Restructuring for self-renewal: Navistar International Corporation

Executive Overview The new rules of doing business in a global economy have forced transformations in a variety of industries. We are seeing a deep, structural crisis in many U.S. organizations that now commands both executive and legislative attention. The challenge of managing the transitions provoked by organizational decline offers an opportunity to discover new theoretical and practical insights into redesigning organizations for self-renewal and competitive advantage in the expanding global marketplace. Navistar International Corporation stands as an example of an American company that managed to avoid bankruptcy and to revitalize itself without the assistance of federal government guaranteed loans. It has successfully transformed itself from a sluggish bureaucracy to a streamlined, world class manufacturer with a growing reputation for being a superfast innovator. This article explores the Navistar case and raises implications for effectively managing organizational decline and renewal.