in Leadership

Four ways to make your organization live long and prosper.

Warp Field

Image by Trekky0623 (Wikimedia Commons)

I’ve been reading Arie de Geus’ The Living Company: habits for survival in a turbulent business environment. It’s somewhat tangential to my role at the Academy, but nevertheless contains some great metaphors and insights.

Arie de Geus spent most of his career working for Shell, the oil company. During his time there, Shell commissioned a study about what makes a long-lived and prosperous organization. They found the following were true of the longest-lived organizations:

  1. Sensitivity to the environment – this represents an organization’s ability to learn and adapt.
  2. Cohesion and identity - aspects of a organizations innate ability to build a community and persona for itself.
  3. Tolerance – de Geus’ term, but actually as much to do with decentralization. Both are symptoms of a company’s awareness of its ecology and its ability to constructive relationships with other entities (within and outside itself)
  4. Conservative financing – this enables an organization to govern its own growth and evolution effectively

To sum this up, de Geus talks about organizations being ‘living organisms’:

Like all organisms, the living company exists primarily for its own survival and improvement: to fulfil its potential and to become as great as it can be. (p.11)

In terms of the relationship of the above to educational institutions, although they are all (theoretically) applicable, the one most applicable to my mind is cohesion and identity. It’s really important for educational institutions to build a culture of inclusion and achievement as this helps towards both implicit and explicit reasons for their existence.

What would you add to the above list? Would you take anything away? :-)

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