Change Report 97 Auto Saved)

  • Upload
    deeper

  • View
    218

  • Download
    0

Embed Size (px)

Citation preview

  • 8/14/2019 Change Report 97 Auto Saved)

    1/22

    Applying the change theory withreferences to Innovation

    APPLYING CHANGE THEORY WITH REFERENCE TO INNOVATION

    MARIAM MANZAR

    BBA- 8C

    REG # 7592

    CHANGE MANAGEMENT

    BAHRIA UNIVERSITY KARACHI CAMPUS

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    2/22

    Applying the change theory withreferences to Innovation

    INNOVATION

    An invention is useful only to the inventor unless it is offered to the public, however niche that public may be. If the

    invention improves some product, process or service for the public, then that invention transforms into an

    innovation.

    An innovation can be big or small. Brand-new or just a bit different, it doesnt matter. An innovation can be clearly

    complex or seemingly simple. Innovations are often thought of in terms of technical achievement, but can also be a

    design. The type, industry and style of innovation are irrelevant; an innovations impact determines its qualification.

    The presence of a genius can help with innovation it may speed up the end result by having a person who can see

    and make the future happen. However, innovation is more than the work of any one Einstein. Innovation involves

    the taking of the work of an individual (or team) of inventors and taking it to a broader audience.

    Real Innovation does not happen haphazardly or sporadically within organizations. Real Innovation is

    accomplished consistently and systematically, given the true voice of the customer and a process for delivering

    solutions. Companies that innovate successfully do so using an efficient and repeatable methodology. Success is not

    dependent upon genius it emerges from the disciplined application of a proven innovation methodology.

    There are many authors who have commented on innovation and have drawn very different conclusions on the

    following questions:

    1. What is innovation ? Drucker(2006), Flystra(2006), Webster(2006) and Gunzinger (n.d)

    2. Why innovation is important? Gunzinger (n.d)

    3. Difference between innovation and leadership? Selman(1999) and Barsh, Capozzi and Jonathan (2008)

    4. What are the types of innovation? Tidd et al (2005)

    5. What are the forms of innovation ? Baumgartner(2004)

    6. Is organizational innovation important to keep the organization competitive? Fleming(2008)

    7. How much does innovation contributes to the organizational success? Steven(2004)

    8. What is the contribution of Human Resource Department in the implementation of the innovation? Phillips(

    2008) , Laursen and Nicolai (2000) and Reynold(n.d)

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    3/22

    Applying the change theory withreferences to Innovation

    9. Does innovation increases the stress or fear in the employees? Papageorge(n.d)

    10.Is it important to analyze the employee behavior regarding innovation before its implementation? Phillips

    (2008) and Callahan (2003)

    What is innovation ?

    Innovation is not a random event or intangible activity. It is a process. More specifically, innovation is

    best defined as the process of devising a solution that addresses unmet customer needs.

    According to Webster(2006) , innovation is:

    1 : the introduction of something new

    2 : a new idea, method or device

    Drucker(2006) believes that Innovation is the specific instrument of entrepreneurship... the act that endows

    resources with a new capacity to create wealth. Fylstra(2006) states that Innovation is hard to schedule.

    The future of many businesses depends upon their ability to innovate. Competition is fierce. Knowledge spreads

    quickly. The ability of a company to not only keep up with its current business practices, but to exceed its own and

    its competitions expectations are critical to survival.

    The definition of innovation is that it is "the successful exploitation of new ideas". This implies that it is not just the

    invention of a new idea that we are interested in, but that this idea is actually "brought to market", used, put into

    practice, exploited in some way, maybe leading to new products, processes, systems, attitudes or services that

    improve something or add value.

    There are different kinds of innovation. The main ones are:

    Incremental innovation - where something is adapted or modified. This may mean that an old idea is

    transferred to a new setting or that existing ideas are embedding in a new setting.

    Radical innovation - which involves completely new ideas.

    Developing something innovative can be an individual process but what has been frequently observed that this is

    being done by groups of people who may take on different aspects of the process, playing to their individual

    strengths, knowledge and roles in an organisation.

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    4/22

    Applying the change theory withreferences to Innovation

    Smith (n.d) says that the goal of innovation is to create business value by developing ideas from mind to market.

    And it is, for most companies, tremendously difficult to achieve. Innovation isnt difficult because employees dont

    have good ideas.

