australian centre for innovation & international competitiveness creating innovative...

Australian Centre for Innovation & International Competitiveness

Creating Innovative Creating Innovative OrganisationsOrganisations

HR’s Challenge for the 21st HR’s Challenge for the 21st CenturyCentury

presented topresented toThe Leadership ConsortiumThe Leadership Consortium

by Professor Ron Johnston, FTSEby Professor Ron Johnston, FTSE

Executive DirectorExecutive Director

Australian Centre for InnovationAustralian Centre for Innovation

10 May 200110 May 2001


What Do These What Do These Companies Have in Companies Have in

Common?Common? ShellShell Pacific Gas and ElectricPacific Gas and Electric ElectroluxElectrolux Erste Allgemeine Erste Allgemeine

VersicherungVersicherung DistillersDistillers


They all engage in They all engage in systematic, collective systematic, collective

‘What Ifs’‘What Ifs’ Shell anticipated the OPEC oil price hike, and the fall of Communism in RussiaShell anticipated the OPEC oil price hike, and the fall of Communism in Russia Pacific Gas & Electric anticipated the California earthquakePacific Gas & Electric anticipated the California earthquake Electrolux anticipated a range of entirely novel consumer marketsElectrolux anticipated a range of entirely novel consumer markets Erste Allgemeine Versicherung anticipated the fall of the Berlin WallErste Allgemeine Versicherung anticipated the fall of the Berlin Wall Distillers anticipated the shift in alcoholic beverage consumption in AsiaDistillers anticipated the shift in alcoholic beverage consumption in Asia


Historic Approaches to Historic Approaches to ChangeChange

BureaucraticBureaucratic - organisations as machines - organisations as machines HR & ODHR & OD - organisations as networks of relationships - organisations as networks of relationships Industrial democracyIndustrial democracy - organisations as open systems - organisations as open systems TQMTQM - organisations as continuous process improvement systems - organisations as continuous process improvement systems StrategicStrategic - organisations as purposive competitors - organisations as purposive competitors BPR - organisations as collections of core competencies BPR - organisations as collections of core competencies NEXT?NEXT?


Major Major Drivers of Drivers of the Futurethe Future


The Context is The Context is the Global the Global Knowledge Knowledge EconomyEconomy


GlobalisationGlobalisation

Age of hyper-capitalismAge of hyper-capitalism Intangible assets increasingly importantIntangible assets increasingly important Share price/net tangible assets grew by 50% in last 3 years.Share price/net tangible assets grew by 50% in last 3 years. PatentsPatents


The critical difference between The critical difference between the old and the new economies is the old and the new economies is not dot.coms, nor e-commerce, not dot.coms, nor e-commerce, nor sustained growth without nor sustained growth without

inflation.inflation.

It is that the It is that the old economyold economy raised raised capital to invest in physical capital to invest in physical

capital.capital.The The new economy new economy raises finance raises finance to invest in ideas and innovationto invest in ideas and innovation

Knowledge EconomyKnowledge Economy


Because knowledge does Because knowledge does not wear out it is a source not wear out it is a source of super-value and super-of super-value and super-productivity.productivity.

Knowledge alone can add Knowledge alone can add value to an otherwise value to an otherwise closed, zero-sum system.closed, zero-sum system.


ecommerce

business

procurement

trade

9890 95 00

e-connectivitye-connectivity


Not just product innovationNot just product innovation Not business process re-Not business process re-

EngineeringEngineering Business concept innovationBusiness concept innovation

InnovationInnovation


Some Major Some Major UncertaintieUncertaintie

ss

?? ?

? ?

?

??

?


Beware the Sixth Extinction!

Global Warming & Global Warming & Environmental Environmental SustainabilitySustainability


smart search enginessmart search engines driven by voice recognitiondriven by voice recognition micro-displaymicro-display specialised DNA computingspecialised DNA computing intelligent agentsintelligent agents automated intelligenceautomated intelligence knowledge managementknowledge management

New New Decision-Making/ManagemDecision-Making/Managem

ent Toolsent Tools


Universal perceptions:Universal perceptions:– competition --> reduced customer servicecompetition --> reduced customer service– globalisation --> reduced customer serviceglobalisation --> reduced customer service– technology (computer systems) --> reduced technology (computer systems) --> reduced

customer servicecustomer service– economic rationalism --> increased inequityeconomic rationalism --> increased inequity– economic rationalism --> greater economic rationalism --> greater

unhappinessunhappiness– economic rationalism --> loss of communityeconomic rationalism --> loss of community

Customer RevoltCustomer Revolt


If you always do what If you always do what you always did...you always did...

You will always get You will always get what you always got.what you always got.


Challenging QuestionsChallenging Questions

How can organisations be How can organisations be sustainable in an age of sustainable in an age of transience?transience?

What are the requirements of What are the requirements of leadership at warp speed?leadership at warp speed?

How to achieve foster, more How to achieve foster, more effective learning?effective learning?

How to grow your intangibles?How to grow your intangibles?

australian centre for innovation & international competitiveness creating innovative...

Documents