Creative Management: Lecture on Corporate Creativity


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Creative management aims to transform
organisations through changing the way they are run, by trying to open up the climate and management style, increase participation and grant employees more freedom as to how things are accomplished, e.g. new product

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Creative Management: Lecture on Corporate Creativity

  1. 1. Creative Management Lecture on Corporate Creativity 23-Sep-11 1IMT - Management Creativity From Cursory to Creativity-2m32
  3. 3. THE IDEA-DRIVEN ORGANIZATION 23-Sep-11 IMT - Management Creativity 3
  4. 4. LOGO THE PROBLEM Front-line workers see a great many problems and opportunities that their managers don’t. Today, most leaders either don’t realize the full power of employee ideas or have never learned 4 23-Sep-11 power of employee ideas or have never learned how to tap them effectively. To be truly excellent, innovative, lean or effective at execution, you have to be able to capture and implement large numbers of employee ideas. IMT - Management Creativity
  5. 5. LOGO EXAMPLES OF GOOD IDEA SYSTEMS Boardroom Inc. 104 ideas per person per year Wainwright Industries 65 ideas per person per year 90 percent implemented 5 23-Sep-11 Richer Sounds 20 ideas per employee per year Milliken Corporation 115 ideas per employee per year Toyota Lexus 100 ideas per employee per year IMT - Management Creativity
  6. 6. LOGO WHY IS CREATIVITY IMPORTANT? The greatest source of competitive advantage is not really cost or quality, but creativity. 6 23-Sep-11 John Micklethwait and Adrian Wooldridge Business editors of the Economist IMT - Management Creativity
  7. 7. LOGO YOUR GOAL Learn how to set up and run a good idea system, to enable everyone in your organization to act on the problems and opportunities they see. 7 23-Sep-11 Goal: 12 implemented ideas per person per year by end of first year. opportunities they see. IMT - Management Creativity
  8. 8. LOGO POINT 1: GO AFTER SMALL IDEAS It is impossible to improve performance past a certain point without getting the little things right. Unlike major innovations, most small ideas stay proprietary and create sustainable competitive advantage. 8 23-Sep-11 Small ideas are the best source of big ideas. If you don’t go after small ideas, you won’t get many big ones either: • What other ideas does this one suggest? • Where else might this idea be used? • Are there any patterns in the ideas that have come in? IMT - Management Creativity
  9. 9. LOGO POINT 2: MAKE IDEAS PART OF EVERYONE’S JOB Document ideas and track them. Require or expect ideas from your front-line employees: Evaluate them on the quantity and quality of their ideas. 9 23-Sep-11 Teach your supervisors the value of ideas and their own four roles: encouraging, mentoring, championing and looking for larger implications of ideas. Evaluate them on how well they promote ideas. Important principle: There is no such thing as a bad idea. IMT - Management Creativity
  10. 10. LOGO AT ONE LARGE COMPANY . Ideas Per 1023-Sep-11 1 2 3 4 5 6 7 8 9 Per Person Division IMT - Management Creativity
  11. 11. LOGO AT ANOTHER Ideas Per 15 1123-Sep-11 Division Per Person 15 IMT - Management Creativity
  12. 12. LOGO SOME THINGS TO KNOW How to handle the issue of rewards How to overcome initial reluctance to participate How to make ideas part of everyone’s jobs How to hold your people accountable What a good idea process looks like 12 23-Sep-11 What a good idea process looks like How to focus your team’s ideas on critical issues How to help your people come up with more and better ideas (a big area) What is the most effective way for top leadership to be involved How to design and launch an idea system And much more IMT - Management Creativity
  13. 13. CREATIVITY & ITS MANAGEMENT 23-Sep-11 IMT - Management Creativity 13 4 Steps for Creative Visualization-2m30
