Published by:
University of California, Berkeley
Length: 31 pages
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Abstract
Organizations struggle when trying to manage a mature business and a related new venture simultaneously. The endeavor is fraught with contradiction and paradox. To succeed, the organization''s leaders must deal with two conflicting pressures. The new venture must forget much of what has made the mature business successful, which argues for isolating the new venture from the mature business. However, the new venture also must borrow resources from the mature business, which argues for integrating the two units. Based on in-depth field research at 10 organizations, this article shows how to identify what to forget and what to borrow and describes an organizational design that facilitates both.
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Abstract
Organizations struggle when trying to manage a mature business and a related new venture simultaneously. The endeavor is fraught with contradiction and paradox. To succeed, the organization''s leaders must deal with two conflicting pressures. The new venture must forget much of what has made the mature business successful, which argues for isolating the new venture from the mature business. However, the new venture also must borrow resources from the mature business, which argues for integrating the two units. Based on in-depth field research at 10 organizations, this article shows how to identify what to forget and what to borrow and describes an organizational design that facilitates both.