THEOREM OF THE WEEK

"A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success."
Daniel Muzyka, Dean, Sauder School of Business, Univ of British Columbia (FT/09.17.04)

Proofs:
The Nissan Turnaround
In which (CEO Carlos Ghosn) accomplished through sweeping layoffs and plant closings in Japan— made him a cult hero there, and a potential Mr. Fix-It for broken carmakers everywhere.
Having fixed Nissan, however, Mr. Ghosn is finding it hard to sustain its growth. The company'’s operating profit declined 26 percent in the quarter from April to June; vehicle sales fell 6 percent, to 826,000. (NYT/09.14.06)


Know of other business theorems and proofs to support innovation? Drop them into the comments, I'll be updating these every Monday.