Refounding: returning to our beginnings

The Philippines is grappling with a deepening sense of uncertainty. Disclosures of massive corruption in government infrastructure projects, combined with cracks in national leadership, have triggered public frustration and shaken investor confidence. Global turbulence — geopolitical tensions, rising protectionism, and economic slowdown — adds to a bleak horizon.

- BENEL D. LAGUA

Companies face a dual challenge: surviving the external storm while preventing internal drift.

This is where the concept of refounding, developed by John Iwata of the Yale School of Management, becomes not just relevant but urgent. Refounding is the disciplined act of reconnecting an institution to the values, purpose, and strategic clarity of its early — and often most vibrant — years. It is a way of anchoring organizations so they do not lose their identity in the midst of chaos.

But refounding is more than introspection. It is a strategic response to turbulence.

Historically, periods of crisis have triggered great refoundings:

IBM refounded itself in the 1990s, confronting existential collapse after years of drift.

Starbucks refounded during the 2008 financial crisis, returning to coffee quality and founder-led culture before expanding globally.

Ford refounded in 2006, sharpening its mission and avoiding the government bailouts that hit other automakers during the recession.

In each case, geopolitical and economic shocks did not push these companies to retreat. Instead, leaders returned to their founding essence to chart a forward-looking path.

When institutions around you fail in integrity, the strongest counter-strategy is to strengthen your own. When governance collapses in politics, the best defense is governance excellence within your firm.

Refounding answers these challenges by clarifying:

+ what you stand for;

+ why you exist;

+ what values you refuse to compromise; and

+ what capabilities uniquely define you.