    The world is awash with creativity and technological breakthroughs. Rather, myriad obstacles in the idea-to-cash

    process limit a companys ability to innovate. Rigour and training are required to overcome these obstacles.

    Seen as the creator of new value, innovation isnt hit-or-miss, trial-and-error lateral thinking, but a repeatable

    process. What is innovative about innovation today is the realisation that it can be achieved systematically, and that

    the innovator is an obsessive problem solver.

    Gunzinger (n.d) adds that the history of Mankind, our history, is a history based on innovation. Innovation is a

    process which leads to improved engineering, technology, methods, state of mind and organization. If you look at

    it that way, we are constantly involved with innovation as human beings. We have no choice other than to carry on

    learning and improving ourselves. Innovation means venturing away from familiar ground into uncharted territory.

    With the aim of somehow discovering something better in the uncharted territory than on the familiar ground.

    Why innovation is important?

    Innovation is considered important now because now the companies are facing a number of key

    challenges. Globalization, the technological and knowledge revolutions, cultural debate and climate change are

    issues that face companies all at some level. They mean that as well as wanting to innovate in order to improve a

    process or product and add value, companies also have to innovate because there is an overwhelming imperative to

    do so. These issues pose challenges for the private sector, for public services and for governments and policy

    makers.

    Globalization and shifting patterns of trade and commerce with manufacturing increasingly being undertaken in

    countries where labour costs are lower mean that different skills will be required by the workforce of the future.

    Growing up in the world of MySpace, the popular social networking site, or Second Life, the rapidly growing 3-D

    virtual world built and owned by its "residents", with the whole web providing exabytes of information offers the

    potential for very different educational experiences.

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    5/22

    Applying the change theory withreferences to Innovation

    Migration patterns and shifting demographics along with climate change will also impact on the futures of the young

    people in our society.

    All this leads companies to consider that innovation is now an essential component of any kind of system that has an

    impact on education. They focus on innovation in public services to improve the experience of users.

    Gunzinger (n.d) commented on the importance of innovation and says that Today our memory is primarily driven by

    the laws of the free market. So a supplier needs to churn out innovations constantly, otherwise the competition will

    leave him standing.

    If a company comes up with little or no innovation, there are no short-term consequences, there may even be a

    positive effect on profits. Developing innovation always entails provision of resources as well, and making a long-

    term investment in the company's future.

    Innovation is becoming important because:

    Technology is changing fast, new products come from new competitors

    Fast changing environment, product lifetimes shorter, need to replace products sooner

    Products are increasingly difficult to differentiate

    Customers are more sophisticated, segmented and demanding, and expect more in terms of customization,

    newness, quality and price

    Customers have more choice

    New technologies no-one understands

    Apparently separate technologies come together

    Markets forming and changing fast

    With markets and technology changing fast, and good ideas quickly copied, there is continual pressure to

    devise new and better products, processes and services faster

    Difference between innovation and leadership?

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    6/22

    Applying the change theory withreferences to Innovation

    Selman(1999) explains that Innovation and leadership are closely related. Leadership always has some focus on

    bringing about a better future. In this sense, leaders are necessarily innovators. We would not normally consider a

    spectator of the status quo to be a leader. The term innovation also suggests some break with the norm or the status

    quo. Innovator and a leader are cut from the same cloth, that these terms are distinguishing different but

    intersecting dimensions of the same phenomenon.

    Barsh, Capozzi and Jonathan (2008) commented that like short skirts, innovation has traditionally swung into and

    out of fashion: popular in good times and tossed back into the closet in downturns. But as globalization tears down

    the geographic boundaries and market barriers that once kept businesses from achieving their potential, a companys

    ability to innovateto tap the fresh value-creating ideas of its employees and those of its partners, customers,

    suppliers, and other parties beyond its own boundariesis anything but faddish. In fact, innovation has become a

    core driver of growth, performance, and valuation.

    Their research bears out the point that More than 70 percent of the senior executives in a survey say that innovation

    will be at least one of the top three drivers of growth for their companies in the next three to five years. Other

    executives see innovation as the most important way for companies to accelerate the pace of change in todays

    global business environment. Leading strategic thinkers are moving beyond a focus on traditional product and

    service categories to pioneer innovations in business processes, distribution, value chains, business models, and even

    the functions of management

    What are the types of innovation:

    Innovation

    Category

    Innovation

    Type Description of type Business example

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    7/22

    Applying the change theory withreferences to Innovation

    Finance 1

    Business

    model

    How you make money Dell revolutionized the personal computer business model

    by collecting money before the consumer's PC was even

    assembled and shipped (resulting in net positive working

    capital of seven to eight days).

    2

    Networks

    and

    alliances

    How you join forces

    with other companies

    for mutual benefit

    Consumer goods company Sara Lee realized that its core

    competencies were in consumer insight, brand management,

    marketing and distribution. Thus it divested itself of a

    majority of its mfg. operations and formed alliances with

    mfg. and supply chain partners.

    Process 3

    Enabling

    process

    How you support the

    company's core

    processes and workers

    Starbucks can deliver its profitable store/coffee experience

    to customers because it offers better-than-market

    compensation and employment benefits to its store

    workers--usually part time, educated, professional, and

    responsive people.

    4

    Core

    processes

    How you create and

    add value to your

    offerings

    Wal-Mart continues to grow profitably through core process

    innovations such as real-time inventory management

    systems, aggressive volume/ pricing/delivery contracts with

    merchandise providers, and systems that give store

    managers the ability to identify changing buyer behaviors in

    and respond quickly with new pricing and merchandising

    configurations.

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    8/22

    Applying the change theory withreferences to Innovation

    Offerings 5

    Product

    performance

    How you design your

    core offerings

    The VW Beetle (in both its original and its newest form)

    took the market by storm, combining multiple dimensions

    of product performance.

    6

    Product

    system

    How you link and/or

    provide a platform for

    multiple products.

    Microsoft Office "bundles a variety of specific products

    (Word, Excel, PowerPoint, etc.) into a system designed to

    deliver productivity in the workplace.

    7

    Service

    How you provide

    value to customers

    and consumers beyond

    and around your

    products

    An international flight on any airlines will get you to your

    intended designation. A flight on Singapore Airlines,

    however, nearly makes you forget that you are flying at all,

    with the most attentive, respectful, and pampering pre-

    flight, in-flight and post-services you can imagine.

    Delivery 8

    Channel

    How you get your

    offerings to market

    Legal problems aside, Martha Stewart has developed such a

    deep understanding of her customers that she knows just

    where to be (stores, TV shows, magazines, online, etc.) to

    drive huge sales volumes from a relatively small set of

    "home living" educational and product offerings.

    9

    Brand

    How you

    communicate your

    offerings

    Absolut conquered the vodka category on the strength of a

    brilliant "theme and variations" advertising concept, strong

    bottle and packaging design, and a whiff of Nordic

    authenticity.

    10

    Customer

    experience

    How your customers

    feel when they interact

    with your company

    and its offerings

    Harley Davidson has created a worldwide community of

    millions of customers, many of whom would describe

    "being a Harley Davidson owner" as a part of how they

    fundamentally see, think, and feel about themselves.

    Tidd et al (2005) argues that there are four types of innovation; consequently the innovator has four pathways to

    investigate when searching for good ideas:

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    9/22

    Applying the change theory withreferences to Innovation

    a) Product Innovation new products or improvements on products. The new Mini or the updated VX Beetle, new

    models of mobile phones and so on.

    b) Process Innovation where some part of the process is improved to bring benefit. Just in Time is a good example.

    c) Positioning Innovation Lucozade used to be a medicinal drink but the was repositioned as a sports drink.

    d) Paradigm Innovation where major shifts in thinking cause change. During the time of the expensive mainframe,

    Bill Gates and others aimed to provide a home computer for everyone.

    Statistics Canada's Survey of Innovation 2005 asked distinguished five types of innovation which are :

    Product Innovation

    1. Introducing a new or significantly improved good2. Introducing a new or significantly improved service

    Process Innovation

    1. Introducing a new or significantly improved method of manufacturing or producing goods or services

    2. Introducing new or significantly improved logistics, delivery or distribution methods for inputs, goods or

    services

    3. Introducing new or significantly improved supporting activities for processes, such as maintenance systems

    or operations for purchasing, accounting, or computing

    The Survey of Innovation 2005 found that two-thirds (65%) of manufacturing establishments were innovative, while

    approximately one-half of all establishments indicated that they introduced a new or significantly improved product

    innovation and one-half indicated that they introduced a new or significantly improved process innovation

    Generally speaking, there are three different types of innovation: (1) product and service innovation, which focuses

    on improving a product or service, (2) operational innovation, which focuses on making an internal business process

    a core strength, such as Toyota did with the automotive production process, and (3) business model innovation,

    which focuses on creating a new formula for making money. Google, for example, has reinvented the way acompany makes money with advertising on the Web.

