IITABLES OF FIGURESFigure 1: Organogram over the HILTI organization............................................................. - 2 -Figure 2: The HILTI business model .................................................................................... - 3 -
- 1 -1. INTRODUCTIONThe challenges of today’s business make it difficult for organizations to onlyconsider stability and efficiency as main concerns. The environment of businesses ischanging in a high pace. Moreover, the internal complexity of the organizations shouldbe able to match the environmental changes. Matching such changes and complexityrequires creativity to be integrated as dominant aspect in businesses and workplaces.Historically, many scientists have identified creativity. Parkhurst (1999) definescreativity as displayed quality or ability to introduce novel or original solutions tounsolved problems. That could also be seen as the ability to develop novel and originalproducts. Therefore, organizations have that kind of inbuilt abilities are said to becreative. However, creativity is still cognitive term. Thus, evaluating creativeness is noteasygoing to get through, and its results cannot be taken for granted.Questions posed in this report opens discussion about organizations creativenesssuch as what may characterize creative organizations, what aspects of workenvironment may facilitate for their employees to be creative, and what links there canbe between control and creativeness within organizations? To reflect relevant answersfrom the real world, HILTI Svenska AB is considered in this report as case study forsuch discussion.2. BACKGROUNDMartin Hilti and his brother Eugen established HILTI in 1941 in Liechtenstein,when World War II was still raging. Starting out by serving the textile industry inSwitzerland and the automotive industry in Germany, the brothers’ mechanicalworkshop started out with merely five employees and had grown to one hundred by1945. In 1952 they started their foreign sales expansion and today the HILTIorganization is spread across the world, from South Africa to Sweden and the UnitedStates to China. HILTI’s own product line was initiated with a powder-actuated productline and now ranges from equipment used in the plumbing to the electrical industry.Since 1980 HILTI is a privately owned company with the HILTI Trust as safeguard tosecure the corporation’s existence in the long run.
- 2 -With the trust fund as a base for the corporation, HILTI is a company that buildsfrom the bottom up, see figure 1. The board of directors is led by Swiss Dr. PiusBaschera and the head of executive board is Swedish CEO Bo Risberg. Building on thetop management, or bottom management in this case, are the key departments thatenables a sales basis for the market organizations who delivers the value of HILTI to thecustomers.Figure1: Organogram over the HILTI organization. (Appendix 2)Four terms state how the value is to be delivered to the customer: integrity, courage,teamwork and commitment. HILTI Corporation strives to identify the key aspects ofsuccess for their customers,and deliver value-adding solutions to the constructionbusiness through their products and services. Their business model (see figure 2)invokes involvement of customers, employees, suppliers and partners to achieve theoverall goals set for the corporation; for their business to be sustainable and profitable.
- 3 -Figure2: The HILTI business model. (Appendix 2)Stating their visions for 2015, HILTI strategies build on what could be compared toa four-legged stool. Social responsibility both within the company and externally beingone of them, HILTI Svenska AB includes in their strategy to consider the environmentand take care of the interest of their employees by primarily recruiting for top positionsfrom within the organization. They strive to gain grounds within new business area,enhancing the loyalty of their customers and increase their growth rate.Since HILTI answered yes to all questions presented a above they were aninteresting candidate to build a case about creativity on. Recently HILTI Svenska alsocaught a second place in anevaluation performed by the organization Great Place toWork, hence being the second best place to work in Sweden. This adds to the emerginginterest in evaluating if HILTI Svenska AB can be considered a creative organizationbased on theories presented in the following section.3. METHODOLOGYInformation about the theories was collected from books, scientific articles and thecourse literature Entrepreneurship and Small Business. The scientific articles werefound in the databases Emerald and Business Source Premier through the search words:creativity, leadership, control, industries and limitations. One of the books were found atthe database Emerald, through the search words: creativity and learning organization.The other book is Images of Organization.
- 4 -Which organization to choose for this report was decided by posing the followingquestions to anemployee and manager over email (Appendix 1a):1. Is creativity and new ideas encouraged at the company?2. Is it accepted to take initiative with an uncertain outcome?3. Is it allowed to fail?4. Does employees experience the working environment as vivant and eventful?5. Is there room left for humor and laughter?6. Is the boss responsive and does a dialog occur?7. Is there room to develop and think about new ideas?8. Is it possible for everyone within the organization to be heard and affect howthe corporation is led and developed?9. Is an encouraging language used?10. Is cooperation encouraged?By using these questions a first and simple evaluation regarding whether a companycould be considered creative or not was made. At HILTI an account manager and anarea sales manager were questioned and they answered yes to all exclusively (Appendix1b). Further information for empirical data was collected through a meeting interviewwith the area sales manager over the phone (see Appendix 4). After the information wascollected it was put together and summarized in this report. The theories were theninvoked when analyzing the case HILTI.4. THEORYTo investigate the creativity of organizations, the characteristics of the flow ofroutines and activities within these organizations are compared to the creative processmilestones. Creative processes may share similar phases that include generatingknowledge and awareness, incubation process, generating ideas, and evaluation andimplementation. Generating knowledge and awareness are basically built upon manysources. In organizations, sources may be categorized into internal and external sources.Internal sources may include research and development, engineering, purchasing,production, marketing and sales, and reading, while external sources could bedistribution and agents, competitors, suppliers, customers, universities, consultants,exhibitions, and networks. Creativity process can take much time unless individuals
- 5 -mull over the ideas in the back of their heads. Thus, incubation process could be seen asphase where individuals within the organization play a significant role in presentingstarting points for idea generation. To be creative, organizations have to adopt ways togenerate and bring in ideas. There are several common ways of idea generation and thatmay include brainstorming, analogy, attribute analysis, and gap analysis. Organizationsshould have the ability to evaluate generated ideas. Some ideas could be morepromising than others, and that is approached during a convergent stage of theevaluation process. Many discussion and analysis sessions need to be conducted and areturn to idea generation is sometimes required (de Bono, 1995).Creative process may require playing different roles. That may include acting asexplorers, artists, judges, and warriors. Explorers are generally meant by generatingideas, broadening perspectives, sifting through information, being curious, followingunexpected leads, constantly writing things downs. Artists try to turn resources andinformation into new meaningful ideas by imagining, adapting, linking, reversing,discarding, parodying and evaluating. Judges assess and evaluate the effectiveness ofconcept and incorporating ideas through getting exposed to assumptions, timing andprobabilities. By being courageous, bold, and persistent, warriors achieve organizationalacceptance and implementation of ideas. The try to accommodate plans, assignresources and motivate stakeholders to translate creative ideas into effective andefficient reality (Burns, 2010).Interchangeably, corresponding learning styles to the four sequential roles in thecreative process have been proposed by Kolb model (1984), where explorers arerepresented as divergers, artists are represented as assimilators, judges are representedas convergers, and warriors are represented as accommodators. Therefore, there iscohesive relationship between learning and creativity. Thus, learning organizations haverich atmosphere and high potentials for creativity (White, 1994).To achieve an open and learning culture in an organization the leadership need toinvolve their employees in the developing process. This can be hard for managers thatwant to have control over every single decision within an organization according toMorgan (2006). It is more stimulating for an organization if the learning process includea double loop, which includes a step in the learning process that evaluate if operationsthat might be used are relevant and appropriate for the specific task. This can be
- 6 -compared with learning processes that consists of just a single loop. Problems will beevaluated and solved within an organization that use single loop learning but theorganization do not evaluate if the methods used to solve the problem actually are themost effective one and there is a risk they do not apply the best solution to the problem.To create an environment within an organization that is open and stimulating forchanges and new ideas the goals and visions should not be too specific but moreconsists of restrictions for things that should be avoid rather that what the organizationactually want to achieve. If the main focus is on what should be achieved there are a riskthat other parts of the organization neglects and the result of the achieved goal is notwhat was asked for from the beginning (Morgan 2006).There are different sources of control, both formal and informal. Formal controlincludes results while informal control are more focused on the social aspects within anorganization. In a study written by Busco et al. (2012) the connections between controland creativity within a fashion company is evaluated. In that company the control hadbecome a condition for creativity. In the beginning of every new project, theorganization has a meeting to set up structures for the employeesand how they shouldwork with the new task. An important aspect for this though is that the restrictionsshould be as few as possible so the employees still get the possibility to be free in theircreation. The control can include information as what to do, when to do it and thebudget for the project, the employee are then free to form how to attack the project. Theleader has control over the entire organization and is the one that comes with inputs andrestraints whenever needed (Busco et al. 2012).The employees of any organization have certain perception of the organizationalenvironment. They may perceive leaders’ motivating actions as core intentions theorganization strives for, while they are in reality mere motivating actions. Therefore,there is a positive relationship between leaders’ motivating actions and employees’perceptions of such actions (Eisenberger et al., 2001).There are some connections between how leaders behave and the creativity ofsubordinates. The leaders play very significant roles in facilitating creative performanceby providing subordinates with useful resources and references, positive feedbacks andreflections, and more significantly revolutionary ideas. That encourage them to get outof the box and share their ideas whatever they could be (Mumford et al., 2002).
