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As the organizational theorist Majken Schultz of Copenhagen Business School and colleagues suggest, that excavation can include various subprocesses, such as discovering key elements of the past, assessing or interpreting it in the new context of the present, and reclaiming it as “authentic” for use by the company. To use the past as a pathway to the future, leaders must first excavate the company’s early history, arriving at a deep understanding of how and why it came to be. And the fourth is to sustain this progress by continually reexamining, reinterpreting, and deepening the company’s connection to its history. The third is to galvanize the organization around those efforts by clarifying everyone’s role in maintaining or changing organizational history and legend.

The second step is to translate the past into future-oriented action, using the purpose to inspire strategies, policies, and operational decisions that remain true to your company’s essence while positioning it for future success. The first is to conduct a thorough historical audit, teasing out those elements from the past that should be held dear and crystallizing them into a purpose and values while simultaneously identifying what shouldn’t be retained or repeated.

In studying leaders and companies that have accomplished this, I have identified four steps that others can follow to do the same for their organizations.

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They discovered a guiding light to help them break free of established practices and chart a new path, especially in times of crisis. At best they were able to create a sense of sacredness that bound stakeholders together in pursuit of an aspirational future, forming what the sociologist Emile Durkheim referred to as a moral community. They cultivated a keener understanding of their founding ethos and spirit and used that knowledge to articulate a modern-day mission and values that employees, customers, strategic partners, and investors have rallied around. I’ve studied corporations-from Carlsberg and Lego to Bühler and Johnson & Johnson-that have oriented themselves similarly. Indeed, the word sankofa (which comes to us from the Akan tribe) can be translated as “go back to the past and bring forward that which is useful.” When explaining this idea to CEOs and their teams, I often refer to the Sankofa, a mythical bird from Ghanaian folklore that is typically portrayed as twisting its head backward to secure a precious egg while keeping its feet facing forward. When you acknowledge your company’s complex history and ponder its conflicting themes, you generate more nuanced and refined thinking and uncover opportunities to leverage the past to push the business forward. Rather, you should challenge yourself to straddle both points of view.

Nor does it mean taking what Ybema calls a postalgic perspective, one that dismisses traditional organizational ideas and practices as outdated. Organizations that understand these benefits can look back at and pay homage to their histories even as they strive to move forward and beyond them.Īs Sierk Ybema, a professor of organization studies at VU Amsterdam, points out, steeping yourself in history doesn’t mean taking a purely nostalgic view of your corporate past, leaving it cloaked in a rosy glow. Treated as a reference point for thought and action, it can actually drive progress in a way that provides continuity and offers stakeholders a sense of identity, pride, and responsibility as custodians of a legacy. However, decades of research into companies around the world has taught me that corporate history can be a strategic and motivational resource. Management experts encourage such views, often regarding the past as a hindrance to innovation. With industries and economies changing so rapidly, executives believe that their job is to embrace disruption and innovation, transform their organizations, and explore new frontiers-not maintain the status quo.

Most business leaders focus on the future much more than they do on the past.

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