From Executive Insights Blog
There are many reasons why innovation is difficult for large companies. At the top of the list is the fact that their employees tend to be risk adverse and stay for a long time. While there are benefits to high employee retention rates, it also means they are reinforcing the same ideas over and over again.
The new ideas that are seen often only lead to incremental improvements, squeezing out a few basis points here or a few days off of a project schedule there. It’s common for a big company to make marginal improvements to a 20-year-old process rather than scrap it to adopt a newer system. They’d rather tweak a dinosaur that still functions than take a risk.
See the full post here
Gary Smith is the founder of Beacon Management Consulting and a member of the MIT Sloan EMBA class of 2013
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