  14. 14. LOGO Starting End Backward Reasoning PROBLEMSOLVING IMT - Management Creativity 14 Starting point End Point ? ? ? Forward Reasoning [Edward De Bono, Lateral Thinking for Management, Penguin Books, 1990] Need: Knowledge 23-Sep-11
  15. 15. LOGO 1: ? End ? ? ? DESIGN Starting Point IMT - Management Creativity 15 End Point2: ? ? ? ? 3 ? ? ? ? Need: Knowledge + Creativity 23-Sep-11
  16. 16. LOGO 1: ? 1:? INNOVATION Starting Point 2:? End Point IMT - Management Creativity 16 2: ? 3 ? 4:? 3:? Need: Knowledge + Creativity 23-Sep-11
  17. 17. LOGO • Provocation• Analysis ARRANGEMENT OF INFORMATION IMT - Management Creativity 17 • Provocation • Liberation • Intermediate Impossible • Analysis • Description • Proof 23-Sep-11
  18. 18. LOGO Basic Lateral Thinking Processes ESCAPE from cliches and patterns CHALLENGE assumptions GENERATE alternatives JUMP to new ideas and then see what happens (?) IMT - Management Creativity 18 JUMP to new ideas and then see what happens (?) FIND new entry points from which to move forward (?) 23-Sep-11
  19. 19. LOGO PO “Provocative Operation”: A new functional word Logical thinking: YES/NO Lateral thinking: PO PO is an escape from YES/NO. HYPOTHESIS SUPPOSE IMT - Management Creativity 19 PO introduces a discontinuity function. PO is a fantasy device PO is an insight tool. Po is a repatterning tool. PO is a-rational, not antirational. SUPPOSE POSSIBLE POTENTIAL POETRY 23-Sep-11
  20. 20. LOGO POPO IMT - Management Creativity 20 POPO Information Creativity 23-Sep-11
  21. 21. LOGO Number of ideas IMT - Management Creativity 21 5 min 10 min 20 min PO 23-Sep-11
  22. 22. LOGO IMT - Management Creativity 22 Problem: Find the size of in the tube without pulling othe constriction ut the tube. 23-Sep-11
  23. 23. LOGO PO Spaghetti Spaghettifilaments push filaments down the hole one by one until no more will pass through the constriction diameter is then given by the number of filaments used. Spaghettifilaments use fiber optics with a camera at the end to actually photograph the constriction. IMT - Management Creativity 23 the end to actually photograph the constriction. Spaghettimacaroni tube attach a small balloon to the tube and push through constriction in deflated state, then blow up balloon and try to withdraw tube determine degree of inflation which will just allow withdrawal, then measure the diameter of the tube. 23-Sep-11
  24. 24. LOGO Creativity • The term ‘creativity’ comes from Sanskrit kar, meaning “to make, originate, to bring into existence. • Creativity is about exploring as an end in itself, being interested in the unassuming, IMT - Management Creativity 24 itself, being interested in the unassuming, paying attention to the strange and the weird, not intending to produce any particular result, but delighting in the process of exploration [Moore and Gillette]. 23-Sep-11
  25. 25. LOGO Technological Thinking Creative Thinking A IMT - Management Creativity 25 Systematic Empiricism Omphaloskepsis Intuitive Flash of Genius/ Hunch 23-Sep-11
  26. 26. LOGO “Chase, Chance and Creativity: The Lucky Art of Novelty” According to the book with the above title written in 1978 by J.H. Austin (a neurological scientist), creativity involves chance and there are four types of chances: Chance I: Pure accident through ‘blind luck’. No purposive effort. We do not know how to motivate or encourage it. Chance II: Results from action even when there is no clear IMT - Management Creativity 26 Chance II: Results from action even when there is no clear goal. Kettering, the famous automotive inventor said “Keep going and the chances are you will stumble on something, perhaps when you are least expecting it. I have never heard of anyone stumbling on something sitting down.” May be applicable in certain purely empirical applied research. Lesson: Success may improve with more people employed. 23-Sep-11
  27. 27. LOGO Some other ‘serendipitous’ products Microwave oven, Bendix brake linings, Gore-Tex, Dynamite, Puffed wheat, Dextrose-Maltose, LSD, Penicillin, IMT - Management Creativity 27 Dextrose-Maltose, LSD, Penicillin, Dramamine, X rays, Pulsars. 23-Sep-11
