Fall of Great Companies – Don Sull & Clayton Christensen

The simple story outlined by Jim Collins in the previous post is just the very first step in understanding why good companies fail.

The very old and well-known idea from Christensen & Bower (1996) and the Innovator’s Dilemma suggests that the very strategies that helped firms to reach success cause them to fail as the environment change and new entrants succeed in introducing and developing disruptive innovations. His examples of the hard disk industry and the steel mills are also very well known.

Now, here is another speech centered on this idea by Don Sull from the London Business School. He explains that there are 5 types of commitments that can bind companies:
1. Frames (assessments)
2. Processes (formal, informal)
3. Resources (tangible and intangible)
4. Relationships
5. Set of Values (identities)

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June 20, 2013 · 11:33 am

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