Management Creativity and Its Form: Lecture on Corporate Creativity

1,482 views

Published on

The concept of creativity has been around long before management speak in many disciplines (the term has16th century etymological origins). For example:
# In Mathematics – as the art of making useful combinations from an almost infinite number of possible useless combinations
#  In Philosophy – especially connected with serendipity (which is
not pure luck or chance) but results from identifying 'matching
 In Philosophy – especially connected with serendipity (which is not pure luck or chance) but results from identifying 'matching pairs' of events that are subsequently put to practical use.
Baudrillard uses the analogy of the billiard game – playing off the cushion – to characterise the rebounding and richocheting nature of actions and ideas.
# Business examples of such a process can be found under the topic “innovation” and include the invention of the Swatch (new combinations or “pairings” of technologies developed in other
industries).

Published in: Education, Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,482
On SlideShare
0
From Embeds
0
Number of Embeds
20
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Management Creativity and Its Form: Lecture on Corporate Creativity

  1. 1. Management Creativity & Its Form Lecture on Corporate Creativity Creativity Innovation 56s23-Sep-11 IMT - Management Creativity 1
  2. 2. LOGO Contents 1. CREATIVITY AND MANAGEMENT 2. Planning for Corporate Creativity 23-Sep-11 IMT - Management Creativity 2
  3. 3. CREATIVITY AND MANAGEMENT23-Sep-11 IMT - Management Creativity 3
  4. 4. LOGO CREATIVITY The concept of creativity has been around long before management speak in many disciplines (the term has16th century etymological origins). For example: In Mathematics – as the art of making useful combinations from an almost infinite number of possible useless combinations In Philosophy – especially connected with serendipity (which is not pure luck or chance) but results from identifying matching pairs of events that are subsequently put to practical use. Baudrillard uses the analogy of the billiard game – playing off the cushion – to characterise the rebounding and richocheting nature of actions and ideas. Business examples of such a process can be found under the topic “innovation” and include the invention of the Swatch (new combinations or “pairings” of technologies developed in other industries). 23-Sep-11 IMT - Management Creativity 4
  5. 5. LOGO LEGAL DEFINITIONS Creativity falls under the rubric of intellectual property for the legal profession. For organisations these concern outputs (rather than processes) For example New Ideas (which are protected by patent laws) New Products/Services (which are protected by copyright laws) 23-Sep-11 IMT - Management Creativity 5
  6. 6. CREATIVITY IN ORGANISATIONS ANDLOGO CREATIVE ORGANISATIONS Creativity in organisations focuses on achieving innovation, competitive advantage and social benefits by enhancing the ‘level’ of creativity in the organisation. This, typically, involves: Examining the personality traits and styles of individuals Developing an organisational context in which creativity might be fostered (organisational cultures etc) Examining systems (collectivities of organised efforts coupled with the physical environment) to see how the systemic tendencies toward stability might be interrupted .to stimulate new actions and/or different activities. 23-Sep-11 IMT - Management Creativity 6
  7. 7. LOGO TO SUMMARISE .. CREATIVE INTERNAL CONTEXTS EXTERNAL CREATIVE CREATIVE PROCESSES INDIVIDUALS 23-Sep-11 IMT - Management Creativity 7
  8. 8. LOGO Creativity . Management theory typically assumes creativity is solely about the creation of new ideas. This is innovation • Hence the breathless talk of improvisation, jazz and unstructured music, commedia del’arte etc . But creativity in the implementation of existing ideas and technologies is equally important. Creativity is therefore a broader concept incorporating both innovation as well as existing ideas, structures and processes. 23-Sep-11 IMT - Management Creativity 8
  9. 9. LOGO Creativity Involves Concepts: ideas and/or technologies Competences: the repertoires of skills and abilities of individuals (and the opportunity to use these skills in the organisation). Connections: the relationships which individuals, teams and organisations create (networks). Sustained by collaboration and can be re- configured as new ideas emerge/are created. Inspiring Invention (Kanter 1999) Suction_Tires-30s 23-Sep-11 IMT - Management Creativity 9
  10. 10. LOGO Creative Organisations Typically, advertising, media, music, arts and entertainment organisations. Creative organisations survive by their ‘creative output’ be that a magazine, and advertising campaign or a piece of music. To achieve this, they need to employ professional creative individuals, but also professional managers to ensure business success. This can create tensions which have typically been called ‘creatives versus suits’ (See Chapter 7 in Images of Strategy by Bilton et al). 23-Sep-11 IMT - Management Creativity 10
  11. 11. LOGO Hierarchy, Power and Creatives . Professional managers have to deal with creatives, many of whom feel they have been forced to the bottom of the organisation. (Silos, hierarchy and managerialism) Many creative organisations have become “managerially” professionalized with the individuals who actually produce the ‘creative’ product being at the ‘bottom of the pile’. Media organisations are just as full of structures, limits and routines as any other type of organisation. And creatives are likely to feel constrained and alienated by them. 23-Sep-11 IMT - Management Creativity 11
