Companies die because their managers focus on the economic activity of producing goods and services, and they forget that their organizations' true n… - Arie de Geus

There are times when a company’s know-how, product range, and labor relations are in harmony with the world around it. The business situations are familiar, the company is well organized, and employees are trained and prepared. During those times, managers do not need to develop and implement new ideas. Their job is to allocate resources to promote growth and development, channeling capital and people to the parts of the organization best positioned to benefit from the current state of affairs. Those parts of the organization then become larger, better established, and more powerful.

Some years ago, the planning group at Shell surveyed 30 companies that had been in business for more than 75 years. What impressed us most was their ability to live in harmony with the business environment, to switch from a survival mode when times were turbulent to a self-development mode when the pace of change was slow. And this pattern rang a familiar bell because Shell’s history is similarly replete with switches from expansion to self-preservation and back again to growth.

To me it was so natural that companies should seek their own survival. I had seen nothing else in my life. Companies struggle to keep going and to grow, for as long as possible.