A Model of the Effects of Reputational Rankings on Organizational Change

10.22.2010

It has been found that prominently published rankings such as “America’s Most Admired Companies”, “Best Business Schools”, or the “Fortune 500” places pressure on organizations to adjust practices according to the criteria of the ranking survey. The degree of to which action may or may not be taken is studied based on how the organization sees itself versus the published ranking. In the article, this is referred to as “perceived identity-reputational discrepancy.” (Martins 2005) The study demonstrated a higher propensity for an organization to implement changes based on the extent of this discrepancy. The article finds that management’s perception in three areas temper the urgency to take action. These are: 1) Is a change to the ranking in line with its strategies? 2) Does the organization have a strong sense of itself internally? and 3) Is the perception of the public important to the success of the business.
Last year, the company I work for was ranked first in the nation for breast cancer screening. The new president correlated a high ranking in this statistic with a positive external reputation and to be in line with his strategy of providing high quality medical care. The old process required a patient to persevere through several steps to actually receive mammogram. First, patients were given a notice to call the mammogram department when they presented at an appointment with their primary care or OB-GYN doctor. Those that took the next step of calling the department were needed to wade through the automated voice response system before getting to an appointment clerk. Next, the clerk entered their name into the computer and mailed out their confirmed appointment date and time months later in the mail. As a result, patients frequently did not show up and or were apathetic about being tested. This process also completed ignored people that never came to the primary care or OB-GYN department.
The process has now been improved in 3 ways: 1) Receptionists anywhere in the company can now schedule a mammogram. Computer systems were modified to increase patients’ ability to walk away with a confirmed appointment in hand in 30 departments instead of only 1 department. 2) New mammography equipment was purchased and housed in all major locations. 3) Same day appointments are now frequently available to provide a hassle-free experience for the patient. As a result of these changes the organization’s measure of the worst stage of breast cancer is now down to zero for established patients. This change has proven to benefit the patients whose lives and well-being is now enhanced and benefit the organization due to reduced cost due to detecting these cancers in its early stages.
Martins (2005) study illuminates the idea of the relevancy of prominent rankings to the economy and to people’s lives, consequently having a multitude of positive effects to society. This examination was interesting as it points out how certain types of organizations assimilate their practices to match the criteria in the ranking surveys.