    When it comes to product and service innovation, there are four growth paths: (1) core market growth, which is

    making improvements to products and services that already exist in order to help customers get a job done better, (2)

    adjacent or related market growth, which is improving existing products and services to help customers get related

    or ancillary jobs done (for example, by adding a tongue cleaner to a tooth brush), (3) new market creation, which is

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    10/22

    Applying the change theory withreferences to Innovation

    creating a new product or service for customers who are trying to get a job done but cannot because no solutions or

    only ad hoc solutions exist, and (4) disruption, which is specifically defined as the creation of a technology that

    enables a new set of customers to perform a job that only specialists could previously perform. Crest Whitestripes,

    for example, made it possible for people to whiten their teeth on their own, eliminating the specialist the dentist.

    Disruptive innovation

    So much has been written about disruptive innovation that the word disruptive has become a way to refer to

    practically any type of innovation that changes anything. Although a company can be impacted even to the point

    of its demise by a competitor that employs a strategy of operational and business model innovation (we see this

    with Wal-Mart in the retail industry), this is not disruptive innovation.

    It is important for a company to be specific in the way it defines its innovation strategy, as different strategies

    require different tactics. Companies must keep in mind that not everything is disruptive innovation a better

    categorization scheme is needed.

    Outcome-driven innovation

    Using the job the customer is trying to get done as the unit of analysis, rather than technology, we say that

    companies can engage in product or service innovation by (1) helping customers get a job done better, (2) helping

    them get related jobs done, (3) helping them get new jobs done where no product currently exists, and (4) helping a

    new set of customers perform a job that was previously performed by other, more skilled people. Using this simpleframework, product and service innovation initiatives can be planned and executed predictably.

    Ting-A-Kee(2006) states that as businesses evolve, innovation becomes increasingly important for companies to

    survive. The new paradigm is, "The fast eat the slow." When examining the magnitude of an innovation you can use

    the following chart to categorize the innovation.

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    11/22

    Applying the change theory withreferences to Innovation

    Improve the core business - Take something that works and add a new wrinkle to it (e.g., add a clock.)

    Develop new capabilities - Find a new way to do something within an existing marketplace.

    Exploit strategic advantage - Extend a competitive advantage into a new market (e.g.,Nintendoextended

    their video game systems into the portable video game system market with the Gameboy. Nintendo can no

    longer claim the top position in the console market however they have the vast majority of the portable

    market.)

    Create revolutionary change - Create a new capability for your company and use it to fundamentally

    change how your company operates and behaves (e.g., The introduction of the Apple Ipod and Itunes.

    Think of how these two products have changed Apple's business model.)

    What are the forms of innovation?

    Termpaper- fall 2008 semester

    http://www.nintendo.com/homehttp://www.nintendo.com/homehttp://photos1.blogger.com/blogger/6135/1838/1600/Organizational%20Capabilities.0.jpghttp://www.nintendo.com/home
  • 8/14/2019 Change Report 97 Auto Saved)

    12/22

    Applying the change theory withreferences to Innovation

    The most common accepted innovation is that of the development and exploitation of a new

    product that has a customer delight factor. While this is difficult to achieve, many such concepts are based on

    factors such as:

    the introduction of a product or service from one sector across to another sector

    deep insights to a limited element of an existing product, from which a new product is created

    the exploitation of a new technology.

    There is an increasing level of new products, an explosion of products when compared with some decades ago.

    This creates much greater competition, but also limits opportunities by many companies to create their innovative

    products as they will already have been created and patented.

    There is increasing attention to innovation in services. The extent of international services provides an opportunity

    for much greater value through innovation. Many new services are being identified, and many of them are

    technology bound. The availability and applicability and integrity of the technology become extremely important.

    Baumgartner(2004) says that it seems everyone is talking about corporate innovation these days. Erkki Liikanen, the

    European Commissioner in charge of the Information Society and Enterprise Directorates General can hardly open

    his mouth without speaking of European business's need to be more innovative. Nevertheless, to look at all

    corporate innovation as being the same kind of innovation is dangerous. Defining categories of innovation not only

    clarifies the kinds of innovation necessary, but also points out approaches for promoting appropriate innovation

    within the organisation.

