What is iNnovaTion?

An innovation may be a thing!

Whether artefact, product or process or indeed service, system or infrastructure

It has 2 parts :
a) Creation of a New Idea
b) Process of applying a New Idea to create a New Process or Product.

Inventions occur more frequently than Innovations !!!

 Type of Organizations

Organizations
Organizations
designed to serve the
designed to serve the
1st Client with the 1st
Millionth client
Product
The Focus of both the 0rganizations are different, the former cannot
be the latter and the latter cannot be the former.

Organizations that want to Innovate need 2 different organizations :

a) Innovating Partner
b) Production & Operation Partner
Innovating Organization

Culture Size

Structure
Strategy, Technology
Goals

Environment
 3 main Characteristics of an
Innovating Firm

Challenge Freedom Resources

• Matching • Concerning • Time and
right people process not money :
with right necessarily impossibly
assignment ends tight
• Stable and deadlines
clearly
defined goals
 Role of People in
Innovating Organization

1 2 3
Idea Idea Idea
Generators Sponsor Orchestrator

Field Middle Senior

Engineers Management Management
DIFFERENTIATION

• Isolation of crazy Ideas from Routine Operations so as

to develop it Further

RESERVATION

• Creation of Focused R&D group to develop that idea

further
Stages in a Idea Generation

Sponsor
 Skills for Sponsoring Innovation
• Risk taking
– Ability to identify what the potential pay off from an action or venture
is.
– Ability to identify the significant risks in the venture.
– How the payoff fro a venture or its cost or the risks associated with
the venture can be changed by one’s actions.
– Risk preference.

• Ability to spot opportunities

– Knowledge of high opportunity industries, markets, technologies,
regions etc.
– The ability to spot opportunities in social adversity.
 Summary of an
iNnovaTioning OrGanizaTion

Selection & Task

Development Stages of an
Innovation

People Structure

Acknowledging
Funding /
the Idea
Getting Idea
Generator
and Managing
Reward Process
Creating the Climate
&
Culture of Success
ORGANIZATIONAL CLIMATE
Climate ?
 Climate
• The "feeling in the air" one gets from walking
around a company - may be difficult to put in
words.

• Climate is the atmosphere that employees

perceive is created in their Organizations by
– Practices
– Procedures
– Rewards
 Organization Climate
3M’s Organizational Climate
– Fosters Innovation
– Customer Service
– Citizenship Behavior

Some call it “Total Quality Management”

Others call it “Systems Approach”
At 3M they call it simply “SUCCESS”
 Key to Successful Innovators
• Top management commits emotional and financial
support and provides an advocate for the innovation.
• Top Management Ensures there is a market for the
planned innovation.
• The planned innovation has support from all levels of
the organization.
• The planned innovation goes through several small,
carefully evaluated steps prior to the actual
implementation.

Extract from Andre Delbecq and Peter Mills work

 Key to Service Excellence
• Human resource practices promote employee
well being and a sense of community.
• There is active retention of existing customers.
• There is attention to details regarding the
Quality of staff and the resources needed to
deliver excellent service.

Extract from Andre Delbecq and Peter Mills work

Organizational Citizenship Behaviour (OCB)

Discretionary behaviour, that is not part of an

employee’s formal job requirements, but that
nevertheless promotes the effective functioning
of the organization.
 Keys to
Org Citizenship Behavior
• Management is non-exploitative and
trustworthy
• There are norms of helpfulness and
cooperation
• There are fair reward system based on broad
and diverse contribution to Organizational
success.

Extract from Dennis Organ and his Colleagues work

ORGANIZATIONAL CULTURE
 Vision 2 Culture
Vision

Mission
Value Framework

Objectives

Implementation

Work performed in Value framework over and over gets absorbed : Org Culture
 Culture
Broad pattern of an Organization mores, values
and beliefs.

Culture is created and transmitted mainly through

employees sharing their interpretation of events.

Prerequisite: Employees starts attributing these values

to Management
 Key Cultural Assumptions
INNOVATION SERVICE OCB
How we Through gathering By attending to If you see something
information, not small details that needs doing, you do
solve power; Slow but it
problems? sure
How we A creative mind With consideration; By setting examples for
needs nurturing and treat employees as employees;
manage support you want them to Act as you want
people? treat customers employees to act
How we Through customer By treating both Through both Managers
acceptance employees and and Employees going
succeed? customers well beyond their role
requirements for the
greater Good of the
Organization
 Innovation Culture
Creative geniuses apply the know-how that results in
insights, ideas, and ultimately in innovation. Creative
geniuses produce innovation results.

That nature of the shifts that are required is illustrated by the Innovation
Culture Table
Now let us look at 3M