  28. 28. LOGO IMT - Management Creativity 28 Present day knowledge and Experience Problems Exploratory Creativity Normative Creativity Flow of ideas [Majaro 88] 23-Sep-11
  29. 29. LOGO Serendipity “‘Serendip’ was the ancient name of Ceylon or Sri Lanka used by Horace Walpole in his fairy-tale ‘The Three Princes of Serendip’. The heroes of this book ‘were always making IMT - Management Creativity 29 The heroes of this book ‘were always making discoveries of things they were not in quest of’. They simply floated over the waves of destiny and allowed chance to ordain the events that directed their lives.” [Majaro 88] 23-Sep-11
  30. 30. LOGO Brain Jogging: Using a different approach each time, divide each of the following squares into four equal pieces Time: 2 minutes IMT - Management Creativity 3023-Sep-11
  31. 31. LOGO Cover the nine dots with four straight and continuous lines. In other words the lines must be drawn without lifting the pencil off the paper. IMT - Management Creativity 31 pencil off the paper. [Majaro 88] 23-Sep-11
  32. 32. LOGO A B Which of these four pictures differs from the rest? IMT - Management Creativity 32 C D 23-Sep-11
  33. 33. LOGO What was special about 1961 that has notthat has not happened that has not happened since 1881? 23-Sep-11 IMT - Management Creativity 33
  34. 34. LOGO Solution to first nine dots puzzle. If you can do this one you are a lateral thinker and have an IMT - Management Creativity 34 thinker and have an original and flexible mind. [Majaro 88] 23-Sep-11
  35. 35. LOGO Solution to Historical Dates Puzzle Both 1961 and 1881 read the same if turned upside- down and are read back to front. No other dates between these two years manifest this characteristic. After 1961 the next one is in 6009, a long time to wait! IMT - Management Creativity 35 long time to wait! If you have solved this, you seem to have good lateral thinking. 23-Sep-11
  36. 36. LOGO Ideas, like eggs, need time to hatch. IMT - Management Creativity 3623-Sep-11
  37. 37. LOGO The Creative Process: 5 Stages First Insight Incubation Preparation Recognizing that a problem exists and determining to tackle it Attempts to understand the problem and to produce solutions Periods of relaxation allowing IMT - Management Creativity 37 Illumination Verification Incubation Periods of relaxation allowing subconscious though Sudden emergence of the idea (the ’act of insight’ or ‘creative leap’) Conscious development and testing of the idea into a workable solution 23-Sep-11
  38. 38. LOGO What is intelligence? Theories about general intelligence, have been discussed since the early 20th century. Psychologist Charles Spearman defined general intelligence in 1904 as the kind of intelligence that is used to an extent in all intellectual tasks. This type of general intelligence is supposedly what is measured by standardized tests, IMT - Management Creativity 38 supposedly what is measured by standardized tests, such as IQ tests and the SATs. Gardner defines intelligence as the “ability to solve problems or fashion products that are of consequence in a particular setting or community.” 23-Sep-11
  39. 39. LOGO Howard Gardner's Multiple Intelligence Theory Proposed in 1983 that there is no single quotient of intelligence," but rather there are seven: Visual / Spatial Intelligence: The ability to perceive the world accurately and to perform transformations upon one's perceptions. Highly developed in guides, interior designers, architects, artists, and inventors, IMT - Management Creativity 39 architects, artists, and inventors, Musical Intelligence: The capacity to perceive, discriminate, transform, and express musical forms. Highly developed in musical performers, aficionados, and critics. Verbal/Linguistic Intelligence: The capacity to use words effectively, either orally or in writing. Highly developed in story-tellers, orators, politicians, poets, playwrights, editors, and journalists. 23-Sep-11
  40. 40. LOGO All thinking involves of logic. There are two kinds of logic. Crisp Yes/No Black/White Polar Fuzzy Depends Shades of Gray Distributed Membership IMT - Management Creativity 40 0 1 0 1 YIN YANG ARISTOTLE BUDDHA OCCIDENTAL ORIENTAL 23-Sep-11
