Management innovation is going to be the most enduring source of competitive advantage. There will be lots of rewards for firms in the vanguard.
Interpretation
Management innovation is essential for long-term competitive success in business.
Gary Hamel emphasizes that the ability to innovate in management practices will provide companies with a significant and lasting competitive edge. Those organizations that lead in this area will reap substantial rewards, highlighting the importance of adapting and evolving management strategies to stay ahead in the marketplace.
In practice
In a business conference discussing new strategies, one might say, 'As Gary Hamel noted, management innovation is vital for staying competitive.'
The real damper on employee engagement is the soggy, cold blanket of centralized authority. In most companies, power cascades downwards from the CEO. Not only are employees disenfranchised from most policy decisions, they lack even the power to rebel against egocentric and tyrannical supervisors.
The biggest barriers to strategic renewal are almost always top management's unexamined beliefs.
To create an organization that's adaptable and innovative, people need the freedom to challenge precedent, to 'waste' time, to go outside of channels, to experiment, to take risks and to follow their passions.
If customer ignorance is a profit centre for you, you're in trouble.
It doesn't matter much where your company sits in its industry ecosystem, nor how vertically or horizontally integrated it is - what matters is its relative 'share of customer value' in the final product or solution, and its cost of producing that value.
The single biggest reason companies fail is they overinvest in what is, as opposed to what might be.
As long as you keep doing the right thing and have the best product, you can beat the bigger company.
Few relationships are as critical to the business enterprise as the relationship to the government. Managers have responsibility for this relationship as part of their responsibility to the enterprise itself. It is an area of social impact of the business. To a large extent the relationship to government results from what businesses do or fail to do.
Of all the things that your company owns, brands are far and away the most important and the toughest. Founders die. Factories burn down. Machinery wears out. Inventories get depleted. Technology becomes obsolete. Brand loyalty is the only sound foundation on which business leaders can build enduring, profitable growth.
If you don't drive your business, you will be driven out of business.
Businesses are not paid to reform customers. They are paid to satisfy customers.
Big companies have trouble with innovation. Innovation is about bad ideas, or ideas that look like bad ideas. That's the fundamental thing.
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