Meaning: Marvin Bower, a prominent businessman and the founder of McKinsey & Company, made this statement, shedding light on his philosophy of prioritizing behavior and conduct in business. Bower's quote underscores the critical role of ethical values and principles in the success of an organization, emphasizing that they are just as crucial as skills and expertise. This approach reflects a commitment to building a sustainable and principled institution, one that is driven by ethical conduct and a strong sense of values.

Bower's emphasis on behavior and conduct in the business world was a departure from the traditional focus solely on technical skills and expertise. He recognized that while skills and expertise are undeniably important, they are insufficient on their own to create a truly successful and enduring organization. Instead, Bower believed that an organization's long-term success hinged on the behavior and conduct of its members, encompassing the ethical principles and values that guide their actions.

In seeking to build McKinsey & Company into an enduring, values-based institution, Bower set out to establish a culture that prioritized integrity, professionalism, and ethical behavior. He understood that a firm built on a strong foundation of values would not only weather various challenges but also thrive in the long run. This approach reflected Bower's belief that an organization's culture should be rooted in a set of guiding principles that govern decision-making, interactions, and overall conduct.

Bower's vision for a values-based institution aligns with the broader concept of organizational culture. Organizational culture encompasses the shared values, beliefs, and behaviors that shape the identity of an organization and guide the actions of its members. By emphasizing the importance of behavior and conduct, Bower aimed to cultivate a culture at McKinsey & Company that would serve as a moral compass, guiding the firm's actions and decisions.

Moreover, Bower's emphasis on behavior and conduct reflects a commitment to ethical leadership. Leaders play a pivotal role in shaping the culture of an organization, and Bower recognized the importance of setting the right example. By prioritizing behavior and conduct, he sought to instill a sense of ethical responsibility and accountability among the firm's leadership, knowing that their actions would significantly influence the organization's overall culture and values.

Bower's quote also highlights the enduring nature of a values-based institution. By prioritizing behavior and conduct, he aimed to create an organization that would stand the test of time, built on a foundation of enduring values. This long-term perspective underscores the significance of values in sustaining the success and relevance of an organization, transcending short-term gains to prioritize the long-term impact and legacy of the firm.

In conclusion, Marvin Bower's quote encapsulates his philosophy of prioritizing behavior and conduct as essential components of a successful and enduring organization. By emphasizing the importance of values and ethical behavior, Bower sought to build a firm that would stand the test of time, guided by a strong sense of principles and integrity. His approach underscores the critical role of organizational culture, ethical leadership, and the enduring nature of a values-based institution in shaping the long-term success of an organization.