02-01-2013, 01:06 PM
HOW GREAT COMPANIES THINK DIFFERENTLY
HOW GREAT COMPANIES THINK DIFFERENTLY.pptx (Size: 192.94 KB / Downloads: 26)
Age old debate on what a good company is or ought to be
American Capitalist system: Focus on maximizing short term profits & delivering returns to shareholders
Key lies in the Social or Institutional Logic: Practices of widely admired, high-performing & enduring companies
Great companies invest in the future while being aware of the needs of people and society.
A Common Purpose – contd.
Globalization requires that companies internalize the needs of many societies. E.g. PepsiCo.
A sense of purpose infuses meaning into an organization, “institutionalizing” the company.
Successful mergers are noteworthy for their emphasis on values and culture. e.g. Novartis.
Affirming purpose and values through service is a regular part of how great companies express their identities. e.g. IBM.
A Long Term Focus
Great companies sacrifice short-term financial opportunities if they’re incompatible with institutional values. E.g. Banco Real.
Companies using institutional logic invest in the human side of the organization. E.g. Shinhan Bank.
Shinhan invested heavily in “emotional integration”.
The result: Within 18 months, Shinhan had grown both banks’ customer bases.
Shinhan was outperforming not only the banking industry but also the South Korean stock market.
Emotional Engagement
Institutional values evokes positive emotions, stimulate motivation, and propel self-regulation or peer regulation.
Emotions play a major role and moods are contagious.
CEO of P&G, Robert McDonald’s purpose: improving more lives in more places more completely.
In P&G Africa: How have I touched this year?
They teach postnatal care, examine babies, refer mothers to hospitals for follow-ups, immunize shots and register mothers for Village.