- 7 -The enthusiasm, interest and energy given to creativity have positive impact oncreative performance of the surrounding environment. That could also be reflected fromthe case of leadersand subordinates, where enthusiastic leaders for creativity seem to becloser than others to enhance the creative performance of their subordinates (Amabile,1983, 1988).Some social attitudes seem to be positive for creativity including self-confidenceand being ready and highly prepared for change. The increase in these two factorsentails thriving in other factors such as employee relationships (Schyns, 2007).Some scientists studied the relationship between leaders and subordinates. Apositive correlation has been detected between the quality of leader–subordinaterelationship and the creative and innovative behavior of subordinates. Another positivecorrelation could be drawn on some cases of leaders-and-subordinates relationships inwhich mutual trust and respect are dominant. Such relationships are more likely toproduce higher levels of innovation and creativity (Scott & Bruce, 1994).5. ANALYSISHILTI Svenska AB only consists of sales units and warehouses with theirheadquarter placed in Malmö. There is approximately 260 employees all across Swedenand the organizations are divided into three areas; southern, middle and northernSweden.HILTI has since the financial crisis in 2008 that struck the construction businessvery hard, increased the level of turnover steadily over the three following years andreached the same level as previous to the crisis, see Appendix 3. From previouslyhaving had a high cash liquidity, the lower numbers and higher numbers of employeesmay indicate that new investments are being made and that HILTI are strengtheningtheir position on the market once again.According to Nilsson , area sales manager of the middle region, HILTI eliminatesuncertainty and fulfills their strategy stating their overall goals very clearly throughoutthe organization. A way of enhancing clarity in their goal statements is to divide theminto global and individual goals. HILTI is a process controlled organization and clarityis also communicated through the implemented processes employees follow. These
- 8 -processes have been carefully worked through and developed over the years, havingresulted in them being very well functioning. The processes facilitate the routines foremployees, and as a result, further development poses a challenge and it is easy tobecome comfortable. For some individuals it is the preferred way of going aboutworking routines but it inhibits development. However, HILTI aims to providesatisfactory conditions for their employees to encourage entrepreneurship and individualdevelopment. Key in this the motivation that is communicated through the leadership,hence, if a leader is able to transfer motivating actions into being interpreted as coreactions, this may lead to a positive outcome that enhances the message communicated(Eisenberger et al., 2001).Nilsson considers himself having the opportunity to control the work of theemployees both through statistical tools and dictating the working routines. Keynumbers to look at are collected through reports in Customer Relationship Management(CRM) software. He does however avoid as much as possible to intrude on the workingroutines, giving employees as much freedom and own responsibility as possible. Thestatistical tools are used to ensure that standard sales goals are achieved, such as salesnumbers, location of an employee, and number of visits during a day. As mentioned inthe theory by Busco et al. (2012) the leader should give as little restrictions for the worktasks as possible so the employee have a high possibility to form in what way it preferto work and in that way also come up with suggestions to develop the organization. Justas in the case with the fashion company HILTI have limited constraints within theirwork descriptions. The leader Daniel Nilsson has both formal and informal control overthe organization. With formal control like the statistical tools he can control theorganization so it does not fail in their purpose to be financially profitable. With asecurity that the employees are making as many numbers of visits a day as necessaryHILTI can then focus on other sub goals in the organization.Regarding the level of formality at the workplace, employees have a lot of ownresponsibility and are free to plan their days as they wish. That is very significant fromcreativity point of view (Schyns, 2007). However, this does not include deciding yourown working hours. Choosing what projects an employee wants to take on is in somecases up to the individuals themselves, for larger projects employees are howeverassigned to a project and restricts the personal choice.
