Limits of Structural Change Harvard Case Solution & Analysis

Corporate America has spent the last few years in restructuring mode, dramatically restructuring processes to squeeze profits battered economy. However useful these efforts may be the bottom line, the authors say, the dependence on restructuring was unintended negative side effects such as hierarchy, which once controlled the direction of many companies is becoming less relevant, and loyal employees are becoming more devastating sadness - and often Myopia - strategy. In response, companies have resorted to even more restructuring, often with less than optimal results. The authors recommend that companies move from knee-jerk reactions, such as the restructuring and conversion of the building to the hierarchy established corporate structures, wider dissemination of knowledge and the use of modern performance measurement systems and technologies. Citing examples in BP, Duke Power in North Carolina, and WL Gore, the authors argue that only companies that develop their own advantages for agility and flexibility of processes, people and technology can build lasting value for the company, customers and employees. "Hide
by Jeffrey A. Oxman, Brian D. Smith Source: MIT Sloan Management Review 8 pages. Publication Date: 01 Oct 2003. Prod. #: SMR121-PDF-ENG

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