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So why is it that if we know we need to be more responsive to the environment and
we need to change our organizations to create value, why don't we just do it?
Well, first of all, fear of change is human nature.
But, also within organizations there's something at work that's an largely
invisible force, and it's called the dominant logic of our organization.
It isn't about culture, although dominant logic has an impact on culture, but
dominant logic will determine how we approach the world, how we see the world.
Its a sort of filter through which we process all the information
about what's happening to us and to our organizations.
Dominant logic begins, it has its genesis, the first time that we succeed.
And it becomes stronger every time we succeed because we're getting rewarded for
the way we're doing things and the way we're viewing the world.
But sadly, it doesn't evaporate when we start to fail.
The idea of dominant logic was first explored by two
very smart gentlemen named C.
K. Prahalad and Richard Bettis in 1986.
There are several levels to the thinking and you can read more about it on
the resources on the reading list for this week.
But in a nutshell,
this theory identifies that the source of dominant logic is within our successes,
that when we do things and are rewarded for them by being successful, we
begin to absorb the world view that we had at the moment at which we were successful.
And that means in our organizations,
we begin to build up core competencies around this world view.