A Case Study of Organizational Decline

Lessons for Health Care Organizations

Abstract

This case study reports on an organizational decline situation involving a historically well-known and respected professional organization outside the health care field, with the intention of pointing to several implications for health care. We begin by discussing the results of a survey that involved both members of the organization and “outsiders.” Our primary finding, both in the survey and in presenting the results to the membership, was that while those outside the organization preceived the organization as increasingly irrelevant and in decline, those inside it reacted with defensiveness to “meddling by outsiders.” We then reviewed the literature on decline, with emphasis upon important findings by Guy,1 to further understand our results and to make recommendations. We then turn to the situation in health care organizations and point out why some organizations may be at risk and conclude with a series of recommendations with emphasis on health care.