organizational innovation: creating and enhancing value for stakeholders cips, london may 29, 2014...

Organizational Innovation:Creating and Enhancing value for stakeholders

CIPS, LondonMay 29, 2014

Joseph EdwardCEO and Chief Innovation Officer

InvOrg

Objectives•Organizational Profile•Canadian Crisis•Innovation: What it is?•Creativity•Organizational Innovation•Innovation Gap•Innovation Process•Innovation Model

Organization ProfileFounded by Joseph Edward in 2014.

Founded with two core principles:

Helping small to mid-sized municipalities and not-for –profit organizations design, develop and implement innovation agenda.

Provide opportunities for skilled but unemployed and under employed individuals to develop hands-on business and IT skills for advancing their career opportunities and enrich their lives.

Passion for Innovation - Purpose for enriching lives.

Organization Profile•We are not another company focusing on upgrading your infrastructure, applications, network, etc. We ensure IT becomes part of your innovation and value creation process by maximizing the practical added value of IT.

•We are not just an IT services and technology company. We are an innovation company solving organizational challenges and creating new opportunities by aligning Information Technology with organizational goals and strategies.

•We are a company focus on building and promoting Citizen Centric Participatory Platform for governments.

We are a startup...So did Google, Facebook, Youtube, Twitter, Instagram few years ago

Crisis is looming….“Crisis in innovation: Canada’s next economic disaster?” – Michael Geist, Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law

“Canada is stagnating when it comes to competing on the world stage and a lack of innovation is holding us back.”, -World Economic Forum.

“Canada Gets a “D” on the Innovation Report Card .Despite a decade or so of innovation agendas and prosperity reports, Canada remains near the bottom of its peer group on innovation, ranking 13th among the 16 peer countries. Canada performs poorly on most of the 21 indicators, scoring 13 “D”s, 2 “C”s, 6 “B”s, and no “A”s. The “D” grades underline Canada’s relative weakness in all three categories of the innovation process—creation, diffusion, and transformation. “- World Economic Forum

“When it comes to business innovation, Canada is seriously underperforming,” - Michael Bloom, vice-president organizational effectiveness and learning at the Conference Board of Canada

http://www.conferenceboard.ca/hcp/Details/Innovation.aspx

Crisis is looming….

“We can't solve problems by using the same kind of thinking we used when we created them." -Albert Einstein

Turning Crisis into opportunities

“You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before.”

– Ram Emanuel, Mayor of Chicago

What is required?Not a lot of new investment

Progressive leadership and Innovative thinkingThe current crisis can not be solved using the same thinking and leadership style which created these issues in the first place. Governments need;

Transformative and innovative leadership: “Leadership creates a culture and a culture promotes the behaviour”. Organizations need transformative leadership for fostering innovative culture and thinking . Command and control leadership style prevails in many organizations will continue to undermine the human spirit and demoralize the workforce.

Collaborative and Innovative management team: The management system and style exist in many organizations will not take the organizations to the next century. Organizations need to develop innovative and collaborative management system and develop the organizational model to align with the culture.

Empowered workforce: Close to 50 to 60% , in some cases 90% of the government budgets spent on staff salaries and benefits. Human resources are the most valuable but unfortunately not tapped resources of every organization. Unless the leadership change the culture to empower the staff and tap into the human potential and spirit, organizations will continue to be unproductive and in effective.

Innovative solutions: Technology is a strategic asset of an organization. Technology is transformative. Many organizations are still not understanding this enormous power and unwilling to leverage the technology for transformation. In some organizations, technology is still viewed as back office support. Leadership must embrace and begin transforming the organizational functions and processes around technology.

What is required?

“Like pushing on a giant heavy fly wheel, It takes a lot of effort to get the thing moving at all... The good-to-great companies simply focused on accumulating results. They understood that tremendous power exists in the fact of continued improvement and the delivery of results.” -Jim Collins, Good to Great

What is required? Shifting our mindsets.A Competency to Cause Breakthrough Performance in the Business

Recipe for failure

“Insanity: doing the same thing over and over again and expecting different results”. - Albert Einstein

.