  41. 41. LOGO Left Right Logic Reasoning Language Rhythm Music Imagination Sees things in parts Sequential Sees things as a whole Holistic IMT - Management Creativity 41 Language Numeracy Analysis Linearity Abstract Imagination Images, Color Shape recognition Day dreaming General creativity [Majaro 88] 23-Sep-11
  42. 42. LOGO Load the mind with pertinent information and identify the value problems Divert the mind to permit the IMT - Management Creativity 42 to permit the unconscious mind to solve the problem Create an environment that stimulates the unconscious mind to deliver its solutions Later we will study a technique called VALUE ANALYSIS that helps implement the ideas we have learnt concerning creativity. 23-Sep-11
  43. 43. LOGO Three levels at which we use our mind 1. Conscious level: communication of literal ideas and reality. 2. Preconscious level: Data processes at an extraordinarily rapid rate with great freedom, assembling and disassembling many IMT - Management Creativity 43 great freedom, assembling and disassembling many diverse patterns (as in a dream). 3. Unconscious level: a. Use of special competence and knowledge b. Express the needs dictated by the innermost concerns and emotions. Kostler: “No problem was ever solved in the conscious mind.” 23-Sep-11
  44. 44. LOGO “ O n e o f th e s c ie n tis ts w o rk in g o n n e w p rin tin g te c h n o lo g ie s a t H e w le tt P a c k a rd L a b o ra to rie s in 1 9 7 8 w a s J o h n V a u g h t, a n d h e d ra n k a lo t o f c o f f e e . J o h n d ra n k s o m u c h c o f f e e th a t h e h a d to h a v e h is o w n c o f f e e m a k e r o n h is d e s k . N o w , a p e rc o la to r is a th e r m a l p u m p w ith n o m o v in g p a rts b u t th e c o ff e e its e lf . T h e re is a h e a te r a t th e b o tto m o f th e p o t, a f u n n e l c o v e rin g th e h e a te r th a t h a s a tu b e to c a rr y liq u id u p IMT - Management Creativity 44 f u n n e l c o v e rin g th e h e a te r th a t h a s a tu b e to c a rr y liq u id u p a n d o u t th e to p to a b a s k e t o f c o f f e e g ro u n d s . H e a tin g th e w a te r in th e b o tto m o f th e p o t f o rm s b ig b u b b le s o f s te a m th a t p u s h w a te r (c o f f e e ) u p th e tu b e a n d o u t o v e r th e c o f f e e g ro u n d s . O n e d a y , a s J o h n w a s w a itin g f o r a f re s h c u p o f c o ff e e , h e re c o g n iz e d th a t h e c o u ld u s e th is p rin c ip le to m a k e a n in k je t p rin te r w h e re h e a t, ra th e r th a n a m e c h a n ic a l p u m p , e je c ts th e in k .” 23-Sep-11
  45. 45. LOGO The Right Way: Stage 1: Assembling Knowledge Initial Feasibility Study Market data including competition Store Checks and Assess company strengths and weaknesses Agreed screening criteria IMT - Management Creativity 45 Store Checks and Exhibitions Group discussions with top market experts and opinion formers Creative Briefing Agreed screening criteria Screens 23-Sep-11
  46. 46. LOGO The Right Way: Stage 2: Idea Generation Idea Making Creative Briefing From enthusiasts and discussion groups From existing products From other IMT - Management Creativity 46 Idea MakingFrom individuals From brainstorming First ideas list From other sources From unexploited patents 23-Sep-11
  47. 47. LOGO Idea generation (60 ideas) Ideas recycled The IMT - Management Creativity 47 Idea screening Feasibility Implementation (innovation) (1) The idea funneling process 23-Sep-11
  48. 48. LOGO The Right Way: Stage 3: Screening and Presentation Screen First Ideas List Short Ideas List Product Concepts IMT - Management Creativity 48 Visual Appearance Business rationale Draft technical description Test concepts with users 23-Sep-11
  49. 49. LOGO The Right Way: Stage 4 Development and Implementation Presentation Product brief and budget for each product IMT - Management Creativity 49 R & D Product Design Model Prototypes Brand names and package designs 23-Sep-11
