Destination Innovation: HR's Role in Charting the Course
139
Destination Innovation: HR's Role in Charting the Course
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Product Details
| ISBN-13: | 9781586443955 |
|---|---|
| Publisher: | Society For Human Resource Management |
| Publication date: | 10/01/2015 |
| Sold by: | Barnes & Noble |
| Format: | eBook |
| Pages: | 139 |
| Sales rank: | 541,351 |
| File size: | 970 KB |
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Read an Excerpt
Destination Innovation
HR's Role in Charting the Course
By Patricia M. Buhler
Society For Human Resource Management
Copyright © 2015 Patricia M. BuhlerAll rights reserved.
ISBN: 978-1-58644-395-5
CHAPTER 1
An Introduction to Innovation: More Than Thinking Outside the Box
Our ability to innovate affects our organizations' performance — regardless of company or industry. One survey found that 98 percent of its respondents reported innovation as either important or very important in the success of their firm going forward. Furthermore, those companies that possess an openness to change and that focus on innovation tend to be the market leaders.
The business case for innovation and an expanded understanding of what innovation means today are explored in this chapter with surveys and research reports providing the foundation for the growing importance of innovation today — across all industries and organizations. Yet perhaps the strongest case for the importance of innovation is found in the best practices (and business performance) of successful organizations.
The nearly impossible can become possible with innovation, especially when executed as a team. The rescue of the 33 trapped Chilean miners in 2010 is a widely publicized example of the power of innovation. Harvard Business School professor Amy C. Edmondson shared that "it took the collaborative efforts of over one hundred experts in diverse fields innovating to develop and execute a novel solution on the fly." Consider the possibilities in our own organizations with a commitment to innovation!
Why Innovation?
To generate a competitive advantage in today's business landscape, companies must continually change. In their book Competing for the Future, Gary Hamel and C. K. Prahalad sent the clear message that organizations must be fast, agile, and responsive. We cannot be slow to take action. The window of opportunity is open for shorter periods of time today as our time horizons diminish. And being agile means being flexible, not being wed to the past.
The "same old, same old" (or business as usual) simply does not cut it today. In fact, there is no "usual" in today's dynamic business landscape. Those organizations that are not moving ahead are quickly falling behind. And in a rapidly changing world, falling behind just a little often puts us in the precarious position of playing the eternal catch-up game — until alas, we can no longer catch up, and we perish.
The firm that embraces innovation is better positioned to be responsive to its customers, anticipating their needs and responding accordingly. The innovative organization can often identify what their customers want before the customers even know it. How many of us cannot imagine a day without our smartphones? Apple may have very well envisioned this day far before we did!
Matt Donovan, author of the article "Shifting Focus to Agile Development" made the point that agility requires more systematic change rather than simply addressing pockets of change. An agile manifesto that was written at a computer programmers' summit in 2001 can provide a refresher for us today in moving away from the more traditional approaches to doing things. Much of the change so necessary for today's world, then, may require firms to reinvent themselves. And at the heart of this ability to change is the very DNA of the firm, known as its organizational culture. A culture that embraces innovation is critical in addressing the need for change.
According to Michael Stanleigh, "A recent study by the Harris Group indicated that executives see a culture of innovation as crucial to not only growing their business (95 percent) and profitability (94 percent) but also for attracting and keeping talent (86 percent)." It is no wonder, then, that the new battle cry of business has become "innovate or die." Recent surveys have reported that organizations across the globe are placing increasing importance on the need for innovation — and rightly so. The ASTD white paper, Building an Innovative Organization: The Role of Training and Development, reported,
"Today's executives firmly believe that innovation is central to a company's strategy and performance, but getting it right is as hard as ever. ... PricewaterhouseCoopers (PwC) even stated that 74 percent of CEOs regard innovation as at least equally important to operational effectiveness."
Depending on the criteria and which publication or company is generating the list, we see a variety of companies across a wide range of industries named as 2014's most innovative companies. Forbes highlighted Salesforce.com, Amazon.com, Regeneron Pharmaceuticals, and Unilever Indonesia among its top picks. We see recognizable names such as Coca-Cola and Chipotle Mexican Grill on others. Boston Consulting Group (BCG) has named Apple as its top pick for nearly a decade. Google, Microsoft, and IBM remain among the top 10 year after year. Samsung has been climbing in the rankings over the past few years. And two automakers made the top 10 this year. We see that it is not just about tech companies. The question we need to ask is, "What is it that they know and do that we don't?" Perhaps first and foremost, they recognize the importance of innovation. Do you? Do your organization's leaders even understand what it means to be innovative?
