The living company
Why this german family business keeps winning after 200 Years
Time: 3.30 Minutes
If you ever ask me what was my most influential article back in university I have to say the “The Living Company” by Arie de Geus.
But why?
Because he found out the longest-living companies treated themselves as communities, not just profit machines.
What a great statement…
He found out they valued people over assets, stayed financially conservative, and understood they existed to survive and thrive, not just maximise returns for a handful of shareholders.
Sounds like a romantic fairytale of the past…
But you can find examples of this working everywhere. Here’s the story of the german Globus Market:
Most family businesses don’t make it past the third generation. But Globus started already in 1828 as a corner shop and now runs 77 hypermarkets and 90 DIY stores with €8.8 billion in sales.
After fifth generations still family-owned.
What them made last:
They let employees own the business too.
Since 1990, about half of German employees are silent partners in the company.
This isn’t charity. It’s smart business.
Customers consistently vote Globus Germany’s most popular hypermarket year after year.
Staff stick around because they know the difference between stocking shelves for minimum wage and stocking shelves for equity.
The family didn’t dilute control.
They structured it so employees share profits without complicating governance. The main family still runs everything. Employees just get paid when the company wins.
You may remember Warren Buffets famous quotes about incentives…
Most retailers fought unions and squeezed wages. But Globus gave workers a seat at the profit table and built loyalty you can’t manufacture with pizza parties.
Generations stayed rich by making sure the people doing the work had reason to make the business better.
So don’t maximise for every penny in profits, make partners and stay curious.
Your favourite Domi.
PS I would love if you can give me a follow at X here.
Feedback please! Help your favourite Domi to make all of this even better…
Click on a link to vote or use the comment section below:
Please share the Jupiter Dispatch with a friend and help me to grow.
Have an epic time, see you soon for the next Transmission…
👋
