Companies As Living Organisms

In a world of economic and geopolitical confusion, the key to sustained growth lies in strategies that span centuries, not just fiscal quarters. The question that inevitably emerges is how to transform an organization into a ‘Living Company,’ one that perpetually evolves, learns, and thrives.

The concept of the ‘Living Company,’ as established by Arie de Geus, pivots around the crucial principles that distinguish 100+-year-old companies from their short-lived counterparts. This essay presents an in-depth analysis of de Geus’s work. The nine key takeaways in this essay serve as guiding principles for businesses desiring longevity and prosperity.

In 1983, Royal Dutch Shell commissioned a study of companies older than Shell and large enough to be important in their industry. They wanted clues on how to run their own business. Looking for large companies older than Shell would mean going back into the first years of the Industrial Revolution! They found 40 such companies and called them living companies.

Success that lasted centuries, the research team learned, came down to how living companies managed three things:

1. Their people
2. Their information
3. Their money

I devoured this book and extracted nine lessons we can use to prepare our companies today for uncertainty tomorrow.

9 Lessons from Living Companies

1. Purpose and process are two different things.
2. Strategy is something you do, not something you have.
3. People must feel secure in a company's identity.
4. Learning isn't a case of filling up a tank; learning is a process.
5. Birds that flock together learn faster.
6. Tolerant rose pruning leads to longer-lasting rose bushes.
7. Distribution of power leads to better decision-making.
8. Mo' money ain't mo' motivation.
9. Conservatism in financing secures the future.

These are nine time-tested lessons for longevity and prosperity; secrets of Living Companies, if you will. The blueprint for a living company lies not in fleeting trends or momentary victories but in the enduring lessons gleaned from companies that have stood the test of time.

As a LinkedIn reader, you’re missing the in-depth exploration of all nine lessons. For the full article, keep reading here.