Purpose of Corporations LO10287

Hirsch, Eric (ERICH@gentire.com)
01 Oct 96 15:19:43 EDT

Replying to LO10248

These is much written on what the true purpose of an organization is.
Harvard Business Review has had numerous articles on this subject. On
stands out to me. It was by Christopher A. Bartlett and Sumantra Ghoshal,
"Changing the Role of Top Management: Beyond Strategy to Purpose." I have
used in my work within organization, as part of the change process the
very argument that Ben used. Corporation or any organization are put in
place for a greater good than just profit.

I too have come under ridicule but, when attempt to gel an organization it
is difficult to get the workers on the floor to care about profits. This
being difficult for some CEO's and presidents to understand, I came up
with a statement that seemed to satisfy the organization.

I stated our purpose but put in that profits were our stakeholders
greatest benefit. As David Packard said something like profits are like
the air you breathe or the food you eat, they are necessary but it is not
the joi de vie.

I struggled getting this point across as necessary within an organization.
But I have found through experience that if you can create a shared
mindset, which is almost always something other than a profit statement,
it is functionally easier to create an organization that is willing to
learn.

Eric Hirsch
EricH@gentire.com

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ERICH@gentire.com (Hirsch, Eric)

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