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The Living Company

Arie de Geus's The Living Company examines why most corporations fail prematurely. De Geus contrasts the machine metaphor of a company with the concept of a living organism, arguing that longevity requires adaptability, tolerance, and conservative financing. He explores how organizational learning, fostered through practices like scenario planning and play, enhances a company's ability to perceive and respond to environmental changes. Finally, he discusses the importance of a cohesive corporate identity, distributed power, and managing for longevity over short-term profits.