What Does It Mean to Think Outside the Box?
Creative thinking is an essential element of an innovative culture. Everyone must embrace creativity to think outside the box. But what does this really mean? The term "thinking outside the box" comes from the classic nine-dot exercise where we are asked to connect all nine dots in a 3 x 3 configuration with four lines while never lifting our pencils from the paper (see Figure 1.1). You might try this before peeking at the solution at the end of the chapter.
One of the greatest barriers to thinking creatively is demonstrated in this challenge, that is, placing artificial constraints on ourselves — and on our thinking. When we are hindered by these constraints, we cannot solve the challenge of the nine dots because our attempts are always made when drawing the lines inside the box created by the nine dots. When viewing the solution (see Figure 1.2 at the end of the chapter), we can see that it requires drawing lines beyond the limits of the nine dots. And thereby we learn to literally "think outside the box."
Too often when faced with a challenge, we place these artificial constraints on ourselves and fail to truly be innovative. Instead, with our limiting assumptions we simply tweak our existing approach to the challenge with only an incremental improvement.
A New Perspective on Innovation: What and Where
But what exactly does it mean to be innovative? For decades we talked of building the proverbial better mousetrap. Creating a sticky surface on the traditional trap produced a better mousetrap. However, "better" is not enough for today's innovation. This is simply an incremental improvement. But if we designed an entirely new approach to ridding our houses of mice that did not involve a trap at all, that could be innovative. Tinkering and tweaking are not the real innovation that our organizations need.
Today's innovation requires that we challenge our assumptions and test what we think we know. Although traditionally many of us may have thought of innovation as "charting new territory" so to speak, the current perspective also involves putting knowledge together in totally different ways.
Innovation is not just copying what someone else is doing, but it may be "copying" or using it in a new way or in a new department. There is value in looking outside our industries given that most of the technology that disrupts industries comes from outside our own.
In his book The 3M Way to Innovation, Ernest Gundling shared 3M's definition of innovation as "more than just a bright idea; it is an idea that gets implemented and has real impact. In other words, somebody has to make it happen."
Until recently, we have focused primarily on product and process innovation in the manufacturing environment. That is, we focused on the design of new products to offer our customers, or we focused on the design of new processes to create those products for our customers. Today's definition of innovation expands beyond these.
We see common agreement in the new definitions of innovation that embrace this broader view beyond new product and process development. Claude Legrand, managing partner of Ideaction, broadly defined innovation as "the process of identifying new solutions that create new value for some or all of the stakeholders of an issue." Author and professor David Burkus suggested that "innovation means more than just new products or services. It means improving the process of creating those products, or selling them, or experiencing them, or even improving the ways we manage the people who do all of the above." Products, processes, and people are all included in this current, expanded view of innovation.
We can agree that this innovation is not relegated to our engineers or confined to our operations and marketing professionals. This innovation, then, is organizationwide. It includes everything and is everywhere! And most importantly, it involves everyone! For example, "BMW ensures that all departments are focused on innovation. While some organizations focus only on manufacturing, BMW also focuses innovation on every department within the organization including sales and marketing, human resources and product development." To be effective, we must agree that innovation is everyone's business.
Today's companies are most likely to make the initial move into the innovative mode by focusing on changes in processes and technology. There is a missed opportunity, however, when the human element is forgotten. Building in time to think and incorporating opportunities for collaboration help address the human factor in innovation. And let us not forget the management processes needed to support the culture. We must think innovatively here as well.
Sustaining the Engine of Innovation
We can effectively address the challenges faced by our organizations, our industries, and our countries only with innovation. This is certainly no management fad and no "flavor of the month." Innovation is the key to the solutions for organizational survival and growth that we so sorely seek. It can very well be the best approach to the achievement of our goals and may just be the source of our competitive advantage.
A great example of an organization whose competitive advantage is based on its commitment to innovation is provided by Apple. While other companies were answering the question of whether to choose a focus on quality or a focus on cost, Apple said yes to both. And then it delivered on its promise. Yet the delivery on this promise has not happened by accident. The commitment to innovation is companywide. It does not belong to one department. As much thought and design went into the packaging for the iPhone as for the phone itself. And even the work environment itself represents a deviation from the traditional corporate environment. Innovation belongs to all employees and permeates all they do. It is not just a goal for Apple's products; innovation is embraced in its business models as well. This comes from a companywide commitment to the value of innovation. This commitment is woven into the very DNA of the company — into its culture.
