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    MOIContext

    Building the innovative organization

    Prof. V.Seshadri

    SVKMs NMIMS

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    Components of an innovative

    organization

    1. Shared Vision, leadership, will to innovate

    2. Appropriate structure

    3. Key Individuals4. Effective team working

    5. High Involvement innovation

    6. Creative climate7. External focus

    MOI -Prof.V.Seshadri Ch 3 : Ref 1 2

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    Components of the

    Innovative organization ( 1 of 3)

    1. Shared vision, leadership and the will to innovate: Clearly articulated, shared sense of purpose,stretching strategic intent; Top managementcommitment

    2. Appropriate structure: Org design which enablescreativity; balance between organic andmechanistic.

    3. Key individuals: High caliber inventors,Promoters, Champions, gatekeepers.

    4. Effective team working: Appropriate use of teamsto solve problems

    Prof.V.Seshadri MOI - Ref 1 Ch 11 3

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    Components of the

    Innovative organization ( 2 of 3)

    5. Continuing and stretching individualdevelopment:Long term commitment toeducation and training

    6. Extensive and appropriate communication:Within org. ( upwards, downwards and laterally),Between org. and Outside org.

    7. High involvement in innovation: enthusiastic andcontinuous participation and support of senior

    management.8. External focus: Extensive networking, Customer

    focus

    Prof.V.Seshadri MOI - Ref 1 Ch 11 4

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    Components of the

    Innovative organization ( 3 of 3)

    9. Creative environment: Positive approach to

    ideas, supported by relevant motivation

    systems.

    10. Learning organization: Fostering proactive

    experimentation; sharing of experiences;

    University linkages; knowledge capture,

    documentation and dissemination.

    Prof.V.Seshadri MOI - Ref 1 Ch 11 5

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    Organizational types

    Researchers Tom Burns & George Stalker(1950s) outlined the characteristics of Organicand Mechanistic organizations.

    These are environments, the former suited forrapid change while the latter suited for stableconditions.

    These are two poles on an ideal spectrum andthey provide some idea of organizationalstructures suited for effective innovation

    Prof.V.Seshadri MOI - Ref 1 Ch 11 6

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    Innovative organization

    It is not correct to assume that innovation

    occurs only in R&D, where an organic

    structure often exists.

    Increasingly, innovation is becoming a

    corporate-wide task. So, the entire

    organization needs to be re-structured

    towards more organic models. However, it isnot advisable to take extreme positions.

    Prof.V.Seshadri MOI - Ref 1 Ch 11 7

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    Mintzbergsstructural archetypes

    Simple structure: Centralized organic type (SME)

    Machine bureaucracy: Centralized mechanistic type (McDonalds, Ford, TESCO)

    Divisionalized form: Decentralized organic form.(L&T.Tata Motors)

    Professional bureaucracy: Decentralized mechanisticform ( Formal R&D, IT, engineering groups)

    Adhocracy: Project type organization (NASA) Mission-oriented( Charity organization like Dignity

    Foundation)

    Prof.V.Seshadri MOI - Ref 1 Ch 11 8

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    2009 John Wiley & Sons Ltd.

    www.wileyeurope.com/college/tidd

    9

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    2009 John Wiley & Sons Ltd.

    www.wileyeurope.com/college/tidd

    10

    http://www.wileyeurope.com/college/tiddhttp://www.wileyeurope.com/college/tidd
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    2009 John Wiley & Sons Ltd.

    www.wileyeurope.com/college/tidd

    11

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    2009 John Wiley & Sons Ltd.

    www.wileyeurope.com/college/tidd

    12

    http://www.wileyeurope.com/college/tiddhttp://www.wileyeurope.com/college/tidd
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    Key Individuals

    Key individuals (or sometimes a group) often

    champion the cause of the innovation and can

    provide some energy and valuable support

    when roadblocks are encountered.

    Example: James Dyson pioneered the double

    cone vacuum cleaner which revolutionized the

    industry. Hoover, Philips and Electrolux

    Prof.V.Seshadri MOI - Ref 1 Ch 11 13

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    Figure 11.1 The five-stage high-involvement innovation

    model

    2005 Joe Tidd, John Bessant and Keith Pavitt

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    Table 11.4 Stages in the evolution of HII capability

    2005 Joe Tidd, John Bessant and Keith Pavitt

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    High Involvement in Innovation (HII)

    Creative skills and Problem solving abilities are

    processed by each & every employee.

    Although each employee may be able develop

    limited, incremental innovations, the sum ofthese have far reaching effects

    e.g. The Japanese quality revolution

    A study of British companies which have won theInvestor-in-people (IiP) award as against an

    average company shows glaring differences.

    MOI -Prof.V.Seshadri Ch 3 : Ref 1 16

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    2009 John Wiley & Sons Ltd.

    www.wileyeurope.com/college/tidd

    17

    http://www.wileyeurope.com/college/tiddhttp://www.wileyeurope.com/college/tidd
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    Effective Team Working

    High level of team working and High

    Involvement Innovation practices are vital for

    delivering to customers what they want, when

    they want and how they want. This is theessence of Mass customisation.

    Apart from better working, teams result in

    better fluency of idea generation and inflexibility of solutions developed.

    Prof.V.Seshadri MOI - Ref 1 Ch 11 18

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    Key Elements in high performance

    team working

    1. Clearly defined tasks and objectives

    2. Effective team leadership

    3. Good balance of team roles and match toindividual behavioral style

    4. Effective conflict resolution mechanism

    within group

    5. Continuing liaison with external organization.

    Prof.V.Seshadri MOI - Ref 1 Ch 11 19

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    Creativity and Innovation

    Microsoft's only factory asset is the human

    imagination

    - Bill Gates

    Chance favors the prepared mind

    - Louis Pasteur

    Prof.V.Seshadri MOI - Ref 1 Ch 11 20

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    Creativity and Innovation

    Creativity is an attribute which everyone

    possesses

    But their preferred style of expressing it varies

    widely

    Prof.V.Seshadri MOI - Ref 1 Ch 11 21

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    Creativity

    Creativity in an organization gets stifled if:

    1. Dominance of dominant vertical relationships

    2. Poor lateral communication3. Limited tools and resources

    4. Top-down dictates

    5. Formal, restricted vehicles for change6. Reinforcing a culture of inferiority.

    Prof.V.Seshadri MOI - Ref 1 Ch 11 22

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    Organizational Culture

    Organizational structures are visible artifacts ofinnovative culture

    Culture is a complex concept, but it basically equates tothe pattern of shared values.

    Culture can be understood in terms of three linked levels.The deepest is what every individual believes about the

    world.

    These shape individual behaviors and these in turn decide

    the way a group behavesFinally these behaviors creates a set of artifacts

    (structures, processes, symbols) which reinforce thepattern

    Prof.V.Seshadri MOI - Ref 1 Ch 11 23

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    Tools for sustaining a single-loop learning

    approach to steady-state innovation.

    training and development of staff;

    development of a formal learning process basedon a problem-solving cycle;

    monitoring and measurement; documentation;

    experiment;

    display;

    challenge existing practices; use of different perspectives;

    reflection learning from the past.

    MOI -Prof.V.Seshadri Ch 3 : Ref 1 24

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    Invention Factories Most large manufacturers generate and develop

    innovative idea