Creative Destruction · Why Companies That Are Built to Last Underperform the Market · and How to Success Fully Transform Them

Turning conventional wisdom on its head, a Senior Partner and an Innovation Specialist from McKinsey as a result, in the long term, they cannot change or create value at the pace and scale of the markets. Their control processes, the very processes that enable them to survive over the long haul, deaden them to the vital and constant need for change. Proposing a radical new business paradigm, Foster and Kaplan argue that redesigning the corporation to change at the pace and scale of the capital markets rather than merely operate well will require more than simple adjustments. They explain how companies like Johnson and Johnson , Enron, Corning, and GE are overcoming cultural "lock-in" by *transforming* rather than incrementally improving their companies. They are doing this by creating new businesses, selling off or closing down businesses or divisions whose growth is slowing down, as well as abandoning outdated, ingrown structures and rules and adopting new decision-making processes, control systems, and mental models. Corporations, they argue, must learn to be as dynamic and responsive as the market itself if they are to sustain superior returns and thrive over the long term.

In a book that is sure to shake the business world to its foundations, **Creative Destruction** , like **Re-Engineering the Corporation** before it, offers a new paradigm that will change the way we think about business.

*From the Hardcover edition.*