Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Foreword
- Preface
- List of abbreviations
- 1 Introduction
- 2 Why a consistent emphasis and approach for new business creation is beneficial but difficult to achieve
- I The business environment
- II The management culture
- III The corporate executives
- IV The division general manager
- V The division and its top management team
- 15 The identification and pursuit of new business opportunities
- 16 Other new business creation challenges for the division
- 17 The division's organization, competence, and collaboration for new business creation
- 18 The effectiveness of the division's top management team
- VI Putting it all together
- Notes
- Bibliography
- Index
17 - The division's organization, competence, and collaboration for new business creation
Published online by Cambridge University Press: 22 September 2009
- Frontmatter
- Contents
- List of figures
- List of tables
- Foreword
- Preface
- List of abbreviations
- 1 Introduction
- 2 Why a consistent emphasis and approach for new business creation is beneficial but difficult to achieve
- I The business environment
- II The management culture
- III The corporate executives
- IV The division general manager
- V The division and its top management team
- 15 The identification and pursuit of new business opportunities
- 16 Other new business creation challenges for the division
- 17 The division's organization, competence, and collaboration for new business creation
- 18 The effectiveness of the division's top management team
- VI Putting it all together
- Notes
- Bibliography
- Index
Summary
This chapter examines how the division's organization, competence, and collaboration influence new business creation (Table 17.1).
Frequent reorganizations hamper new business creation
Xerox OPD had already endured several reorganizations when Greg Gibbons became the fourth DGM in six years. He reorganized OPD once again by breaking up the functional organization, “the silos” as he referred to them, to create strategic business units (SBUs) overseen by an Office of the President, which was subsequently disbanded. Whatever their merits, these frequent reorganizations created confusion and disruption that hampered new business creation.
Monsanto Fab Products also underwent several organizational changes in the quest for the right organization for new business creation. When Dan Stewart became DGM of Fab Products, he broke up the functional organization to create self-sufficient business units (BUs). His successor, Ian McVay, reorganized Fab Products into a matrix.
At 3M Micrographics, there was some organizational disruption when the 35mm lines were peeled off to create the Engineering Products department, but this was the normal 3M practice of “cloning” divisions once they became too large. AMP Sigcom and 3M Micrographics did not hinder their new business creation efforts with frequent organizational surgery.
A moratorium on reorganizations is not being recommended, but there is a lot to be said for less frequent organizational changes.
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- Information
- Corporate EntrepreneurshipTop Managers and New Business Creation, pp. 254 - 269Publisher: Cambridge University PressPrint publication year: 2003