Chapter 2. The Second Cycle: A New Paradigm
The Downward Cycle
Many large, old, or successful organizations are already caught on the downward trend in their lifecycle. They may show nice financial figures due to downsizing or mergers and acquisitions, but behind the surface, they are slow-moving, they don’t respond quickly and creatively to customer needs, and they are so happy with what they do that they spend all their time to refine it rather than to question it. In fact, if anybody questions their mental model, they get upset and immediately start defending themselves.
Such organizations are bound to die if they continue their current cycle. In the long run, no organization can win only through financial engineering and acquisitions if the ...
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