Reframing the rules of value creation: leading through identity

Abstract

Purpose

The purpose of this article is to show how organizations become strategically more efficient when they are managed through the lens of identity.

Design/methodology/approach

To study the similarities between organizations and human beings. Consulting assignments with over 100 large ($5 billion +) companies, including thousands of interviews with executives, employees, customers, investors and others.

Findings

The main finding has been that there is one set of natural laws – the Laws of Identity – which governs the lives and welfare of organizations and individuals alike.

Practical implications

All business functions, including board level agendas, should be organized to account for the impact of the company’s identity on performance expectations. Business strategy, including mergers, acquisitions and divestitures, should be assessed through the lens of identity, which supplies important decision criteria.

Originality/value

The article illuminates the linkages between human and organizational identity, providing specific roadmaps for leaders, managers and individuals to follow in comprehending their own organizations as living beings and in developing new ways to create value.

Citation

Ackerman, L. (2006), "Reframing the rules of value creation: leading through identity", Handbook of Business Strategy, Vol. 7 No. 1, pp. 265-271. https://doi.org/10.1108/10775730610618927