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How to Appraise Your Organization's Capabilities and Disabilities

Organizations, independent of the people and other resources in them, have capabilities. This chapter outlines three classes of factors that affect an organization's capabilities: resources, process, and values. The successful organization must develop or acquire the capability to embrace and respond successfully to change.

This chapter was originally published as chapter 8 of "The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail."