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Organizational
renewal
- All businesses
have two tasks: 1. deliver today's profits and 2. create tomorrow's
offerings - renewal.
- Delivery
means efficient execution, renewal requires innovation.
- Competing
on cost, quality and service = majoring on delivery.
- Fast changing
markets require constant renewal through innovation.
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You
don't have to run an old fashioned factory to overlook organizational
renewal. |
- Process
innovation leads to better delivery, not renewal.
- Product
or service innovation gives birth to future product generations
- this is renewal.
- Increasing
the efficiency of delivery is like an older person getting in
better shape.
- Genuine
renewal replaces an older generation of products with a younger
generation.
- Business
process re-engineering improves efficiency but delays the harder
task of genuine renewal.
- This buys
time in the short term and makes executives feel that they are
doing something.
- High volume,
low cost businesses are locked in an efficiency race.
- Renewal
through new products is the only way off this treadmill.
- But high
efficiency cultures with their "right first time' slogans
are not conducive to risk taking.
- Organizations
that excel in renewing themselves are much more entrepreneurial.
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All
pages written by Mitch
McCrimmon, Ph.D. and copyright © Self Renewal Group 1996-2008
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