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IM Week 7: Innovation Management and Leadership xm adfditional innovation…
IM Week 7: Innovation Management and Leadership
xm adfditional innovation management typologiess
Learning objectives
Explain the key dilemma for innovation management
Refer to different techniques for mapping uncertainty
Explain the dimensions of organisational knowledge and types of organisational learning
Discuss the need for creativity and how to achieve it
Refer to the various areas of innovation management and their specific techniques/tools/methodologies
Reflect on how to build an innovative organisation
Explain the key dilemma for innovation management
a. What’s the dilemma?
Efficiency gains
: The efficient day-to-day operations within an organization require stable routines. This is usually achieved in stable and controlled environments.
Creativity gains
: The development of new products and services requires creativity and room to try out new ideas. This is usually achieved in a loose and flexible environment.
XM- innovaytion is about being creative and to allow that creativity to hhapen
b. How to manage innovation projects?
Refer to different techniques for mapping uncertainty
a. How to deal with the uncertainty?
xm: what can you do and what technology can do for us?
b. What type of project is it?
Explain the dimensions of organisational knowledge and types of organisational learning
a. How to manage organisational knowledge?
Xm: the role of technological gate keeper, assimilation, routine to share
b. Key theory: Absorptive capacity
“The ability to recognize the value of new information, assimilate it, and apply it to commercial ends” (Cohen and Levinthal, 1990)
Organisational learning perspective
Requirements
Investment in R&D and basic knowledge
Efficient knowledge transfers
Diversity and redundancy of knowledge
c. How does organisations learn?
Argyris and Schon (1978)
-Single loop learning: ‘doing things better’
-Double loop learning: ‘doing things differently’
xm:incremental innovation- a single learning, but for radical innovation you need to challenge your mind, challenge your underpinning assumptions
Discuss the need for creativity and how to achieve it
a. How to manage creativity?
i. Management and Creativity Literature Sapsed (2010)
Creativity enhanced by autonomy (Amabile et al., 1996)
Rigid management structures impede creativity (Kimberley, 1981)
But work pressure “challenge” enhances creativity (Amabile, 1988) inverted U?
XM
ii. Routines and Creativity
Sapsed (2010)
Conventional wisdom says routines hamper creativity (competing) (Ford & Gioia, 2000) - narrowing thinking/behaviour
But evidence is sparse
Routinisation of certain tasks releases cognitive resources for creativity (Kanfer & Ackerman, 1989; Gilson, et al., 2005)
Neuropsychology supports this - incubated cognitive processing (Stokes, 2007)
xm: is about the routine you created
iii. Routines and Innovation
Sapsed (2010)
Routines are not novel, but can have creative outcomes (Nelson & Winter, 1982) e.g. R&D, strategic heuristics
Creativity techniques (Rickards, 1988; Leonard and Swap, 1999; Sutton & Hargadon, 1996)
-to prompt new ideas e.g. brainstorming (divergence)
-to agree and maintain ideas (convergence)
xm: how youre nusing routines in order to nbe creative
iv. Brainstorming method
Questioning assumptioins
Opportunity redefiniton
Wishing
Triggered brainwalking
Semantic intuition
Picture promts
Worst idea
v. What routines can be applied to radical innovations?
you have to recruti people to help you, its about challenging your thnking
Refer to the various areas of innovation management and their specific techniques/tools/methodologies
Innovation management typologies
Knowledge management
market intelligence
cooperation and networking
human resource management
creative management
process management
design and product development
business stimulation
interface management
Reflect on how to build an innovative organisation
a. Leaders?
New vision is important for changing mindsets and refocusing organizational energies, e.g. Richard Branson (Virgin), Elon Musk (Tesla)
Top management is closely associated to successful innovation: ‘the challenge is to translate a concept into reality by finding mechanisms which demonstrate and reinforce the sense of management involvement, commitment, enthusiasm and support’. In fact, a key role of leaders is to create a climate for innovation.
Recent studies find that leadership can count for 50% of variance between in performance across organizations.
Leadership style?
Situational leadership - contingent upon nature of task and team context.
b. Strategy?
Growth orientation
Selection of markets to enter
New technology orientation
Knowledge capture and skill development
Long term planning and investment
c. Dynamic capability
= “the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments” (Teece, 1998)
Processes – ‘the way things are done in the firm’
Position – ‘the current endowment of technology and intellectual property’
Paths – ‘the strategic alternatives available to the firm’
d. Organisation structure?
Organization design which enables creativity, learning and interaction.
No ‘one best way’ e.g. flat structure. Instead, the structure depends on task and environment.
However, organic structure is more suitable to conditions of rapid change, whilst mechanistic structure is more suited to stable conditions.
With innovations becoming a company wide task, involving e.g. production, marketing, administration, purchasing, provides strong pressure for more organic models.
Organisational characteristics
Vigilance and external links
Receptivity
Commitment to technology and R&D intensity
Acceptance of risk
Space for creativity
Diverse range of skills
e. Work structure?
Effective team building is a critical determinant of project success
Types of project teams:
-Cross-functional teams: potential of bringing together different knowledge sets needed for tasks like product development or process improvement
-Inter-organizational problem-solving groups
-Work groups : focus on incremental, adaptive innovation
i. Effective team working
Key elements in effective high-performance team working include:
Clearly defined tasks and objectives
Effective team leadership
Good balance of team roles and match to individual behavioural styles
Effective conflict resolution mechanisms within the group
Continuing liaison with external organization.
ii. Teams can be innovative, but beware of:
‘Group think’ - restricts interpretation & response, homogeneity limits innovation
‘Siege mentality’ - group vs. organizational goals, commitment to sub unit vs. organization
Means vs. ends - attachment to social system, not course of action.
f. Internal skunk works
Lockheed Martin’s Advanced Development Projects facility
-Autonomous
-Free from bureaucracy
-Secret projects
A style of creative project working
Yet Skunk Works had strong rules and management
g. Most important individuals?
Technical champions
Organisational sponsor
Project team leader and team members
Business innovator
Technological gatekeeper
Beware of negative champions!
h. Climate?
i. Operations management?
1. High Involvement in Innovation (HII)
HII rests on the idea that everybody possesses the creative skills and problem-solving abilities. Hence, rather than viewing innovation as the province of specialists in R&D, marketing, design or IT, HII encourages an organization-wide participation in continuous improvement.
Illustration: Japanese manufacturing techniques – ‘Kaizen’.
Though often associated to incremental innovation, HII plays a significant factor in the strategic development of the organization.
2. Total Quality Management (TQM)
“TQM is the management of quality at every stage of operations, from planning and design through self-inspection, to continual process monitoring for improvement opportunities”
Approach: Quality, focus on the customer
Time phase: continuous improvement
Participation: All organisational members and suppliers
Methodologies: Plan, do, study, act
Primary effects: Increase customer satisfaction
Secondary effects: achieves customer loyalty and improves performance
Change: slow, incremental
Implementation time: long term 5-10 years
3. Business process re-engineering
“The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed” (Slack et al, 2007)
xm: how to build jthe innovative organisaton: leadership, shared vision, climate, approaptreate sturcuture, ey
CASE STUDY 3M
Success:
$1bn per year on R&D
a regular position in the top 10 in patents granted
25% of products are completely new innovation
Drivers for success
Company heritage and culture
The demand for innovation
Freedom for creativity
Tolerating failure
Autonomy and small businesses
High profile for science and technology
Communication and technology transfer
