Business Lessons From Aristotle

May 21, 2008

I have gained this by philosophy;
That I do without being commanded what others do only from fear of the law.
Aristotle

When searching for inspiration on delivery of strategies and techniques, why not start with the original masters of thought. To this day we still use the Socratic method to test a theory. Plato’s “Republic” is introduced to budding students between the ages of 16-19 on a regular basis and used as a concrete example of how to manage a state or organization. In this article I’d like to take a page from Plato’s greatest student, Aristotle. One of his most famous theories was that of the 4 causes. These causes are used to explain the core existence of just about anything. While they are philosophical in nature, they can easily be applied to business cases.

In reference to the quote above, in business do you really understand the importance of your role in the organization and the importance of the organization in the economy intrinsically, or has the job become a day to day set of tasks done to keep your boss off of your back? In a nutshell, what is the cause of the core existence of the organization? There are simple questions that you need to keep focused upon in order to maintain drive and meaning. For example, why does this business unit exist? Why does this product exist? etc… The 4 causes and examples are listed below.

The Traditional Picture of the 4 Causes

1. Material cause: “that from which, present in it, a thing comes to be … e.g., the bronze and silver, and their genera, are causes of the statue and the bowl.”
2. Formal cause: “the form, i.e., the pattern … the form is the account of the essence … and the parts of the account.”
3. Efficient cause: “the source of the primary principle of change or stability,” e.g., the man who gives advice, the father (of the child). “The producer is a cause of the product, and the initiator of the change is a cause of what is changed.”
4. Final cause: “something’s end (telos)—i.e., what it is for—is its cause, as health is
of walking.”

Abstract Examples

1. x is what y is [made] out of
2. x is what it is to be y
3. x is what produces y
4. x is what y is for

Concrete Examples

1. The table is made of wood
2. Having four legs and a flat top makes this (count as) a table
3. A carpenter makes a table
4. Having a surface suitable for eating or writing makes this (work as) a table

Business Case Examples

1. The organization/business is made of essential employees
2. Having a business license, office (sometimes), procedures and professional practices makes this count as a business
3. The business makes a product or delivers a service
4. Providing a valuable product or service for people is what makes this organization work as a business.

When organizations are able to analyze their business units, individuals, processes and technology using these 4 causes, it is much easier to identify where successes originate and where breakdowns occur. In addition, it becomes evident as to which area needs to be modified to fit its cause. In business, the cause is more commonly called the “function.” A quick self-assessment can be done by walking your function/s (individual or team) through the 4 causes and in order to discover where you find synergy and where conflict arises. It is a simple tool with indelible value.
However, don’t thank me, thank Aristotle.

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One Response to “Business Lessons From Aristotle”

  1. Business Lessons From Aristotle on May 21st, 2008 6:22 am

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