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Why is it so difficult to change the culture of an organization? Is it worth the...

Why is it so difficult to change the culture of an organization? Is it worth the effort?  Provide an example of a workplace culture you've witnessed a change.

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Expert Solution

Do you agree that not only humans but also businesses also have a character, and such character is called as the workplace culture. Yes it is. Workplace culture is the personality of a company and it is what makes a business unique about itself. Positive culture attracts talent, drives engagement, impacts happiness and satisfaction, and affects performance.

Changing the culture is one of the most challenging task. The changing environment requires culture of an organisation to be changed. Previously organisations used to focus on the Operational efficiency and the environment now requires corporates to be more employee friendly. Inorder to successfully change the culture it should not be implemented as a top down mandate, but it should be done as bottom up friendly, because it may have adverse effects if done against it. People may not be able to adapt to the same.

Example, Dr. Reddy's case study,

One leader who understands this well is G.V. Prasad, CEO of Dr. Reddy’s, a 33-year-old global pharmaceutical company headquartered in India that produces affordable generic medication. With the company’s more than seven distinct business units operating in 27 countries and more than 20,000 employees, decision making had grown more convoluted and branches of the organization had become misaligned. Over the years, Dr. Reddy’s had built in lots of procedures, and for many good reasons. But those procedures had also slowed the company down.

Prasad sought to evolve Dr. Reddy’s culture to be nimble, innovative, and patient-centered. He knew it required a journey to align and galvanize all employees. His leadership team began with a search for purpose. Over the course of several months, the Dr. Reddy’s team worked with IDEO to learn about the needs of everyone, from shop floor workers to scientists, external partners, and investors. Together they defined and distilled the purpose of the company, paring it down to four simple words that center on the patient: “Good health can’t wait.”

But instead of plastering this new slogan on motivational posters and repeating it in all-hands meetings, the leadership team began by quietly using it to start guiding their own decisions. The goal was to demonstrate this idea in action, not talk about it. Projects were selected across channels to highlight agility, innovation, and customer centricity. Product packaging was redesigned to be more user-friendly and increase adherence. The role of sales representatives in Russia was recast to act as knowledge hubs for physicians, since better physicians lead to healthier patients. A comprehensive internal data platform was developed to help Dr. Reddy’s employees be proactive with their customer requests and solve any problems in an agile way.

At this point it was time to more broadly share the stated purpose — first internally with all employees, and then externally with the world. At the internal launch event, Dr. Reddy’s employees learned about their purpose and were invited to be part of realizing it. Everyone was asked to make a personal promise about how they, in their current role, would contribute to “good health can’t wait.” The following day Dr. Reddy’s unveiled a new brand identity and website that publicly stated its purpose. Soon after, the company established two new “innovation studios” in Hyderabad and Mumbai to offer additional structural support to creativity within the company.

Prasad saw a change in the company culture right away:

After we introduced the idea of “good health can’t wait,” one of the scientists told me he developed a product in 15 days and broke every rule there was in the company. He was proudly stating that! Normally, just getting the raw materials would take him months, not to mention the rest of the process for making the medication. But he was acting on that urgency. And now he’s taking this lesson of being lean and applying it to all our procedures.


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