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.
We must learn what customers really want, not what they say they want or what we think they should want.
When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.
Greatest risk is not development of new product, but development of customers and markets
Our model is to develop each business separately with its own shareholder and management - this way we can concentrate on the job in hand, rather than be part of some enormous and faceless conglomerate.
If you want to invest in us, we believe customer number one, employee number two, shareholder number three. If they don't want to buy that, that's fine. If they regret, they can sell us.
The market and the consumer and idea trump the system.
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