Privatisation and Cultural Change: A Case Study of Management Development in British Telecom

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Abstract
The privatisation and reorganisation of British Telecom (BT) presented its various divisions with the problem of transferring commercial awareness at the top management level to middle management level. A management development programme was designed which combined computer‐based business strategy modelling and “best practice” modelling in human relations. These areas were previously treated separately. The greatest problem for senior managers was modifying their values. For middle managers the problem was that their values were overturned and themselves threatened. The one‐week courses allowed fears and confusions to be aired and examined. By exposing managers to “best practice” procedures they were given frameworks to help them determine how to forge a relationship between a sensible economic strategy and a complementary culture. The programme has been very successful and is to be implemented in other BT businesses.

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