The soul of the corporation : strategies for leading in the age of identity

“As Emerson said that an institution is the ‘extended shadow’ of a person, Bouchikhi and Kimberly fluidly blend the personal and enterprise-wide perspectives of professional identity to yield both powerful insights and priceless practical tools. Most management books look at the decision maker or at the decision making context. This important book embraces both while eschewing the clichés of corporate culture guidebooks. Anchored in decades of research, compelling current business sagas, and familiar everyday challenges, The Soul of the Corporation uniquely conveys the inextricably intertwined nature of the symbolic and substantive roles of leadership.” Jeffrey Sonnenfeld , Senior Associate Dean, Lester Crown Professor of Management, Yale School of Management, and coauthor of Firing Back: How Great Leaders Rebound from Career Disasters “In a world of continuous flux and accelerating change, one’s sense of identity becomes more crucial than ever for companies, no less than individuals. In The Soul of the Corporation , Bouchikhi and Kimberly take us on a journey into the psychological world of corporate identity and explore the importance of companies knowing who they are, both in relation to their inner-workings and the outside world. This trailblazing book will prove invaluable to management in their quest to define the essence of their corporate identity.” Jeremy Rifkin , President of the Foundation on Economic Trends in Washington, author of The End of Work , The Age of Access , and The Hydrogen Economy “Identity is one of the most fundamental yet least understood determinants of organizational outcomes. Bouchikhi and Kimberly’s book provides a fresh and provocative point of view of the determinants of organizational identity as well as research-based insights on how to shift identity over time. This book will be important to both scholars of organizational evolution as well as managers involved in leading change.” Michael Tushman , Paul R. Lawrence Class of 1942 Professor of Business at the Harvard Business School “A strong Identity is a major asset for a firm, as this book so convincingly illustrates. To manage the Identity (the I*Dimension) is perhaps the most critical top leadership function today. The authors show us how to do this–a must read!” Dr. Peter Lorange , IMD President, The Nestlé Professor Understand, Control, and Leverage Your Company’s #1 Asset: Its Unique Identity We live in a new Age of Identity, in which your employees, customers, investors, and other stakeholders care about who you really are. More than ever, your company’s identity will shape the results it can achieve. The Soul of the Corporation will help you clearly understand your company’s identity, and then take control of it and leverage it for long-term adaptation and success. Drawing on real-life stories from the world’s most prominent companies, the authors show how identity can be an extraordinarily valuable asset–and how, if not properly managed, it can become a huge liability. Discover how your firm’s identity is related to–and different from–its organizational culture, brand positioning, and reputation. Learn how to diagnose and manage the often unconscious shared beliefs that constitute your company’s soul…how to face the enormous identity challenges that arise in mergers, alliances, spin-offs, and the creation of new brands…and above all, how to lead and inspire in this new Age of Identity. • Master your company’s “I*Dimension” New tools for leveraging identity for competitive advantage • Manage the tensions that shape your company’s identity Convergent vs. divergent, internal vs. external, designed vs. emergent, sameness vs. uniqueness • Overcome the dark, dysfunctional side of identity Minimize narcissism, conflict, drift, and fragmentation • Protect what’s precious, change what needs to change Managing identity through M&As, spin-offs, alliances, and unrelenting change Cover 1 Contents 8 Acknowledgments 12 About the Authors 14 Introduction: Leadership Challenges in the Age of Identity 16 Globalization 17 Mergers and Acquisitions 19 Spin-Offs 20 Disruptive Innovation 21 Deregulation 22 Strategic Alliances, Organizational Networks, and Boundaryless Organizations 24 A Society of Organizations 25 Reputation and Accountability 28 The Advent of Alternative Social Identities in the Workplace 30 The Self-Aware, Empowered Consumer 31 The Pervasiveness of Branding 34 Endnotes 36 Chapter 1 The I*Dimension 40 The I*Dimension 42 Identity Anchors 44 Balancing Contradictory Tensions in Identity 53 Endnotes 55 Chapter 2 The Bright Side of the I*Dimension 58 The Internal Benefits of Clear, Consistent, and Valued Identities 60 The External Benefits of Clear, Consistent, and Socially Valued Identities 63 The Virtuous Cycle 64 Endnotes 65 Chapter 3 The Dark Side of the I*Dimension 66 Narcissism 67 Identity Conflict 69 Drift 72 Fragmentation 74 Endnotes 77 Chapter 4 Casualties of the I*Dimension 80 Carly Fiorina 81 Jean-Marie Messier 84 Thomas Middelhoff 90 Philip Purcell 93 Endnotes 97 Chapter 5 To Blend or Not to Blend: Identity Integration in Mergers and Acquisitions 100 When the Sauce Curdles: The Case of DaimlerChrysler 101 What Path to Follow? 104 Colonial Integration 106 Confederate Integration 107 Federalist Integration 111 Symbiotic Integration 112 The Four Models in Perspective 114 Endnotes 116 Chapter 6 When Should the Cord Be Cut? Managing Identity in Spin-Offs 118 The I*Dimension in Spin-Offs 119 Continuing Connection 120 Clean Breaks 122 Paradoxical Patterns 126 Why Spin Off? 128 Managing the I*Dimension in Spin-Offs 132 Endnotes 134 Chapter 7 Identity in Strategic Alliances and Joint Ventures 136 How Identity Issues Can Put Strategic Alliances at Risk 138 A Framework for Handling Identity in Strategic Alliances 147 Managerial Implications 154 Endnotes 156 Chapter 8 Managing the I*Dimension at Organizational and Brand Levels 158 When Tying a Brand’s Identity to an Organization’s Self-Concept Destroys Economic Value 160 How Much Should Brand Identity Rely on Organization Identity, and Vice Versa? 