It worked, if not perfectly, but why should they change policy?
WW1 ended with the empire financially drained, the seeds of its disintegration were lain, and Britain had lost both the financial and politcal ability to really influence the continent, which came to bite it when this caused WW2, which first led to a german hegemon, and the destruction of the empire as price for battling germany down, with Britain being relegated a very distant third (if that!) post WW2.
With hindsight, any and all British policy which only slightly increases the chances to end up in a WW1 like conflict are clearly catastrophic policy failures.