I recall a conversation with the CEO of large electrical…
“I recall a conversation with the CEO of large electrical equipment MNC in which he began by asking me to guess how many innovation centres his firm had around the world. My guess was nowhere near the 160 that turned out to be the answer. Not surprisingly this CEO recognized that his firm's ability to innovate was being hampered by the huge size of their footprint which brought few benefits as it was inefficient, there was duplication across sites and competition between them. In this and most other cases, the costs of the expanded footprint outweigh the benefits.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Large firms suffer from overexpansion, causing inefficiency and internal competition that hinders innovation.
In simple terms: Too many locations reduce innovation efficiency.
Key Takeaway
Consolidate to streamline innovation.
Themes
efficiency
innovation
scale
organization
Mood
analytical
concerned
Type
strategic
observational
When to use this quote
- corporate restructuring
- global expansion planning
- R&D management
Key Concepts
organizational design
economies of scale
strategic focus
Questions to Reflect On
- How can firms balance global presence with innovation speed?
- What criteria should guide closing redundant sites?
A Different Perspective
Large footprints can limit agility and local responsiveness.