Hamel (2009) - Why, What and How of Management Innovation

Why It Matters?

Can provide long lasting advantage if -

Based on novel principle , challenging orthodoxy

Systemic, covering range of processes and methods

Part of ongoing process, where progress compounds over time

Can harness employee intellect (Toyota)

First line employees as problem solvers and innovators

Give FL employees the skill to innovate

Give FL employees the permission to solve problems

Western Management orthodoxy broken by Japanese companies

Builds a Community (Whole Foods)

People working together to create Value

Small teams managing departments

Give autonomy to make decisions

Success measured at team level

Provide access to key data

Volume

Accept large volumes of ideas

Accept that not all will be 'winners'

What is it?

Marked change from traditional principles, processes and practices

Department from customary forms that significantly alters the way things are done

Targets management processes

Innovation from everywhere (Whirlpool)

Innovation central topic in management training

Adequate funding

Train mentors

Make pay related to innovation

Provide innovation tools with easy access

Measure success

Sustainable effort, long-term view

How to become Management Innovator

Commit to Big Problem

Requires persistence and imagination (e.g. FW Taylor)

What does your company never get right?

What are large organisations poor at doing?

What are the emerging challenges that will be faced in the future?

Search for new Principles

New = unlikely to be solved with current processes

Chance of unearthing new management principle remote (current practices in place for long periods)

Need to uncover unconventional principles --> new management innovation

Embrace principles of devolution and activism

Full engage employees

Break down bureaucracy

Deconstruct Management Orthodoxies

Subject every management belief to - is it toxic to goal? and can you imagine an alternative?

Remove single point accountability - distribute the responsbilities

Create opportunities for involvement (e.g. Googlettes in Google)

Exploit the power of analogy

Increase the sense of power in others - create more leaders

Create win-win solutions (Grameen Bank, microcredit)

Allow small work communities to be self governing (e.g. AA)

Gain many views on likelihood of success - 'collect internal views at multiple levels'