Learning Organizations

Chapter 7

Knowledge Gaps and the Corporate Instinct

Opinions vary regarding the best ways to manage during hard times. Some say a downturn is a great time to consider outsourcing, while others say it’s the worst. Some argue for immediate cuts across the board; others suggest it’s better to examine processes and projects in order to trim fat, not internal organs. Interestingly enough, hard times are always characterized by the presence of many gaps in the organization, the market, the economy, management and so on. The harder the times, more the number of gaps and their impact:

•Gap in the excess of inventory, compared with demand

•Gap in profitability, compared with levels of investment

•Gap in creativity, compared with fierce competition ...