Home / Quotes / Quote by Clayton Christensen

Quote by Clayton Christensen

“To prop up the stock price, managers have to turn down the screws on everybody. That forces them to cancel all the projects that would lead to future growth in order to drop money to the bottom line. This is HP's dilemma today. Once a company's growth has stopped, the game as we have known it is over. It's a scary thing.”

Quote by Clayton Christensen

Author

Clayton Christensen

Clayton M. Christensen is an esteemed professor known for his contributions to the fields of business management and innovation. Born on April 6, 1952, he is a professor at Harvard Business School and the author of 'The Innovator's Dilemma'. more

You May Also Like

“But actually theory is very practical. Gravity is a theory, for example. It allows you to predict that if you step off a cliff you will fall; you don't have to collect data on that.”

Ifs Fall Steps Example Theory Practicals Data Gravity Cliffs

Author:Clayton Christensen

“Disruptive technology is a theory. It says this will happen and this is why; it's a statement of cause and effect. In our teaching we have so exalted the virtues of data-driven decision making that in many ways we condemn managers only to be able to take action after the data is clear and the game is over. In many ways a good theory is more accurate than data. It allows you to see into the future more clearly.”

“If you just look at the data, you are led to believe that things are getting better, rather than worse. That's why the fall is really precipitous, once you hit the ceiling.”

Ifs Believe Looks Fall Data Get Better Ceilings Things Are Getting Better

Author:Clayton Christensen

“When the functionality of a product or service overshoots what customers can use, it changes the way companies have to compete. When the product isn't yet good enough, the way you compete is by making better products. In order to make better products, the architecture of the product has to be interdependent and proprietary in character.”

Way Enough Character Use Order Company Products Customers Architecture Good Enough Functionality

Author:Clayton Christensen

“Regulatory fiat cannot create a market at a technologically interdependent interface. And by the same token, regulation and so-called monopoly power rarely prevail at modular interfaces between stages of value-added technology.”

Values Technology Stage Regulation Monopoly Tokens Interfaces Monopoly Power

Author:Clayton Christensen

“If I know what to spec, and I can measure it, and there are no unpredictable interdependencies between what you do and what I must do in response, then an economist would say that is sufficient information for a market to emerge between you and me.”

Ifs Knows I Can Information Response Sufficient Unpredictable Economist Between You And Me Specs

Author:Clayton Christensen

“Capitalism has taught us that markets are always more efficient than hierarchical managerial coordination. But in a situation where those three conditions aren't met, I can't outsource or partner with you because markets don't function in the absence of sufficient information.”

I Can Three Situation Conditions Information Taught Mets Capitalism Function Absence Partners Sufficient Efficient Taught Us Coordination

Author:Clayton Christensen

“Management has to provide the coordinating mechanism between what the supplier provides and what the user needs in not-good-enough situations where product architecture is consequently interdependent. Management always beats markets when there is not sufficient information.”

Needs Enough Situation Information Products Beats Management Architecture Sufficient Good Enough Mechanism Users Not Good Enough Suppliers Coordinating

Author:Clayton Christensen

“The outsourcing gurus have been driving the theory, and they are saying everybody ought always to do this. But it is really contingent on where you are on the spectrum from "not good enough" to "more than good enough," relative to each tier of the market.”

Has Beens Enough Theory Ought Driving Good Enough Where You Are Relative Spectrum Guru Not Good Enough Outsourcing

Author:Clayton Christensen

“It is when the product is not good enough that proprietary integration gives you a competitive edge. You cannot outsource and be competitively successful in this situation. But at the other end, where standard components assembled in standard ways can yield acceptable performance, you must outsource.”

Way Giving Ends Enough Situation Successful Products Standards Performances Edges Yield Good Enough Acceptable Integration Components Not Good Enough

Author:Clayton Christensen