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Another trait--and one that many say is the most important--is the ability to innovate and, perhaps, deviate from the original plan. It is this ability, according to the authors of last year s business book, "Creative Destruction," that allows new companies to outperform their older competitors.

Older companies are hampered by what the authors, Richard Foster, senior partner and director at management consultants McKinsey & Co., and Sarah Kaplan, who was with McKinsey at the time of the writing, call "cultural lock-in," a sort of "we ve never done it that way" attitude that gets in the way of innovation. New companies, unfettered by this attitude, are able to take bold chances, often providing greater returns than their older competitors



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