Organizational Reinvention

This note is designed to introduce students to the fundamental concepts of leading innovation in established organizations. Reinvention is a process whereby organizations respond to changes in the environment that threaten their core business model, technologies, cultural values, and/or operational norms. Reinvention represents a managerial paradox for organizations that have experienced several years of success: leaders must preserve some elements of the business that once made it successful and simultaneously change other elements that, if left unattended, could render the organization obsolete. The Note outlines four elements associated with organizational reinvention: 1) Understanding technology lifecycles and s-curves: What are technology lifecycles and s-curves?; 2) Reinvention by extending existing capabilities: How do leaders extend existing organizational capabilities in response to new technologies?; 3) Reinvention by adopting new capabilities: How do leaders adopt new capabilities in response to new technologies?; 4) Readying your organization for reinvention: How do leaders develop the right mindset and the right team to engage in a reinvention effort? Finally, the Note includes several diagnostic tools that students and executives can use to analyze an organization’s readiness for reinvention.