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‘The way things are around here’:
organisational culture is a concept missing from New Zealand healthcare policy,
development, implementation, and research
During a visit to prominent health service research units in
the United Kingdom (UK) I was struck by the stark differences in the
development, implementation and research activity associated with health policy
reform.
Discussions with academic leaders and their staff
highlighted an understanding and focus toward Organisational Culture
(OC) as an important concept within health reform. These individuals have
considerable political clout, being advisors to the National Health Service
(NHS). To a great academic leaders of this type have ensured that the concept of
OC is not a forgotten ingredient of organisational change. They have not allowed
the term OC to become a buzzword; confined to the hallways of health service
research units or policymaking departments.
These leaders have actively promoted an understanding of OC
through their research which influences policymakers and those working at the
coal face. The agenda is for OC to assist efforts to improve health systems
through a focus on both structural and social
change.1
A definition of organisational cultureOC has been described in lay terms as ‘the way things
are around here’2; the commonly held
beliefs and values about the ‘way(s) we think and
act‘3; within
organisations.3–5 The most commonly cited
definition of OC in the healthcare literature is one by Edgar Schein:
“ ...the pattern of
shared basic assumptions – invented, discovered or developed by a given
group as it learns to cope with its problems of external adaption and internal
integration – that has worked well enough to be considered valid and,
therefore to be taught to new members as the correct way to perceive, think, and
feel in relation to those
problems”2
OC has been borrowed from anthropology, denoting the
collective thinking that drives normal behaviour within a group with common
goals.4–8 Organisations are human systems
that engage in activities that create and distribute value for key stakeholders
in order to ensure organisational
longevity.9–11
Both structural and human components need to be considered
when understanding organisational change. Understanding the way(s) we think and
act collectively at the organisational level is important.
Why bother studying the culture—effectiveness link?When attempting to develop and implement health policy, OC
is an important concept for change at multiple levels within the health
system.1,12 Outside of the healthcare sector,
OC is recognised as an important factor in influencing organisational
effectiveness and success.8,13–19
Supported by popular
literature2,19–21 OC has largely been
conceptualised as one of many organisational factors that influence success. OC
is a variable, easily manipulated by leadership to improve productivity,
competitiveness and financial
sustainability.16,18 The health sector has been
slower than other sectors to adopt organisational development strategies.
Slowly, OC has been embraced as an important concept in the
USA22-24 and the
UK.1,25–29 Interest was based on the
realisation that to deliver effective health care within a defined fiscal cap,
human change is required in addition to structural considerations.
The same cannot be said for the historical development of OC
in New Zealand. Here OC is relatively unknown, unspoken, unwritten and
under-researched phenomenon in health circles. In this viewpoint I outline the
international drive for healthcare transformation; aimed at improving
performance.
I argue the importance of OC and present the learning from
research predominantly from the UK. The potential impact on New Zealand policy
and practice through ignoring the concept of OC is outlined and a research
agenda is presented.
Organisational culture as a mediator for changeIn recent years the health sector has come under increasing
pressure to perform and to be made accountable for use of public
funds.30,31 Despite subtle differences in
developed healthcare systems, one thing is commonplace; the unrelenting thrust
by central policymakers for accountability and performance. All the while,
disease states are becoming increasingly complex, with more therapeutic options
and limited resource. This is an international phenomenon and New Zealand has
not bucked the trend.
Increased complexity alongside disasters such as the Shipman
and Bristol Heart scenarios led to realisation by UK policymakers that safe
service provision and greater productivity cannot be squeezed out of the system
through structural change alone. OC has become a significant concept for
understanding aspects of organisational transformation at all levels.
The definition of culture and the manifestations outlined
can be thought about and applied to the context of organisations within the
following three levels of the healthcare sector:
Over two
decades policymakers in the UK have made explicit the need for OC transformation
in order to reconfigure health care and demonstrate performance gains. The
rationale was two fold. First, with regard to implementation, there has been a
focus on aspects such as clinical governance which provides a framework for both
structural and OC transformation at the ‘meso’ and
‘micro’ levels.
Second, significant research streams have been developed and
continue to be well supported by the UK Government. This is through realisation
that policy development and implementation will be better informed and more
successful through an understanding of OC as a facilitator of change. The focus
of these research streams is on the influence of OC on organisational
performance, particularly within the secondary care sector.
New Zealand health reform and the lack of focus on OCA system wide shift from a focus on the individual to
population health outcomes has not been without its challenges in New Zealand.
