By Arie De Geus
Within the residing corporation, the fellow who first brought the innovative proposal of the training association turns his consciousness to picking out the serious features of organizational toughness. The e-book speaks to each person attempting to adapt to a turbulent company atmosphere.
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Additional info for The Living Company
Example text
In so doing, we probably mold the destiny of individual organizations far more than we imagine. For example, a machine is owned by someone. We are used to thinking of companies in exactly that way: they are owned by owners, usually distinct from the company's members. But what does it mean to say that a living being is owned by someone? Most people in the world would regard the idea that one person owns another as fundamentally immoral. Is it no less problematic with regard to a company? A machine exists for a purpose conceived of by its builders.
If a company fell into trouble, jobs were cut first, because the capital assets (and the investors' goodwill) were far more scarce and valuable, and managers saw the optimization of capital as their first priority. During the Great Depression of the 1930s, for example, it had been considered good banking practice to liquidate and destroy client institutions, and all the jobs associated with them, if this would help recover even a scrap of invested capital. (This may have seemed harsh, but it was necessary.
The Shell study also reinforced a concept I have developed since my student days: to consider and talk about a company as a living entity. In this, I do not stand alone. Many people naturally think and speak about a company as if they were speaking about an organic, living creature with a mind and character of its own. This common use of the language is not surprising. All companies exhibit the behavior and certain characteristics of living entities. All companies learn. All companies, whether explicitly or not, have an identity that determines their coherence.