The thinking organization: How patterns of thought determine organizational culture

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Abstract
Thursday evening, 7:30 P.M. In his office on the seventh poor, Michael G. Smith, new CEO of Avant‐Garde Computer, Inc. (AGC), examines the most recent sales report. The message is depressing: sales have leveled off in the past year, AGC is a small and innovative young company located in the Silicon Valley. Founded eight years ago, AGC's specialization is engineering graphics design software. The founder, an engineer himself, had successfully marketed two highly specialized software packages for mechanical and electronic design. Two years ago, the need for capital became acute, and the founder sold AGC to a very large multinational corporation.Michael G. Smith was appointed CEO by the consortium. He recognizes the difficulty of AGC's current situation, but he is optimistic that he can revive the company. His strategy would be to broaden AGC's market by adapting and offering its graphics products to other end‐user specialists besides engineers, and to add a counseling service to educate and orient clients to graphics applications. However, he foresees that the members of AGC's team would not be thrilled by his view of the future, since they are concerned solely with the engineering applications of the company's products. Quite honestly, he really does not know how to introduce these major strategic changes without losing either the team's spirit or the team.

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