Improved service delivery and resultant health gains were expected to occur
through structural redesign of the health system. This structural
change is evidenced by the incremental morph of primary care support
organisations, over the past two decades, under Labour and National Governments.
In addition to structural change, the focus has been on
applying financial models in an attempt to make the system more efficient. This
argument is supported by the introduction in the late 1980s of Independent
Practitioner Associations (IPA) and subsequently Primary Health Organisations
(PHOs). These structural changes cemented ‘middle’ level structures
within the health sector.
Significant resources were allocated for the development of
IPAs. Later through PHOs, capitation based funding was being applied in order to
shift focus from patient to population and to increase utilisation of the
multi-disciplinary primary care team. Neither of these objectives has been
achieved in full; possibly due to divergent professional
subcultures32 found within and across primary
and secondary health care. A divide between clinicians and management and the
‘rise of managerialism’ is likely to have contributed to
this.33
The National Government under the guidance of Health
Minister, Rt Hon Tony Ryall calls for Better, Sooner, More Convenient
Primary Health Care.34 The main driver for
delivery of care is infrastructure rather than OC change. With the development
of large Integrated Family Healthcare Centres (IFHC) there is the expectation
that general practices will amalgamate and health professionals will ‘just
get on with it’.
The expected gain in sector-wide efficiency is based on the
notion that larger, co-located service providers will result in improved
integration across all levels of the healthcare sector and higher performance.
There is no consideration of history or sub-cultures that have manifest over
long periods of time. Improved multidisciplinary teamwork, patient experience
and health outcomes are expected through structural change, which masquerades as
innovation by service co-location.
There is little evidence cited in government policy to
support the notion that structural change and co-location will have the desired
effect of improved healthcare performance. The IFHC strategy may prove to be
less successful than expected, unless there is greater thought about the human
aspects of change. There is an agenda for devolution of services from secondary
to primary care but no money set aside for the development of IFHC.
Apart from physical collocation and service design, little
thought has been given to the interaction (or lack of) between primary and
secondary care; based on fundamental differences in the values, beliefs and
behaviour. There is a strong focus on clinical leadership under the National
Government and the tension between this and non-clinician management does not
seem to have been considered.
There is a literature that advocates for simultaneous change
across all levels of the health system, through establishing
crises.12 It is unfortunate that this is
represented in New Zealand by ‘rattling the health sector cage’ from
above.
There is a completely naive expectation that secondary care
will happily devolve half of its activity to PHOs without a struggle and PHOs
will easily amalgamate, whilst General Practices with vastly different cultures
will also calmly band together in certain locations whilst funding themselves
into IFHCs. The notion that DHBs will happily transfer their role to the private
sector through this development of a two tier American style healthcare system
will be interesting to observe.
The most common reasons for failure of organisational change
activities are lack of development of a guiding coalition, not making explicit
the short and long term gains and not embedding this into the
culture.35 ‘Because a representative of
the government has said so’ or ‘the government wants it done that
way’ has been common dialogue bouncing around the corridors of the health
sector over the past two years.
Our politicians and their advisors need to rethink the human
aspects of their policies; particularly the ‘rattling cage’ approach
and the likelihood of healthcare organisations co-operating because they are all
put in the same building. It certainly doesn’t work with politicians so
why would it work within the much more complex arena of health care, where there
is considerably more at stake.
Within the primary care sector there is no clear plan of how
organisations or professional groups with divergent and disparate cultures might
work together under one roof. This expectation is not likely to achieve anything
more than discontent, a loss of productivity and job satisfaction and the
continued mass exodus of the New Zealand health workforce that Professor Gorman
the Health Workforce New Zealand Executive Director has talked
about.36,37
The tenets of New Zealand primary healthcare policy are not
dissimilar to the UK. There has been the call for improvement in access to
services alongside the provision of quality health care. This is expected
through technological integration and multidisciplinary
teamwork.38,39 The difference between the UK
and NZ is the realisation in the UK that to effect change one has to understand
the ‘way things are around here’ to begin with and how this might
change in the future. The concept of OC is understood and deemed to be
important.
Organisational culture has been made explicit in UK health
policy development, implementation and research for more than a decade. Within
the discipline of health services research much financial resource, time and
energy and academic brainpower has been devoted to studying the influence of OC
on performance. The aim of this work has been to better understand mechanisms of
change within the complex environment of healthcare provision at multiple
levels. The other main agenda has been to expose the healthcare sector to the
realisation that physical system reconfiguration is not the sole lever for
organisational change.