  12. 12. LOGO Creatives and the Strategy Process The disengagement of creatives from strategic decision processes in a range of creative organisations is striking. To what extent would it make sense to involve creatives to a greater extent in the strategy process? There are countless conflicting arguments about this point. Kanter and others would argue that greater involvement would release greater levels of innovation and Hickson et al (2003) would argue that implementation (and performance) would benefit Managers of organisations might take the alternative view and argue that only ‘suits’ should be involved in decision making since getting creatives involved will be disastrous (they assume they don’t want to be involved and they are not skilled in strategic thinking). 23-Sep-11 IMT - Management Creativity 12
  13. 13. Comparing Creatives andLOGO Knowledge Workers . There are similarities in some of the above dilemmas between organisations employing creatives and professional service firms employing knowledge workers. In the same ways as creatives, knowledge workers are the core competence of the organisation. They both present similar difficulties for management. 23-Sep-11 IMT - Management Creativity 13
  14. 14. LOGO Retention is a Key Issue Some creatives inhabit a fluid labour market. They can sell their skills freely and can move from job to job, from contract to contract and from organisation to organisation (dangerous in a competitive market) .. Some will leave at the slightest hint of dissatisfaction and seek a job elsewhere. Management’s role in maintaining a supportive context is therefore crucial. Professional/knowledge workers display many of the same characteristics. 23-Sep-11 IMT - Management Creativity 14
  15. 15. LOGO The Knowledge Base and Performance On the basis of empirical evidence, it would be better to involve ‘creatives’ in the strategic decision process rather than marginalise them and keep them away from the process. They are the ‘knowledge-base of the organsiation (Hickson et al 2003; Kanter 1999; Miller et al 2004) 23-Sep-11 IMT - Management Creativity 15
  16. 16. KNOWLEDGE BASE AND ORGANISATIONALLOGO CONTEXT/ PERFORMANCE Knowledge Base high Nestle Carlsberg-Tetley Philips Nokia (very high Organisational Organisational (high performance) performance) Context Low high National Grid Marks&Spencer (moderate performance) (poor performance) Low 23-Sep-11 IMT - Management Creativity 16
  17. 17. Planning for Corporate Creativity BMW Defining Innovation-1m0523-Sep-11 IMT - Management Creativity 17
  18. 18. LOGO The True Nature of Corporate Creativity Creative potential greatly exceeds creative performance in most companies Most creative and innovative acts in companies are not planned for and come when least expected Impossible to predict what they will be, who will be involved, when and how they will happen The real power is in the unexpected 23-Sep-11 IMT - Management Creativity 18
  19. 19. LOGO Japan Railways (JR) East Largest rail carrier in the world How construction of a bullet-train through Mount Tanigawa led to Oshimizu beverages with sales last year greater than US$60 million! 23-Sep-11 IMT - Management Creativity 19
  20. 20. LOGO Plastic Lids at American Airlines Used as a cover for the metal pots flight attendants use to serve coffee Each lid cost only 1.5 cents -- reducing number by 5 per flight led to savings of 7.5 cents per flight. Not much . . . 2,300 flights per day -- 365 days per year $62,000 annually saved! 23-Sep-11 IMT - Management Creativity 20
  21. 21. LOGO The Real Truth . . . The majority of creative acts in corporations, whether dramatic innovations or incremental improvements are: Unplanned Completely unexpected 23-Sep-11 IMT - Management Creativity 21
  22. 22. LOGO Japan Management Association Projects awarded from 1986 to 1990 More than 1/2 of these projects initiated by individuals and not anticipated by anyone else at their companies Novelty and impact of these projects far exceeded those projects initiated by management! 23-Sep-11 IMT - Management Creativity 22
  23. 23. LOGO Managerial Challenge How can we promote unanticipated creative acts? Perhaps first by recognizing that management is not as much in control of events as it believes it is! 23-Sep-11 IMT - Management Creativity 23
  24. 24. LOGO Human Imagination “Microsoft’s only factory asset is the human imagination.” New York Times Magazine (Fred Moody) If this is true, we had better figure out how to “manage” the human imagination 23-Sep-11 IMT - Management Creativity 24
  25. 25. LOGO Korean War and POW Training Challenge was to identify factors most critical for survival for pilots and crews captured Plan was to identify factors and create training programs Finding was unexpected Those who survived combined elements of their training and life experiences to create a completely new survival technique -- one that had not been taught! 23-Sep-11 IMT - Management Creativity 25
  26. 26. LOGO Paul Torrance’s Conclusion “Creativity and innovation are adaptive forces which have perhaps been given too little attention in connection with problems of survival and survival training. Successful survivors describe many creative and imaginative behaviors which not only solved immediate problems for them but apparently gave them renewed energy for continued adaptation.” 23-Sep-11 IMT - Management Creativity 26
