Is there a textbook on innovation? In truth there are many, one of which was highly recommended to credit unions recently. CU leaders looking for some good “brain food” should giving “Managing Innovation” by Joe Tidd and John Bessant a read, according to Tansley Stearns, chief impact officer with the Filene Research Institute, who cited the book in recent remarks to the California/Nevada leagues’ REACH Conference.
Below is an excerpt. An extensive website accompanies the book at www.managing-innovation.com, where there is an online database of audio and video clips, as well as case study material, interactive exercises and tools for innovation, whilst lecturers can find additional support material including instructor slides and teaching guides and tips.
Innovation is increasingly about teamwork and the creative combination of different disciplines and perspectives. There is correlation between people management and business performance.
The components of the innovative organization include:
- Shared vision, leadership and the will to innovate
- Appropriate structure
- Key individuals
- Effective team working
- High-involvement innovation Creative climate
- External focus
Innovation is essentially about learning and change and is often disruptive, risky and costly. We have become used to seeing core competences as a source of strength within the organization, but the downside is that mindset can block the organization from changing mind.
There need to be long-term commitment to major project, as opposed to seeking short-term returns. One way of dealing with slowly emerging returns is to focus not only on returns on investment but also on other considerations like future market penetration and growth or the strategic benefits that might accrue to having a more flexible or responsive production system.
Top management acceptance of risk is important.
One of the most important roles that leaders play is to create the climate for innovation. Leadership has some direct influence on the differences found in performance of businesses. Expertise and cognitive-processing skills are key components of creative leadership. This combination is critical for the evaluation of others’ ideas.
At higher levels of management the problems to be solved are more likely to be ill-defined, demanding leaders to conceptualize more.
Innovation is becoming a corporate-wide task, involving production, marketing, etc. This provides strong pressure for widespread organizational change towards more organic models.
Rapid product innovation and improved customer responsiveness are being achieved through extensive organizational change programs involving:
- Parallel working
- Early involvement of different functional specialists
- Closer market links
- User involvement
- Size, age and company strategy
- Influence structure
There is no single ‘best’ structure, bur successful organizations tend to be those that develop the most suitable “fit” between structure and operating contingencies.
To prevent the failure of a promising invention, is a key individual who is prepared to champion its cause and to provide some energy to help it through the organizational system.
Groups have more to offer than individuals in terms of both fluency of idea generation and in flexibility of solutions developed.
- Teambuilding is critical of project success
- Bridging boundaries within the organization in dealing with inter-organizational issues
- Enable achieving the kind of decentralized and agile operating structure
- Key elements: clear task and objectives, effective leadership, balance of roles that match with individual styles, effective conflict resolutions, continuing connection with external organization. Innovation problems arise from multifunctional nature of development and the lack of shared perspective on the product being developed and the marketplace.
Formal supplier involvement programs are important. Their expertise can save you costs. It secures acceptance and also obtains improved quality process design.