this kind of change.
I have heard in some KSS that culture change is not costly. However, when it is treated as a project, it surely attracts some budget. From your experience of organizational culture change activities, would you say maintaining a good organizational culture is expensive?
It is worth noting that the world is fast changing these days, and a new definition of organization culture has emerged. This simply means that organisations have to adjust their culture to suit the changing climate. This involves costs of adjustments on a continuos basis. Being costly, is now a relative term which involves the changing costs and changing benefits. However, if it is properly done, am sure the costs are covered by benefits. ....................................What is costly is for an organization to hold on to historical culture at the face of a changing climate. This if not monitored may lead to company closure or loss in market share significantly.
The answer depends on the specifics of the need for culture change and the impact on the business of not changing culture.
Two examples:
1). In the 1980's Rolls-Royce used to design aero-engines using paper drawings. To compete with GE and Pratt and Whitney, they had to use CAD (Computer Aided Design). At that time they were the third biggest aero engine manufacturer. Today they are a close second. There were many cultural changes necessary for this transition, CAD was one of many. The cost of the change was high, for example, they held 5 day courses for thousands of development staff and many other off-job events. The rewards were even higher.
2). In the early 1970's a UK manufacturer called Thornton used to make slide rules. They invested in better manufacturing techniques and expanded into novel slide rule design. However, they did not change the culture to look at other technologies, or business threats. The electronic calculator put them out of business. The impact of not changing culture was terminal.
Hope this helps
Paul
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