How Institutions can change into an Innovation Entity

John Hagel – on how institutions can  change and disrupt themselves into an innovation institution

Jordan – You’re absolutely right – the transition is going to be the challenge.  I suspect the bulk of the transition will come from new entrants who pioneer and innovate around the scalable learning model and use this as a basis for unseating the incumbents who hold on to the scalable efficiency model.  This will likely lead to a painful and tumultuous transition with great potential for backlash as incumbents mobilize to use regulation and other weapons to try to block the new entrants from undermining their position. 

On the other hand, as an optimist, I believe it is possible for existing institutions to transform themselves, but not through the classic top down, “big bang” approach to transformation that has proven to have a very high failure rate.  Instead, I have been a proponent of a different approach to large scale organizational change that I call “scaling edges” – http://www2.deloitte.com/us/en/pages/center-for-the-edge/articles/scaling-edges-methodology-to-create-growth.html  A few of our existing institutions will be able to navigate through the changes using this approach.




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