L4 - Building The Innovative Organization PDF

L4 – BUILDING THE INNOVATIVE ORGANIZATION DR. VIKTOR STRÖM SC HOOL OF B USIN ESS, EC ONOMIC S A ND LA W AT TH E U NIVER SITY OF GOTH ENB UR G 1  TIP! Entrepreneurial insights – panel discussion REGISTRATION...

L4 – BUILDING THE INNOVATIVE ORGANIZATION DR. VIKTOR STRÖM SC HOOL OF B USIN ESS, EC ONOMIC S A ND LA W AT TH E U NIVER SITY OF GOTH ENB UR G 1  TIP! Entrepreneurial insights – panel discussion REGISTRATION 2 RECAP L2 3 Recap—A New View on Radical Innovation 4  Recap—A New View on Radical Innovation Incremental Breakthrough Disruptive Radical INTRODUCING CINEMATCH DVD-BY-MAIL ? (+ SUBSRIPTION) UPDATING CINEMATCH ? STREAMING INTERACTIVE ? CONTENT 5  What is innovation? Discussion What are the different types and questions dimensions of innovation? from L2 Why does innovation matter? 6 LECTURE 4 7  By the end of this chapter, you will understand: how leadership and organization of innovation is much more than a set of processes, tools and techniques, Learning how different leadership and creative styles influence the ability to identify, assess, and objectives develop new ideas and concepts. how teams, groups, and processes each contribute to successful innovation behaviors and outcomes. how different environmental factors can support or hinder innovation and entrepreneurship. 8  THE INDIVIDUAL "EVERY GREAT INSTITUTION IS THE LENGTHENED SHADOW OF A SINGLE MAN. HIS CHARACTER DETERMINES THE CHARACTER OF THE ORGANIZATION” - RALPH WALDO EMERSON 9  Three components of creative performance (Amabile, 1983) Domain- Creativity-relevant relevant Skills skills Creat- ivity True for radical innovations? Task Motivation 10  Andreessen argues that architecture is the mother of innovation (Kerrest, 2022) Technology Psychology Sweet Spot Economics 11 How to Start a Start-Up (Altman, 2014) Seems like Turns out Sweet a bad Spot to be a idea great idea 12  THE LEADER ”LEADERS MUST ENCOURAGE THEIR ORGANIZATIONS TO DANCE TO FORMS OF MUSIC YET TO BE HEARD” - WARREN BENNIS 13  Innovation leadership Reviews (e.g., Bowman & Helfat, 2001) of research on leadership and performance suggest leadership directly influences: Around 15% of the differences are found in the performance of businesses; Contributes around an additional 35% through the choice of business strategy; So, directly and indirectly, leadership can account for half of the variance in performance observed across organizations. 14  Characteristic traits of good leaders bright, alert, and intelligent; seek responsibility and take charge; true for radical skillful in their task domain; innovations? administratively and socially competent; energetic, active, and resilient; good communicators. BUT: There is no brief and universal list of enduring traits that all good leaders must possess under all conditions. 15  Key factors for leaders to focus on (Denti & Hemlin, 2012) 1. Upper management should establish an innovation policy that is promoted throughout the organization. 2. Leaders should promote a team climate of emotional safety, respect, and joy through emotional support and shared decision-making. 3. Team leaders, who have the expertise, should engage closely in evaluating innovative activities. 4. Some heterogeneity in team formation is necessary to promote innovation. 5. Individuals and teams have autonomy and space for idea generation and creative problem-solving. 6. Time limits for idea creation and problem solutions should be set, particularly in the implementation phases. 16  THE TEAM ”INNOVATION HAS NOTHING TO DO WITH HOW MANY R&D DOLLARS YOU HAVE. WHEN APPLE CAME UP WITH THE MAC, IBM WAS SPENDING AT LEAST 100 TIMES MORE ON R&D. IT’S NOT ABOUT MONEY. IT’S ABOUT THE PEOPLE YOU HAVE, HOW YOU’RE LED, AND HOW MUCH YOU GET IT.” – STEVE JOBS 17 Tuckman’s model of team development Teams typically go through four stages of development: Forming Storming Norming Performing 18  Advantages and disadvantages of teams Source: S. Isaksen and J. Tidd (2006) Meeting the Innovation Challenge, John Wiley & Sons, Ltd, Chichester 19  Key factors in high performance teams High-performing characteristics: Collaborative climate: clearly defined tasks and standards of excellence; objectives; external support and results-driven structure; recognition; effective leadership; principled leadership. competent team members; effective conflict resolution Appropriate use of the team: mechanisms participation in decision- unified commitment. making; team spirit; embracing (appropriate) change. Source: S. Isaksen and J. Tidd (2006) Meeting the Innovation Challenge, John Wiley & Sons, Ltd, Chichester 20  ‘Tripwires’ undermining team effectiveness group versus team; ends versus means; structured freedom; support structures and systems; assumed competence. 21  THE ORGANIZATION ”INNOVATION IS ENORMOUSLY IMPORTANT. IT'S THE ONLY INSURANCE AGAINST IRRELEVANCE. IT'S THE ONLY GUARANTEE OF LONG-TERM CUSTOMER LOYALTY.” – GARY HAMEL 22  Creativity in context (Amabile et al., 1996) Organisational encouragement (+) Encouragement of Supervisory encouragement (+) creativity Work group support (+) Autonomy or Freedom (+) freedom Creativity Resources Sufficient resources (+) Challenging work (+) Pressures Workload pressure (-) Organizational impediments to Organisational impediments to creativity (-) creativity (Gossip..) 23 Components influencing innovation and creativity (Amabile & Pratt, 2016) 24  The dynamic componential model of innovation (Amabile & Pratt, 2016) 25  The innovative organization Research shows these factors are associated with good performance: 26 The innovative organization (continued) 27 CONTEXT, CLIMATE, CULTURE "CULTURE EATS STRATEGY FOR BREAKFAST” – PETER DRUCKER 28  Context and climate Climate is defined as the recurring patterns of behavior, attitudes and feelings that characterize life in the organization. Climate is distinct from culture in that it is more observable at a surface level within the organization and more amenable to change and improvement efforts. Culture refers to the deeper and more enduring values, norms and beliefs within the organization. 29  Climate factors influencing innovation Source: Derived for Scott Isaksen and Joe Tidd (2006) Meeting the Innovation Challenge (Wiley). 30 SUMMARY 31 Here are your responses from L1. Would you like to add, remove, or reemphasize any of the words? 32  Summary Innovation leadership and organization are much more than a set of processes, tools, and techniques. The successful practice of innovation demands the interaction and integration of three different levels of management: individual, collective, and climate. 33  Summary Individual level: The key is to match the leadership styles with the task requirement and type of teams. General leadership requirements for innovative projects include expertise and experience relevant to the project, articulating a vision and inspirational communication, and intellectual stimulation. Collective level: There is no universal best practice, but successful teams require clear and elevating goals, unified commitment, cross-functional expertise, a collaborative climate, external support and recognition, and participation in decision-making. Climate level: There is no “best innovation culture”, but several factors, including trust and openness, challenge and involvement, support and space for ideas, conflict and debate, risk-taking, and freedom promote innovation. 34  THANKS FOR TODAY! SC HOOL OF B USIN ESS, EC ONOMIC S A ND LA W AT TH E U NIVER SITY OF GOTH ENB UR G 35