163 Assessing the Relationships Between Organizational and Brand Identities 166 Managing Identity in the Transition from a Single Brand to a Brand Portfolio 169 Managing Organizational and Brand Identities After Mergers and Acquisitions 171 Endnotes 174 Chapter 9 Masters of the I*Dimension 176 Steve Jobs 177 Peter Saunders 180 Louis Gerstner 185 Carlos Ghosn 189 Endnotes 192 Chapter 10 Diagnosing Your Firm’s Identity 194 Who Needs an Identity Audit? 195 Discovering Identity: A Generic Approach 197 Examples of Identity Audits 203 A Methodological Guide for Conducting an Identity Audit 206 Exploiting Secondary Sources 207 Interviews with Key Constituencies 208 Survey of Stakeholders 210 Endnotes 211 Chapter 11 Leading in the Age of Identity 212 Reinforcing the I*Dimension 214 Dealing with Identity and Identification at Individual and Group Levels 217 When the I*Dimension Must Change 218 Evolutionary Change in the I*Dimension 221 Revolutionary Change of the I*Dimension 223 The Benefits and Pitfalls of Evolutionary and Revolutionary Change of the I*Dimension 226 The Levers for Identity Change 227 Common Ingredients of Successful Identity Change 228 Endnotes 229 Epilogue 230 Index 234 A 234 B 235 C 236 D 237 E 237 F 238 G 238 H 239 I 239 J 241 K 242 L 242 M 242 N 243 O 244 P 244 Q–R 244 S 245 T 246 U 246 V 246 W 247 X–Z 247 Evolution as well as managers involved in leading change." Michael Tushman, Paul R. Lawrence Class of 1942 Professor of Business at the Harvard Business School "A strong Identity is a major asset for a firm, as this book so convincingly illustrates. To manage the Identity (the I*Dimension) is perhaps the most critical top leadership function today. The authors show us how to do this--a must read!" Dr. Peter Lorange, IMD President, The Nestle Professor Understand, Control, and Leverage Your Company's #1 Asset: Its Unique Identity We live in a new Age of Identity, in which your employees, customers, investors, and other stakeholders care about who you really are. More than ever, your company's identity will shape the results it can achieve. The Soul of the Corporation will help you clearly understand your company's identity, and then take control of it and leverage it for long-term adaptation and success. Drawing on real-life stories from the world's most prominent companies, the authors show how identity can be an extraordinarily valuable asset--and how, if not properly managed, it can become a huge liability. Discover how your firm's identity is related to--and different from--its organizational culture, brand positioning, and reputation. Learn how to diagnose and manage the often unconscious shared beliefs that constitute your company's soul!how to face the enormous identity challenges that arise in mergers, alliances, spin-offs, and the creation of new brands! and above all, how to lead and inspire in this new Age of Identity. / Master your company's "I*Dimension" New tools for leveraging identity for competitive advantage / Manage the tensions that shape your company's identity Convergent vs. divergent, internal vs. external, designed vs. emergent, sameness vs. uniqueness / Overcome the dark, dysfunctional side of identity Minimize narcissism, conflict, drift, and "As Emerson said that an institution is the 'extended shadow' of a person, Bouchikhi and Kimberly fluidly blend the personal and enterprise-wide perspectives of professional identity to yield both powerful insights and priceless practical tools. Most management books look at the decision maker or at the decision making context. This important book embraces both while eschewing the cliches of corporate culture guidebooks. Anchored in decades of research, compelling current business sagas, and familiar everyday challenges, The Soul of the Corporation uniquely conveys the inextricably intertwined nature of the symbolic and substantive roles of leadership." Jeffrey Sonnenfeld, Senior Associate Dean, Lester Crown Professor of Management, Yale School of Management, and coauthor of Firing Back: How Great Leaders Rebound from Career Disasters "In a world of continuous flux and accelerating change, one's sense of identity becomes more crucial than ever for companies, no less than individuals. In The Soul of the Corporation, Bouchikhi and Kimberly take us on a journey into the psychological world of corporate identity and explore the importance of companies knowing who they are, both in relation to their inner-workings and the outside world. This trailblazing book will prove invaluable to management in their quest to define the essence of their corporate identity." Jeremy Rifkin, President of the Foundation on Economic Trends in Washington, author of The End of Work, The Age of Access, and The Hydrogen Economy "Identity is one of the most fundamental yet least understood determinants of organizational outcomes. Bouchikhi and Kimberly's book provides a fresh and provocative point of view of the determinants of organizational identity as well as research-based insights on how to shift identity over time. This book will be important to both scholars of organizational "We live in a new Age of Identity, in which your employees, customers, investors, and other stakeholders care about who you really are. More than ever, your company's identity will shape the results it can achieve. The Soul of the Corporation will help you clearly understand your company's identity, and then take control of it and leverage it for long-term adaptation and success." "Drawing on real-life stories from the world's most prominent companies, the authors show how identity can be an extraordinarily valuable asset - and how, if not properly managed, it can become a huge liability. Discover how your firm's identity is related to - and different from - its organizational culture, brand positioning, and reputation. Learn how to diagnose and manage the often unconscious shared beliefs that constitute your company's soul, how to face the enormous identity challenges that arise in mergers, alliances, spin-offs, and the creation of new brands, and above all, how to lead and inspire in this new Age of Identity."--Jacket