Organization as machine – this imagery from our industrial past continues to cast a long shadow over the way we think about management today. It isn’t the only deeply-held and rarely examined notion that affects how organizations are run. Managers still assume that stability is the normal state of affairs and change is the unusual state (a point I particularly challenge in The End of Competitive Advantage). Organizations still emphasize exploitation of existing advantages, driving a short-term orientation that many bemoan. (Short-term thinking has been charged with no less than a chronic decline in innovation capability by Clayton Christensen who termed it “the Capitalist’s Dilemma.”) Corporations continue to focus too narrowly on shareholders, with terrible consequences – even at great companies like IBM.
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