"Here is Edward Bear, coming downstairs now, bump, bump, bump, on the back of his head, behind Christopher Robin. It is, as far as he knows, the only way of coming downstairs, but sometimes he feels that there really is another way, if only he could stop bumping for a moment and think of it.”

A A Milne

http://www.brainyquote.com/quotes/authors/a/albert_einstein.html

Innovation

George Boak 2010

Some Innovations are transformative than others. But all innovations involve change. Not all changes create innovation.

MA in Leading innovation and Change

Innovation

George Boak 2010

Innovation - applying ideas, processes, products, or procedures, which are new to the people and places where you are introducing them

Invention - the creation of something that is completely new

Creativity- generating new ideas and perspectives

Change- an alteration, a different state of affairs


InnovationHere are some of the many definitions about innovation.

Innovation is about doing things differently to create value for the stakeholders.

Innovation is simply the process of creating and implementing a new idea or ideas.

Applying ideas, processes, products or procedures, which are new to the people and places where you are introducing them

Innovation is a social process requiring an effective team to bring a good idea to fruition in the marketplace.

Innovation is different from Invention. But both needs creativity.

Innovation: The heart of every successful organization.

“Innovation is no longer one of those ‘nice things to do’ if we have a bit of time to spare. “

Sir David Nicholson, Chief Executive of the NHS England

Innovative organizations have institutionalized innovation as a core value.

InnovationTypes of innovation.

Process Innovation

Technology Innovation

Administration Innovation

Management Innovation

Innovation: Process Innovation

Process innovation is achieved through the creation of a new means of producing, selling, and/or distributing an existing product or service.

•ABS

•SMART GRID

•E-Commerce

Innovation: Technology Innovation

Technical innovation is simply the creation of a new product or service.

•Tablets

•SMART phones

•New line of automobile

Innovation: Administration Innovation

Administrative innovation is the creation of a new organization design which better supports the creation, production and delivery of services or products.

•Virtual teams

Innovation: Management Innovation

“A marked departure from traditional management principles, processes, and practices or a departure from customary organizational forms that significantly alters the way the work of management is performed”

- Gary Hamel

Whirlpool

•Making innovation a central topic in leadership development programs•Allocating a substantial share of annual capital spending for innovative projects•Training more than 600 people to be innovation mentors for employees•Enrolling all employees in an online business innovation course•Establishing innovation as a large part of top management’s long-term bonus plan•Allocating time in business review meetings for an in-depth discussion of each unit’s innovation performance•Building an innovation portal for employees to access a compendium of innovation tools and data•Developing a set of metrics to track innovation inputs, throughputs and outputs.

CreativityCreative Thinking Puzzle No 1

Below are nine dots arranged in a set of three rows. Your challenge is to draw four straight lines which go through the middle of all of the dots without taking the pencil off the paper.

MA in Leading innovation and Change, York University, UK

CreativityCreative Thinking Puzzle No 1

Solution


CreativityWhat are the lessons of this puzzleInvestigate the boundaries

What are the boundaries which the solution must fit into?

Are the boundaries your own perceptions or reality?

What are the possibilities if you push the boundaries?

What are the benefits of small boundary changes?


CreativityCreative Thinking Puzzle No. 2

Have a look at the picture below.

It shows a person holding a block of wood. What will happen to the piece of wood when the person lets go of it?


CreativitySolution to Creative Thinking Puzzle No. 2


On Earth Under Water In Space

The block of wood will drop DOWN to the ground as it is drawn to earth by gravity.

The block of wood will float UP to the surface of the water because it is less dense than water.

The block of wood will NOT MOVE because there are no overall forces in any direction.

CreativityHow did you think about an answer?

Inevitably, the most common answer people give is that the block of wood will fall DOWN to the floor.

