The formulas N=1 and R=G expose a myth that is common in most large firms, usually expressed this way: "Do you want efficiency or innovation?" Of course we need both. But often it is phrased as an either-or proposition. Why is that?

We deal with the issue of "efficient innovation (both)" in Chapter 6 of our book. But can you tell me why people think of efficiency and innovation as distinctly different corporate behaviors?

Do you face this dilemma of having to explain how you can have both efficiency and innovation at the same time? Then I would ask this question: Are we still debating issues like Quality vs. Cost? Differentiation vs. Cost? I think not.

The challenge is to ensure that we don't sacrifice one for the other: innovation without efficiency, or efficiency without innovation.