- 9 -When it comes to new problems arising within the organization, the level of theactual newness of the problem varies greatly but is less than often not really a newproblem. Solutions can most of the time be based on previous experience even thoughnew aspects can be added from external sources. Problems many times arise whenbeing out on the field, working directly with customers, and are an important source forfurther development of the organization. According to Nilsson it is in the physicalmeetings with customers that many ideas for development and improvement aregenerated and he stresses the importance of having specific knowledge in the area inorder to pose the right questions. If the problem is stated correctly it is easier to becreative and look for solutions outside the general frame, perhaps even to otherbusinesses. These are the two main sources of inspiration stated by Nilsson. Ideas arehowever encouraged to emerge from within the organization as well. Even thoughspecific actions might not occur to catch these ideas, everyone in the organization mayquestion and generate ideas regarding production and working routines. This is equallyas important as looking outside the business for creative solutions (Amabile, 1983,1988). In generating ideas within the organization, Nilsson recognizes the importance offollowing up on incoming suggestions in order for the initiative to emerge at all.In the recruiting procedures of new employees, the evaluation of every individual isnot pursued as deep as being able to assess personal traits and the creative traits or whatkind of learning types they are. According to Nilsson, what they consider in therecruitment process are skills that suits the work that is to be performed and try toincrease the level of females, academics and immigrants. After recruiting they aim toprovide an environment suitable for any personality to improve working conditions andresults, for both the individual and the organization.Comparing HILTI business with the process of the characteristics creative process(de Bono, 1995), some similarities could be found. HILTI has opened environment withrelative learning environment and that may represent the stage of generating knowledgeand information in the creative process. Clarifying processes and goals, and pursuingemployee’s motivation and commitment may represent the incubation process. Finally,their ability to find solution to involve employees, suppliers and customers couldrepresent generating, evaluating and implementing stages respectively. It is also worthmentioning that in HILTI’s sessions of idea generation, several roles are played by a
- 10 -group of insiders and outsiders. The main aim is to find creative solutions. Distributingroles to suitable players is in general very significant for the quality of both learning(White, 1994) and creative performance outcomes (Burns, 2010). Besides, HILTI assolution seeker relies heavily on being dynamic to react with novel solutions tointroduce to the customers. That could be finely practiced in general if companiesfunction as learning organizations (Morgan 2006).6. DISCUSSIONCreative organizations may be different in how they facilitate and presentcreativity, but they share similar characteristics. To generate knowledge and informationthat may facilitate openness, creative organizations support their employees byresources of knowledge and information through different ways. They may subscribe tosome of relevant journals, magazines and newspaper that could be relevant and helpfulfor employees to be exposed to. They may enable employee to get accessibility to e-libraries and multimedia stores. The type of resources provided is related to how theycontribute to the industry. For instance, for fashion industry, it could be helpful fordesigners to be exposed to fashion magazines and trends. It is also important for them tobe exposed to irrelevant sources of information, as creativity is essentially related to thenovel and unfamiliar ideas. These specific actions would be necessary to specify andevaluate in order to properly determine whether anorganization is creative or not,something that is lacked in the analysis of HILTI’s working environment.Moreover, creative organizations should create creative environment to employees.That comesfirstly by enhancing their commitment to the business. This is one of thechallenges for HILTI since they are a process-controlled company. What could not beinterpreted in the answer collected during the interviews were the specific actionsHILTI takes to elude this issue. However, leaders play very crucial role in gettingemployees involved in the vision and values of the organization. When employees arefairly committed to the organization, their interests to come up with creative ideaswould be improved. As a result, involvement may get into their minds in subconsciousness, which is indicated as incubation process. Additionally, theorganizational culture is highly important in the incubation process, since commitmentand encouragement are essentially associated with informal relationships and operating
