What Explains Motorola’s Decline?

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20000 worked people worked at Motorola in 2012. In 2014, the number was 3500. Recent round of layoffs has left less than 1000 people at Motorola.

So, what explains such decline?

lack of innovation is touted as the basic reason. See here.

But, this is a not a good diagnosis. After all, why did the company that was once so innovative suddenly become less innovative?

Well, the root cause lies in Motorola’s culture:

Motorola’s founders had inculcated a culture of internal competition in the organization. Around 1984, one of the divisions–the cellular business–exploded and hence got too much limelight. But, the other divisions languished.

This resulted in infighting among various divisions of Motorola.

Now, such infighting is very bad for innovation–esp. when innovation requires various divisions to be collaborating with each other!

Read the article at Chicagomag.com to know more!

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