3M Innovation Reading 6 March

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    What is iNnovaTion?An innovation may be a thing!

    Whetherartefact, product or process or indeed service, system or

    infrastructure

    It has 2 parts :

    a) Creation of a New Idea

    b) Process of applying a New Idea to create a New Process orProduct.

    Inventions occur more frequently than Innovations !!!

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    Type of Organizations

    Organizationsdesigned to serve the

    Millionth client

    Organizationsdesigned to serve the1st Client with the 1st

    Product

    The Focus of both the 0rganizations are different, the former cannotbe the latter and the latter cannot be the former.

    Organizations that want to Innovate need 2 different organizations :

    a) Innovating Partner

    b) Production & Operation Partner

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    Innovating Organization

    Structure

    Environment

    Culture Size

    Strategy,

    GoalsTechnology

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    3 main Characteristics of an

    Innovating Firm

    Challenge

    Matchingright peoplewith rightassignment

    Freedom

    Concerningprocess notnecessarilyends

    Stable andclearlydefined goals

    Resources

    Time andmoney :impossiblytightdeadlines

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    Role of People in

    Innovating Organization

    1

    IdeaGenerators

    FieldEngineers

    2

    Idea

    Sponsor

    MiddleManagement

    3

    IdeaOrchestrator

    SeniorManagement

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    DIFFERENTIATION

    Isolation of crazy Ideas from Routine Operationsso as to develop it Further

    RESERVATION

    Creation ofFocused R&D group to develop thatidea further

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    Stages in a Idea Generation

    Sponsor

    Champion Staffing

    Location Funding

    Autonomy

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    Skills for Sponsoring Innovation

    Risk taking Ability to identify what the potential pay off from an action or

    venture is.

    Ability to identify the significant risks in the venture.

    How the payoff fro a venture or its cost or the risks associatedwith the venture can be changed by ones actions.

    Risk preference.

    Ability to spot opportunities

    Knowledge of high opportunity industries, markets,technologies, regions etc.

    The ability to spot opportunities in social adversity.

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    Summary of an

    iNnovaTioning OrGanizaTion

    Task

    Structure

    ProcessReward

    People

    Funding /

    Getting Idea

    and Managing

    Stages of an

    Innovation

    Selection &

    Development

    Acknowledging

    the Idea

    Generator

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    Creating the Climate

    &Culture of Success

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    ORGANIZATIONAL CLIMATE

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    Climate ?

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    Climate

    The "feeling in the air" one gets from walkingaround a company - may be difficult to put inwords.

    Climate is the atmosphere that employeesperceive is created in their Organizations by

    Practices Procedures

    Rewards

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    Organization Climate

    3Ms Organizational Climate

    Fosters Innovation

    Customer Service

    Citizenship Behavior

    Some call it Total Quality Management

    Others call it Systems Approach

    At 3M they call it simply SUCCESS

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    Key to Successful Innovators

    Top management commits emotional andfinancial support and provides an advocate forthe innovation.

    Top Management Ensures there is a market forthe planned innovation.

    The planned innovation has support from alllevels of the organization.

    The planned innovation goes through severalsmall, carefully evaluated steps prior to the actualimplementation.

    Extract from Andre Delbecq and Peter Mills work

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    Key to Service Excellence

    Human resource practices promote employee

    well being and a sense of community.

    There is active retention of existing customers.

    There is attention to details regarding the

    Quality of staff and the resources needed to

    deliver excellent service.

    Extract from Andre Delbecq and Peter Mills work

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    Organizational Citizenship Behaviour

    (OCB)

    Discretionary behaviour, that is not part of an

    employees formal job requirements, but that

    nevertheless promotes the effective functioning

    of the organization.

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    Keys to

    Org Citizenship Behavior

    Management is non-exploitative and

    trustworthy

    There are norms of helpfulness andcooperation

    There are fair reward system based on broad

    and diverse contribution to Organizational

    success.

    Extract from Dennis Organ and his Colleagues work

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    ORGANIZATIONAL CULTURE

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    Vision 2 Culture

    Vision

    Mission

    Objectives

    Implementation

    Value Framework

    Work performed in Value framework over and over gets absorbed : Org Culture

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    Culture

    Broad pattern of an Organization mores, valuesand beliefs.

    Culture is created and transmitted mainly throughemployees sharing their interpretation of events.

    Prerequisite: Employees starts attributing these valuesto Management

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    Key Cultural Assumptions

    INNOVATION SERVICE OCB

    How we

    solve

    problems?

    Through gathering

    information, not

    power; Slow but

    sure

    By attending to

    small details

    If you see something

    that needs doing, you do

    it

    How we

    manage

    people?

    A creative mind

    needs nurturing and

    support

    With consideration;

    treat employees as

    you want them to

    treat customers

    By setting examples for

    employees;

    Act as you want

    employees to act

    How we

    succeed?

    Through customer

    acceptance

    By treating both

    employees andcustomers well

    Through both Managers

    and Employees goingbeyond their role

    requirements for the

    greater Good of the

    Organization

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    Innovation CultureInnovation CultureCreative geniuses apply the know-how that results in

    insights, ideas, and ultimately in innovation. Creativegeniuses produce innovation results.

    That nature of the shifts that are required is illustrated by the Innovation

    Culture Table

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    Now let us look at3

    M