- 11 -norms and values. Thoughts similar to “there is no stupid idea” should be explicitlydeclared. This aspect is touched upon in the initial questions posed to both employeeand manager, where both parties answered yes to the questions if it is allowed to pursueinitiatives with anuncertain outcome and if it is allowed to fail.Another characteristic for organizations to be creative is the ability to generatequalitative ideas instead of quantitative ones. There are various techniques in how to getcloser to realistic creative ideas within relatively short periods of time. That requireshaving the ability to evaluate and implement such ideas. Creative ideas are not highlymeaningful until it matches high degree of the organization’s ability to implement them.As mentioned by Nilsson during the interview, it is important to have specificknowledge in the relevant area in order to pose the right questions and avoid spendingtime on problems that are hardly relevant. This might however also limit the creativityand result in missing innovative actions for development.A continuous learning is important for a developing process within an organization.In some organizations working with their learning process they might be creative aswell since there are a connection between creativity and learning. An organizationalenvironment that are open and with a high acceptance of mistakes and own ideas canfrom that perspective be seen as creative. The leadership style is an important part of thecreation of the organizational environment. With a leader communicating a highacceptance and few limitations for in what way a specific task should be done theemployee is more involved in the process. With involve the employees in the processesand give them the ability to be more free to affect in what way the individual prefer toform their working task. This can be described as if the control within the organizationdecentralizing from the leader to the individual. Another aspect of control that isimportant is that the organization needs to struggle toward the same goals. The leadershould have the knowledge of every part in the organization from a general view so s/hehave the ability to set up goals that are not too specific and that can be represented in thesame way in the entire organization.7. CONCLUSIONSWith the structure of the work and tasks connected with HILTI’s business modelthe organization is mainly process oriented and can therefore be considered follow
- 12 -procedures and function like a machine. It is therefore easy for employees at HILTI tofall into routines. They do however welcome ideas from all parts of the organization andactively strive to increase the level of creativity by letting the way of performing the jobis individual and free. It is also realized by the management that ideas are generated notonly from within the company but also from external entities and uses this to findsolutions to problems arising in work situations. So although the work itself may notleave room for much creativity, they aim to achieve a creative working environment toaid development of the company. Specific methods would need to be assessed in orderto properly evaluate whether an organization has a creative environment or not. Thefinancial results have approved since the financial crisis, further research does howeverneed to be performed in order to link it to the creative initiatives placed by management.
- 13 -8. REFERENCESAmabile, T.M. (1983) The Social Psychology of Creativity: A ComponentialConceptualization. Journal of Personality and Social Psychology.Amabile, T.M. (1988). A Model of Creativity and Innovation in Organizations. In Staw,B.M. and Cummings, L.L. (eds.), Research in Organizational Behavior. JAI Press,Greenwich.Burns, P. (2011). Entrepreneurship & Small Business. Palgrave Macmillan, Hampshire.Busco, C., Frigo, M. L., Giovannoni, E., Maraghini, M. P. (2012). Control vs.Creativity. Strategic FinanceDe Bono, E. (1995). Serious Creativity: Using the Power of Lateral Thinking To CreateNew Ideas. London: Harper Collins.Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P.D. and Rhoades, L. (2001).Reciprocation of Perceived Organizational Support.Journal of Applied Psychology.Kolb, David (1984). Experiential learning: Experience as the source of learning anddevelopment. Englewood Cliffs, NJ: Prentice-Hall.Morgan, G. (2006). Images Of Organization. Thousand Oaks, California: SagePublications.Mumford, M.D., Scott, G.M., Gaddis, B. and Strange, J.M. (2002) Leading CreativePeople: Orchestrating Expertise and Relationships.Leadership Quarterly.Parkhurst, H. B. (1999). Confusion, lack of consensus, and the definition of creativity asa construct.Journal of Creative Behavior.Schyns, B. (2004). The Influence of Occupational Self-Efficacy on the Relationship ofLeadership Behavior and Preparedness for Occupational Change.Journal of CareerDevelopment.Scott, S.G. and Bruce, R.A. (1994) Determinants of Innovative Behavior: A Path Modelof Individual Innovation in the Workplace. Academy of Management Journal.White, M.G. (1994). Creativity and the Learning Culture.Learning Organization.
