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The Living Company

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Most companies do not survive the upheavals of change and competition over the long haul. But there are a few remarkable firms that have withstood the test of several centuries. What hidden lessons do they hold for the rest of us? Arie de Geus, the man who introduced the revolutionary concept of the learning organization, reveals the key to managing for a long and prosperous organizational life. The Living Company speaks not just to aspiring leaders, but to anyone trying to adapt to a turbulent business environment. Only those steeped in the habits of a living company will survive. 'This profound and uplifting book is for the leaders in all of us. Arie de Geus challenges most of the conventional wisdom in management thinking today' - Dr. James F. Moore, author of "The Death of Competition".'Arie de Geus gives leaders of the future an indispensable guidebook in which commitment to values, people, learning, and innovation defines the living company. It's in my book bag' - Frances Hesselbein, President and CEO, The Drucker Foundation.

240 pages, Paperback

First published April 9, 1997

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Arie De Geus

11 books8 followers

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54 (20%)
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Displaying 1 - 22 of 22 reviews
Profile Image for Harry Harman.
845 reviews19 followers
Read
September 30, 2022
Long-lived companies were conservative in financing. They were frugal and did not risk their capital gratuitously. They understood the meaning of money in an old-fashioned way; they knew the usefulness of having spare cash in the kitty.

there have always been three key sources of wealth: land and natural resources, capital (the accumulation and reinvestment of possessions), and labor.

If a company fell into trouble, jobs were cut first, because the capital assets (and the investors' goodwill) were far more scarce and valuable, and managers saw the optimization of capital as their first priority.

your company might win the corporate equivalent of an Oscar when Fortune magazine and the Financial Times publish their lists of the 100 or 500 Chosen Ones.
Profile Image for Denis Romanovsky.
215 reviews
November 8, 2018
This book had intrigued me by the name. I was not sure I would like the contents. But, hey, how interesting it was to read about a “living company” concept from a Shell manager. I just did not expect such deep holistic and fresh thoughts on organizations. Anyway, this is a very good book. The concepts of a learning organization, personality and ecology make it worth reading.
26 reviews
November 10, 2024
Interesting take on how to view a company. Proposes that companies are like living organisms with their own will to survival. I can see how this is a thing but if I ever wanted to start a company I think it would be to make money. Then once I have all the money I could ever want I would worry about such things. Or if I worked at some humungous corporation I would worry about such things. Dispersing decision making power to strengthen a company is really interesting. Something to note is this author worked at Shell his whole career and I shouldn’t take his advice too literally because he just has this world view and anecdotal evidence to support his claims.
Profile Image for Carlos Viesca.
4 reviews
January 1, 2019
It is an excellent reference to devise the corporation of the future. Particularly because it exposes the week vision and wisdom of corporate leadership in general. This is particularly evident for Mexican or Latinamerican corporations. Our management style is years behind the vision of this book even though it's 20 years old.

The only weakness is precisely that. It would be great to have a new edition, updating its examples and adding the current socio-environmental context of sustainability.
564 reviews5 followers
March 9, 2021
Tips and strategies to achieve a higher level of success in your business and life! Inspiration and insights on how to go from survival to thrival! Karen Briscoe, author and podcast host 5 Minute Success
15 reviews
July 31, 2018
Insightful look at how companies can be seen as living organisms and the resulting consequences for manager and employee behavior.
Profile Image for JP .
15 reviews5 followers
April 12, 2021
Looking to revisit this after reading it back 15 years ago. Arie died last year
42 reviews1 follower
May 16, 2024
Shit, what a waste of pages and ink
Profile Image for Trish.
53 reviews
June 6, 2025
If you are part of a company that thinks long term, this is an excellent read. It really expanded by outlook in a number of areas including innovation.
Profile Image for Jack Vinson.
952 reviews49 followers
September 22, 2010
This book starts with the central question, "Are companies alive?" There are certain companies that behave more as living organisms, and de Geus argues that these companies are the ones that survive the longest, citing examples of companies that have lasted 100+ years by adapting to the ever-changing environment in which they find themselves. He argues that just as organisms must adapt to their changing environment or die, so too must companies. 

If this is true, then companies must be managed to encourage this growth and adaptability. de Geus discusses the application of a variety of research on learning theory of individuals and groups to the concept of the living / learning company. One of the best concepts is that of knowledge ecology, which has gotten a lot of play after this book was published. de Geus describes three preconditions for knowledge to flourish in an organization: innovation, social propagation, and mobility. Innovation is clearly needed in the creation of new knowledge. Those innovations must go beyond the group or person who created the innovation via local social propagation of the concept and through larger mobility of the idea through the "society" of the organization. 

Throughout the book, de Geus describes two extremes of company organization in a variety of ways: The mechanical company is the one run as if it were a predicable machine and the one which is unlikely to survive major changes in its environment. The living company is more likely to handle change well and adapt, since it is run and cared for with ecology in mind. The people in a living company are assets to be nurtured and grown, whereas the people in machine companies are expendable cogs. The last sections of the book describe the Shell's people development program, which is not unlike the military program of moving people to different responsibilities throughout the company, rather than keeping them focused on one area of the business. The idea is to develop people who are adaptable and capable of handling new circumstances, while also indoctrinating them in the Shell culture. 
Profile Image for Paradox_spiral.
4 reviews
July 9, 2011
Взгляд на долгожителей в бизнес среде глазами одного из представителей таких компаний,как Royal Dutch/Shell Group. Книга систематизирована: каждая глава описывает отличительную особенность компаний новой эры, когда преобладание знаний в компании намного становится важнее, чем ROI. Примеры рассказанные авторам показывает многое, что ROI в компаниях с наибольшими финансовыми показателями скорее играют второстепенную роль, чем основную. Живая компания закладывает на развитие и будущее, а не на немедленный наилучший результат, что в большинстве приводит к максимальному выигрышу. Не гоняясь за сие минутной выгодой - компании получает наилучшие дивиденды в будущем.
Profile Image for Stephen.
Author 4 books57 followers
July 24, 2011
READ DEC 2010

Good, non-academic take on how to create a dynamic, learning--living organization. Given our current economic climate, I recommend to all organizational leaders regardless of country or industry.

Best quotes, "Space must be created for people to experiment and take risks. At the same time, people cannot simply do what they like at the expense of the organization's common purpose. Clearly, one needs both: empowered people and effective control" (p. 183); "strategy is something you do, rather than something you have" (p. 184); and "You do not navigate a company to a predefined destination. You take steps, one at a time, into an unknowable future" (p. 186).
629 reviews11 followers
May 10, 2012
Some stellar thoughts on how great, long-lived companies are different from the 'standard' (economic) company. This was written a decade and a half ago, and there are definitely both examples that feel dated and more recent events that I'd love the author's opinion on.

Overall highly recommended. It won't tell you how to run your company or lead your team, but Mr. de Geus will do a great job of making you think about the future of your organization, who it's trying to serve, and how it treats its members.
Profile Image for Greg.
41 reviews1 follower
February 20, 2013
This book though well written made it's point early on about adapting to the marketplace for survival and with my having put years in entertainment, especially now as technology races forward, "adapting" to a rapidly changing business climate and economic landscape is a given. Adaptation comes with a price when your company answers to wall street and your a player on someone else's field. Lights too bright out on the playing field?! Can't see to make your winning play? Must be a new kinda bulb their testing...Oh, you weren't told? Adapt! LOL
Profile Image for Nick Russo.
207 reviews8 followers
May 28, 2015
Interesting book, and an interesting school of thought. I now take pause on that popular issue of whether corporations are people. It's easier to abandon that train of thought for the puddle, money-driven companies but the river companies that have stood the test of time and respond to their environment by adapting to survive, much as a living organism, are a different case.
Profile Image for Vikrama Dhiman.
159 reviews104 followers
June 28, 2020
Fabulous book

Peter Senge wrote the Foreword to the book. Written way back in 80s but hugely relevant even now. Do pick if you are a senior executive and your job entails making others successful.
Profile Image for Eleftheria.
151 reviews5 followers
June 11, 2012
Πραγματικά εκφράσει την αντίληψή μου για τις επιχειρήσεις και τους οργανισμούς.
80 reviews
May 16, 2015
как всегда в случае с профессиональной литературой, отвратительный перевод
Profile Image for Alexis.
7 reviews1 follower
June 18, 2011
Read for KLJ Young Professional Development Program (YPDP). Good points, good business discussion.
Displaying 1 - 22 of 22 reviews

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