Self-sustaining Innovation through Intrinsic Motivation

1. Self-sustaining Innovation through Intrinsic Motivation ХXII ISPIM Conference, 12-15 June 2011, Hamburg Professor, DirectorRMC Molodchik Anatoli V. molodchik.m@yandex.ru Perm State Technical University, PhD, Molodchik Mariya А. molodchikma@dom.raid.ru High School of Economics, Perm

2. Research question: “What are the intrinsic based mechanisms of self-sustaining innovation?” Methodology: case-study Hypothesis: Leaders lifecycle management allows self-sustaining innovation. Findings: Leaders lifecycle management can be provided through intrinsic-based mechanisms of individual tension, knowledge transfer and knowledge retention.

3. RMC – Regional Management Center • RMC – business school with a product oriented structure and decentralized profit oriented management system. 1990 2000 2010 Indicators: Employees Business Units Market share • 18 67 145 • 4 39 49 • 26 58 67

4. Mechanism of individual tension… means additional employee’s tug in productivity, and innovativeness caused by the gap between ambitious individual goals and restricted resources. based on • self-determination of goals (proactiveness) • responsibility for results (risk-taking) • long-term rules supplies the alignment of organizational and individual goals is oriented • on existing leaders • on future leaders and professors

5. Mechanism of knowledge transfer… involves willingness to share (impart) own knowledge (skills, experience, iec) to the others. based on • voluntary participate • openness supplies the synergistic effect of knowledge circulation within organization itself and different network communities is oriented • on existing leaders • on future leaders and professors • on organizations partners

6. Mechanism of knowledge retention… involves willingness to work in organization sharing corporate values based on • involvement sense • brand • common infrastructure • common resources supplies retention of leaders knowledge in different stages of lifecycle

7. The structure of business units portfolio according to their lifecycle stage (2010) 3/1 Leaders of business unit / Years of existence Revenue Still growth 2/>10 Outflow 2/4 Fail >10/1-3 8/>10 2/5 2/>10 1/2 3/1 1/12 3/0 MATURITY GROWTH DECLINE 17/-5 DEVELOPMENT DEATH INTRODUCTION PREPARATION

8. Probable problems and limitations • Loosing common goals • Internal rival • Reduce of intrinsic motivation for self development and performance achievement • Risks of high qualified personal outflow Limitations due firm’s specific • Product-oriented structure • Emerging market

9. Conclusions… • The paper gives practical recommendations to the organizational design accomplishing self-sustaining innovation through behavior based management. • Practical techniques for theoretical models of creative tension (Senge, 1990) and stretch (Hamel and Prahalad, 1993). • Leadership as organizational knowledge asset. • Focus change in strategic management: • from Product Life Cycle to Leaders Life Cycle