Organizations struggle when they try to manage a mature business and related new venture at the same time. The endeavor is full of contradictions and paradoxes. To be successful, the organization’s leaders with two conflicting pressure to deal with it. The new company will have to forget a lot of what the mature successful companies, which argues for the isolation of the new venture from the mature business. However, the new company must also receive assistance from the mature business that lend argues for the integration … Read more »

Organizations struggle when they try to manage a mature business and related new venture at the same time. The endeavor is full of contradictions and paradoxes. To be successful, the organization’s leaders with two conflicting pressure to deal with it. The new company will have to forget a lot of what the mature successful companies, which argues for the isolation of the new venture from the mature business. However, the new company must also receive assistance from the mature business that lend argues for the integration of the two units. Based on in-depth field research at 10 organizations, this article shows how to forget what, and identify what to borrow and describes an organizational design that includes. Facilitates
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from
Vijay Govindarajan
Chris Trimble
Source: California Management Review
31 pages.
Release date: 01 April, 2005. Prod #: CMR310-PDF-ENG
Organizational DNA for Strategic Innovation HBR case solution