A dominant logic transition

A dominant logic is the main means by which an organization achieves success. Society moves through periods dominated by a specific logic for organizational success, and we are currently in the service dominant logic era, which means that organizations structure themselves around the problem of delivering superior service to their customers. If we take a historical perspective, we see that the dominant logic of society changes over time and also varies across regions within a particular time period.

Dominant logics

Dominant logics

We see the early signs of the emergence of a new dominant logic for advanced economies. The focus on creating customers will be supplanted by the need to reduce environmental impact because of the accumulated effect of humans on air and water quality, biodiversity, ocean acidity, and other environmentally degrading outcomes. Organizations will need to reorient themselves to reduce their environmental demands, and we already see some industry and government leaders taking steps in this direction.

Decreasing the burning of fossil fuels to create energy is a critical element in reducing environmental impact because the most pressing problem, as acknowledged by the vast majority of scientists, is cutting the CO2 emissions released by such fuels. CO2 emissions contribute to global warming and ocean acidification. Energy efficiency programs reduce CO2 emissions (a societal concern) improve profits or surpluses (an organizational concern), and reduce national dependency on imported oil, natural gas, and coal (a societal concern for many countries).

Now that you are aware of a shift in the dominant logic of business, you’ll see more instances of this change. I’d be interested to learn of changes that you observe.

Rick

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