Szulanski: Getting it right the second time

6 important questions on Szulanski: Getting it right the second time

Name the 7 points that goes wrong according to Szulanski when best practices get copies?

1 Causal ambiguity (what causes the result/success)
2 Managers can't easily select the good practices to be reproduced and which aspects need to be adjusted
3 Over-optimistic and over-confident management don't fully understand the complexities of the system
4 Tacit knowledge (difficult to understand a system by f.e. reading a document)
5 Hidden contextual factors
6 Lack of absorptive capacity in receiving organization
7 Retentive capacity of transferring unit

According to Szulanski companies have troubles to transfer capabilities and best practices between units. Also are bad practices copied to new locations. Name 2 examples of companies who struggeld with this?

Wal-Mart in Germany and IKEA in USA

What is a way to accomplish guideline 3 'copy as closely as you can' according to Szulanski?

By implementing Copy Exactly!
1 Physical inputs to production must be shown to have been correctly copies
2 Process outcomes are matched
3 The product itself is proven to be up to standard
> Each level must be passed before moving on to the next level.
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To surmount these difficulties, Szulanski proposes that their can be two things differently. Consult experts, but they aren't the keys to kingdom. What is?

1 Look at the ongoing activity itself: look at the working template.
2 When you look at the activity, don't assume that you'll fully understand what makes it work any better than the experts.
> Copy the working template as closely as you can, because:
-you know that template is possible to succeed
-you have a clear objective: create a replica (it has mesures that will tell you if you've succeeded)
-copy the template in detail

What are the two big mistakes that can be made by organizations when trying to replicate best practices? (Szulanski)

1 Placing too much trust in experts and documents
2 When a manager actually starts to set up the new process: he turns into a cowboy. He forgets that he's trying to replicate and starts immediately with improving the process.
> The people who are replicating a process overestimate how much they know and are overoptimistic about their chances for success.

Once a business is doing a good job, the organization wants to replicate that success. But, getting it right the second time is extremely difficult. managers who want to leverage knowledge (using what others already have learned) typically start by doing one of two things. What is this according to Szulanski?

1 Sometimes they go straight to an expert source and pick their brain.
2 Managers consult documentation put together by one or more expert sources.
> They can be used to gain rough understanding of a systems, but you can't get a deep, rich understanding. When it comes to complex systems, expert and documents don't fully captures the subtle ways in which individual components are interwoven with one another.

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