QUOTATION 63

PETER DRUCKER ON WHY CHANGING AN ORGANISATION’S CULTURE SHOULD BE AVOIDED

Use this as a reminder of how difficult and dangerous it is to change an organisation’s culture.

Peter Drucker (1909–2005) was hugely successful as a management thinker and writer. One reason for this was his down-to-earth practical approach which chimed well with busy managers in every type of organisation. On the question of organisational cultures, he suggested that:

Company cultures are like country cultures. Never try to change one. Try instead to work with what you’ve got.

Peter Drucker

Many writers have argued that the role of a leader is to change an organisation’s culture while that of the manager is to spread and uphold the organisational culture. Drucker warns us that you mess with organisational cultures at your peril.

WHAT TO DO

  • It is not uncommon to read in the business press that a new chief executive or chairperson has been appointed by Any Company Ltd with a remit to change its organisational culture. It happened to a lot in banks after the 2008 financial crisis. Unfortunately, Drucker believes that this is a near impossible task, which will require a huge commitment in terms of time, money and effort by all connected with the organisation and, on balance, should be avoided, if possible.
  • Despite Drucker’s warnings, many newly appointed chief executives or chairpersons will decimate the senior management team on appointment and bring in their own tried and trusted people to run the organisation. Claims will then be made that this has resulted in a cultural change in the organisation. This is seldom the case. Organisational culture is multifaceted and is not easily destroyed or changed, as it consists of the basic assumptions, beliefs, expectations, norms and values that are shared by the staff within the organisation. These assumptions have been influenced by the organisation’s myths, history, rituals, routines, structure, purpose and traditions.
  • Only if the organisation is in desperate need of a new culture should you attempt to change it. Changing a few of the top managers isn’t going to make much of a dent on the above factors and certainly not in the short term. If you want genuine change, you have to accept it’s a long-term project, not the work of a single month or year but one that is likely to engage you over several years. Think carefully before you commit yourself to this task as it will occupy a huge amount of your time.
  • If the risk of undertaking a total overhaul is too great, think about making incremental changes. For example, the appointment of more women, ethnic minorities and those with disabilities to management posts will get the ball rolling and open the way to new ideas and approaches.

QUESTIONS TO ASK

  • Are there any aspects of the organisation’s culture that I think require changing? If so, what can I do about it?
  • Do I find it easy to live with the organisation’s culture? If not, should
    I move jobs?
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