Talking About Organizations Podcast 24: Learning by Knowledge-Intensive Firms (Part 2)
Feb 14, 2017
William Starbuck, a renowned author notable for his insights on knowledge-intensive firms, delves into the intricate balance between organization growth and expertise. He discusses the crucial role of low-level personnel in fostering customer relationships and warns against the downsizing pitfalls that overlook employee retention. The conversation also navigates the transition to knowledge economies and critiques the outsourcing of engineering talent across countries. Finally, Starbuck emphasizes the need for adaptive management strategies in today's evolving workplace.
AI Snips
Chapters
Transcript
Episode notes
Foolish Organizational Growth
- Organizations tend to grow foolishly, prioritizing short-term gains over long-term sustainability.
- They often expand overhead without proportionally increasing expertise, leading to inefficiencies.
Will Ross Corporation's Downfall
- William Starbuck recounts the story of Will Ross Corporation, which underestimated the value of low-level personnel.
- After relocating and losing these employees, the company went bankrupt due to damaged customer relationships.
Sustaining Organizational Memory
- For better downsizing, try to evaluate organizational memory before drastic changes.
- Incremental changes are generally a good idea; try things out before committing resources.