Understanding the Link between Organizational Culture and Profit Margin
All corporations, for-profit or not for profit, must have a margin. The cost of healthcare has been scrutinized for many years and yet it continues to rise. Hospitals are becoming more financially challenged and leadership has to determine the strategy to sustain the financial health of their institutions. There are two opposing strategies to accomplish both improved culture and margin. Does the leadership focus on the margin so the team can pay higher wages and pay for the “nice things to do for the staff” to then improve the corporate culture? Or do they focus on the organization's culture to improve the margin?