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Organizational Culture and Leadership, Fourth Edition by Edgar H. Schein

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Chapter 15. THE CHANGING ROLE OF LEADERSHIP IN ORGANIZATIONAL "MIDLIFE"

If an organization is successful in fulfilling its mission, it will mature and probably grow. Founders will age or die and be replaced by leaders who have been promoted within the organization or have been brought in from the outside. Ownership by founders or founding families will evolve into public ownership and governance by boards of directors. The decision whether or not to retain private ownership or "go public" may appear to be a financial decision, but it has enormous cultural consequences. With private ownership, the leaders can continue to enforce their own values and assumptions through all of the mechanisms cited in the previous chapter. After governance has shifted ...

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