    Corporate innovation can be divided into four categories:

    1. customer oriented innovation

    2. product innovation

    3. process innovation

    4. strategic innovation

    Is organizational innovation important to keep the organization competitive?

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    13/22

    Applying the change theory withreferences to Innovation

    Process innovation has become critical to greater competitiveness. Operational and organizational

    improvements can greatly enhance the ability of an organization to carry out business. However processes need to

    be considered from entirely new angles to make for true innovation. The result can be an entirely new way of

    working, new models of outsourcing and collaboration. It can also create opportunities for entirely different products

    and services. In IT we are seeing how improvements in Amazon processes are opening up possibilities of exploiting

    their network and intellectual assets for new services to major internet operations such as social networking.

    Business model innovation represents a new way of carrying out business. An example of this is the change by

    software product companies to become service companies through operation of their products as a service (SaaS

    software as a service). In this example the switch is from sale of software as a technology play to sale of a core

    competence that includes deep knowledge of their market combined with professional services and use of their

    software technology.

    Fleming(2008) believes that innovation is essentially a process of recombinant search. Having studied more than

    17,000 patents, Fleming(2008) says its essential to understand innovation in a very basic light: that is, a new

    combination of components, ideas or processes. Every invention can be thought of as an assembling of these parts.

    Fleming (2008) says, in order to have more control over the innovation process, companies must understand that

    inventing is an iterative process, one that has a distribution of outcomes. And, in fact, this distribution is very

    skewed. According to Flemings research, almost all inventions are useless. A few have moderate value and only a

    tiny, tiny few are breakthroughs.

    How much does innovation contributes to the success of the organization?

    Does the future success of the organization require ongoing innovation? if people keep doing

    things exactly as they do them today will they be just as successful in five years? If organization is dependent onknowledge work and professional competencies its highly unlikely the winning formula will remain unchanged.

    Steven (2004) states Innovation is essential!

    Steven(2004) elucidates that the challenge is that leading a team or organization for continuous high-performance

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    14/22

    Applying the change theory withreferences to Innovation

    innovation requires different structures, processes, and culture than managing for continuous high-performance

    operations. In contrast, organizational characteristics that encourage ongoing innovation include:

    Rewards emphasizing group performance over that of individuals

    Minimal formal structures and hierarchal roles

    A climate that is personal and non-critical

    The implications are that leaders must do the following to create opportunities for innovation in their organizations.

    Establishing rewards for innovation

    Aligning innovation structures with operational ones

    Encouraging a climate conducive for innovation

    If the organizations stop innovating it is impossible for them to succeed and following would happen:

    Customers stop buying your products, processes and services

    Sales drop

    Revenues drop

    Shareholder returns drop

    Stock price drops

    Key employees leave

    More customers stop buying your products, processes and services

    Sales drop

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    15/22

    Applying the change theory withreferences to Innovation

    What is the contribution of human resource department in the implementation of

    innovation?

    Phillips( 2008) explained why HR is so important to corporate, especially sustainable innovation.

    First, innovation is foremost a commitment of resources to an uncertain future. People dislike uncertainty and are

    somewhat unwilling to risk their jobs or futures working on items that are new or risky, without the appropriate

    assurances that the firm needs and requires people to try new things and make mistakes. So, the ability to

    communicate that failure is expected and people need to "think outside the box" and will be rewarded for doing

    those things is important.

    Second, HR need to identify people who can "think outside the box". Let's not assume that everyone is equally

    innovative, but instead let's recruit people for their innovation capabilities. Are they inquisitive? Are they locked into

    one viewpoint or willing to consider others? Are they open to new ideas, new concepts? These questions have a lot

    to do with how people are recruited and how their skills are improved to welcome innovation.

    Finally, the most powerful force in business is culture. While corporate culture is not necessarily the responsibility

    of HR, the people who are hired and the training and cultural imperatives placed on the business are done so through

    HR, so HR can have a big impact on whether or not the firm is culturally attuned to innovation.

