Knowledge as a transformation agent

Why is it so difficult to make change happen? Many companies fail because they do not have the right internal structure and mindset to succeed. The author illustrates how to manage change effectively by examining how product‐based companies must transform to launch true service‐driven ventures. Using three case studies, he documents common pitfalls and barriers, then outlines the steps necessary for developing a well‐conceived service strategy. He introduces “business logics” as a key for identifying characteristics that define business types and the performance measures that support their success. The author then explains how a knowledge‐driven business model identifies the critical behaviors, competencies, market conditions, finances and other resources needed to make change happen. He advises organizations to test their strategies using simulations to ensure employees are prepared to internalize behavior and culture changes.