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'