Even before the Internet and globalization, the track record of managers for dealing with major, disruptive change was not good. According to the authors managers can see the disruptive change coming, but they lack a habit of thinking about their organization's capabilities as carefully as they think about individual people's capabilities. Capabilities of organizations reside in their resources, their processes, and their values. Managers need to assess how each of these factors might affect their organization's capacity to change. The authors explain each factor in detail, before discussing the evolution of capabilities and disabilities over time, the difference between sustaining and disruptive innovation, and the creation of new organizational space where new capabilities can be developed. Conclusion of the authors is that managers whose organizations are confronting change must first determine whether they have the resources required to succeed. They then need to determine whether the organization has the processes and values it needs to succeed in the new situation.
Strong point about this article is that the authors offer managers a clear framework to help managers understand what kind of team should work on the project and what organizational structure that team needs to work within in order to develop new capabilities - which reside in resources, processes and values. Excellent article in simple and clear US-English.