  50. 50. LOGO Generating Ideas: Brainstorming [Alex F. Osborne, ‘Applied ImaginationPrinciples & Procedures of Creative Problem Solving’, New York, 1963, Charles Scribner’s Sons, 4th Edition.] Osborn was a modest and unassuming person who developed a personal passion for one subject: helping people, froups and organizations to become more creative IMT - Management Creativity 50 people, froups and organizations to become more creative [Majaro 88]. He said: ‘It is a little like trying to get hot and cold water out of the dame faucet at the same time: the ideas may not be hot enough, the evaluation of them not cold or objective enough. The results will be tepid.” He suggested that the idea generation phase and idea screening phase must be de-coupled. 23-Sep-11
  51. 51. LOGO Creating Innovative Product Ideas [Takahashi, 1999] Ideas generation may be stimulated by attempts towards • Imitation (e.g., imitating how a bird flies). • Analogy (e.g. ‘computer- hamburger’ analogy, different modules/layers made to order.) • Combination • Transformation IMT - Management Creativity 51 • Transformation • Improvement • Invention These six methods of triggering ideas can be repeated with respect to each of the fifteen design contexts factors shown in the next slide [Takahashi, 1999]. Thus, the method enables at least 90 new product ideas to be generated. 23-Sep-11
  52. 52. LOGO 1. Innovation IMT - Management Creativity 52 1. Innovation 2. Analogy 3. Combination 4. Transformation 5. Improvement 6. Invention 23-Sep-11
  53. 53. LOGO Volume Place Time Increase Decrease Bigger Heavier Smaller Lighter Expand Segmented Longer Fast Shorter Slow IMT - Management Creativity 53 Decrease Diverse Integrated Transform Transfer Lighter Segmented Slow Split Combine Abstract Rounded Concrete Edged Separate Unified Discontinuous Sequential Continuous Concurrent Formal Informal All at once Forward Separately Reverse [Takahashi, 1999] 23-Sep-11
  54. 54. LOGO Creative Phase: Intuitive Method “Little by Little” The SIL Method [Battelle Institute, Frankfurt] • Each member of the team writes down two or more of her/his ideas for solving a defined problem. IMT - Management Creativity 54 more of her/his ideas for solving a defined problem. • Two members read their proposals aloud. • All the team members try to combine these two ideas into a new common solution concept. • Another member reads her or his own thoughts out loud to the team and again they attempt to create a new common solution. • This process is continued until the group has found an acceptable solution or the process is terminated when a given time limit has been reached. 23-Sep-11
  55. 55. LOGO Package Shape Package Content Package M aterial 1. Cube 2. Sphere 3. Tube 4. Cone 1. Liquid 2. Paste 3. Powder 4. Gas 1. Plastics 2. Aluminum 3. Paper 4. Board 3D-Morphological Analysis Exploration of New Packaging Ideas IMT - Management Creativity 55 4. Cone 5. Tetrahedron 6. Hexahedron 7. Parallelepiped 8. Rhomboid 9. Cushion-shaped 4. Gas 5. Solid 6. Grain 7. Smell 4. Board 5. Steel 6. Paper/Plastic/La minate 7. Aluminum/Plast ic/Laminate You may select from 9×7×7 = 441 possible combinations! 23-Sep-11
  56. 56. LOGO Shape Smell Location 1. Pendant pomainder 2. Vinaigrette 3. Pen-shaped 1. Aromatic salts 2. Deodorants 3. M enthol 4. Roses 1. Home 2. M eat & fish markets 3. Public transport 3D-Morphological Analysis Developing a New Concept in Air Fresheners IMT - Management Creativity 56 3. Pen-shaped sprayer 4. Pocket sprayer 5. Standard aerosol 4. Roses 5. Spiced lemon 3. Public transport 4. Public conveniences 5. Cinemas You may select from 5×5×5 = 125 possible combinations! 23-Sep-11
