Routinization - how great institutions become mediocre
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âI donât think we are the same company I joined 7 years ago!â a colleague commented.
âYeah, we are becoming mediocre, like all great companies will do one dayâŚâ I sighed.
I was thinking about this topic then I remembered Max Weber had talked about a similar concept called routinization.
I decided to challenge ChatGPT to write an essay about routinization and how great high tech companies lost their spirit, so there we go:
â Max Weber was a German sociologist, philosopher, and political economist who is best known for his ideas on bureaucracy, social stratification, and the role of religion in society.
Max Weber's concept of the routinization of charisma refers to the process by which charismatic leaders and movements become institutionalized and their followers become more concerned with maintaining the organization than with the original charismatic vision. Charismatic leadership relies on the personal qualities of the leader rather than on legal or traditional authority. Charismatic leaders are able to inspire followers through their personal qualities, such as their vision, charisma, and passion. Charismatic leaders are often able to create a sense of excitement and momentum around their ideas and are able to attract followers who share their vision.
Many modern high tech companies like Google, Amazon, and Microsoft were founded by charismatic leaders who had a clear vision for their companies. These founders were able to inspire their employees and create a culture of innovation and creativity within their organizations. However, as these companies grew and became more institutionalized, the focus shifted from the charismatic founder to the maintenance of the organization.
As the organization became more institutionalized, the focus shifted from innovation and creativity to maintaining the status quo. This can lead to a loss of the original vision and a focus on maintaining the organization rather than pursuing the original mission. This process of routinization can lead to a loss of vitality and relevance for the company.
The routinization of charisma has important implications for modern high tech companies. As charismatic founders exit the company, the risk of losing the original vision and culture of innovation and creativity increases. This can lead to a decline in performance and a loss of competitiveness in the marketplace⌠â Max Weber obviously didn't know anything about Google and Microsoft. But Weber's idea of routinization is profound and applicable to many contexts of our life.
Karl Max is not a Marxist. Buddha is not a Buddhist. When charismatic founders look at their routinized companies many years later, would they recognize their own creations?