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Is an Organization Defined by its Leader, Systems, or People?
The question of what truly defines an organization—its leader, its systems, or its people—has long been a topic of debate. While many argue that an organization is shaped by its people, the reality is often more nuanced, revealing that an organization is also heavily influenced by its systems, policies, and processes. These elements provide the structure that governs how things get done and how people operate within the organization. But to what extent do these systems or the people within them truly define an organization?
The Power of Systems
One perspective argues that an organization is primarily defined by its systems—the policies, processes, and procedures that guide its operations. These systems are meant to ensure that an organization runs smoothly, and employees follow these protocols to achieve desired outcomes. They dictate how the organization functions, from how employees are recruited and promoted to how tasks are completed and performance is measured. A strong, well-defined system can keep an organization functioning regardless of the individuals who come and go.
This concept can be observed in action when good people are placed in poorly defined or dysfunctional organizations. Often, the systems of the organization will overpower the individuals. A well-established set of systems, policies, and procedures can create a consistent culture and organizational identity—regardless of leadership changes or the turnover of staff.
For example, organizations like McDonald’s are defined not by individual employees but by their consistent systems and policies. McDonald’s recruitment processes, operational procedures, and brand standards transcend the individuals in any given location. The systems create the consistency that defines the brand and experience, regardless of which employee is on shift. This is the power of systems at work.
The Role of People
On the other hand, many organizations proudly state that their people are their greatest asset. After all, it is the people within the organization who bring it to life, shape its culture, and drive innovation. But even this perspective becomes complicated upon closer examination. People come and go—employees, from entry-level to senior leadership, change roles, retire, or move on to other opportunities. If an organization’s identity were truly defined by its people, it would constantly shift and change with every new individual who joins or leaves.
Consider the fact that if an organization has been in existence for many years, its original founders have long since departed. Yet, the organization persists. This continuity suggests that the organization is driven by something more fundamental—often the systems, procedures, and policies that remain, even after leadership has moved on. The culture, values, and operating mechanisms of the organization are perpetuated through these enduring systems, not simply the people.
Leadership and Influence
Leadership, of course, plays a significant role in shaping any organization. Charismatic and visionary leaders can undoubtedly leave a lasting impact on the direction and culture of the organization. Companies like Apple, Tesla, and SpaceX stand as examples of organizations where strong leadership has profoundly influenced their growth, innovation, and organizational culture. However, even the most impactful leaders eventually see their influence wane as the organization expands and systems take on a life of their own.
The leadership at these companies sets a vision and establishes systems to support it. Over time, those systems outlast the individual leaders who put them in place. As organizations grow, they often become less about the leader’s personality and more about the policies and procedures they set in motion. In this sense, while leaders define the early days of an organization, it is the systems they implement that shape its future. Apple, for example, continues to embody the principles set by Steve Jobs long after his passing, largely due to the systems and processes in place that sustain the brand’s identity.
Systems and Institutional Change
If we accept the argument that organizations are fundamentally defined by systems, we can begin to explore the question of institutional change. A common term that has emerged in recent years is “institutional racism,” which is often used to describe organizations whose systems perpetuate inequality or bias. This concept shifts the focus from the actions of individuals to the underlying structures and systems that enable or perpetuate these issues. It’s not necessarily about the people within the institution but the systems in place that shape decision-making, hiring practices, and interactions with different communities.
Changing these systems is not about blaming individuals but about recognizing that organizational practices and policies can perpetuate outdated norms. In many cases, organizations—whether in the public or private sector—need to evolve to reflect modern diversity and inclusivity standards. The demand for diversity, equity, and inclusion (DEI) calls for systemic changes to ensure that an organization’s practices align with contemporary values and societal needs.
Moving Forward: Changing the System
For real transformation to occur within organizations, it is not enough to simply focus on individuals; organizations must focus on changing the systems that govern them. This means revisiting hiring processes, promoting inclusive policies, updating operational procedures, and ensuring that leadership structures reflect a broader set of values. This doesn’t mean that individuals are absolved of responsibility—good leadership and a commitment to personal accountability are still necessary—but without systemic change, it becomes difficult to create long-lasting impact.
The focus, then, should be on modernizing and evolving the systems that underpin the organization. This allows organizations to better reflect modern societal needs, ethical standards, and customer expectations. Change must come from the inside out, where policies and systems are updated to reflect the changing landscape of the world around us.
Conclusion
Ultimately, organizations are defined by their systems—systems that govern everything from operations to culture, leadership, and recruitment. While people undoubtedly shape the culture, it is the systems that provide the framework within which people operate. Leaders influence the early development of these systems, but as organizations grow, it is the systems themselves that define and sustain the organization. For meaningful change to occur, organizations must focus on evolving these systems to better reflect modern needs and values.
Hashtags: #OrganizationalCulture #Leadership #SystemicChange #BusinessEvolution #WorkplaceCulture #LeadershipDevelopment #DiversityInclusion #CorporateChange
