There are many cases in record of companies that have achieved dramatic increases in profitability, as well as in other desirable indicators, as a consequence of a consulting process based on Requisite Organization theory.

Some significant considerations are:

• Requisite Organization theory defines and integral organization and human resources management. Success in implementation is an effect of the operation of the whole system, and it is therefore unrealistic to expect improvements in profitability to result from partial or fragmentary applications. In every instance in which this desirable result has been achieved, there has been a CEO knowledgeable on the theory who has personally directed its application in all the necessary systems.




• A change as significant as a major increase in profitability cannot be the result from a single factor. Unanticipated factors always exist, both in the organization and in the market, that have a bearing on results.

Having said this, how can an application of Requisite Organization theory bring about a major increase in profits?

Essentially, what an RO process does is channel human energy towards the creation of value for the community. Profitability is a consequence of this change.

Several documented cases exist of dramatic increases in profits resulting from a RO theory application. Perhaps one of the most illustrative is that of Commonwealth Industries. This case is presented by Elliott Jaques in Chapter 17 of "Social Power & the CEO" (see RESOURCESpage).

I would like to know about a typical organizational improvement process.
I would like to know more about Requisite Organization Theory.