When No Change is a Good Thing
A recent article published at Knowledge @ Wharton (registration required) discusses an interesting concept. The article discusses a study commissioned by Booz Allen concerning the concept of "enduring value." The study identifies some enduring institutions such as GE, Sony, the US Constitution, the Salvation Army, Dartmouth College and the Rockefeller Foundation, that "share the ability to innovate and adapt, leadership that balances stability and change, and a commitment to excellence." Ralph Shrader, Booz Allen's CEO stated:
"I would like to challenge the contemporary thinking that something or someone has to be new to be good. We make a grave mistake when we look at the future with our backs to the past. The past is what brought us to where we are.... Some of the reasons for the corporate leadership problems we have seen over the last several years [have to do with] overemphasis on things that change and not enough on things that endure..."
The article states what is now almost obvious: that companies such as Enron, et. al. were more focused on the short-term than on long-term viability and shareholder financial well being. As many of us go into companies in a turnaround situation, we often evaluate performance from the perspective that what was done in the past must be bad or wrong. Perhaps if we take a step back and look instead at what elements of the firm are consistently "right" over the long haul, we can balance those with the changes we are recommending. Sometimes people become so enamored with activity for the sake of action, rather than truly understanding what in the past brought value compared with what really needs to be changed.
