Spin-Out Management: Theory and Practice

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Table of Contents

Article summary
Relating the article to the class materials
Practical application
Relevance to organizational change and execution
Works Cited

Article summary

The article “Spin-Out Management: Theory and Practice” encourages managers to have effective organizational structures. A powerful organizational structure promotes “the best leadership practices, business models, and decision-making processes” (Jagersman and van Gorp 17).

According to the authors, Spin-Out Management makes it easier for business organizations to diversify their operations. This strategy encourages firms “to produce independent business activities” (Jagersman and van Gorp 16). This practice “enhances the innovative aspects of a business” (Jones 34). The approach also increases the level of profitability.

This model encourages companies to produce powerful structures that can support their potentials. The article examines how different companies such as Dell Computers, 4BB, and Infopulse have used the above model effectively. Businesses should “identify their objectives, budgets, scopes, and penetration strategies before embracing the Spin-Out Management model” (Jagersman and van Gorp 23).

Relating the article to the class materials

Managers should understand the relevance of Theory, Design, and Change. This article begins by examining the issues affecting many organizations today. The theoretical argument explores the importance of an effective organizational structure.

This practice can produce the best behaviors and strategies in every firm. Managers should also identify the best organizational designs in order to achieve their goals. Organizational change is “a powerful concept that supports the needs of different companies” (Jagersman and van Gorp 19). These arguments support the concepts and lessons covered in class.

A “weak organizational structure will make it impossible for a company to realize its potentials” (Jagersman and van Gorp 21). A powerful “business model will add value to different stakeholders” (Jagersman and van Gorp 16). The authors examine the strategies adopted by several companies in order to achieve their potentials. The presented companies have embraced the importance of the above model.

The article identifies powerful aspects that can make many businesses successful. The class readings have supported the importance of “employee motivation, powerful leadership concepts, decision-making practices, Product Development Process (PDP), and organizational transparency” (Jones 28). These concepts explain why companies such as Dell Computers realized their potentials.

Practical application

The above article supports the changing needs of different organizations. Many companies “lack effective organizational structures and business models” (Jagersman and van Gorp 16). A powerful “Spin-Out Business Model can redefine the performance of many firms” (Jagersman and van Gorp 16).

Proper leadership “can also support the targeted horizontal synergy” (Jones 43). Businesses should therefore use powerful organizational philosophies in order to achieve their objectives. The article offers useful ideas that can support different organizational changes. For instance, managers should support the changing demands of their stakeholders.

Organizational leaders should also “hire and retain individuals with the best talents and skills” (Jones 48). They should also use different Product Development Processes (PDPs) in order to achieve their potentials. Managers should “also promote transparency and commitment in their businesses” (Jones 83). Managers should also manage the financial records of their respective companies.

Relevance to organizational change and execution

The above article offers powerful concepts that can support the goals of many firms. The article explains how businesses can use the above modules to achieve their goals. The article also highlights “the significance of a powerful organizational structure” (Jones 98).

This structure will encourage a company to widen its objectives and goals. The authors identify the best practices that can support every organizational change. The concepts presented in the article can support the diverse needs of different firms. In conclusion, this article offers useful ideas and evidence-based strategies that can support every organizational change.

Works Cited

Jagersman, Pieter and Desiree van Gorp. “Spin-Out Management: Theory and Practice.” Business Horizons 1.1 (2003): 15-23. Print.

Jones, Gareth. Organizational Theory, Design, and Change. Upper-Saddle River, NJ: Prentice Hall, 2012. Print.

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Spin-Out Management: Theory and Practice

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