The leaders of many mature organizations today do not have the right mindset and practices to help their organizations survive. They grew up with the management practices that are appropriate for different age groups - one with higher barriers to entry, greater transaction costs, less capable competitors, growing and increasingly wealthy markets and less information. But today's business environment are less predictable, more complex and more volatile. The result is that many companies do basic becoming more uncertain and needs to be updated. Based management tools, such as net present value, are based on the certainty to assume - that it really predict the probability of future cash flows and discount them today. In the volatile business environment, however, this kind of thinking is no longer practical. As an alternative, the authors propose methods used successful growth companies, entrepreneurs, and corporate new business development groups to navigate unpredictable, limited resources and amazing environment. In an unpredictable world, trying to be right can lead managers terribly misleading. "Discovery-driven" approach described in this paper emphasizes finding the right answers and suggestions to knowledge reduction ratio. "Hide
by Rita Gunther McGrath, Ian C. MacMillan Source: MIT Sloan Management Review 8 pages. Publication Date: April 1, 2009. Prod. #: SMR308-PDF-ENG
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