If, like me, you have been a little cautious of past attempts to define a mission or purpose for managers that reaches beyond their increasing value for shareholders (i.e. the owners) then Rosabeth Moss Kanter’s article, How Great Companies Think Differently is a must-read. By taking a longer view of great companies, she has succeeded in framing the task of increasing shareholder value within a broader context which doesn’t jar.
For Kanter, the six facets of what she terms “institutional logic” are:
- A common purpose
- A long-term focus
- Emotional Engagement
- Partnering with the public
It’s a persuasive concept and worth considering.