While this answer is the most appropriate answer for everyday living, this puzzle shows how easy it is to give the most obvious answer first and to ignore alternative possibilities – like the context


CreativityLessons to be learned from this puzzle

Think about the current situation

If you see the world from only one angle you will struggle to change it.

What assumptions have you made?

What rules have you assumed?

How do your own perceptions influence the world you inhabit?

How do you see the world and how is your view different to that of other people? What advantages and disadvantages are there of each way of thinking?


CreativityLessons to be learned from this puzzle

How can you think differently?

Imagine the problem from someone else's angle.

What happens in other countries, cultures and companies?

How can you change the situation to make a solution work?

Visit other organizations or read about other people's lives and try to understand why they think in the way they do.

We do not see the world as it is, we see it as we are.


CreativityCreative Thinking Puzzle No. 3

Look at the chart on the next slide and try to say the colour out loud not the word.

Yellow Blue Orange

Black Red Green

Purple Yellow Red

Orange Green Black


CreativitySolution to Creative Thinking Puzzle No. 3


Could you do it?

It would have been especially difficult if you have a strong preference for using your right hand because this is an example of right – left brain conflict.

Your right brain tries to say the colour, but your left brain insists on reading the word.

CreativitySome myths about creativity

The smarter you are, the more creative you will be.

The young are more creative than the old.

Creativity is reserved for a few – the flamboyant risk-takers.

Creativity is a solitary act.


Innovation Gap

Over 80 percent of leaders surveyed believe innovation is important for their future success, but less than 30 percent are satisfied with their current level of innovation. This is known as “innovation gap”

Organizational InnovationThere is no clear definition of what organizational innovation is, how to measure it, or how to best quantify its contribution to output.

Unlike physical capital, the value of organizational capital does not appear on the balance sheet of a firm, and when firms undertake substantial organizational change or re-engineering this is typically treated as “consumption” rather than an increase in the assets of a firm.

Since the 1990s the European Union has been conducting every 4 years the Community Innovation Survey (CIS) to monitor Europe’s progress in the area of innovation.

CIS organizational innovation is broadly defined as changes in firm structure or management methods that are intended to improve a firm’s use of knowledge, the quality of goods and services, or the efficiency of work flows.

Organizational Innovationworking definition of organizational innovation for U.S. firms that includes the following components – workforce training, employee voice, work design (including the use of cross-functional production processes), and shared rewards.

Black and Lynch (2005)This is no way an exhaustive list. Answers must more than yes or no.

Employee Voice- those organizational structures that give workers, especially non-managerial workers, input into the decision making associated with the design of the production process and greater autonomy and discretion in the structure of their work.

work design- that includes the use of cross-functional production processesthat result in more decentralized and flexible allocation of labor in the firm

shared rewards- such as profit sharing and stock options play an important role in organizational innovation

Why the Innovation Gap?

•The first is knowledge. Many established organizations are not innovative because their leaders do not know how to make innovation systematic.

•The second is that some of the management systems that made organizations successful in the industrial economy are now major obstacles as they try to become more innovative in the knowledge economy.

Why the Innovation Gap?The knowledge factor

Most senior leaders in established organizations have never formally learned how to lead and manage an organization that innovates systematically.

Industrial Economy to Knowledge Economy

Complicated Issues vs Complex Issues

Leaders are tempted to apply directly to their organization some of the best practices from exceptionally innovative organizations such as Disney, Apple or Google without fully factoring in the difference in their history or context.

Why the Innovation Gap?The Management System

We can’t keep applying the same old rigid management style and structure from the industrial economy to current situations. In the current complex business environment, the use of a rigid industrial model can mean a slow decline that is ultimately lethal.

•Organizations in the current environment are faced with a combination of complicated, complex and mixed problems.

•Leaders need to recognize the nature of each problem and apply the right type of thinking process.

•Organizations must start thinking about both standardization and customization, productivity and innovation, hierarchy and delegation, doing and thinking.

Management MUST Be Reinvented - Gary Hamel

http://www.youtube.com/watch?v=TVX8XhiR1UY

Closing the Innovation Gap?

