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The Daily Drucker

February 09
Organizations Destabilize Communities

Modern organizations have to operate in a community. Their results are in the community. Yet the organization cannot submerge itself in the community or subordinate itself to that community. Its “culture” has to transcend community. Companies on which local communities depend for employment close their factories or replace grizzled model-makers who have spent years learning their craft with twenty-five-year-old “whiz kids” who know computer simulation. Every one of such changes upsets the community. Every one is perceived as “unfair.” Every one destabilizes.

It is the nature of the task that determines the culture of an organization, rather than the community in which that task is being performed. Each organization’s value system is determined by its task. Every hospital, every school, every business, has to believe that what it is doing is an essential contribution on which all the others in the community depend in the last analysis. To perform its task successfully, it has to be organized and managed the same way. If an organization’s culture clashes with the values of its community, the organization’s culture will prevail—or else the organization will not be able to make its social contribution.

Source: Post-Capitalist Society

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