- 15 -APPENDIX 1BFrån: Catharina Bangshöj <firstname.lastname@example.org> Datum: 2 april 201312:31:50 CEST Till: Mathias Hansen<email@example.com> Ämne:Kreativt ledarskap1. Uppmuntras kreativitet och nya idéer på arbetsplatsen? JA JA2. Är det accepterat att ta initiativ som har ovisst resultat?JA JA3. Är det tillåtet att misslyckas?JAJA4. Upplevs atmosfären på arbetsplatsen/i arbetsgruppen som levande och händelserik?JA JA5. Finns det utrymme för humor och skratt?JA JA6. Lyssnar chefen och sker en dialog? JA JA7. Finns tid till att tänka ut nya idéer?JA JA8. Finns möjlighet för alla inom organisationen att göra sig hörda och påverka hurföretaget leds och utvecklas? JA JA9. Används ett uppmuntrande språk?JA JA10. Uppmuntras samarbetet?JA JA
- 20 -APPENDIX 3Financial results of HILTI Svenska AB
- 21 -APPENDIX 4Intervju med Daniel Nilsson, Area Sales Manager HILTI Svenska ABEndast försäljning i Sverige, ingen produktion?Ja, lager.Hur specifika är ni när ni presenterar mål för organisationen?Tydliga, väldigt tydliga, greatplacetowork, global nivå till individ.Hur specifika arbetsuppgifter ärBåde och, processtyrda, lätt att bara följa processer och inte tänka själv, inte allaindivider tänker själva och utveckling, entreprenörskap, välfungerande processer.Hur stor inblick har du i varje individs arbete? Har varje anställd stort eget ansvar? Omja, när blir du inkopplad?Både och, statistik, styr dagen helt fritt, misskötsel, var man är, tvingas komma upp medlösningar individuella, mix av vem som bestämmer vilka uppdrag som ska ta, säljaren ärnärmast kunden.Skulle du säga att ni har ett formellt arbetssätt?Ingen flextid, rekommendationer, lägga upp dagen som du vill, rapportering styrs viaCRM system inget kontrollsystem, viktigaste är att arbetsuppgifter.Hur angrips nya problem, hur jobbar ni med problemlösning?Nytt oftast inte nytt i organisationen, använder tidigare erfarenhet, både och doublesingel, ingen.Jobbar ni aktivt med att generera nya idéer eller jobbar ni med det som följd av att lösaett problem?Försöker jobba aktivt med att generera idéer, inget nytt, jobbar aktivt till at få nya idéer,viktigt märker att det händer.
- 22 -Vad ser du som största källa till inspiration till nya idéer?1 för att komma på nya idéer, hur frågan ställs är halva lösningen, insatt i branschen föratt ställa rätt frågor, vara ute mycket och träffa kunder och får problem serverade, vetvilka frågor som kommer upp.2 titta utanför branschen, väldigt viktigt, inte ser kopplingen initialt.Tas idéer som rör produktion eller arbetssätt vara på från alla anställda på er enhet ochhur sker kommunikationen kring detta?Alla.Ser du några fördelar med att vara ett privatägt företag?Fördelar mer långsiktigt ägande, kortsiktiga resultat, långsiktig inte samma press, ges tidatt vara kreativ.Berätta lite mer om vision 2015.Socialt ansvarstagande, retention rate, primärt rekrytera chefer inifrån, new businessexpandera, solcellsenergi, gruvor, lojalitet hos kunder parametrar viktigt,försäljningstillväxten, bryts ner i regionsmål, smörgåsbord PMP mål, välja olika mål.Filosofisk fråga: Tror du kontroll hämmar eller främjar kreativitet?Generellt beror på, hämmar, författare, kontroll och tankar, lösningsverksamhet, liggeröver axeln är inte, viktigt att låta människor växa och ta egna beslut.Gruppdynamik.Kvoterar inte på något sätt, letar efter akademiker som kan lära hantverkare mycket,önskar större spridning, inte strukturerat grupproller, olika människotyper och hur deska behandlas för att jobba bäst, anpassa till individen.