Today, the stability of an organization is often seen as stagnation. Uncertainty is frightening organizations that were traditionally stable.

Peter Drucker, the father of modern management says, as quoted by Cameron and Quinn, in their book Diagnosing and Changing Organizational Culture. “We are in one of those 200 or 300 years when people don’t understand the world anymore, and the past is not sufficient to explain the future.” The unpredictability of the changes in the world today makes it difficult for organizations to stay current or accurately predict the future.

Studies have found cultural neglect as the greatest reason why organizations fail. The culture of organizations needs to be managed using six conditions to lead to financial success. Firstly, the presence of high barriers such as high cost, special technology, proprietary knowledge, or competitors blocks entry into the market. Secondly, the condition of non-substitutable products—firm products that are not easily duplicated or imitated by competitors—will bring more revenues. Thirdly, the firm can capitalize on economies of scale and efficiencies when large market shares contribute to it. Fourthly, if the level of bargaining power is low, customers will depend on the firm without any alternative. Fifthly, when suppliers depend on your firm without any alternative, there is low bargaining and your firm will have more revenues. Lastly, if there is rivalry among competitors, it deflects attention from your company, enabling you to focus and raise the standard of your performance.