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8/6/2019 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