Organization on Philip Sheldrake

Talking garbage and the purpose of business

Fri, 15 May 2015 00:00:00 +0000

The third in a series on the topic of the purpose of business. Follows:

Business exists to establish and drive mutual value creation. Steve Denning challenged this statement, preferring Drucker’s assertion that the purpose of business is to create and keep a customer. I responded, and he has challenged my response:

we may be talking about different things: theoretical purpose of a firm and how to run it

“satisfying all the stakeholders” isn’t a viable heuristic to run a firm. See Making Management as Simple as Frisbee

“satisfying all the stakeholders” was tried in mid20thC. It led to Garbage Can firms.

[tweet tweet tweet ]

Garbage

Steve refers to “garbage can firms” in his Forbes article, Is The Tyranny Of Shareholder Value Finally Ending? , an eloquent take down of prioritizing the pursuit of shareholder value. When it comes to garbage it quotes a trio of academics – Cohen, March and Olsen – who in 1972 explained:

Debating the purpose of business

Thu, 07 May 2015 00:00:00 +0000

The second in a series on the topic of the purpose of business:

Steve Denning published an article to the Drucker Forum last week, How The Internet Is Forcing The Humanization Of Work , an argument founded on Drucker’s assertion that the purpose of business is to create and keep a customer.

Steve found my post on the purpose of business post-Drucker via a thread with Kenneth Mikkelsen and tweeted his comments. His first quotes my re-definition of the purpose of business:

[The] Problem with “establish and drive mutual value creation” is that it doesn’t tell me what anyone has to do.

and then :

“Delight customers” as the goal is crystal clear as to what everyone has to do.

and lastly :

Since power has shifted from seller to buyer, “delighting customers” sets priorities right, for firm to survive

I share Steve’s optimism that we may be on the cusp of the potential to possibly humanize work (can my optimism be more tentative?!), but I cannot subscribe to his rationale.

What, exactly, is the purpose of business? An answer post-Drucker

Fri, 17 Apr 2015 00:00:00 +0000

The first post in what turned out to be a series of three on the topic of the purpose of business:

Peter Drucker asserted that the purpose of business is to create and keep a customer. He was right at the time in offering previously inward-looking firms a more appropriate beacon. His dictum is, however, wrong for our time.

The assertion is insufficient in sustainability terms; ie, being concerned with the health and resilience of living systems such as organizations, society and the environment. A customer-centric outlook is too simplistic, simply failing to recognise complexity, and therefore at threat from business that has progressed beyond Drucker’s heuristic.

The Mozilla Manifesto amplified, from Internet to organization

Mon, 09 Jun 2014 00:00:00 +0000

Inspired by the analogy of organization-as-software, and indeed the reality of organization-as-software , what might it look like to take a manifesto about software and digital networks and apply it to human networks and organization?

In my recent presentation, The Future of Organization , I took the majority of the Mozilla manifesto and replaced references to the Internet with references to organization. I liked the result so much I thought I’d post it separately here for ease of reference.

Organization is software

Mon, 02 Jun 2014 00:00:00 +0000

This post is about an exciting vista for organization, one that may sound unhuman on the face of it but which, in contrast, I think could serve human dignity very well.

I first presented it in my Future of Organization video May 23rd, a presentation that appears to have been well received (and the accompanying Slideshare accrued over 2000 views in the week). Given the variety and perceptiveness of the comments the video garnered I’m particularly pleased to have excused the presentation up front as being far from comprehensive. Pete Burden picked up on building inclusiveness and sustainability, and humanity, pointing me to this webpage on concious business . And soulfulness was at the heart of a similar exchange with Frederic Laloux, author of Reinventing Organizations . (I consequently elevated the book to the top of my to-read pile and at page 36 I’m enjoying it very much so far.)

Mr. Wirearchy himself, Jon Husband , was good enough to ’tweet out’ (appended here). And my dear friend Gabbi Cahane wondered what balance of my living in the future and living in the present might be best for business. Hmm, good point :-)

In this post, I’m referring to what I’ve named Bread incorporated – a distributed, self-regulating, incorruptible, frictionless market for organization. Here’s the slide in question and the transcript: