The Living Company [Hardcover]

Arie de Geus (Author), Peter M. Senge (Author)

Book Description

Publication Date: January 1997

In The Living Company, the man who first introduced the revolutionary concept of the learning organization turns his attention to identifying the critical characteristics of organizational longevity. The book speaks to everyone trying to adapt to a turbulent business environment.

Editorial Reviews

Amazon.com Review

The average life span of a Fortune 500 company is less than half a century, yet there also are corporations around the world that have been in business for 200, 500, even 700 years. Arie de Geus, a retired Royal Dutch/Shell Group executive, maintains after studying both extremes that the most enduring treat their companies as "living work communities" rather than pure economic machines. The Living Company: Habits for Survival in a Turbulent Business Environment persuasively outlines his resultant prescription for organizational longevity.

From Library Journal

According to a study conducted by Royal Dutch Shell, where the author worked for 38 years, the average life expectancy of Fortune 500 firms is 40 to 50 years. Many such companies don't survive beyond a few years, while others have existed for over 200. Why? De Geus, widely credited with originating the concept of the learning organization, writes: "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." He summarizes the components of the long-lived company as sensitivity to the environment, cohesion and identity, tolerance and decentralization, and conservative financing. In this insightful study, he describes how today's managers and staff should strive to develop a living company and increase its life expectancy. An important work; recommended for academic libraries.?Lucy T. Heckman, St. John's Univ. Lib., Queens Village, N.Y.
Copyright 1997 Reed Business Information, Inc.

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Product Details

• Hardcover: 215 pages
• Publisher: Harvard Business School Press; 1 edition (January 1997)
• Language: English
• ISBN-10: 087584782X
• ISBN-13: 978-0875847825
• Product Dimensions: 9.3 x 6.1 x 1 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 4.6 out of 5 stars  See all reviews (24 customer reviews)
• Amazon Best Sellers Rank: #316,948 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

10 of 10 people found the following review helpful:

5.0 out of 5 stars The Organization as the Organism !, August 7, 2000

By 

Gautam Ghosh "voracious reader" (Bangalore, India) - See all my reviews
(REAL NAME)   

This review is from: The Living Company (Hardcover)

Arie de Gues is known to some management students as the person whose research spurred Peter Senge to do work on the "learning Organisation". In this book Arie talks about the evolving notion of the organization as a living being, instead of just an "economic entity" whose main purpose of existence is to survive, fulfill its potential, and to become great. Plain talking and cutting free from jargon, Arie illustrates this idea with examples from his career in Royal Dutch Shell and the studies Shell had carried out on long lasting and big organizations (they found only around 40 odd !!). This book needs to read by entreprenuers, business people and academicians to look at their organizations as some thing else apart from a money making machine ! Revolutionary!!

7 of 7 people found the following review helpful:

5.0 out of 5 stars This book is must reading for any leader or aspiring leader!, January 24, 1999

By 

Donald Mitchell "Jesus Loves You!" (Thanks for Providing My Reviews over 109,000 Helpful Votes Globally) - See all my reviews
(VINE VOICE)    (HALL OF FAME REVIEWER)    (TOP 100 REVIEWER)   

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This review is from: The Living Company (Hardcover)

Arie de Geus is probably the most unique business thinker around. He combines the pragmatism of someone who had a very successful career at Shell with the curiosity of a talented academic. Behind this unique perspective is a deep appreciation for people. Most of us automatically relate to organizations like Newton related to the natural world, as one big physical mechanism. We casually talk about "aligning parts of the organization", "operating in organizational smokestacks or silos", and "fixing communications channels". Mr. de Geus helps us learn to think about organizations from the natural perspective, as living organisms, subject to many of the same limitations and forces as individual people are. When you read this book, you will become a much better and more effective person in all parts of your life. You will also feel better about yourself, and make those around you feel better about themselves. Read THE LIVING COMPANY today. This book is a wonderful gift to us all!

15 of 19 people found the following review helpful:

5.0 out of 5 stars the living book, February 10, 2001

By 

Romulo Corrêa (Brazil) - See all my reviews

This review is from: The Living Company (Hardcover)

If I have to stay with only one business book in my shelf( I have more than 300 in the last count), the living company would be this book. My review will be more emotional I think. This is so, because the way this book touched me. I read it three times and some time think I have to read it again.

This is a very similar with the "Built to last", one of the bestsellers of Amazon. If you liked that book this will be an excellent complement of your reading and thoughts.

Perhaps this is the book that a Startup's CEOs should had read before launch their enterprise, because one of the characteristic of a living company is that they are conservative in their finances.

De Geus wrote a book that it is not limit to a period of time like recent books dot com books. By this I mean that you can go back to it and reapply its contents in your business reality again and again.

An import thing to say is that this is a book of principles, not rules or easy steps to success. Although the author is going to show you that there is a pattern in all the living company, he goes beyond that, showing the root that origin these patterns. The principles was constructed by observing companies, specially Royal Doutch/shell, were Arie de Geus worked for many years, but with the help of other disciplines like psychology and biology, which study the behavior and life of humans and animals. To discuss about innovation for instance, you will observe how a specie of bird is very smart to pass a learning to the whole specie. And to understand how we react or anticipate an external change in our business, it will be useful to look some psychology's theories about the human mind, and so on.

Don't think this is a book for academic public, it is not. You will find not only theories but many examples and cases of the thesis of De Geus. But it is different, I think, of the recent business book. Some times it seems so easy to look a successful company today and says "look, this is what you have to do in your company". A couple of years ago you could find many books explaining why Netscape was so great. Where are Netscape now?. It would not pass in the test of time.

So if you are only worried to make your money no matter what is going to happen to your company, this is not a book for you. Probably you are Jim Clark type. Read the new, new thing instead. But if you thing that management is more than stock options ( I said more. I am saying that is a consequence not the only objective), if you believe the every company must have a reason to exist, if you believe the people are important, than I guarantee, you gonna like this book, tell me about