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Mature organizations, confronted with their lack of innovative capabilities, readily turn to standard recipes. In an effort to create a quick fix, they blindly follow the core myths about innovation. Creating a sustainable stratgegy for survival requires an integral approach though, one that looks beyond technological innovation and includes the systemic dimensions of the oranization's social fabric.
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THE MYTH OF INNOVATIONSTRATEGIES FOR CORPORATE SURVIVAL
Benny Corvers25 March 2014
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CLIENT Market, Sell, Design, Produce & Deliver
IN THE BEGINNING, THERE WAS A START-UP
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CLIENT Market, Sell, Design, Produce & Deliver
IT ATTRACTED MANY CLIENTS
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CLIENT
LOADS OF CLIENTS, ACTUALLY …
Market, Sell, Design, Produce & Deliver
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TIME FOR OUR FIRST NEW HIRE!
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CLIENT
SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW
Market, Sell, Design, Produce & Deliver
Admin
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CLIENT
THEN WE DECIDED TO SPLIT SALES & OPERATIONS
Sales & Marketing
Admin
Design, Production & Transport
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CLIENT
BUT THOSE DAMN CLIENTS KEPT COMING …
Sales & Marketing
Admin
Design, Production & Transport
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TIME FOR OUR SECOND HIRE!
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CLIENT
SO WE ADDED OUR FIRST MANAGEMENT LAYER
Sales & Marketing
Admin
Design, Production & Transport
Sales Management
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CLIENT
THEN WE SPLIT UP OPERATIONS
Sales & Marketing
Admin
Design
Sales Management
Production & Transport
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CLIENT
AND WE ISOLATED MARKETING FROM SALES
Sales
Admin
Design
Sales Management
Marketing Production & Transport
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CLIENT
AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT?
Sales
Admin
Design
Sales Management
Production & TransportMarketing Presales
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CLIENT
NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY
Sales
Admin
Design
Sales Management
Production & TransportMarketing Presales
Operations Manager
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CLIENT
WHO STARTED BY CREATING TWO MORE UNITS
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations Manager
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CLIENT
AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations Manager
Invoicing
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CLIENT
EVEN THE OPERATIONS NOW NEED SUPPORT STAFF
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations Manager
Invoicing Quality Warehouse
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IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP
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SO WE ADDED SOME BIG HONCHOS ON TOP
Admin
Design
Sales Director
TransportMarketing Presales
Supervisor
Production
Invoicing Quality Warehouse
CTO
COOCEO
CLIENT Sales
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WE ARE NOW LOSING SIGHT OF OUR CLIENT
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OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX
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AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS
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THE END RESULT? WE ARE LOST …
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HOW CAN WE BECOME MORE ‘INNOVATIVE’?
TEN ‘PROVEN’ RECIPES
#1 Change the company culture#2 Hire an Innovation Manager#3 Set up an Innovation Board#4 Provide some funding#5 Create a spin-off or acquire a start-up#6 Set up an innovation pipeline#7 Roll-out a training program#8 Kick-in new incentives#9 Set up co-creation initiatives#10 Start from #1
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MYTH #1: IT’S A BIG BANG
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INCE
PTIO
N
ORGANIZATIONAL LIFE CYCLES
TIME
SALE
S VO
LUM
E
GRO
WTH
MAT
URI
TY
DEC
LIN
E
* Source: Smith et al. (1985)
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MYTH #2: IT’S ABOUT LUCKY SHOTS
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TRENDS GAZELLEN ARE NO LUCKY SHOTS
Actions DifferenceNew methods for producing/delivering products or services
+6%
Logistics innovation +28%Technological innovation +6%Organization design +15%Human resources management +19%
* Source: Hendrik Delagrange (2011) - SERV
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MYTH #3: IT’S ABOUT CULTURE
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MYTH #4: IT’S ABOUT YOUNG PEOPLE AND START-UPS
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MYTH #5: IT’S ABOUT TECHNOLOGY
Technology Innovation Social Innovation
Technological knowledge
Investment in ICT
Research & Development
Knowledge creation
Management knowledge
Investment in education
Organization & Collaboration
Acquire, integrate and apply new knowledge
Explains 25% of innovation success
Explains 75% of innovation success
* Source: Henk Volberda, Erasmus University Rotterdam (2013)
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FIVE MYTHS OF INNOVATION
INNOVATION
It’s a big bang
It’s about lucky shots
It’s about Culture
It’s only for start-ups
It’s about Technology
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CLIENT
SO HOW CAN WE GET BACK TO THE EARLY DAYS?
Market, Sell, Design, Produce & Deliver
Clients take center stageA simple and transparent organizationEfficiency and low overhead costAgility to change course
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FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS
FUNCTIONAL STRUCTURE
Function 1 F2 Fn…
FLOWBASEDSTRUCTURE
Client Order 1
O2
On
…
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WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS
CLIENT
PROSPECTING
ACCOUNT MANAGEMENT
BUSINESS ADVISORY
SKILLS
PRESALES EXPERTISE
PRICINGKNOWLEDGE
TECHNICAL WRITING
SKILLS
OPERATIONS EXPERTISE
HR EXPERTISE
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IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES
LARGE ACCOUNT MANAGER
MARKETING SPECIALIST
BUSINESS CONSULTANT
PRESALES CONSULTANT
PRODUCT MANAGER HR SPECIALIST
ACCOUNT MANAGERS
MARKETING SPECIALIST
BUSINESS CONSULTANT
TECHNICAL WRITER
QUALITY MANAGER
FINANCE SPECIALIST
LARGE ACCOUNT MANAGER
ACCOUNT MANAGERS
BUSINESS CONSULTANT
PRESALES CONSULTANT
LEGAL OFFICERS
BUDGET & CONTROL
SPECIALIST
STREAM A
STREAM B
STREAM C
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WITH MORE ENGAGEMENT AND MOTIVATION
JOB CONTROL
JOB DEMANDS
LOW-STRAINJOBS
ACTIVE JOBS
HIGH-STRAIN JOBS
PASSIVE JOBS
MOTIVATION & LEARNING
STRESS
* Source: Karasek, 1979
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Client-Centric Organization
THE END RESULT
Ownership Motivation
Agility
Reduced Complexity
Better Coordination
CLIENT
INNOVATION
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THE IMPLICATIONS FOR IT DEPARTMENTS
CLIENT
Client-Centric Organization
Enabling horizontal coordination
Catering for Diversity
Let people focus on the primary process
Supporting Client Centricity
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MORE ABOUT WORKPLACE INNOVATION
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IT CAN BE DONE …
Thank You!
