Professional Documents
Culture Documents
Day 3
Day 3
The first aim of the firm is not the search for profits, but the search for survival, profits being
the basic condition for that. Like a living being, it is endowed with an instinct for self-
preservation which balances the risk inherent in the instinct towards expansion; it possesses
an information system and a flow of materials and energy governed by a veritable metabolic
system.
Varied
education
Core rigidities
Core Capabilities
Values
Dorothy Leonard Barton – Core Capabilities and Core Rigidities: A paradox in managing new product development
Values and
Skills and Knowledge Norms
base
Core Capabilities
Skills and knowledge base
✓ Embodied in people
✓ Is the one most often associated with core capabilities
✓ Most obviously relevant to new product development
✓ Encompasses both firm-specific techniques and scientific understanding
Technical Systems
✓ Results from years of accumulating, codifying and structuring the tacit knowledge in people
✓ Compilations of knowledge, usually derived from multiple individual sources
✓ The whole technical system is greater than the sum of its parts
✓ This knowledge constitutes both information (e.g. a data base of product tests conducted over decades)
and procedures (e.g. proprietary design rules.)
Managerial Systems
https://www.youtube.com/watch?v=agLUDl4YpQg
https://www.youtube.com/watch?v=pIqKXRkgsVc
https://www.youtube.com/watch?v=kXhSnpSCnEc
Norland’s mission is to uphold and enhance our prestigious reputation and provide a bespoke early years higher
education, training and consultancy informed by cutting edge research, and cultivate outstanding graduates with
lifelong career opportunities, professional support and continuous learning.
VISION
✓ Norland will continue to build a sustainable and prestigious national and international reputation as a unique and
specialist higher education provider of lifelong education, training and employment for outstanding nannies and early
years practitioners
✓ Students will continue to experience the highest standard of provision and become knowledgeable and skilled graduates
with excellent career prospects working in partnership with children, families and communities
✓ Norland will contribute to the early years sector by generating cutting edge research, training and consultancy to support
the very best in early years provision and in related services both nationally and internationally
✓ Norland Agency will actively promote, access and support to Norlanders to facilitate employment opportunities and
✓ Norland will proactively engage with stakeholders, the local and wider community, prospective clients and enhance its
charitable activities
✓ A cohesive, continuous and collaborative learning community will be developed that challenges and enhances the
professionalism and expertise of its staff, students and graduates, draws on and promotes their strengths to drive
Analyze
✓ Skills and Knowledge base
✓ Technical System
✓ Managerial System
✓ Value and Norms
Up-side Down-side
Reflection
CLASS REFLECTION
Everything that irritates us about others can lead us to an understanding about ourselves.
- Carl Gustav Jung
As humans, how flexible are we to changes?
❑ Identify your rigidities and capabilities under the 4 pillars mentioned before.
Analyze the problem given: You join an organization which is going through a tumultuous financial crisis.
You have joined the organization without fully knowing the magnitude of the problem that the
organization is facing. You had to let go of another job offer to take this one. Now, what about you will
help you overcome the crisis and what about you will stop you from continuing with the organization.
Identify the belief system that you will embrace in your identity
❖What type of core capabilities will help them navigate the challenges?
SIMULATION - 2
The case of a Private sector organization. The organization believed in a set of values - Respect
to self and others, Doing better today than yesterday and Kindness. The organization wanted to
attain more business-specific deliverables and hence considered re-structuring the organization.
Massive changes in the management ensued and a set of new values were put in place –
Ambition, Pride, Discipline and Integrity. The plan was to lay off and cut the slack from
businesses which were not doing well. The plan was to undertake ventures in areas that give
them ‘right to win’.
❖Pre-empt the challenges the organization had to overcome while migrating into the new plan.
❖What type of core capabilities will help them navigate the challenges?
STABILITY AND CHANGE
Discuss:
Individuals seek both stability and fluidity in navigating the currents of
organizational life
Thank you!
Fragmentation
Companies begin
to break down into
collaboration networks
of smaller organisations;
specialisation dominates
the world economy
Collectivism Individualism
Integration
TWO CONFLICTS ON INNOVATION
Industry-specific capabilities increased the Institutionalized capabilities may lead to
likelihood a firm could exploit a new technology ‘incumbent inertia’ in the face of environmental
within that industry. Therefore effective changes. Technological discontinuities can enhance
competition is based less on strategic leaps than or destroy existing competencies within an
on incremental innovation that exploits carefully industry. Such shifts in the external environment
developed capabilities. resonate within the organization, so that even
‘seemingly minor’ innovations can undermine the
usefulness of deeply embedded knowledge. In
fact, all innovation necessarily requires some
degree of ‘creative destruction’.