Why, then, do so many companies die prematurely? There are many speculations about the reason, and this area undoubtedly needs more research. However, there is accumulating evidence that corporations fail because the prevailing thinking and language of management are too narrowly based on the prevailing thinking and language of economics. To put it another way: Companies die because their managers focus on the economic activity of producing goods and services, and they forget that their organizations’ true nature is that of a community of humans. The legal establishment, business educators, and the financial community all join them in this mistake.
— Arie de Geus, The Living Company
What do you see as the fundamental reason for your company’ existence? Do you believe that it is a community of humans?
And does your business live to be served or to serve. How can you know? Ask your customers. Ask the people who work in the company? Serving is more than just a business strategy. To be a servant is the most profound expression of our true humanity. Humans were created to serve, participating in the image of their Servant-Creator.
Death enters into relationships, community, and business when we seek to be served rather than serve.
For even the Son of Man did not come to be served, but to serve, and to give his life as a ransom for many.
— Mark 10:45




Comments
Sobering thought. It reminds me of the work by Jerry Porras at Stanford on Visionary Companies. I think they even tried a portfolio management approach using visionary companies. Focus on the big, hairy, audacious goals. Turns out, that approach did a lot to improve the bottom line for a lot of companies.
This is so on point! I’d say another reason businesses die is when they lack a purpose beyond just making money. Great post!