Ten Rules for Strategic Innovators

Chapter Five

TURNING TENSION INTO APRODUCTIVE FORCE

THIS CHAPTER outlines a three-step approach for overcoming the borrowing challenge. First, select the right links between New-Co and CoreCo. Second, establish a cooperative environment for borrowing. Third, monitor interactions and intervene as necessary to keep tensions healthy and productive. We conclude by identifying six borrowing strategies along with the unique challenges associated with each.

Select the Right Links

CoreCo likely has a vast range of assets that look valuable to NewCo. For example, NewCo may desire to leverage CoreCo’s brands, expertise, manufacturing facilities, information systems, and networks of customers, suppliers, or distributors. To do so, it will want to create ...