1. For further information about the organizational and human resource capabilities needed for sustained high performance, see Jeffrey Pfeffer, The Human Equation (Boston: Harvard Business School Press, 1998) and Jim Collins and Jerry Porras, Built to Last: Successful Habits of Visionary Companies (New York: Harper Business, 1994). For a strategy perspective of sustainable competitive advantage, see Michael E. Porter, “What is Strategy?” Harvard Business Review (November-December, 1996). A more detailed discussion of the theory E and O paradox can be found in Chapter 1 of Michael Beer and Nitin Nohria, eds., Breaking the Code of Change (Boston: Harvard Business School Press, 2000). The book also contains argument for and against theory E and O on each of the six dimensions of change listed in Table 1, along with a synthesis argument for each. For a briefer elaboration of the theories see “Cracking the Code of Change” (Harvard Business School, May-June, 2000). Much of the discussion of how corporations transform to develop capability is based on Michael Beer, Russell Eisenstat, and Bert Spector, The Critical Path to Corporate Renewal (Boston: Harvard Business School Press, 1990). For a deeper discussion of the six managerial and organizational barriers that block change and learning see Michael Beer and Russell Eisenstat “The Silent Killers to Strategy Implementation and Learning.” Sloan Management Review (Summer, 2000). For more about defensive routines and organizational learning see Chris Argyris and Donald A. Schön, Organizational Learning II: Theory, Method and Practice (Reading: Addison–Wesley, 1996). The Scott Paper, Champion International and Asda cases can be obtained from Harvard Business School Publishing (617-783-7600).