Harvard Business School professor Rosabeth Moss Kanter suggested that "innovation gets rediscovered as a growth enabler every half-dozen years. ... However, grand declarations about innovation are followed by mediocre execution that produces anemic results." This is no longer a fad that we can address every few years. This is an ongoing commitment. We must constantly challenge our assumptions, question, and ask "why not?" Innovation requires that we test what we think we know.
As a continuous initiative, innovation must be embraced in our culture and reflected in our organizational values.
Kanter identified multiple waves of innovation beginning in the late 1970s that were essentially responses to the current business challenges and changing landscapes. The common theme among these waves has been the tendency to repeat the same mistakes. This is where we must break from the past — we must execute beautifully and continuously.
Kanter noted that an inability to be courageous is a critical mistake. Seeking innovation and then looking around at other companies to see if others are doing the same thing we are is self-defeating, and certainly not courageous.
In good economic times, fewer companies engage in innovations that are more disruptive in nature. Instead, we are lulled into a sense of complacency or inertia due to our "good times." However, if our businesses are threatened or if economic times are no longer good, then we want to invest in new growth opportunities — we want to innovate. The key, though, is to launch new initiatives while we are still growing and doing well. When we are desperate, we are not patient to grow ideas, and our implementation is more likely to be flawed.
Innovation must be woven into the very fabric of the organization. It is not just about the products and services offered. Alex Gammelgard, director of product marketing at Apttus, suggested that to foster an innovative culture, we do not have to recruit geniuses. We do, however, have to provide the opportunities for our employees to build their self-confidence and reward their efforts in finding solutions to problems until innovation is deeply ingrained in the culture of the organization.
Understanding the Path to the Innovative Organization: When, How, and Who
Let's be clear. Innovation is everyone's job. To be effective as an innovative organization, all employees must accept the responsibility to innovate — to see everything they do and everything around them through a new lens.
Innovation requires a commitment to reinventing our companies. This extends beyond just products. Instead, it encompasses all aspects of the business. Perhaps the biggest caution for organizations today is that we cannot wait until something is broken. Reinvention must be started early. Paul Nunes and Tim Breene remarked that we must "learn to focus on fixing what doesn't yet appear to be broken." Though this seems like simple advice, it is difficult at best to implement.
In addition, we must rethink the scope of our innovation. We have to move away from funding only the big impact "home run" opportunities and instead take a chance on the ideas that still need some shaping. This is usually in the realm of middle managers, who tend to be cautious (often because of the misunderstood risk to their careers).
We do not want to go just for the big ideas with the big payoffs. We make a mistake in overlooking opportunities that at first glance seem small, that is, not big enough. Effective innovative practices recognize that the small wins are important. There is a compounding effect of combining many "small win" innovative approaches. Innovation of all sizes should be explored!
Implementation: Connecting the Dots
Companies seem to understand the importance of innovation, but they continue to experience confusion on the execution side. That is, there is an acceptance of the need to innovate and an eagerness to read about best practices, but it is still not clear to many how to connect the dots — to understand how innovation directly contributes to the bottom line of the organization and how to integrate it throughout.
Some business people have suggested that innovation is as elusive as the holy grail, and they have even drawn a parallel to its importance. So although we understand the need for innovation, we need to understand how we can foster that innovative culture — that organizational environment that enables all employees to accept that innovation is their job and then execute on that belief.
(Continues...)
Excerpted from Destination Innovation by Patricia M. Buhler. Copyright © 2015 Patricia M. Buhler. Excerpted by permission of Society For Human Resource Management.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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Table of Contents
Contents
Dedication,Chapter 1. An Introduction to Innovation: More Than Thinking Outside the Box,
Chapter 2. Understanding the Foundation of an Innovative Culture: Making It Work!,
Chapter 3. Hiring for Innovation: Feeding Our Culture,
Chapter 4. The Awakening: Developing a Workforce that Embraces Innovation,
Chapter 5. The Carrot and the Stick: Rewarding for Innovation,
Chapter 6. Managing People in an Innovative Culture,
Chapter 7. The Shoemaker's Children: Is HR's House Innovating?,
Chapter 8. Parting Thoughts: Putting It All Together,
Endnotes,
About the Author,
Additional SHRM-Published Books,