The intangible core: Leading with philosophy

The essence of institutions: Universities and churches are not merely buildings; they are frameworks for thought, belief, and practice. These structures serve as settings, addresses, and embodiments of philosophies, principles, and ways of life. But mostly management.

“The map is not the territory.” — A phrase coined by the Polish-American philosopher and engineer Alfred Korzybski.

Two universities: Tangible and intangible

Ideally, such institutions foster open dialogue and learning. However, as explored in ‘The Art and Zen of Motorcycle Maintenance’ by Robert M. Pirsig, there are essentially two “universities”:

• The intangible university: This foundational level consists of the core philosophies and guiding principles. It exists beyond the confines of physical space. The actual university.
• The tangible university: This is the practical manifestation, encompassing management, operations, and the day-to-day experience.

The tangible university is easier to grasp, but it’s the intangible core that truly defines the institution.

Rebelling against the second institution does not destroy the first. The first will always exist as long as the original ideals, philosophies, and belief systems exist. Change requires a new way of thinking.

The same principle applies to businesses

While we operate within physical structures, companies should also embrace this intangible concept. Often, however, we prioritize the tangible aspects — the “second company” — because the intangible is harder to grasp.

The first company: Purpose and philosophy

Every company begins with a philosophical question, a search for an answer, or perhaps, a desire to address a need. It stems from a compelling reason, a purpose that transcends individual interests. This is the “first company.”

The second company: Function and structure

The “second company,” also crucial, represents the practical manifestation. It’s the operational structure that leverages resources, sets prices, manages processes, and establishes policies.

The intangible core of a company

Yet, even the first company has its own principles and policies, often expressed in a manifesto or core values based on the founder’s vision. It’s a belief system that necessitates teamwork and shared commitment — a sense of shared purpose amongst stakeholders.

While not a family, a company can be akin to a kinship group, united by shared beliefs.

Kindred spirits: A universal bond

The word “kindness” itself originates from “kin.” Historically, it was often associated with those of the same lineage. Today, kindness reflects shared principles, a broader, more humanitarian perspective.

Building a brand: Belief and emotion

When we believe in ourselves and our value, we attract the treatment we seek. Likewise, a company can be viewed as a community with business and marketing functions. It operates within a larger society, serving people through products and services developed by humans, not systems and buildings.

The “first company” guides this process. Driven by a higher purpose, it transcends its physical location, evoking emotional responses in consumers. This is where a brand is born — a distinct identity that defines and differentiates itself. A logo becomes a symbol, a representation of the company’s core values.

Building on a solid foundation

This intangible core is the rock upon which a company, like a church, is built. It requires a belief system that resonates with others. As Richard Branson famously stated, “Train people well enough so they can leave, treat them well enough so they want to stay.”

By leading with the intangible, a company can rise above its physical structure and forge a lasting connection with its audience.