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When
we moderns think of business theory, the names
that make themselves most apparent are those of
Porter, Toffler, Drucker, Welch and others who
have contributed to true paradigm shifts in our
era. Frequently we also look to our past for thinkers
whose thoughts shed light on the competitive situations
businesses face today. Niccolo Machiavelli is
one such thinker who immediately comes to mind
- especially when it comes to business and strategy.
Another
such thinker who deserves our attention is 'Abd
al-Rahman Ibn Muhammad Ibn Khaldun al-Hadrami
of Tunis who was born and lived in the 14th century.
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Ibn
Khaldun, as he is commonly known, was a
pioneer thinker who lived in an environment
rife with competition and mutual rivalries.
He led a life of public service and political
adventure in centers from Spain to Damascus.
As
an advisor and judge in the courts of many
rival lords of his time he was a direct
witness to the ploys, tactics, and strategies
each used to muscle the next one out of
his domain or to gain the upper hand in
terms of trade or influence.
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IBN KHALDUN ( 1382-1395 A.D.)
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In
fact, he observed the dynamics that govern many
of our contemporary dynastic corporations as well
as small startups ready to break into the market.
Ibn
Khaldun studied history. In particular he was
interested in distinguishing the characteristics
which allowed one dynasty to gain ascendancy over
the next. His emphasis was on understanding the
practical reasons for change as they made themselves
evident in history. His analysis, unlike his predecessors
and many of his contemporaries, was unconventional.
His theories give us interesting ways to study
and understand contemporary business environments
and the rise and fall of large corporations.
While
the beginnings of a number of contemporary theories
can be traced back to the writings of Ibn Khaldun
our focus here is on one idea in specific - 'Asabiyyah
(group feeling or group solidarity). Ibn Khaldun's
observations on this phenomenon can be readily
applied to the contemporary business environment.
Anyone who follows the global business environment
today is not hard pressed to find news of the
rise and fall of big businesses. Enron, WorldCom,
Tyco - these are just a few of the names that
come to mind. Nor does a day go by without some
news of a mega merger/takeover that has the effect
of reshaping the competitive environment locally
and globally. What are the reasons for these events?
What we want to try to understand is how Ibn Khaldun's
thought gives us ways to think of these occurrences.
Group
Feeling
Ibn
Khaldun lived in an era that saw a diverse, fractionated
political and social landscape that bore similar
features to the modern competitive marketplace.
Rulers were not only concerned with competitive
encroachments by other rulers but also with the
creation of identities that would serve to keep
their publics allied to their overall goals of
expanding their dominions and increasing control
over trade routes.
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One
of Ibn Khaldun's foundational insights is
his theory of group feeling. The idea strives
to explain the way(s) in which a group gains
ascendancy over others or falls away only
to be recounted in history books.
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Franz
Rosenthal's translation of the Muqaddimah
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The
roots of 'asabiyyah lie in "social intercourse,
friendly association, long familiarity, and the
companionship that results from . sharing the
. circumstances of life and death." This theory
grew out of his analysis of the differences between
nomadic and urban life. He asserted that nomads,
with their traditional attributes of self-reliance
and bravery, were naturally more able to overtake
dynasties in which a sedentary way of life - which
did not require more robust forms of survival
tactics - took hold.
The
lives of nomads accustomed them to continuous
struggle against the elements without the luxuries
that might distract them from their pursuit of
survival. Nomads did not accept leaders who could
not win them over through a superior demonstration
of skill and organizational ability.
On
the other hand were established dynasties in urban
centers which had lost their sense of solidarity
over time. In the beginning, these dynasties grew
out of nomadic cultures which had overrun a previous
empire. But as time progressed, this new group
also lost focus. While in the beginning its rulers
commanded respect from their subjects by using
their skills and abilities these same rulers now
had come to accept the continuation of their rule
as fact. This led to laziness, the pursuit of
ease, and the monopolization of power. In due
time an erosion of group feeling dominates which
weakens the dynasty. The ruler neglects the requirements
of his position in his pursuit of power and finds
that the cost of his pleasures and the expense
of buying the respect and loyalty he can no longer
inspire have increased beyond his ability. Ibn
Khaldun also touches on the fact that in certain
dynasties a founder's successors would in due
time lose touch with the qualities that made the
original enterprise a success.
Lessons
for today's businesses
For
business managers and owners today, the theories
of Ibn Khaldun should provide ready food for thought.
Today's multinational giants are the established
dynasties of Ibn Khaldun's time. These dominating
players in the global marketplace have effective
control over large portions of productive and
distributive capacities. But as in the past, not
keeping in mind the efforts of smaller players
may lead such an organization to lose focus on
continued innovation and fresh thinking. Yesterday's
nomads are today's startup ventures who - while
they may not be on the radar screen today - engender
the type of heroism and bravery that were the
hallmarks of Ibn Khaldun's nomadic tribes.
For
today's business leaders, the development of a
constantly renewable corporate culture, a tradition
of reflection and innovation, the need for management
to lead a corporation through example, an awareness
of external threats, and creating a sense of ownership
among employees are all aspects which stem from
Ibn Khaldun's work.
A
company's culture is the sum total of the traditions,
customs, values, and tactics that make it unique
among its competitors. While such a system is
most likely to be defined by leaders as a company
takes its first forms it is in its ability to
constantly renew itself that such a corporate
culture creates value that goes beyond the bottom
line.
Managers
must also keep a constant eye on their organization's
competitive profile. To lose sight of how products
and services are developing in the market place
would be to readily sign a company's death certificate.
In Ibn Khaldun's time rulers who lost sight of
their dominion's profile were susceptible to takeover
or extinction. So too does this threat exist today
in the corporate world.
Further, just as in Ibn Khaldun's paradigm, managers
may tend to adopt superfluous lifestyles that
take a toll on company operations. Managers must
keep their own ambitions in check and certify
that they are in line with the purposes that employees
themselves work toward. A claim to leadership
requires that each employee has the reasons to
invest an individual with trust and loyalty to
the extent required to fulfill a corporation's
goals.
Effective
leaders today will have a well-defined process
that addresses all of these issues. Paying constant
attention to such a process will create an effective
group solidarity that evolves with the changing
landscape and extends the life of a given enterprise.
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