“Meeting the Challenge of Disruptive Change”
Where Capabilities Reside
Few companies meet the challenges posed by disruptive changes. That’s because while managers can judge people well and place them in the right job, they don’t pay much attention to assessing their own organization – its capabilities and limitations. When faced with a disruptive change, such knowledge can help managers take the right decisions rather than try to transform the organization, an effort that can kill the very abilities that keep it going. The authors talk about a company’s core capabilities and how these capabilities evolve with the company’s growth. There were three factors that affect what an organization can and cannot do: 1. Resources – without access to tangible resources like people, equipment, technologies, and cash are the most obvious elements of what the company can and what it cannot 2. Process – The logistics of how the company is being ran, such as the interaction, coordination, communication, and decision making employees use to transform resources into products of greater worth. 3. Values – as it related to ethics or the standards by which employees set priorities that enable them to judge whether an order is attractive or unattractive. Prioritization decisions are made at every level. Be consistent. A company values reflects it structure. Over time the focus of the organization’s capabilities shifts toward it processes and values. Once the values become so powerful and adopted by the employees; it forms the culture of the company.
Sustainable Vs Disruptive Innovation Successful companies, no matter what the source of their capabilities, are pretty good at responding to evolutionary changes in their markets. First, large companies which are often at the forefront of sustainable innovation - that is continuous improvement in exists in products and...
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