Clayton M. Christensen, Innovator's dilemma, 1997, 2000 [ ]
pp.197—200
creating capabilities to cope with change
If a manager determined that an employee was incapable of succeeding at a task, he or she would either find someone else to do the job or carefully train the employee to be able to succeed. Training often works, because individuals can become skilled at multiple tasks.
Despite beliefs spawned by popular change-management and reengineering programs, processes are not nearly as flexible or "train-able" as are resources — and values are even less so. The processes that make an organization good at outsourcing components cannot simultaneously make it good at developing and manufacturing components in-house. Values that focus an organization's priorities on high-margin products cannot simultaneously focus priorities on low-margin products. This is why focused organizations perform so much better than unfocused ones: their processes and values are matched carefully with the set of tasks that need to be done.
For these reasons, managers who determine that an organization's capabilities aren't suited for a new task, are faced with three options through which to create new capabilities. They can:
• Acquire a different organization whose processes and values are close match with the new task
• Try to change the processes and values of the current organization
• Separate out an independent organization and develop within it the new processes and values that are required to solve the problem
... [...] ...
(Innovator's dilemma, by Clayton M. Christensen, copyright © 1997, 2000, 658.4 Christen, pp.197—200)
p.259
Fourth, the capabilities of most organizations are far more specialized and context-specific than most managers are inclined to believe. This is because capabilities are forged within value networks. Hence, organizations have capabilities to take certain new technologies into certain markets. They have disabilities in taking technology to market in other ways. Organizations have the capability to tolerate failure along some dimensions, and an incapacity to tolerate other types of failure. They have the capability to make money when gross margins are at one level, and an inability to make money when margins are at another. They may have the capability to manufacture profitably at particular ranges of volume and order size, and be unable to make money with different volumes and sizes of customers. Typically, their product development cycle times and the steepness of the ramp to production that they can negotiate are set in the context of their value network.
All these capabilities — of organizations and of individuals — are defined and refined by the types of problems tackled in the past, the nature of which has also been shaped by the characteristics of the value networks in which the organizations and individuals have historically competed. Very often, the new markets enabled by disruptive technologies require very different capabilities along each of these dimensions.
(Innovator's dilemma, by Clayton M. Christensen, copyright © 1997, 2000, 658.4 Christen, p.259)
(Innovator's dilemma, by Clayton M. Christensen, copyright © 1997, 2000, 658.4 Christen, )
____________________________________
pp.197—200
creating capabilities to cope with change
If a manager determined that an employee was incapable of succeeding at a task, he or she would either find someone else to do the job or carefully train the employee to be able to succeed. Training often works, because individuals can become skilled at multiple tasks.
Despite beliefs spawned by popular change-management and reengineering programs, processes are not nearly as flexible or "train-able" as are resources — and values are even less so. The processes that make an organization good at outsourcing components cannot simultaneously make it good at developing and manufacturing components in-house. Values that focus an organization's priorities on high-margin products cannot simultaneously focus priorities on low-margin products. This is why focused organizations perform so much better than unfocused ones: their processes and values are matched carefully with the set of tasks that need to be done.
For these reasons, managers who determine that an organization's capabilities aren't suited for a new task, are faced with three options through which to create new capabilities. They can:
• Acquire a different organization whose processes and values are close match with the new task
• Try to change the processes and values of the current organization
• Separate out an independent organization and develop within it the new processes and values that are required to solve the problem
... [...] ...
(Innovator's dilemma, by Clayton M. Christensen, copyright © 1997, 2000, 658.4 Christen, pp.197—200)
p.259
Fourth, the capabilities of most organizations are far more specialized and context-specific than most managers are inclined to believe. This is because capabilities are forged within value networks. Hence, organizations have capabilities to take certain new technologies into certain markets. They have disabilities in taking technology to market in other ways. Organizations have the capability to tolerate failure along some dimensions, and an incapacity to tolerate other types of failure. They have the capability to make money when gross margins are at one level, and an inability to make money when margins are at another. They may have the capability to manufacture profitably at particular ranges of volume and order size, and be unable to make money with different volumes and sizes of customers. Typically, their product development cycle times and the steepness of the ramp to production that they can negotiate are set in the context of their value network.
All these capabilities — of organizations and of individuals — are defined and refined by the types of problems tackled in the past, the nature of which has also been shaped by the characteristics of the value networks in which the organizations and individuals have historically competed. Very often, the new markets enabled by disruptive technologies require very different capabilities along each of these dimensions.
(Innovator's dilemma, by Clayton M. Christensen, copyright © 1997, 2000, 658.4 Christen, p.259)
(Innovator's dilemma, by Clayton M. Christensen, copyright © 1997, 2000, 658.4 Christen, )
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