Abstract

The core beliefs of top managers can inhibit strategic change by producing "strategic myopia" so that the natural response is to keep managing in the same old way. A company's culture can thus become an invisible barrier which impedes the process of adapting to changes in the firm's technological, regulatory, and competitive environment. The author presents several steps needed to break this invisible barrier, including making beliefs visible, using outside directors, bringing in new blood, and encouraging flexibility throughout the ranks of middle management.