Monday, February 1, 2010

Innovation versus Defend & Extend

One problem is to promote an ethical culture is often interpreted to mean that the tactic is to defend the "and extend" as the sole criterion for ethical leadership (Hartung, 2009). In his new book, Creating Market Adaptation and Adam Hartung points out that success in the corporate setting, whether to defend in practice, and expand gradually to the front of the practice without any problems. Confidence in the leadership is misplaced, however, where that leadership is basednot disturbing.

Hartung cited Foster and Kaplan (2001) for the point that, for example, the 500 companies in the S & P 500 in 1957, only 1 / 3 of the 500 still existed until 1994. That is the danger of managers who seek to build their careers put in place by their companies. Fans of Clayton Christensen (The Innovator's Dilemma, The Innovator's Solution and Seeing What's Next), this will be his point. Teaches Christians to recognize a good example, and his examples on this topicare mandatory.

Christensen (2003) points out, for example, what happened Cabot Corp., when it tries to innovate, because the short-term profit was due to its investments in new processes and materials that are good with huge returns in the long term, even not paid , fired the board and the executives in new leadership with instructions brought the company back on its core products (p.3). This led the company back to where they started, andshows that the market punishes innovation.

So what is an innovator? Henry Ford once again be privatized firms do after the Michigan Supreme Court ordered him to pay dividends to shareholders, instead of building his business by paying his workers enough to buy a car, Dodge (v. Ford Motor Company, 204 Michigan 459, 170 NW 688 (Michigan 1919)). Many of the most innovative companies never go back to the public or to privatize. Consider HCA, Hospital Corporation of America, asPrime example - a publicly traded company is more than it's worth, because the shareholders must be kept informed of communications, the company prefers to keep private.

If ethical leadership is so interpreted, the defense of the company's markets and their gradual expansion, then the company is doomed to failure. It is only with great opportunities that a company can be innovative and successful over the years - and to maximize shareholder is incompatibleResult.


Christensen, CM & Raynor, ME (2003). The Innovator's Solution: Creating and maintain successful growth. Boston: Harvard Business School Press

Foster, RN, & Kaplan, S. (2001). Creative Destruction. NY: Currency

Hartung, A. (2009). Create Marketplace Disruption. Upper Saddle River, NJ: Pearson Education.

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