Institutionalizing Innovation for Growth and Profitability

Abstract

When a business goes through bankruptcy protection from creditors, or reorganizes to return to its core competency, the turnaround management professional focuses on leadership, finances, legal issues, and operations to get back on the path of recovery. However, the human capital is often overlooked. This article proposes utilizing human capital as a way of institutionalizing innovation and making it an integral part of the turnaround strategy. In an organizational turnaround, the leadership must focus on customer-centric value creation rather than survival-driven organizational structure. Producing innovative products and services is the most valuable creative financing method to ensure superior return on investment for stakeholders.