6. The Power of a Crisis Summary and Analysis

Rhode Island Hospital was once highly reputable, but fell into disarray after disagreements between nurses and doctors. Some doctors were so difficult to deal with that the nurses had to develop an elaborate system for dealing with them and their mistakes. One elderly man, suffering from a subdural hematoma, but there is no indication on his charts as to which side of the head it is on. A nurse protests before the surgeon operates on the wrong side of his head, but she is told to be quiet. The patient ultimately dies as a result.

A pair of economists have written a book, Evolutionary Theory of Economic Change, which revolutionizes the business world. They have discovered that organizational routines are critical to businesses everywhere. Routines and truces keep people in a business cooperative...