Closing the Innovation Gap?Leading Innovation

•Leaders directly influence whether or not individuals and teams can innovate. Executive leaders hold the key to the level and success of innovation in their organization.

•Innovation rarely happens, and certainly cannot be sustained, without the active commitment and involvement of every member of the executive leadership team.

•To close the innovation gap, executive leaders must clarify what they want to achieve with innovation, and understand the specific issues that can prevent individuals and teams from innovating in their organization.

•Executive leaders also must demonstrate their strong commitment in their actions, not only in their talk. They need to make innovation a core priority for the organization and for key departments; assign credible senior people to lead the implementation; and fully resource their innovation initiatives for the long term.

“Leaders have a disproportionately large effect on the cultures of organisations and systems. By their behaviours, leaders create the conditions that either hinder or aid innovation. “- Maher, Plsek, Price, Mugglestone 2010

Closing the Innovation Gap?Culture of Innovation

CEOs instinctively understand the need to play a prominent role in establishing a culture of innovation. But they are not always certain how to go about it.

If the culture supports innovative behaviours, innovation can occur systematically. However, if some of the elements of the culture, such as decision-making or risk tolerance, are not supportive, innovation will never happen systematically.

Seven major characteristics of a culture of innovation that leaders need to enable:• Everyone understands the organizational direction.• Innovation is a priority.• Executive team models innovative thinking and innovative practices.• Open and honest communication and trusting relationships.• Effective cross-functional teams that encourage diverse viewpoints.• Leaders who engage in risk-taking focused on delivering value.• Balance innovative thinking with the discipline to implement solutions.

“Culture eats strategy (and tools) for lunch”

Closing the Innovation Gap?Organizational Practices

In creating an organization that innovates systematically, it is important to pay particular attention to the organization’s practices, including its structures, processes, and policies. Most organizations were not designed to make change or innovation easy. On the contrary, their organizational practices often work against innovation efforts by maximizing repetition, standardization, and predictability and minimizing risk.

• Human Resources:• Is the capability to lead innovation part of the criteria for recruiting or promoting leaders?• Are individuals recruited, developed, and promoted based on their ability to succeed in a team-based environment of innovation?• Is innovation included in the performance metrics for employees and teams?

• Information Technology:• Is the IT department supporting the implementation of test or pilot innovative ideas effectively?• Is the IT department systematically bringing new technology ideas that can serve as the starting points for innovative ideas?

• Finance:• Does the budget development process encourage innovative thinking?• Does the organization allocate specific funding for future innovation projects?• Is the budget flexible enough to move funds from non-performing projects to innovation projects?

Closing the Innovation Gap?The Innovation Plan

Although many organizations are trying to close the innovation gap, very few are successful. One of the main reasons they do not achieve their goal is that they fail to develop a formal plan.

It is only by creating a customized plan and implementing it rigorously that a leader can create an organization where innovation happens systematically. The plan gives focus and structure to the innovation effort. It provides the long-term view required to be successful. In the absence of an integrated plan, an organization will find it is too easy to cut innovation resources when quarterly results demand cost reductions.

There are six guiding principles to follow when developing an innovation plan. These principles ensure that the plan is solid, sustainable, and will achieve the objectives:

• Focus on clear business objectives• Engage the whole executive team• Top-down but open to bottom-up input• Include clear boundaries• Resource and enforce the plan• Include metrics to track progress.

Organizational Characteristics that Support Creativity and Innovation

Dimensions of innovation culture

Organizational Characteristics that Support Creativity and Innovation

Risk taking is

acceptable to

management

Employees

have

access to

knowledge

sources

Innovators are rewardedNew ideas and ways of doing things are welcomed

Information is

free flowing

Good ideas are supported by management

A final thought from an expert in invention and innovation


organizational innovation: creating and enhancing value for stakeholders cips, london may 29, 2014...

Documents

innovation company

business innovation

innovation agendas

innovation processcreation

innovation purpose

lack of innovation

innovation report card

current crisis