Why have some U.S. firms succeeded in redesigning themselves to meet competitive demands while others have not? Successful firms meet three key requirements for effective redesign: a commitment to total redesign as an economic "must," not simply an "ought;" a clear strategic vision supported by the structure and process changes necessary to achieve it; and a managerial philosophy that fits the chosen strategy and structure. Some firms have been able to install an alternative strategy-structureprocess package by breaking completely from the established pattern. Other firms have "rediscovered" a viable combination of strategy, structure, and philosophy by stripping away central bureaucracy. Still others have searched outside familiar models, most often in the direction of network strategies and structures. Overall, the capacity for organizational renewal comes from investing in human skills and knowledge-bases, which serve as competency reserves in changing times.
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