GETTING STARTED… BUILDING A CORPORATE CULTURE OF INNOVATION

1. GETTING STARTED…BUILDING A CORPORATE CULTURE OF INNOVATION By Assoc Prof. Dr. Amran Rasli

2. DISCUSSION • Corporate culture • Culture of innovation

3. THE CURRENT SITUATION For businesses today, there are two roads to profitability. One is a short-term fix—reducing operating costs. The other road, the one less traveled, is a more sustainable option—creating profitable new business growth.

4. SO WHAT IS THE FORMULA?? • Having a holistic view . . . . • Develop essential building blocks • Innovation maturity

12. Conclusion Organizational corporate culture is a major factor which affects of speed and frequency of innovation

13. NEXT ISSUE • What about the culture of innovation?

14. What are the key dimensions you need for a culture of innovation?

15. Central truths of innovation • Every system is perfectly designed to get the results that it gets • If we want different performance, we must change the system • To change the system, we must think in fundamentally different ways

16. Dimensions of innovation culture • risk taking • resources • widely shared information • specific targets • tools and techniques • rewards systems • team environment

17. Innovation Culture Tool • Use this tool to measure where your organisation culture is at in terms of innovation. • Use it at a local level or to evaluate the entire organisation. • Plan actions to increase the potential for innovation.

18. Tool:Spider Chart Risk Teams Resources Information Rewards Tools Targets

19. Spider Chart Scale +5 = we have outstanding positive skills, systems and experiences on this dimension; supporting innovation 0 = our skills systems and experiences on this dimension have no real impact; neither hamper or support innovation -5 = we have outstanding negative skills, systems or recent experiences on this dimension; hampering innovation

20. Dimensions of an innovation culture Positive Scores = Factors that lead to a high rating on this dimension, promote innovation Negative Scores = Factors that detract from this dimension, hamper innovation

21. Positive Individuals are supported, encouraged and rewarded for testing out new ideas. Project team willing to test new and creative processes or systems to improve flow, real risks and potential benefits have been evaluated. Negative The organisation fears failure from testing new ideas and doesn’t support or encourage new ideas Organisation feels safe with the current systems and will not discuss or consider changes. Risk Taking

22. Positive Staff have been given the protected time, authority and autonomy to test new ideas, and information and money when needed. Time and authority is allocated to a project coordinator with funding to backfill a position. Negative All resources are tied up in the current service delivery. Innovation is not a priority so no resources can be allocated to enable staff to work on testing change. Staff not supported to take on projects, no allocated time outside their workload. Resources

23. Positive Information is gathered from a wide range of sources, is made available for staff and is circulated for comments and ideas Unit is considering adopting strategies based on feedback from staff and experiences of other organisations. Negative Information is filtered by leaders and decisions are made before staff have an opportunity to comment Leaders will decide on change and impose this on staff without discussion, no access given to email discussion or forums. Widely Shared Information

24. Positive Leaders make clear that innovation is considered highly desirable. There are clear links with operational and strategic plans. Creative ideas are actively sought; they are the only way that some of the targets will be met. Negative Targets are set without encouragement for new thinking, and only stipulate how the targets must be met, focus is on numbers. Only numbers are important. ‘Hit the target, miss the point’. Specific Targets

25. Positive Supportive process for innovation, investment in building capability. Staff are supported to select own tools and techniques. Staff are given the opportunity to choose methods and tools to improve capability to do innovative work alongside innovative champions. Negative No awareness of tools and techniques to support creative thinking, and there is no method or approach for innovation. There is no capability building workshops or support for staff to champion innovative approaches. Tools and Techniques

26. Positive Meaningful reward and recognition, even if ideas not successful. Meaningful reward can be protected time to undertake innovative work with greater influence to put forward and communicate creative ideas across the organisation. Negative Staff working toward improvement are isolated and discouraged from testing new approaches. Mechanisms are in place to try and maintain the status quo. Organisation does not seek to change, no reward for suggested improvement. Reward Systems

