The advantages of the company can be changed to the negative effect at any time

Source: Internet
Author: User
Law) Professor of strategy and management, ESSEC Business School/Hamid Bushki (for the It times) when people are more trusting and more committed to a company, the company is in fact in crisis-prone to a vicious circle of narcissism, and then to extreme narcissism, it becomes closed, And will reject criticism from outside, remember the American Digital Equipment Company (DEC)?  Its micro-computer, with small size, cheap, easy to operate, and so on, once challenged IBM in the computer market dominance. In the the 1970s, DEC's career was at its peak, and it was considered a courageous innovator, and could even replace the blue giant as the world's leading computer industry leader. In 1998, however, the struggling Dec was found to have been swallowed up by Compaq and cut off 15,000 employees. By 2007, whether as a corporate entity or a corporate brand, Dec ceased to exist.  The consistent, enduring, unique identity of the company established in the Sixties or seventies of the 20th century has become a dilemma that it cannot extricate itself from.  DEC's events make it clear that if managers are unwilling or unable to go beyond strategic and operational considerations, and do not value the negative effects of corporate identity traits, they could turn into debt. Too narcissistic and ordinary individuals, the company also has a tendency to narcissism.  When the company's owners, employees, and major stakeholders, are drawn to and proud of a clear and enduring identity, and are prone to narcissistic tendencies, regardless of whether the company's signals are weak or strong, and even when the identity of the company is no longer feasible. Back to Dec's example. Many observers and academics have made a simple analysis of the case and given several explanations as to why the company failed. Harvard University Professor Christensen that Dec, like other tech companies, did not anticipate the disruptive changes that would come with the development of personal computers. This explanation seems plausible and can be successfully applied to the analysis of other cases. But why didn't many companies expect that?  The explanation for disruptive change is not justified. For the time being, we put aside the economic and strategic factors and consider only the relationship between corporate identity and corporate performance. When a company is considered to be successful, its stakeholders often think it is due to the intrinsic nature of the company that brings good performance.  In the process, they will increase their trust in the company and be willing to make a commitment to it. Narcissistic companies do not only appear in the field of information technology. Moulinex, the French small household appliance manufacturer, also shares the same reasons as Dec, which has suffered a failure for the same reason.  The universal company was created by a self-taught engineer after World War II, his name is Jean Matley. Matt has a simple but very farBig vision: Provide French families with state-of-the-art and high quality kitchen utensils at affordable prices, and offer jobs to the French as much as possible. Development, innovation, cost leadership and job creation, together become the core of its identity characteristics. The vision of Matt and the unique identity of the company that he defines has enabled the company to sustain growth and profitability for decades.  In this process, the universal company has formed the view that it is a leading, innovative French industrial company, this view is also recognized by the outside world. In the early the 1980s, when Western markets reached saturation point, new competitors from Low-cost Asian countries grew, and the self-awareness of the all-powerful company prevented it and its stakeholders from coping well with the environmental changes. Although the company's rivals are growing, Jean Matley and his loyal management team and staff still believe that the omnipotent company, unlike other companies, has a strong French industrial base.  Because they could not change this deep-rooted ideology, they eventually had to declare bankruptcy in 2002. Identity conflict managers can help the company out of long-term narcissistic tendencies by keeping the information feedback channel open and by accepting uncoordinated messages from the surrounding environment.  Louise Goosna is remembered because he has prompted IBM to admit that it is no longer the only hegemon in the information technology industry, and has expanded its business beyond mainframe production.  Identity conflict arises when influential stakeholders disagree on the nature of the same company, although they are clearly expressed, but are mutually exclusive of each other. The problem of identity conflict is a common problem in the process of operation. In business, Jacques Nasser was forced to leave Ford Motor Company, reflecting the clash between Ford's insistence on the traditional identity of auto makers and the new customer-oriented identity features advocated by Nasser: In early 1999, we emphasized the need to be the world's leading Customer-oriented automotive products and service providers. Our vision is to take customers as the foundation of all the activities of the company and to prioritize the return of the stock as the ultimate measure of our success.  When you look at your business from a customer's perspective, you will shift from a "trading" mindset to a "contact" concept, from simply selling the car itself to a one-stop service that provides automotive products and meets consumer needs. The conflict between Nasser's philosophy and the ideas of other Ford stakeholders, including employees and unions, was eventually resolved by the Ford family's involvement, who dismissed Nasser and appointed Ford to take charge of the company's overall situation.  Nasser's dismissal and Bill's takeover, both inside and outside the company, made it clear that Ford was back at the root of industrial production-insisting on production. Ford in his first annual report to take over the company: we already have a big advantage,Not those unknown companies. The Ford family's involvement has created a special relationship between the company and the people who work here. Our distributors and supplier partners are part of our family.  Most of them have been with us since Ford was founded and have been part of Ford's success story. In the 2001, we did not pay much attention to the important parts of our products and personnel, so we lost a lot of money. But difficult times have also provided an opportunity for us to re-examine core values and take bold action. We've done both.  November 2000, we set up a focus on product production leadership team, strong evidence that we are doing the right thing. But even reaffirming its historical identity, Ford has not returned to its original orbit.  In the fall of 2006, Ford's CEO position was replaced by Al Murali (almulally). The decision to sell a good-time food company reflects another aspect of the company's identity clash. The directors of a good time trust believe that a good company is a typical commodity that can be bought and sold, but they do not consider the social mission of a good company. Because, in their view, the social mission is usually the responsibility of the Trust Company, not the responsibility of the good corporate.  Instead, employees and local groups agree that the ownership of a good time food company is part of its identity. Resolving conflict managers can solve the problem of identity conflict in two ways: either by maintaining a workable balance between existing forces or by clearly expressing support for an idea. Unlike most people's views, we believe that identity conflict is not necessarily a bad thing.  After all, it is a normal thing for different groups to hold different views on the same company. Further, there is a different view of the identity characteristics of a company that allows the company to show itself to different supporters at different times and in different ways. The problem, then, is how the company grasps this degree.  As long as conflicting views do not cause confusion, job abuses or serious hurtful infighting, managers should not worry too much about inconsistencies in the nature of the company. When corporate identity conflict develops to a serious degree, managers should support what they see as the most feasible view.  Some in the management of a British multinational, for example, argue that the company can be a participant in the health care industry, and partly that it is just a company that manufactures consumer products. Although both sides express their views peacefully, there are still some problems with the understanding of the identity of the company, such as the future of the company and how it should be developed. To address this problem, the CEO of the company clearly expressed the view that the company should be an organization that sells consumer products through retail channels. To strengthen the company's new identity, the CEO will also be all unsuitable for the company's new identity features toAnd all operations unrelated to the operating performance.

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.