Head: (5 of 5)
Heart: (4.5 of 5)
Leadership Applicability: (5 of 5)

Author Arie de Geus worked for Royal Dutch/Shell, one of the largest companies in existence, for thirty-eight years. He coordinated worldwide planning and worked on three different continents. His work and research found that the average life expectancy of most Fortune 500 firms is less than 50 years. Intrigued by what separates successful companies, those that survive long-term, from those that meet an early demise, de Geus found that a focus on overall health, rather just on economics, played a pivotal role.

According to de Geus, companies must focus on four areas if they are to remain healthy, prosperous, and survive the test of time. They are:

• Sensitivity to the Environment- Able to learn and adapt
• Cohesion and Identity- Able to build a community and a persona for itself
• Tolerance- Able to build relationships within and outside of itself
• Conservative Financing- Able to govern own growth and evolution effectively

The Living Company is about creating healthy organizations that can remain economically viable over the long haul. According to the author, healthy, living companies exists only to fulfill their potential and become the best they can be. Companies that focus on the four areas have proven to greatly increase their chances of surviving the test of time. Buy it.