The companies that survive longest are the one's that work out what they uniquely can give to the world not just growth or money but their excellence, their respect for others, or their ability to make people happy. Some call those things a soul.
Interpretation
Successful companies focus on their unique contributions to society rather than just profit.
In this quote, Charles Handy emphasizes that the longevity of a company is determined by its ability to identify and provide unique value beyond mere financial gain. He suggests that organizations should aspire to cultivate qualities such as excellence, respect for others, and the ability to bring happiness, which he contends are the true attributes that give a company its soul and enduring success.
In practice
In a business seminar, a speaker uses this quote to emphasize the importance of creating lasting value in the marketplace.
The first step is to measure whatever can easily be measured. This is OK as far as it goes. The second step is to disregard that which can't be easily measured or to give it an arbitrary quantitative value. This is artificial and misleading. The third step is to presume that what can't be measured easily really isn't important. This is blindness. The fourth step is to say that what can't be easily measured really doesn't exist. This is suicide.
Why don't we teach our children in school what they are? We should say to them, 'You are unique... you have the capacity for anything. You are a marvel'.
To learn anything other than the stuff you find in books, you need to be able to experiment, to make mistakes, to accept feedback, and to try again. It doesn't matter whether you are learning to ride a bike or starting a new career, the cycle of experiment, feedback, and new experiment is always there.
We cannot wait for great visions from great people, for they are in short supply. It is up to us to light our own small fires in the darkness.
I believe that a lot of our striving after the symbols and levers of success is due to a basic insecurity, a need to prove ourselves. That done, grown up at last, we are free to stop pretending.
Creativity needs a bit of untidiness. Make everything too neat and there is no room for experiment.
You should learn from your competitor, but never copy. Copy and you die.
Market leaders inevitably slip into decline when they tell the people what they want instead of giving the people what they want.
The antidote to inequality is equality. The question is how do you achieve equality? I believe that, for business, which is where I can speak, we have to shift from shareholder maximization to stakeholder maximization.
You go to any MBA program, and you will be taught the theory of the firm, that the purpose of the firm is the maximization of return on invested capital. I always thought this was a kind of lunacy.
By simply capitalizing on core strengths and knowledge, companies and entrepreneurs can engage in an emerging business model that will enable them to create - and demonstrate - real, sustainable social impact in society.
Thinking about starting a small business? Assume everything will cost twice as much and take twice as long as you think it will.
Subscribe for the occasional hand-picked quote. No noise.