Men involved in technical innovation in a corporation confront a situation in which the need for action is clear but the action itself is not…. So long as this situation exists, the corporation cannot function effectively, because it is not designed for uncertainty – a situation in which there are no clear objectives to reach, no measures of accomplishment, and no proper concept of control. A corporation cannot operate in uncertainty, but it is beautifully equipped to handle risk. It is precisely an organization designed to uncover, analyze, evaluate, and operate on risks. Accordingly, the innovative work of a corporation consists in converting uncertainty to risk.
Source: Prism (Arthur D. Little)
Subjects: Organizational Behavior, Risk Management