Organizational renewal is more than just reducing staff, eliminating layers of management, and adopting worker empowerment processes. The second phase alters the internal 'design of the organization. The new organization forms are lean, flexible, adaptive, and responsive to customer needs and market requirements.8 Technol­ogy is a core advantage, involving innovation in designing products to meet customer needs, arranging supply and distribution networks, and constantly staying in touch with the marketplace. A priority of these organizations is understanding customer needs, offering value to customers, and retaining customers.