UK health policy is currently directing the dissolution of
Primary Care Trusts which has a flow-on effect at the ‘middle’ level
of planning, as well as for general practices at the coal face. General
practitioner (GP) commissioning is expected to be the mechanism for change at
these levels. Moving to this approach is likely to require structure and process
change in order to achieve the health outcomes expected by policymakers.
For some time, UK healthcare policy has been explicit in its
call for cultural as well as structural change in order to
achieve delivery of accessible, equitable and high quality health
care.1 There will be a residual understanding
of OC as the UK transitions into this next wave of reform; the GP commissioning
of services. This is arguably the greatest policy shift which directly affects
practitioners at the coal face and the idea that OC change may be required as
part of the process will not be a new one, at least not at the policymaking
level!
What New Zealand has missed out onA lack of discourse and associated research activity on OC
in New Zealand could have significant implications for stakeholders;
particularly those who have an interest in healthcare performance. In the UK,
healthcare reform has developed with a focus on OC as a significant facilitator
of change.1,40–43
This has followed several strands which we could learn from
in New Zealand:
Realisation of the importance of OC by
policymakers—Major disasters relating to patient safety in the UK
(Bristol Heart and Harold Shipman) resulted in a re-focus on the place of human
activity in health service delivery. The development of clinical governance by
policymakers was expected to curb flaws in health service delivery through a
focus on culture as a lever for organisational
change.1,41,43
I am unaware of formal evaluation in New Zealand however, it
appears that clinical governance activity has been limited to the mandatory
requirement of the District Health Board New Zealand PHO Performance Framework
(PPF). In 2005 and 2006 Dunedin based Best Practice Advocacy Centre (BPAC)
undertook education sessions about clinical governance as part of the PPF
program. This hardly constitutes the embedding of clinical governance as part of
OC.
Recognition of the importance of OC by health
service researchers—It has been increasingly recognised that OC
has an influence on the performance of healthcare systems. There has been a
flurry of interest in applying organisational theory to the healthcare sector,
particularly in the UK and USA. Instruments to measure OC have been
assessed44,45 and the conceptual methodological
challenges of studying in this area have been
identified.25,28,29 If culture is
conceptualised as the way(s) we think and act within
organisations3 then OC must have an influence
on performance. It then becomes a matter of determining in what way(s)
so that levers of change can be identified.
Apart from research within the community pharmacy sector,
health service researchers in New Zealand have been relatively naïve to the
benefits of pursuing an OC research agenda.3,46
The energy put into studying OC in the UK has not been replicated in New
Zealand. As a result, we have a poorer understanding of approaches to
organisational change, how OC manifests, and the ways in which dimensions of OC
may mediate performance in both positive and negative ways.
Recognition by policymakers of the need to
understand and evaluate OC change—The recognition by health
policymakers, funders and planners of the need to understand and evaluate OC in
health care, and the keen interest by health service researchers to do so, has
resulted in a flourishing research agenda in the UK.
Studies suggest that performance in health care is
contingent upon particular manifestations of OC. High and low performing
hospitals in the UK demonstrate divergent patterns of
OC.25,47 It is also possible that high
performance may influence OC in recursive ways. That is, different OC may
develop from high performing healthcare organisations over time, although more
work is required in this area.47
In the UK, Mannion and colleagues have noted a shift in the
OC of healthcare organisations as a result of an increasingly market driven
sector.48 Understanding this sought of change
is best undertaken through a cultural lens using robust and systematic research
techniques. Such an approach has been followed in the UK.
There is a high awareness amongst clinical governance
managers in the UK of the need for cultural
renewal.49 One third of managers surveyed were
using OC assessment tools.50 I am unaware of
similar data available for New Zealand although I suspect that the uptake of the
notion of OC and the assessment tools will be at a considerably lower level.
The gaps: A research agenda for New ZealandDeciphering the influence of culture on performance is a
challenging area to study. Both are difficult to conceptualise, operationalise
and separate as distinct concepts.25,28,29
Novel methodological approaches need to be thought about to achieve this. The
majority of studies have been undertaken in the context of the secondary care
sector and more OC oriented research is required in primary care.
Studies have involved OC associated with
leadership27 with little focus on the
collective whole, who carry the culture within an
organisation.7,17 Some work has been undertaken
in the area of professional subcultures33 but a
lot more needs to occur in primary care. There is an increasing realisation that
stakeholders contribute significantly to service co-production and are likely to
be involved in co-production of service
delivery26 and so OC research that involves
patients and communities will be important.
There is a need to consider the place of OC in influencing
system-wide change. This is particularly the case under the devolution of
services from secondary to primary care and the development of IFHC. I have
previously discussed OC as a mediator for change and this section outlines this
with respect to unanswered questions in the New Zealand context.
