Yesterday's Top Manager's Perspective class was focused on how a company should expand - finding adjacencies that leverage the core competency. We determined that this is extremely difficult for some companies and in fact, can destroy value for shareholders as the management pours money into building a new product line. We determined that when management has failed to diversify the portfolio, they should return the earnings to the shareholders so that they can diversify on their own (via investing in other companies).
I left the class thinking about expansion and innovation. In particular, I thought about how difficult it is for management to fundamentally change the goals and operating structure within an organization. Why do managers find enterprise innovation so difficult?
Thankfully, I have Google to thank for the following tidbit of information. The Fortune 1000 Executives Perspective on Innovation finds that 47% of companies do not have a team or process in place to brainstorm ideas and/or evaluate which ones to invest in. Shocking!
While this is not what I was originally looking for, it is still a rather interesting read, so enjoy.
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