27. Positive High level of honesty, respect and open communication. Many highly motivated teams with a good mix of skills and styles. Teams supported with ongoing ‘team’ development. Good networks of intrinsically motivated people working together for a common aim. Negative Organisation does not support team work nor the development of networks. High Level of distrust and, lack of respect and honesty. No team work when attempting to solve issue, surrounding access are block, ideas from staff or other organisations are not considered. People feel controlled. No developmental leadership style. Team Environment

28. Positive Leadership is shared, multi-level, visionary and responsive. Team members can alternate in the role of leader as their ideas are tested, the leaders respond to what is occurring around them and make changes as required. Negative Leaders will not assign responsibility to other staff and maintain the role delineation, they fear loss of control if they give leadership to others, staff feel controlled. Leaders will not allow ideas to be followed through by ideas team/person. Leadership

29. What does you organisation look like? • Examine the different dimensions of an innovation culture • Spend 10 minutes and assess where your organisation fits. • Document your score on the spider chart to create your own web

30. Where to now? • Identify the positive dimensions you have found within your organisational culture. • Consider what you can go back and start working toward improving?

31. Tips to promoting an improvement culture • Don’t tolerate blame • Put customers first • Focus attention on improvement • View mistakes as learning opportunities • Treat all staff as equals

32. Tips to promoting an improvement culture • Create fun and humour • Promote honesty, trust and transparency • Encourage creativity and dreaming, strive for perfection • Promote positive responsibility and accountability • Commit to make improvements.

33. What Would You Do? • IBM must change • Share of personal computer market was once 70 percent is now 7 percent • How do you quickly and effectively create change? • The strong corporate culture will likely produce resistance to change • What would you do?

34. Learning Objectives:Organizational Change After reading these next two sections on organizational change, you should be able to: 1. discuss why change occurs and why it matters 2. Discuss the different methods that managers can use to better manage change as it occurs

35. Change & Resistance Forces Change forces • forces that produce differences in the form, quality, or condition of an organization over time Resistance forces • forces that support the existing state of conditions in organizations

36. How Change is Created

37. Organizational Decline: The Risk of Not Changing • Blinded stage • Inaction stage • Faulty action stage • Crisis stage • Dissolution stage

38. Managing Change • Managing resistance to change • Change tools and techniques • Managing conversations to promote change • What not to do when leading change

39. Managing Resistanceto Change • Lewin’s framework • Methods of managing resistance to change

40. Lewin’s Change Process • Unfreezing • getting those affected by the change to believe change is needed • Change and intervention • getting people to change their behaviours • Refreezing • supporting and reinforcing the new changes so they “stick”

41. Methods of Managing Resistance to Change • Education and communication • Participation • Negotiation • Top management support • Coercion

42. Change Tools and Techniques • Results-driven change • General Electric Workout • Transition management team (TMT) • Organizational development • Change agent

43. Results-Driven Change • Create measurable short-term goals • Use action steps likely to improve performance • Immediate improvements important • Consultants and staffers help managers • Test action steps to see they lead to improvement • Few resources required to get started

44. General Electric Workout • Boss discusses agenda, targets specific problems, then leaves • Outside facilitator works with subgroups to discuss solutions • “Town meeting” on day three • subgroups present solutions • boss must decide on the spot

45. Transition Management Team (TMT) • Establish context for change • Stimulate conversation • Provide appropriate resources • Coordinate and align projects • Ensure congruence of messages and activities • Provide opportunities for joint creation • Anticipate, identify, and address people problems • Prepare the critical mass

46. Organizational Development (OD) • A philosophy and collection of planned change interventions • Focuses on organization’s long-term survival • Change agent • person formally in charge of guiding a change • can be an internal or external person

47. General Steps for OD Interventions • Entry • Start-up • Assessment and feedback • Action planning • Intervention • Evaluation • Adoption • Separation

48. Different Kinds of Organizational Development Interventions • Large System • Sociotechnical Systems • Survey Feedback • Small Group • Team Building • Unit Goal Setting • Person-Focused • Counselling/Coaching • Training

49. What Really Works Change the Work Setting or Change the People? Do Both! Changing the work setting Changing the People Changing Individual Behaviour and Organizational Performance

50. Managing Conversations to Promote Change Organization dialogue • process by which people in an organization talk effectively with each other • initiative conversations • conversations for understanding • conversations for performance • conversations for closure