Whenever a new company is created within an old company, there may be several causes of tension:

1. When old co. perceives that the new co will cannibalize the oldco'srevenues.

2. When old co. feels that the new co may render its core competence obsolete

3. Suspicion may be a result of feeling that the new co might damage the old co's crucial assets such as brand or customer relationships

4. Early on the new co makes losses. The old co managers may feel that it is not wise to allocate capital to a business that incurs losses.

5. The tension increases especially when the economy takes a downturn. Why should the new co. enjoy priority for capital even as the old co struggles to survive?

6. Old company managers may not agree with the management style of the new co...their hiring criteria, performance measures, compensation etc. without realzing that the two companies are at different stages.

7. The new co may feel foreign to the old company. No trust.

8. Jealousy! especially if the new co begins to get positive endorsements from the media and other sources.

9. Resentment! especially when the old co managers are described as dinosaurs.

10. Tension! especially when new co forces old company to rethink their existing processes.

The challenge is to ensure that the tension does not torpedo the new company....and we can somehow use the forget, borrow, learn framework to turn the tension into a productive force.

Question is how do we turn this tension into a productive force?