
"The mood in the room was tense. It was 2020, and the executive team of a company we'll call Pharma Global (PG)*, the non-U.S. division of a leading pharmaceutical company, had gathered in Frankfurt for their annual retreat. For two years, they had debated a bold transformation-one that would fundamentally change how decisions were made, flatten the organization, and empower employees. Yet, despite endless discussions and extensive analysis, they had failed to make the leap."
"Yet, despite endless discussions and extensive analysis, they had failed to make the leap. Chengyi Lin is affiliate professor of Strategy and a leading expert on digital transformation at INSEAD. His research and teaching explore the strategic impacts of digital technologies, such as AI, and drivers of innovation for global and multinational organizations. Michael Lee is an assistant professor of organizational behavior at INSEAD. Follow him on Twitter: Michael Y. Lee @yanche."
A non-U.S. division of a leading pharmaceutical company convened in Frankfurt in 2020 to revisit a proposed organizational transformation. Leadership had spent two years debating a plan to flatten hierarchy, change decision-making, and empower employees, yet never executed the change. The effort stalled despite extensive analysis and prolonged discussion. The case highlights tensions between ambition and implementation in large, complex organizations. Research interest centers on digital transformation and the strategic impacts of technologies such as AI, as well as the drivers of innovation in global and multinational settings.
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