MGMT 461: Managing Change and Innovation

Introducing the CoreCO

Dr. Nilesh Khare

Big Organizations: CoreCo is a very successful most dominant division of an organization

Core Co is a very successful and usually most dominant part of the big organization
Provides most of the revenue and or profits Headed by GMcan be given different designation Usually competes in a mature but intensely competitive environment Emphasizes efficiency Knows what works what does not in its area of business

Organization behavior Performance trajectory Key aspects

Other key players in the game

Corporate Management Corporate CEO/CFO/ Corporate Staff

New Co a team/division responsible for taking new idea to a stable profitable business
Will be relatively very small division/unit/distinct fully controlled firm Headed by GM/Team lead/Entrepreneur
Dr. Nilesh Khare

Big Organizations: structure, systems, staff and culture are primarily shaped to fit the need of the CoreCo
Multi-divisional structure Reporting relationships, information flows, decision rights Structure
Organization behavior Performance trajectory

System
Key aspects

Staff Core Attributes, Core Skills

Reward for performance Detailed investment approvals Conventional planning Information system geared for core businesses

Culture
Formal Less diversity in norms Risk averse Conservative

* Behavior Status Politics Coordination * What decisions are taken/are not taken * Dominant logic * How things get done

Dr. Nilesh Khare

Successful organizations eventually face stagnation or decline in their core business area
Performance
Organization behavior Performance trajectory Key aspects

Performance

Time Examples Microsoft in Operating System Business Intel in Microprocessor business

Dr. Nilesh Khare

Take home assignment

Research on Xerox PARC http://en.wikipedia.org/wiki/PARC_(company)

Think about the following questions

What is PARC? How many new innovative ideas emerged at PARC? Why did Xerox start PARC? Could Xerox benefit from new ideas that emerged at PARC? Why or why not?

Dr. Nilesh Khare