  57. 57. LOGO Materials Shapes Content Where 1. Paper 2. Waxed paper 3. Polystyrene 4. Polyethylene 5. Aluminum foil 6. Rubber 7. High barrier plastics 1. Beakers 2. Cups 3. Plates 4. Multi- compartment 5. Grenade shape 6. Condom 7. Balloon 1. Coffee 2. Tea 3. Juices 4. Meals 5. Whisky 6. Glucose water 7. Syrup 8. Pain killers 1. Home 2. Canteens 3. Coal mines 4. Army 5. Climbing 6. Cycling 7. Golf courses 8. Space 4-D Morphological Analysis New Products in the Disposable Container Business IMT - Management Creativity 57 plastics 8. Aluminum/ Paper 9. Laminates 10. PVC 11. PET 7. Balloon 8. Sachets 9. Hip flask 10.Inflatable belt with straw 8. Pain killers 9. Energy producers 10. 8. Space 9. Gliding 10.Cross-country skiiing Select from 11×10×10×10 = 11000 possible combinations! 23-Sep-11
  58. 58. LOGO You learn the general principles of good practice Why is it successful? Apply to your work IMT - Management Creativity 58 Learning not Copying [Petty 97] Example of Good Practice Your Work Copying 23-Sep-11
  59. 59. LOGO More Enjoyment You are more engrossed, motivated, IMT - Management Creativity 59 Better Ideas Enjoy the Inspiration Phase motivated, spontaneous, and bold 23-Sep-11
  60. 60. LOGO Competence Practicing the Trying the new way Doing the old way Creativity, Management of Technological Innovation, KV Patri 60 Time Practicing the new way and making it work Learning a New Approach
  61. 61. 23-Sep-11 61IMT - Management Creativity Back to Orbit A Song About Innovation.6m06
  62. 62. LOGO Problem Example A lift in a building is usually very crowded. You are being asked to submit a quotation for solving the problem. You could quote a new and larger lift. This requires major modifications to the building. Cost = Creativity, Management of Technological Innovation, KV Patri 62 major modifications to the building. Cost = $500,000. You are looking for a far cheaper solution:
  63. 63. LOGO “Ask an impertinent question and you are on the way to a pertinent answer” [J. Bronowski, scientist] “Why?” followed by “So? ” Creativity, Management of Technological Innovation, KV Patri 63 “Why?” followed by “So? ” Step-up using “Why?” “How?” “Unless?” [Petty 1997]
  64. 64. LOGO I need to reduce the waiting time for lifts. WHY? Because the lifts are inadequate. WHY? So, fit a new lift shaft. WHY-SO REASONING [Petty 1997] Creativity, Management of Technological Innovation, KV Patri 64 WHY? Because they are old- fashioned. WHY? Because they are in an old-fashioned building. So, modernize them. So, move to a new building.
  65. 65. LOGO I need to reduce waiting time for lifts Well, I could reduce the use of the lift How? Creativity, Management of Technological Innovation, KV Patri 65 use of the lift By increasing the use of stairs How? Asking How?
  66. 66. LOGO Step-up using “Why?” I need to reduce the waiting time for lifts. Why? Because people find waiting for the lift very frustrating. Why? Creativity, Management of Technological Innovation, KV Patri 66 Why? Because they are bored.
  67. 67. LOGO Side-stepping using “Unless?” I want to reduce the frustration of waiting. No! It is a nice rest to wait. Unless! you make waiting interesting by providing some sort of entertainment. Creativity, Management of Technological Innovation, KV Patri 67 some sort of entertainment.
  68. 68. LOGO I need to reduce the waiting time for lifts. Unless I can get people to accept the waiting time in some way. Either I need to reduce the waiting time for lifts. Or .reduce the number of people using them. Creativity, Management of Technological Innovation, KV Patri 68 Or .encourage alternative ways for people to get together. Or put people who communicate with each other a lot on the same floor. No! the waiting time is perfectly acceptable, stop fussing! No! let’s make use of the time for corporate communications. What about a notice board.
  69. 69. LOGO The lifts are inadequate. Unless I can speed them up Either the lifts are inadequate Or too many people are using them Creativity, Management of Technological Innovation, KV Patri 69 No! slow lifts are fine, they encourage informal communication. It is boring waiting. Unless you make it interesting.
  70. 70. LOGO Keep stepping up until you discover your true goal Sidestep to another way of achieving this goal Or! Unless! Creativity, Management of Technological Innovation, KV Patri 70 I’ve hit a difficulty Why? Step down to find a way of achieving this in practice