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“Creative destruction,” a term most closely associated with Joseph Schumpeter, an economist associated with the Austrian School of Economics, emphasizes the roles innovation and entrepreneurship as factors which spur economic growth and serve to reallocate resources from poorly-performing firms to more promising ventures. The balanced scorecard approach relies on the theory of creative destruction as the engine which continuously drives the business enterprise to create value for customers, shareholders, and employees.

Generally speaking, the “learning and innovation” perspective in the Kaplan & Norton (1992) balanced scorecard aligns with actors in Marketplace which promote creative destruction. Here’s an example of creative destruction: Apple continues to make its best-selling products obsolete before potential competitors can seriously challenge and erode Apple’s market advantage in digital music, smart phones, and digital application technologies.

After reviewing the types of investments companies can make in Marketplace, what types of activities can teams do in Marketplace to continue to learn and innovate in ways to create and maintain competitive advantages over other teams?

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