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  1. 1. Book 1 Creativity, Cognition And Development B822 Mind-Map © Peter Warburton B822 Creativity Innovation & Change Book 4 Management & Culture The Media Book Readings Books Inventories Names & Theories Diagrams & Tables Creativity Book 2 Managing Problems creatively Book 3 Innovation, Climate And Change Perception Development Style Problems & Challenges Creativity & “Other kinds of Thinking” Using Methods & Techniques Precepts Frameworks Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors
  2. 2. B822 Mind-Map © Peter Warburton Book 3 Guide Innovation Dynamics • Understand need for innovation & theories about its genesis • Distinguish between different types of innovation and appreciate innovation cycles Innovation in Practice • examine creative ways of scanning environment & future • consider ways of structuring orgs to facilitate innovation • consider procedures for idea & product development • examine systems to develop & mange innovation • factors that contribute to or constrain successful innovation Climate & Entrepreneurship • Consider key roles in innovation including visionary leaders, champions, change agents,entrepreneurs, intraprenuers, innovators & teams. • outline characteristics of organizational climates that foster innovation and examine their consequences • to consider the possibility of culture change Changing Organizations • outline common approaches to organizational change, including quality empowerment, the learning organisation, reengineering, knowledge management & radical transformation. • To introduce environmental issues Reading: Peter Drucker , “The Discipline of Innovation” Chapter 1 in Managing Innovation Reader • Innovation is work not genius • Innovation can & should be systematic His sources of innovation: • The unexpected • Incongruities • process needs • Industry & market needs • new knowledge Sources of Innovation • Dissatisfaction at a personal level • reaction to disaster, resolution of internal dilemma or search for remedy at a managerial level • response to external events (competition, politics, technology, resource limits) at a strategic level Gardiner cites Technological Change as one stimulus for innovation Theories of Innovation Rothwell describes five generations of innovation process: • technology Push • Market Pull • The Coupling model (of both) • The integrated model (time overlap rugby team) • Fifth Generation Systems Integration & networking Model Innovation Life Cycle • S-curves and Dominant Design • complex product systems and robust design (Airbus) • technology integration & fusion (Japan optoelectronics) Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Time/Effort Technical Performance Established Technology A New Technology B Technological Competition Foster’s S-curves of radical innovatyion Success Factors
  3. 3. B822 Mind-Map © Peter Warburton Intro Need for Orgs to scan environment & competition • Benchmarking , copying competition and Creative Swiping • scenario building • building a shared vision . Reading: Tom Peters , ‘Practice “Creative Swiping’” • You can’t invent everything • Copying from different and unlikely areas leads to uniqueness • There is very rarely an entirely new product, ,almost all of them build and assemble from existing (swiped) ideas. Reading: S Harrison , ‘The wrong kind of chaos’ • The problem of blindly copying from the private sector for the NHS Benchmarking at Xerox Xerox used benchmarking in their strategy building: • Strategic Reconnaissance • BENNCHMARKING best competitors • Zero-defects quality (The problem of doing it wrong first time!) • Revenue prospects • High concepts (on word encapsulations) • consensus The Xerox approach: Planning • identify what is to be benchmarked • Identify comparable companies • determine data collection method, collect data Analysis • Determine current performance Gap • project future performance levels Integration • Communicate benchmark findings and gain acceptance • Establish functional goals Action • Develop action plans • Implement and moniotor • Recalculate benchmarks Maturity • Leadership position attained • Practices fully integrated into processes Zairi (1996) defining Benchmarking • Anything taken as a point of reference or comparison • Something that serves as a standard by which others may be served • Anything that is comparatively measurable • A normal definition “Normal service speed: 10 customers per hour”. Benchmarking is used as: • an enabler for achieving/maintaining high levels of competitiveness • As a process characterised by a standard and variables • As a continuous process of measuring our products, services, practices against competitors and industry leaders Benchmarking Data • Qualitative usually practices • Quantitative usually metrics Futures Strategic Planning • danger of soviet economy Mintzberg’s fallacies of StratPlan: • Fallacy of predetermination • Falacy of detachment • Fallacy of formalization Scenario Building Shell’s 12$ a barrel catastrophe Shared Vision • Employee vs employer vision • Guided imagery (mapping for consensus) Keywords Creative Swiping Benchmarking Scenario-building Planning for discontinuity Changing mental models Keywords Visioning Guided Imagery Shared vision Vision as Strategy Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors
  4. 4. B822 Mind-Map © Peter Warburton Intro To be more flexible and lower cost bases Orgs have: • flattened and decentralised • adopted cell structures around multidisciplinary teams • formed joint ventures & networks. Project management Reading: K. Holt , ‘What is the best way of organising projects?’ • Basic Relay Structure • Matrix Organisation • Independent Projects • venture teams (or intrapreneurship) Keywords Matrix Organisation Venture Teams Multidisciplinary Teams Cells Divisionalize Networks Partnership • Joint ventures (car manufacturers produce lookalikes) • Public/private sector partnerships Networks and Flexibility Visa & Internet as example Specialised sub-contractors (especially for JIT) Outsourcing and Franchising Vertcial deseggregation where M&S or Nike outsource manufacturing • Luthans et al state that more successful mangers spend more time networking. Handy’s blurring of organisational boundaries where there will be very few “employees”. Intraorganisational networks Orgs have their own informal expert and trust networks within Org. Organizational Divisions The struggle between small company ethic which generates innovation & company control necessary for stability.Divisionalizing will not necessarily solve this Keywords Idea development Suggestion Schemes Mortality of Ideas office of Innovation Employee Involvement Product Development Overlap Shortening Lead Times Supplier Control Robust Design Process Improvement Partnership Sourcing Quality improvement Just in Time Statistical Operator Control Innovative Organisations Intrapreneurship Incentives Championship Job Rotation Idea Development Suggestion schemes 8 tend to pay for themselves • Participation varies with climate/culture • More success if successes publicized and feedback to employees • Rewards don’t have to be financial or at all (Semco) • use customers & suppliers as well. Idea Screening Problem of fitting ideas to Org and market. • Mortality filtered throughResources, Finance,people, Structure, market, policy. Idea Screening Reading: Rosenfield & Servo , ‘facilitating Innovation in large Orgs’ The Office of Innovation and Idea-o-graph (Kodak) with consultants acting as Technology gatekeepers , then Champions and then Sponsors. Importance of documenting & patenting! Idea Screening Process has 5 stages: 1) idea generation 2) Initial screening 3) group Review 4) Seeking Sponsorship 5) Sponsorship Product & Process Development • From cutting costs to cooperating with suppliers on overall cost. • Shortening lead times • Overlap • Supplier Control • Partnership Sourcing Product Families • Incremental prod develop’t • core or platform products (Airbus, Honda small engines) • Job rotation within Org • Cad and virtual designs Process Improvement • Computer-based systems • Agile manufacturing, zero retool time • Rapid product introductions • Integration reducing development time Keywords Share ideas Tolerate failure Incentives intrapreneurship Managing Innovation Freedom & Incentives • 3M, Art Fry, unsticky glue & Post-its Champioship Radical Innovation Champioship from top (Morita SONY) Continuous Improvement Involving people Deming, Kaizen vs ISO type freeze Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors
  5. 5. B822 Mind-Map © Peter Warburton Successful Products • How to predict them (only two out of ten new products launched are a commercial success) • Cooper & Kleinschmidt say 80% of products are from market-pull and ID 3 success factors: 1) product advantage (unique features, higher quality, reduced osts, solved customer problems, superiority to competition) 2) proficiency of predevelopment activities (initial screening, preliminary market/technical assessment, detailed market study & financial analysis) 3) protocol/definition (target market, customer’s needs, wants & preferences, product conception & specification. They also note that top management back as many failures as successes. Successful Products Reading: Rothwell , ‘Towards the 5th generation innovation process’ Bessant suggest good practice: • Systematic processes for progressing good products • Early involvement of all functions • Overlapping parallel working • Appropriate management structures • Cross-functional team working • Advanced support tools • Emphasis on learning and continual development. Keywords Successful Product Development Predevelopment activities Product advantage Technical & Market Synergy Vertical Integration Horizontal collaboration Parallel development Continuous improvement Innovative Organizations Organizational Responsiveness Management Revolution Horizontal structure Quality & Price Policy Stealing C0-operation Human Capital Policy Support R&D Tax incentives Train Continuously Nurture new industry Successful Products Rothwell suggests: Greater overall organization & systems integration • parallel & integrated development • earlier supplier involvement • involving leading-edge users in product development • establishing horizontal technical collaboration Flatter more flexible organizational structure • more empowered managers at lower levels • empowered product champions and leaders Developed internal databases • effective data sharing systems • electronically assisted product development (CAD) Effective external data links • co-development with supplier • use of CAD with customer Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors
  6. 6. B822 Mind-Map © Peter Warburton Supporting Factors J.Kay “ Why the last shall be first and the first shall fade away” Maidique & Patch (1988) four marketing strategies: • First to market : Strong R&D, temporary monopoly • Fast follower : nimble development & engineering capability • late to market : product, process or economies of scale offer cost advantage Niche specialist: special applications But remember: • There’s only one first-to-market and only one lowest cost leader • Is innovation always necessary? • Uncertainty is ever-increasing ( Peters & Chaos ) Reading: C Gray , ‘Small business growth & owners motivation Gray suggests that small owners may not want to grow or employ more people hence the myth Of SMEs as source of large Orgs Public Policy • Japanese government dirigism • regional hot-spots (kanata, silicon vallies) Strategic Perspective Whitington sets out four strategic perspectives: • Traditional Rational Classical • Envolutionary (emvironmentally conscious) • Processual (Pragmatic learning-oriented) • Systemic (socially aware) How you relate to these govern in part the strategies you will comfortable with. Review of Success Factors • Innovation is a chancy affair and there are more failures than successes • There is consensus however that structure, climate & ways of working influence innovation success. • The Big Three are: Systems, People, Externalities • The bad 6 are MITs list • Governements can help with enabling policies. Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors
  7. 7. B822 Mind-Map © Peter Warburton More on Entrepreneurs Cooper & Hingley looked at traits of change-makers: • leadership qualities • ability to see connections between things • intelligible language for complex ideas • passion & persistence • Recognition that change can be tedious & painful. Also seven success elements of entrepreneurs: 1) Childhood experience (orphanic or loss) 2) Independence 3) Drive 4) Belief system 5) Early responsibility 6) Charismatic leadership 7) Communicator ENTREPRENEURS Reading: R. Moss Kanter , ‘Change-master skills: what it takes to be creative’ Moss Kanter suggests the corporate entrepreneur advances through three stages: • Formulating a vision • Power to advance the idea • Maintaining the momentumShe refers to “ Boundary Crossers ” who: • show Kaleidoscopic thinking • communicate visions • have Persistence • do Coalition building • Work through teams The Intrapreneur’s ten commandments • Come to work willing to be fired • Circumevent orders stopping your dream • Do any job needed for your project • Find people to help you • follow intuition on people you choose • work underground as long as you can to avoid triggering org’s immune system • never bet on a race unless you are running in it • easier to ask forgiveness than permission • be true to your goals but realistic on how to get there • honour your sponsors Champions Roberts & Fusfield’s (1987) 5 leadership roles in projects: • idea generating • Entrepreneuring/Championing • Project leading • gatekeeping • Sponsoring/coaching Key Concepts Boundary Crossers Kaleidoscopic thinking Leadership style Visionary leaders Championship Intrapreneurs Innovators as mavericks Heroes vs teams Visonary Leadership Reading: Westley & Mintzberg , ‘Visonary leadership & strategic management” suggests : Idea <> Vision <> Action implemented as drama in ( Management as Theatre ): Repetition <> Representation <> Assistance They indentify varieties of visionary leadership based on Visionary style: • Creator, Prosletizer, Idealist, Bricoleur, Diviner • strategic process (mental origin, evolution) • Strategic content The dark side of visionary leadership • Hitler • Kray brothers • Pol Pot • cf Ataturk? Teams as Heroes Reading: R B Reich , ‘Entrepreneurship reconsidered: the team as hero’ The problem of dominance of the heroic figure in US culture while workers are just drones . This myth is obsolete: • Big ideas are not as competitive as incrementally improved ones • Migration of process/manufacturing technology is worldwide • Cheaper/more productive labour always exists elsewhere • Collapse of droneheroes distinction is a bonus. Innovators • persistence • Diverse experience Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors
  8. 8. B822 Mind-Map © Peter Warburton EKVALL on Freedoms & Constraints: The paradox of Freedom versus Structure , that “ bureaucracy & Formalism are the necessary enemies of Creation & Innovation, but we need formality to utilize the creative potential within the Org” Ekvall classified Swedish orgs into three types of culture: • Mechanistic • employee centered • Organic Also a typology of Swedish orgs: • Bureaucratic • bureaucratic with human face • entrepreneurial • relational & cooperative He maintains that an “ideas handling system” (cf office of Innovation) cannot survive in bureaucratic ones Key Concepts Hard & Soft Management Open Climate Trust Strong Culture Training Up Informaility Heterogeneous culture Walk the talk Recognize diversity Trust & The virtual organization Reading: Charles Handy , ‘Trust & the virtual organization’ TRUST • is not blind • needs boundaries • demands learning • is tough • needs bonding • needs touch • requires leaders Cf SEMCO and ultra-high trust INTRO: Corporate Culture “ The way things are done round here” The idea that changing the culture makes every employee self-managing a la Semco. Jelinek & Schoonhoven on problems of Strong Culture • has maintenance costs in time effort & skills • has high personal costs (burnout, commitment) • has high managerial costs(subordiantes not subordinates, too much info & training up management to lower level skills. Changing Culture • Fogden : ‘Change in the employment service’ Changing Culture Reading: T.J Watson , ‘ Culture Games & Discourse’ The double ( Official vs Unofficial ) discourse of: Empowerment vs Control Growth vs Jobs Skills vs Costs He also talks of “ The Poison of Elitist management ” (cf France!) Osborne & Wilkinson , Exchanging Resigned Behavioural Compliance for Internalized Commitment K. Legge “Managing Culture, Fact or Fiction” discusses fasability/desirability of strong culture citing limited success of Org Dev in 60’s, 70’s. Excellence & enterprise culture (but the excellent ones failed!) Can Culture be managed? • Cultural control by messages & systems Is strong culture desirable? Culture as: • Moral Glue • promote comprehension adaptability • does it reduce ability to question/reason/innovate? • enhance ability to move quickly (shoal of fish?) Paradoxes of managing culture • Cultural control is propagated by rational control methods • often represented by new-leader battles • Employees act out new culture but are in fact in resigned behavioural compliance Strategies to achieve cultural change (takes TIME) • Seek to change artefacts & espoused values • Check the force-field! • Empiricist - rational reasoning • Normative -re-educative • Power-coercive • replacement reorganization & Symbols (burning desk!) • WALK THE TALK! or risk cynicism/low credibility • Real TRUST SEMCO Trust & diversity • acknowledge sub-cultures Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors
  9. 9. B822 Mind-Map © Peter Warburton Key Concepts Quality TQM Continuous improvement JIT Statistical Operator Control Re-engineering Cross-functional around outcome IT induced Business process redesign Knowledge Management Tacit knowledge Transferring knowledge Managers as knowledge engineers INTRO Context of fierce competition/rapid change 6 most influential approaches to Org change: • Quality • Re-engineering • Knowledge management • empowerment • the learning organization • self organization Management Fads Instead of structure follows strategy: Structure follows fashion. W Edwards DEMING and Quality 85% of Q problems are caused by management. Summary of Deming’s 14 points: • Suppliers- choose the most reliable, not the cheapest & reduce number • Training - train on the job, retrain, teach simple statistics • Quality - provide statistical evidence of process control, look for faults in system not the individual, eliminate numeriacal production goals • Culture - drive out fear, break down barriers across departments, think long-term. Evolution of Quality approaches: Dale & Cooper (1992) suggest a 4 stage model 1) Quality inspection 2) Quality control 3) Quality assurance 4) TQM Problems of ISO 9000: “ Saying what you do, doing what you say, and proving it” even if the stated goal is to make non-working light-bulbs! QMS versus TQM: QMS is about procedures, TQM is about empowering people to improve Q. Control versus enablement. Q problems: • Qualicide • Quality circles :mutual surveillance? • Cultural aspect of Quality circles Japan vs USA Re-engineering (zero-based design) Fundamental re-design instead of incremental improvements M Hammer , ‘Reengineering work:don’t automate, obliterate’ • organize around outcomes not tasks • Have those who use the output of the process perform the process • Subsume info-processing into the real work that produces the info • treat geographically dispersed resources as tho they were centralized • link parallel activities instead of integrating their results • put decision point where the work is performed & build control into the process • Capture info once & at source Pros & Cons of BPR Pro : M Hammer , ‘Reengineering work:don’t automate, obliterate’ Con : Davenport & Stoddard , ‘Reengineering: business change of mythic proportions?” Problems : management resistance to the radical and state-of-the-art in BPR Anti BPR • Myth of clean slate chainsaw resizing • top-down design Nonaka & Takeuchi , ‘The knowledge-creating company • Socialization - Tacit to Tacit • Combination - Explicit to Explicit • Articulation - Tacit to Explicit • Internalization - Explicit to Tacit From Metaphor to Model From Chaos to Concept • Knowledge transfer • re-examining what we take for granted. Importance of Local Knowledge • Applying knowledge strengthens it, not uses it up. Learning approach to continuous improvement: AT Kearney’s 4 characteristics of successful programs: • Emphasis on tangible results • Insistence on performance measurement • Integrated program • Clear top-management commitment Bessant et al successful CIP: • clear strategy • conducive culture • enabling infrastructure • process to sustain improvements • Tools of Q management Knowledge management Before: land, capital, labour Now: Ideas, Intellect and Information Definition by Nonaka & Takeuchi : “ the capability of an Org as a whole to create new knowledge, disseminate it thoughout then Org and quickly embody it in key products, services & systems” Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors 1: Localised exploitation 2: Internal integration 3: Business process redesign 4: Business network re-design 5: Business scope redefinition High Low High Range of potential benefits from IT Degree of business transformation VENKATRAMAN’s BPR with IT
  10. 10. B822 Mind-Map © Peter Warburton Key Concepts Empowerment Empowerment continuum Employee involvement Creative empowerment Profit-sharing Learning Organization Double loop learning Defensive routines Learning to learn Forgiving mistakes Self-organization New managerial paradigm Workplace democracy Trust Minimal management Bowen & lawlor , ‘The empowerment of service workers, What, why, how & when’ Marchington’s 1992 empowerment stairway: • Information • communication • Consultation • Codetermination • Control R.Frey , ‘Empowerment or else’ Empowerment Pushing responsibility, and the power to exercise it, downwards. Cf Semco. • The empowerment continuum from little to extensive. (semco setting their own wages!) • the empowerment stairway Moss Kanter , “ Powerlessness corrupts, absolute powerlessness corrupts absolutely” Why Empower? • best vs worst outcomes • Employees feel better about job/themselves • Better employee/customer interaction • Employees as source of service ideas • Free word of mouth advertising Cost of Empowerment • More $ in selection/training • Higher labour costs • slower or inconsistent service delivery • violations of fair play • giveaways, commercially bad decisions How to Empower? • High involvement • job involvement • suggestion involvement Learning Organisation Definition by Pedler, Burgoyne & Boydel (1991) : “An organisation that facilitates the learning of all its members and continuously transforms itself” Senge’s (1990, 1994) 5 Building Blocks of the Learning Organisation • Systems thinking • Personal mastery • Mental models • Shared vision • Team learning Argyris argues that we don’t learn because of Defensive Routines D. Garvin , on Building a learning Org • Systematic, fact-based, problem-solving • Ongoing & one-off experimentation • Learning from past experience • Learning from others Transferring knowledge in reports, tours, people transfers Also: • Foster conducive environment • Open boundaries, stimulate idea flows • Create learning opportunities (in-house “burger” universities) • 3 Ms of Meaning, management, measurement OU on What is Empowerment • Info about & rewards based on, Org’s performance • Knowledge enabling employees to understand & contribute to Org Perf. • Power to make decisions that influence Org direction & performance. Critiquing the Learning Organisation • Contradiction between “Question assumptions” & “Do what I say” • Need for self-wish to learn • negative reaction to feedback Desire to keep learning in head as source of power Bartlett & Goshal From: Constraint/Complianec & Control/Contract To: Support/Trust & Stretch/Discipline Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors Governing Variables Actions Single Loop Argyris 1994 Single & Double loop learning Consequences Mismatches Matches Double Loop
  11. 11. B822 Mind-Map © Peter Warburton Key Concepts Self-organization New managerial paradigm Workplace democracy Trust Minimal management Self-Organisation a la Semco • Trust & participation • Workplace democracy • Minimal management • Constructive anarchy • tele-working Argyris , “ Typical organizations keep people immature” Other examples: • Dutton • Oticon Book 3 Innovation, Climate And Change Innovation Dynamics Scanning Structure Systems Entrepreneurship Climate & Culture Changing Systems Developing people Success Factors