The micro level – the practice
level—Exploring barriers and facilitators to multi-disciplinary
teamwork between general practitioners, primary care nurses, community
pharmacists and practice managers will be required under the IFHC model. The
potential influence of professional subcultures on performance should be high on
the research agenda. The PFP describes a list of performance indicators which
reflect population health outcomes that are important to all New
Zealanders.51
Experience as a clinical governance group member and Chair
across a number of PHOs suggests there is marked variation in general practice
performance. It is likely that some of the variance in performance is due to the
different OCs that manifest as part of these practices. These differences need
to be identified and understood. Adopting a cultural lens to achieve this is
appropriate.
The meso level—At the funding,
planning and implementation level clinical governance activities would be one
focus of OC shift. Clinical governance groups have been a pre-requisite for PHOs
entering the PPF however there is little knowledge of how this is operating in
primary care.
Despite top-down health policy, the devolution of services
from secondary to primary care organisations may also be influenced by OC; the
values and beliefs which underlie each of these organisations which are
significantly different. No better is this demonstrated than the recent
‘cage rattling’ at a national level and subsequent restructuring of
DHB teams and PHOs across the greater Auckland area.
The macro level—Within the macro
level—national policymakers; New Zealand healthcare policymaking and
evaluation needs to align with other developed countries and be more explicit
about the importance of OC as a mediator for change within complex healthcare
environments. Lack of consideration of humanistic aspects of organisational
change provides the thrust of this paper.
In other developed countries such as the UK, there has been
a systematic approach to the development of quality service provision and the
identification of patterns of OC in both high and low performing organisations.
UK policymakers have incrementally developed a way forward with respect to
healthcare reform.
In New Zealand we have not been so broad or systematic. It
appears the recent emphasis on change is at the implementation level where
priorities stem from doing things ‘because representatives of government
said so’ and ‘government wants it done this way, before the
election’. This is a reflection of the ‘cage-rattling’
approach alluded to previously.
Another macro-level issue is the fact there are a large
number of PHOs serving disparate communities yet there is little understanding
of the OC of these Boards. It would be useful to consider the increased policy
focus on ethnic and socioeconomic disparities (‘reducing
inequalities’) from the previous Labour Government and to explore whether
this policy focus has changed organisational values, behaviours and thinking. It
would also be interesting to know whether this has had an impact on
organisational performance and if so, in what ways?
Amalgamation of PHOs is occurring, some joining through
their own processes of rationalisation, others through government or local DHB
coercion. Either way, there is little understanding of or consideration for the
differing OCs and how this will affect top-down merger processes, and the
implementation of programmes.
Over the years I have seen IPA and PHO amalgamations that
seem rational on paper however, they have fractured due to incompatible OCs. The
same could occur with IFHC development at the practice level. IFHC are more
likely to be a merge of existing general practices, with their own cultures than
as new practices outright.
The development of IFHC will be gradual and action research
will be required to ensure that new IFHC learn from established centres. More
important is the macro-level question of whether IFHC centres will demonstrate
improved health gains over the system unchanged.
ConclusionInternationally, healthcare sectors are under pressure to be
accountable for the use of public monies and performance. In order to deliver on
stakeholder expectation transformation across all levels of the healthcare
system may be required. In the UK health sector there has been a focus on
structural and systems change and human or social change.
Cultural change was introduced into policy development and
implementation from the outset of reform. The UK Government has supported
research which helps to understand structural and human change processes that
influence health service delivery. In this paper I challenge current health
policymakers, funders and planners, primary care support organisations and
health research units to embrace the notion that organisational culture is to
important to ignore.
Organisational culture does influence organisational
effectiveness and determining the ways in which this occurs will impact on the
success of all levels of health care in New Zealand.
Competing interests: None declared.
The views expressed are those of the author and cannot be attributed to the
University of Auckland, or any other third party in any manner.
Author information: Shane L Scahill, Senior
Health Research Scholar, School of Pharmacy, University of Auckland
Acknowledgements: I thank the University of
Auckland for awarding the Senior Health Research Scholarship and for funding the
field visit; academic leaders at two Health Service Research Units in the UK for
their time and guidance; and Associate Professor Amanda Wheeler for the time and
energy she put into reviewing this manuscript.
Correspondence: Shane L Scahill,
Senior Health Research Scholar, School of Pharmacy, University of Auckland, New
Zealand. Fax: +64 (0)9 3677192; email: s.scahill@auckland.ac.nz
References:
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