Understanding Applying Innovation Strategies

1. Chapter 6 Understanding & Applying Innovation Strategies

2. Common Innovation Techniques Strategic planning Reengineering TQM Benchmarking Team management Privatization

3. Strategic Planning Strategy: a way of thinking a basic pattern of planning for resource deployment planning for environ. Interaction planning to achieve org. goals Key element=short and long-term perspectives

4. Elements of Strategies Objectives (outcomes desired) Activities (process to accomplish objectives) Resources (what�s needed to accomp. obj.) Each element influenced and constrained by political, social, economic and environmental variables, and formal authority.

5. Costs and Benefits of Strategic Planning Benefits: -provides opportunity to form cohesive team -provides opportunity to define leadership -creates sense of shared mission & values -develops support for org. change

6. Costs and Benefits of Strategic Planning Costs: Requires significant expenditures of time and resources Environment can be misread Org. capabilities can be misread Can create political difficulties by stimulating the public and interest groups

7. Reengineering Reengineering focuses on the internal org. system to improve performance. Common steps: 1. Map current process 2. ID steps that add value 3. Eliminate steps w/o added value 4. Use triage mentality 5. Reengineer before bringing in technology

8. Reengineering 7 Principles of public sector reengineering 1. Org. around outcomes 2. Substitute parallel for sequential  processes 3. Bring downstream info upstream 4. Capture info once 5. Provide single point of contact 6. Ensure continuous flow of main process 7. Reengineer before automation

9. Costs & Benefits of Reengineering Benefits: - Increases productivity, growth, employee  empowerment, morale -Improves customer service -Decreases overhead

10. Costs & Benefits of Reengineering Costs: Expensive consulting fees Fear and insecurity in workforce Disrupts existing efficient processes Often cover-up for downsizing and restructuring

11. Total Quality Management TQM focuses on: - Customer satisfaction - Customer driven processes - Continuous quality improvement - A culture of excellence

12. Total Quality Management Key element of TQM: 1. Collaboration with suppliers 2. Continuous employee analysis of work processes to improve functioning 3. Close communication with customers to identify and understand what they want and how they define quality

13. Total Quality Management TQM strategies: 1. Focus on production 2. Workers participation 3. Communicate with customers and suppliers 4. Rapid changes in SOPs & constant training 5. Incremental changes 6. Eventual invisibility 7. Use existing dept. proced. & struct. as foundation

14. Total Quality Management In times of limited resources, increased production can be realized through continuous evaluation of operating processes Goal of improvement is to produce better and more goods and services with the same of fewer resources.

15. Total Quality Management Key Points: Customers and suppliers are major components of the organizational process. Customers can be both internal and external to an organization.

16. Costs and Benefits of TQM Benefits: - Surfaces worker knowledge - Can enhance morale -Can result in

17. Total Quality Management Importance of worker participation in TQM: 1. Enables id of work activities and problems 2. Enables org. to tap expertise, knowledge 3. Requires mgmt. to rely on workers to analyze & id improved methods of performing tasks. 4. Encourages description of daily tasks & flow charts to begin improvement process.

18. Costs and Benefits of TQM Benefits: - Surfaces worker knowledge - Can enhance morale - Can increase quality and reduce cost prod. - Brings in �culture of quality�

19. Costs and Benefits of TQM Costs: Often difficult to implement b/o paradigm shift In public sector, the suppliers of the resources are often not the users of the services. TQM spends a significant amt. of time measuring & assessing work processes.

20. Benchmarking Involves collecting info about similar prog. and implementing successful �best� practices. Involves measuring your org. performance against the best orgs.

21. Benchmarking 7 Step Protocol: 1. Determine beneficial function. 2. ID cost, quality and efficiency measures 3. Conduct survey & lit. review 4. Measure best-in-class performance 5. Compare your org. against best-in-class org 6. Specify actions to close performance gap 7. Implement and monitor

22. Costs & Benefits of Benchmarking Benefits: -Low cost, low tech technique for improvement -Easily understood Costs: -Can encourage copying & hinder creativity -Can get so involved in perf. meas. that obj. of improvement is forgotten -Some perf. Indicators are difficult to measure.

23. Team Management Types of teams: 1. Standing teams=long term 2. Project teams=specific project (ad hoc) 3. Crisis teams=handles major disruptions

24. Team Management Ground rules & plan of action: Written ground rules should be established- Role of team leader Eval. process for team & individ. perform. Procedures to resolve conflict Decision-making processes

25. Costs & Benefits of Team Mgmt. Benefits: -Complementary KSAs are brought forward -Can breakdown barriers -Can increase level of enjoyment of project -Can provide flexibility & quick response -Can celebrate successes & discuss failures

26. Costs & Benefits of Team Mgmt. Costs: - Time can be wasted - Morale can be hampered - Many feel uncomfortable in team structure - Problems can become extreme

27. Privatization Involves the use of non-gov�t orgs to provide public programs or services Creates a quasi-gov�t industry What are some examples of gov�t utilizing privatization?

28. Costs & Benefits of Privatization Benefits: Creates competition to perf. a public function which can result in increased quality, less expensive services or programs. Costs: Ethical and quality issues Loss of control of program administration Admin. Skills & knowledge belong to pvt. firm

29. Integrating & Using Techniques of Public Management Innovation Mgmt. Innovation begins w/ strategic planning Reengineering implies ability to achieve obj. Benchmarking can create staff buy-in TQM seeks a level of trust & cooperation TQM & team mgmt. = direct relationship Privatization is alternative to int. mgmt. innovation.