    Laursen and Nicolai (2000) explains in this text that Although organizational structure has sometimes been

    mentioned in evolutionary economics as well as in the innovation literature as a possible determinant of innovation

    performance, little systematic theoretical and empirical work exist on this issue. In this paper, Laursen and Nicolai

    (2000) take their theoretical point of departure in recent work in organizational economics on systems of human

    resource management practices. They put and develop the argument that just as complementarities between new

    HRM practices positively influence financial performance, they will also positively influence innovation

    performance. Laursen and Nicolai(2000) examine this overall hypothesis by estimating an empirical model of

    innovation performance, using data from a Danish survey of 1900 business firms. Using principal components

    analysis they identify two HRM systems which are conducive to innovation. The first is one in which all of the nine

    HRM variables matter (almost) equally for the ability to innovate. The second system, which is found to be

    conducive to innovation is dominated by performance related pay and to some extent by firm-internal training. Of

    our total of nine sectors They find that the four manufacturing sectors correlate with the first system, while also

    firms located in ICT intensive service sectors are (however weakly) associated with the first system. Firms

    belonging to the wholesale trade sector tend to be associated with the second system.

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    16/22

    Applying the change theory withreferences to Innovation

    Reynold(n.d) believes that it is important to ensure that a companys Human Resource Management

    processes are geared as much as possible to support the particular needs of innovation.

    Does innovation increases the stress or fear in the employees ?

    Shortly after the death of the harsh Soviet dictator Joseph Stalin, his successor Nikita Khrushchev was

    addressing the Supreme Soviet Council. As the new leader denounced his predecessors terrible crimes, a voice in

    the back called out: "Comrade, you were there. Why did not you stop him?"

    Khrushchev looked around the hall with a look of intense disgust and yelled, "Who said that? Show your face! I

    want to know who said that!" No one spoke. No hand went up. After a long and uncomfortable silence, Khrushchev

    said, "Now you know why."

    Papageorge(n.d) states that Fear exists in every organization. This includes:

    Fear of challenging a dictatorial boss

    Fear of confronting cherished dogmas

    Fear of making mistakes

    Fear of showing ignorance

    Papageorge(n.d) believes that the greatest fear is admitting we are fearful. Having this awareness is the start of a

    whole new world. According to Papageorge(n.d) all our fears narrow our perceptions, limit our potential, stifle our

    creativity and exhaust the energy for innovation. When we do not tell the truth, we withhold critical information that

    undermines the quality of decisions. If we are not willing to make mistakes, we will not be able to innovate.

    Innovation thrives where everyone can "tell the truth" and not be admonished for so-called "failures." As IBMs

    legendary founder Thomas Watson said upon retirement: "If I had it all to do over again, I would have encouraged

    employees to make more mistakes."

    Papageorge(n.d) says that as leaders of innovation, we cannot eliminate fear in our organizations. But we can reduce

    it. We can do this by nurturing an environment where innovation can flourish; show understanding and acceptance

    of intelligent failure; and respond openly when ideas are challenged.

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    17/22

    Applying the change theory withreferences to Innovation

    In such an open environment, innovation will boom. It takes time and commitment to empower an organization in

    which people feel safe. However, as we lower this fear, we will increase the speed and effectiveness of innovation

    and, consequently, our collective success.

    Papageorge(n.d) gives some tips for reducing fear levels in the organization:

    Follow the law of feedback: This states there is no failure, only feedback. Successful people look at failure as an

    "event," an opportunity to embrace learning in the process of success.

    Encourage and reward autonomy: Honor ideas that challenge accepted norms and objectives.

    Support creative experiments: Encourage all brainstorming and input that serves the mission of the organization.

    Is it important to communicate innovation with the employees?

    Phillips (2008) explains innovation as something which is risky and that creates change, hopefully

    for the better, in most organizations. Given that most people are knowledge workers and can apply their skills to the

    most pressing needs of the business, it would seem obvious that when a firm embarks on a plan to become more

    innovative, and to put good ideas into action on a more consistent basis, that the firm would tell its employees why

    innovation is important and what the firm intends to do. Working in the face of corporate cultural inertia, fear of

    change and increasing risks of innovation, telling people what the goals are and how they'll be accomplished seems

    like a logical approach. Logic be damned. Most firms do a poor job communicating their regular strategic goals to

    their employees, and do a spectacularly poor job of communicating the purpose and intent of innovation.

    Phillips (2008) believes that As a firm, we harp on consistent communication, before, during and after any

    innovation campaign or event.

