Arie de Geus: Company

“There are times when a company’s know-how, product range, and labor relations are in harmony with the world around it. The business situations are familiar, the company is well organized, and employees are trained and prepared. During those times, managers do not need to develop and implement new ideas. Their job is to allocate resources to promote growth and development, channeling capital and people to the parts of the organization best positioned to benefit from the current state of affairs. Those parts of the organization then become larger, better established, and more powerful.
But just when the company has organized itself, outside circumstances may change. New technologies come on the scene, markets shift, interest rates fluctuate, consumers’ tastes change, and the company must enter a new phase of life. In order to stay in sync with the outside world, it must be able to alter its marketing strategy, its product range, its organizational form, and where and how it does its manufacturing. And once a company has adapted to a new environment, it is no longer the organization it used to be; it has evolved. That is the essence of learning.”

Arie de Geus

Cited in: Richard C. Huseman, Jon P. Goodman (1998), Leading with Knowledge: The Nature of Competition in the 21st Century. SAGE Publications, p. 72.
The Living Company, 1997

Life , People , World , Idea

“To me it was so natural that companies should seek their own survival. I had seen nothing else in my life. Companies struggle to keep going and to grow, for as long as possible.”

Arie de Geus

Source: The Living Company, 1997, p. 182

Life , Nature

“A company's success no longer depends primarily on its ability to raise investment capital. Success depends on the ability of its people to learn together and produce new ideas”

Arie de Geus

Arie de Geus, in: " Arie de Geus: The Thought Leader http://www.strategy-business.com/article/17421?gko=cedb2," in: Strategy & Business. April 1, 2001, Nr 22-25. p. 26

People , Idea , Learning , Success

“Some years ago, the planning group at Shell surveyed 30 companies that had been in business for more than 75 years. What impressed us most was their ability to live in harmony with the business environment, to switch from a survival mode when times were turbulent to a self-development mode when the pace of change was slow. And this pattern rang a familiar bell because Shell’s history is similarly replete with switches from expansion to self-preservation and back again to growth.”

Arie de Geus

Arie P. de Geus, " Planning as learning https://hbr.org/1988/03/planning-as-learning/ar/1." Harvard Business Review, March/April 1988: 70-74.

History , Business , Change , Time

“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.”

Arie de Geus

Source: The Living Company, 1997, p. 3

Communication , Nature , Forgetting