As we prepare for the Istanbul Innovation Days 2025, we are publishing a series of videos featuring thought leaders who have shaped our understanding of institutions.
In this conversation, Geoff Mulgan, co-founder of the Institutional Architecture Lab (TIAL), speaks with Rebecca Henderson, professor at Harvard Business School, about capitalism, purpose and what public institutions can learn from high-commitment organizations.
High-commitment organizations in the business world are enterprises that see profit not as an end, but as a means to serve broader purposes: creating good jobs, delivering quality products, and contributing to community well-being.
These organizations thrive by trusting employees, investing in their growth, and empowering them to act with autonomy and purpose.
Such environments contrast sharply with lower performing entities that treat people as mere cogs, driven by metrics and compliance.
Public organizations – like schools and hospitals – should naturally embody the principles of high commitment, with professionals such as teachers and doctors driven by a deep sense of mission.
Yet, some argue that granting too much autonomy can result in inefficiency or stagnation.
Henderson challenges this view, emphasizing that high performance doesn’t come from autonomy alone, but from an organization that fully supports its people – offering resources, reducing unnecessary bureaucracy, and fostering teamwork focused on shared goals.
The conversation reflects on how in a “world on fire” – institutional redesign is not just desirable, but essential.
Faced with converging crises, societies can no longer afford slow, rule-bound bureaucracies. Instead, they must tap into human motivation and collaborative problem-solving, restructuring institutions to do more with less while maintaining a clear public purpose.
Citing research, she notes that high-commitment organizations can be up to three times more productive than their low-commitment counterparts.
Henderson emphasizes the need for institutions to balance stability with agility. Existing missions require consistency, but navigating new challenges demands innovation and experimentation.
This requires dual operating systems—teams focused on day-to-day operations alongside autonomous groups tasked with exploring new. These innovation teams need autonomy, tailored metrics, and dedicated resources.
This mirrors a broader relation in democratic societies. Elected leaders often prioritize short-term goals, while public servants must sustain long-term institutional capacity. Henderson stresses that healthy capitalism requires healthy government—markets thrive under proper regulation and oversight.
Her closing message to innovators? Take care of yourselves.
Henderson highlights personal resilience as the foundation for institutional resilience. Amidst difficult circumstances, innovators must stay grounded in their values, connect with like-minded peers, and sustain themselves for the long haul.
