Turning conventional wisdom on its head, a Senior Partner and an Innovation Specialist from Mc Kinsey & Company debunk the myth That high-octane, built-to-Last Companies can continue to excel year after year and reveal the dynamic strategies of discontinuity and Creative destruction these corporations must adopt in order to maintain excellence and remain competitive.
They explain how Companies like Johnson and Johnson, Enron, Corning, and GE are overcoming cultural "lock-in" by transforming rather than increment.
Proposing a radical new business paradigm, Foster and Kaplan argue That redesigning the corporation to change at the pace and scale of the capital markets rather than merely operate well will require more than simple adjustments.
Their control processes, the very processes That enable Them to survive over the long haul, deaden Them to the vital and constant need for change.
Corporations operate with management philosophies based on the assumption of continuity; as a result, in the long term, they cannot change or create value at the pace and scale of the markets.
It is a myth.
Foster and Kaplan\'s long-term studies of corporate birth, survival, and death in America show That the corporate equivalent of El Dorado, the golden company That continually outperforms the market, has never existed.
Using this enormous fact base, Foster and Kaplan show That even the best-run and most widely admired Companies included in their sample are unable to sustain their market-beating levels of performance for more than ten to fifteen years.
The industries they examined included old-economy industries such as pulp and paper and chemicals, and new-economy industries like semiconductors and software.
Foster and Sarah Kaplan draw on research they conducted at Mc Kinsey & Company of more than one thousand corporations in fifteen industries over a thirty-six-year period.
In striking contrast to such bibles of business literature as In Search of Excellence and Built to Last, Richard N.
Turning conventional wisdom on its head, a Senior Partner and an Innovation Specialist from Mc Kinsey & Company debunk the myth That high-octane, built-to-Last Companies can continue to excel year after year and reveal the dynamic strategies of discontinuity and Creative destruction these corporations must adopt in order to maintain excellence and remain competitive
