Aged Companies

Commented a few days ago if Etcheverría Bank, which is very close to meeting the three centuries of history, something quite unusual. The Bank began its life as a tannery in the town of Betanzos (A Coruña). Later, he began as a company lend money, and after the First World War, replaced the banking business and the fur (today and become a limited company, 44% owned by Bank Caixa Galicia). In any case, I find striking two aspects, one the of the extraordinary longevity, and another of its origin in a leather factory, in fact, there is another outstanding issue, how it has managed to survive from a small town of just 15,000. As for longevity, business expert Arie de Geus, who was an executive at Shell Oil, said that many companies die young "because their practices and policies are based too much on economic thought and language?. This means that its main objective is to produce goods and services and maximize profits, forgetting that the company is a community of human beings. The case of the Swedish-Finnish Stora Enso can be very illustrative in this regard. Enso is a Finnish forest company founded in the nineteenth century, which is not bad.

But its complement, the Swedish Stora, has more than seven years old!

Today, this group has over 40,000 employees, but how was able to last over time? The companies intend to continue generation after generation know well how they are, what their role in the world, value the ideas and people, and know how to manage change, despite being so "old?, Or because of it. Is there any doubt? You just have to think that in the case of Stora, the company walked through the Middle Ages, the Reformation, the wars of the seventeenth century, the Industrial Revolution and two world wars. It was reported by messengers, telegraph proceedings or, as it does today via e-mail, Internet or an intranet. He went through various technologies of production, starting with the manual-, steam, electricity, internal combustion, until the advent of electronics and microchips. Stora's business has changed (it has passed through the copper mining, forestry, steel smelting, hydropower, and today, paper, pulp and chemical industries). How can a company last so many years? Long-lived companies tend to be financially conservative, so do not risk too much in good times, and it lets you take advantage of opportunities when the status flags, and competitors are not willing to do so (as recommended by guru investment, Warren Buffett).

They adapt to changes, as I mentioned, and are sensitive to new, so they react promptly and knowledge needed to further develop the existing business, or change it if necessary, for this, not only tolerant of new ideas, but that stimulate, encourage employee collaboration in the creation of the company, so that they feel part of society in a much more intense. Also of note is the continuous learning that occurs in these businesses, beyond hollow words. Shell, with over 175 years of history, annually spent more than $ 2,000 per employee for training, the largest part of the collaborative nature itself, ie, form a heterogeneous group of employees with different jobs, training and even different cultures, so you learn even more about this exchange between people that the course itself. Finally, I would highlight a special interest in people, the human community to shape the company. If the benefits generated by the same accrue to a privileged few, and there is great imbalance in this sense, it is likely to file workers feel involved in the company.

If the way to approach the issue by the company is to exchange your money for the time / work / knowledge workers, and nothing else, it is logical that they see it the same way as a business relationship ("I work for money "), and not as a joint project in which the company and employee develop, learn and increase their capabilities together.

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