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The Last Word
BY HENRY MINTZBERG
Rebuilding
Companies as
Communities
Companies must remake themselves
into places of engagement, where
people are committed to one another
and their enterprise.
BENEATH THE CURRENT ECONOMIC CRISIS lies another
crisis of far greater proportions: the depreciation in com-
panies of community – people’s sense of belonging to and
caring for something larger than themselves. Decades of
short-term management, in the United States especially,
have infl ated the importance of CEOs and reduced others
in the corporation to fungible commodities – human re-
sources to be “downsized” at the drop of a share price. The
result: mindless, reckless behavior that has brought the
global economy to its knees.
Government stimulus programs and the rescue of the
biggest and sickest corporations will not alone resolve
the problem. Companies need to reengage their people.
The practice of both management and leadership needs
to be rethought.
The subprime mortgage problem is a glaring case in
point. How could it have come about in the fi rst place, and
how could it have spread to so many blue-chip fi nancial
institutions? The answers seem readily apparent. Those
who promoted these mortgages were intent on driving
140 Harvard Business Review | July–August 2009 |
up sales as quickly as possible to maxi- where talented people are loyal to one management. A community leader is
mize their own bonuses, the ultimate another and their collective work, every- personally engaged in order to engage
consequences be damned. And the fi - one feels that they are part of something others, so that anyone and everyone can
nancial institutions that bought
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