Organizational Decline: Stimulus for Innovation Harvard Case Solution & Analysis

Although innovation carries risks and is not a recipe for success, it is preferable to inertia when the firm is facing a recession. However, if the decrease was due to temporary factors, managers may be reluctant to take on the expense and effort of innovation. In addition, managers should also consider that they have the discretion to manipulate or respond to the reasons for the decline. Using examples from the Netherlands-based software maker Baan, development Ford Taurus and Sable, the company's turnover in the global Caterpillar earthmoving equipment industry, and on Amazon.com metamorphosis and survival in the devastated world of online stores, the authors propose some guidelines for managers who want to reduce their innovative firms: 1) Pay attention to the powers of the organization is about the reasons why the - counter the natural tendency to "wait and see" if the circumstances have changed him, creating assignment control with a culture that does not unduly punish employees for past failures performance, 2) to help diffuse the power of having innovative solutions, combined with the concentrated power in the decision and implementation stages, and 3) do not tighten up the slack resources of the firm in good times, and 4) to maximize the chances of innovation, top managers should take an active part in the creation or revision of the mission of the company. "Hide
by George C. Muller, William McKinley, Mark A. Mone, Vincent L. Barker Source: Business Horizons 10 pages. Published: 15 November, 2001. Prod. #: BH065-PDF-ENG

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