Why Systems Matter—In Governments and Organizations

The president of South Korea was impeached and arrested today for trying to implement martial law. I've paid pretty close attention to this after spending a year in Korea while in the Army, so to see this fairly young democracy struggling in the way it has recently is startling.

Beyond that, there seems to just be a lot going on in various governments across the world. In times like these, I like to check in with Fareed Zakaria who I first heard speak while at an event in college (and candidly I had no idea who he was).

At the end of last year, Zakaria shared a surprising insight on the role of institutions in governance, which as he was taking, stuck me as being just as crucial within business organizations:

"The handful of countries that have broken out of poverty and bad governance have established good, fair institutions and procedures that go beyond any one individual... Societies succeed when they emphasize processes that ensure fairness and accountability. The drive to quickly get what we want, even at the cost of bypassing procedures and undermining institutions, is deeply dangerous. If we lose sight of the enduring systems that have built stability and progress, we risk jeopardizing one of the greatest achievements of human history."

That idea — that organizations thrive not because of a single leader or a charismatic figurehead, but because of the strength of their processes, their systems, and their cultures — I think is such a critical component of the strongest, most enduring organizations.

In Built to Last by Jim Collins, Collins says, "it's the nearly overwhelming set of signals and actions — signals to continually reinforce the core ideology and to stimulate progress — that lead to a visionary company." And often those signals and actions are built over time and upheld across all leaders and all teams.

The temptation to bypass established processes in pursuit of short-term gains can be ridiculously tempting, but can also lead to instability, inequity, and a loss of trust with the internal team and the key stakeholders of the organization. Strong institutions, whether in nations or in business, create consistency, fairness, and resilience that will outlast individual leaders or momentary challenges.

Zakaria’s words are a timely reminder: the key to sustainable success lies in honoring the processes and systems that serve the collective good, even when the outcomes don’t immediately align with our desires.

Watch the full video here: Fareed Zakaria: To save democracy, save its institutions