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.
The concept of disruption is about competitive response; it is not a theory of growth. It's adjacent to growth. But it's not about growth.
If you're competitor-focused, you have to wait until there is a competitor doing something. Being customer-focused allows you to be more pioneering.
Our vision, which has not changed since the day the company was founded.
We used to think that everything started in the lab. Now we realize that everything spins off the consumer.
Time is the friend of the wonderful business. It's the enemy of the lousy business. If you're in a lousy business for a long time, you're going to get a lousy result, even if you buy it cheap. If you're in a wonderful business for a long time, even if you pay a little too much going in, you're going to get a wonderful result if you stay in a long time.
Too many companies are running their business into the ground, I would argue, by being myopically short-term focused on the shareholder.
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