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A $1.5 billion manufacturing company spent over eighteen months and countless man‐years of effort methodically hammering out a strategic plan for its domestic and international operations. The new corporate strategy called for a significiant shift in priorities. There was to be a substantial product innovation in maturing markets and marketing and sales activities which were new to the manufacturing oriented company. After two years, the senior management team was frustrated by the lack of progress in implementing the plan. The CEO commented, “The organization is just not responding to the new strategy.”

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