  27. 27. Tomoshige Hori’s Absent-mindedLOGO Mistake Snow Brand Milk Products (Japan) Attended symposium in Tokyo unrelated to his area Measure thermal conductivity of a liquid using a “hot- wire” Began to measure thermal conductivity of milk Quite a “curdling” experience! Interestingly, several years lapsed before any action taken within company 23-Sep-11 IMT - Management Creativity 27
  28. 28. LOGO Daewoo Employee Eliminates Own Job! DCM-Daewoo medium-sized truck plant in Surajpur, India Adjustment of windshield-washer jets was a two person job, right? Everyday innovations need not be spectacular! Creators vs Enhancers-2m42 23-Sep-11 IMT - Management Creativity 28
  29. 29. LOGO Yellow and Black Tags? British Airways baggage handler frequently asked himself the same question “Why do the bags with yellow and black tags always arrive first at the carousel?” In 1993 BA initiated the “First & Fast” procedure Reducing average time for first-class luggage to arrive at carousel from 20 to 7 minutes on most routes! Ian Hart received US$18,000 and 2 Concorde tickets for his suggestion! 23-Sep-11 IMT - Management Creativity 29
  30. 30. Another Definition ofLOGO Corporate Creativity Earlier we defined creativity as any behavior that caused a reaction. Can we make this a bit more practical? How about . . . Corporate creativity occurs when employees do something new and potentially useful without being directly shown or taught. 23-Sep-11 IMT - Management Creativity 30
  31. 31. LOGO therefore. . . In much the same way, companies cannot where specific creative acts will come from or what they will be, they can take actions to increase the frequency with which these events occur However, a bad system will beat a good person every time. 23-Sep-11 IMT - Management Creativity 31
  32. 32. LOGO Lessons Learn Alignment of the interests and actions of all employees with the company’s goals Self-initiated activity links ideas of employees with intrinsic motivation to solve problems Unofficial activity gives ideas a safe haven where they have the chance to develop until they are strong enough to overcome resistance 23-Sep-11 IMT - Management Creativity 32
  33. 33. LOGO Lessons (cont.) Serendipity: Discovery made by fortunate accident in the presence of sagacity (keenness of insight). Creativity often involves recombining or making connections between things that may seem unconnected. Companies can bring diverse stimuli to their employees -- but this will have only limited impact Most stimuli arise in connection with daily life or with the work itself 23-Sep-11 IMT - Management Creativity 33
  34. 34. LOGO Lessons (cont.) It is far more important that companies provide opportunities for employees to tell each other about the stimuli they have received Increase within-company communication Provide opportunities for employees who do not normally interact with each other to meet Important not to have preconceptions Creativity is limited to the same extent that a company acts on preconceptions about who will be creative, what they will do, and when and how they will do it 23-Sep-11 IMT - Management Creativity 34
  35. 35. LOGO Kathy Betts and Massachusetts Part-time employee with the Department of Public Welfare processing Medicaid reimbursements Recommended charging “uncompensated care” to Medicaid, rather than through Department of Medical Security (home-grown agency) Three-year bill of US$520 million; additional $150 million to $200 million annually since! Kathy awarded $10,000 -- but . . . 23-Sep-11 IMT - Management Creativity 35
  36. 36. LOGO Can we “Motivate” Creativity? Edward Deci and his studies of extrinsic and intrinsic motivation Deming: Some extrinsic motivation helps to build self-esteem. But total submission to external motivation leads to destruction of the individual. Extrinsic motivation in the extreme crushes intrinsic motivation. 23-Sep-11 IMT - Management Creativity 36
  37. 37. Out with Suggestions and In withLOGO Kaizen Teian Company Total proposals Proposals per person Matsuchita 2,427,015 17.9 Toshiba 2,222,042 52.6 Idemitsu Kosan 1,073,256 118.3 Toyota 764,402 13.8 Sanyo 660,427 27.5 Kubota 537,389 35.3 23-Sep-11 IMT - Management Creativity 37
  38. 38. LOGO U.S. vs Japan (2005) U.S. Japan Suggestions per employee 0.16 18.5 Adoption rate 38.0% 89.7% Participation rate 10.7% 74.3% Average reward $458.00 $3.88 Avg. net savings per suggestion $5,586.00 $175.66 Net savings per employee $334.66 $3,249.71 23-Sep-11 IMT - Management Creativity 38
  39. 39. LOGO In Conclusion History is a record of “effects,” the vast majority of which nobody intended to produce. Joseph Schumpteter Think_out of_the_Box-1m41 23-Sep-11 IMT - Management Creativity 39
  40. 40. LOGO Selected References Hickson DJ, Miller, S.& D. Wilson ‘Planned or Prioritised? Two Options in the Implementation of Strategic Decisions, Journal of Management Studies, 47 , November 2003. Bilton C. (2003) Strategy as Creativity, In S. Cumming and D.C. Wilson ‘Images of Strategy’, Blackwell: Oxford. Kanter, R.M. (1999) ‘Change in Everyone’s Job: Managing the Extended Enterprise in a Globally Extended World’ Organizational Dynamics, 28,1, pp. 7-23. Miller S., Wilson D.C & Hickson D.J (2004) ‘Beyond Planning’ Long Range Planning. 23-Sep-11 IMT - Management Creativity 40
  41. 41. www.themegallery.com23-Sep-11 IMT - Management Creativity 41

×