    Asking for innovation and change without developing the expectations in your organization is like asking for

    volunteers for a firing squad. Everyone understands the difficulty inherent in an innovation program in a larger

    organization, and if the management team isn't willing to commit to a consistent communication effort to set

    expectations and publicly support an innovation program, then innovation won't succeed, since none of the

    individuals on the team will stick their necks out any further than they believe is safe within the existing culture. No

    risk, no change equals little to no innovation.

    If the cmpanies management team wants real innovation, then when they build their team ask for a resource to help

    with consistent communication about the companies effort, their goals and the change necessary. Ask the senior

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    18/22

    Applying the change theory withreferences to Innovation

    management to sponsor the communication throughout the organization and keep up a regular drumbeat of

    communication about the companies progress and their goals. This has the possibility to change the culture and set

    appropriate expectations. Anything else means working against existing corporate culture and without clear goals

    and priorities.

    Callahan (2003) commented on the importance of the innovation and says that she see as the big hurdle for most

    creative endeavors is establishing an effective communications system. Thousands of words are subject to as many

    perceived meanings as "creativity" and "innovation." Getting all the members of a functional unit on the same page

    about what their organizaitional language is, in precise detail, isn't easy.

    Callahan(2003) believes that if the communications systems that support a creative product aren't working so hot,

    the creation isn't going to be what it could be.

    Conclusion

    Innovations are very important for the success of the organization or for the survival of the organization in theindustry because almost every day new innovations are coming up leaving less chance for the other companies to

    bring something new in the market. Continuous innovation is the key to success for any organization. The authors

    discussed many types of innovations and the forms of innovation that an organization can bring for the betterment.

    The Human Resource department plays an expended role in the implementation of innovation as human resource

    department is the one that monitors the employees behavior and their working so they know better which innovation

    will be successful. The communication of innovation is also considered very important if the innovation is

    communicated well to the employees only then the management can succeed here again the Human resource

    department play the role of communicating innovation to their employees to reduce their fear level and enhance their

    productivity by explaining them why they need to innovate because employees are the people who makes theorganization successful.

    Termpaper- fall 2008 semester

  • 8/14/2019 Change Report 97 Auto Saved)

    19/22

    Applying the change theory withreferences to Innovation

    References:

    Anderson, Frances(2005).Five Types of Innovation In Canadian Manufacturing: First Results From The

    Survey Of Innovation 2005. Canada. Statistics Canada.

    Barsh, Joanna, Capozzi, Marla M. and Davidson ,Jonathan (2008)leadership and innovation. Retrieved

    Dec 6, 2008 from http://www.mckinseyquarterly.com/Leadership_and_innovation_2089

    Baumgartner, Jeffery. (2004, May4).Four types of corporate innovation. Retrieved Dec 23, 2008 from

    http://www.jpb.com/creative/article_4kinds_corp_innovation.php

    Center For Software Engineering,Forms Of Innovation. (n.d). Retrieved DEC 7,2008 FROM

    http://www.cse.dcu.ie/our_services/innovation/forms-of-innovation.html

    Termpaper- fall 2008 semester

    http://www.mckinseyquarterly.com/Leadership_and_innovation_2089http://www.cse.dcu.ie/our_services/innovation/forms-of-innovation.htmlhttp://www.mckinseyquarterly.com/Leadership_and_innovation_2089http://www.cse.dcu.ie/our_services/innovation/forms-of-innovation.html
  • 8/14/2019 Change Report 97 Auto Saved)

    20/22

    Applying the change theory withreferences to Innovation

    Callahan, Renee Hopkins (2003, June 12). Communicating Innovation: You Need A Pete Anderson!.

    Retrieved Dec 25, 2008 from

    http://ideaflow.corante.com/archives/2003/06/12/communicating_innovation_you_need_a_pete_anderson.p

    hp

    Drucker, Peter , Fylstra, Dan (2006). What Is Innovation. Retrieved Dec 12,2008 from

    http://www.realinnovation.com/content/what_is_innovation.asp

    Fleming, Lee (2008, March 18), where do successful innovations come from? Retrieved Dec 11, 2008 from

    http://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=307

    Gunzinger, Anton.(n.d). What is innovation. Retrieved Dec 19, 2008 from

    http://www.scs.ch/index.php?id=28&L=1

    Laursen, Keld and J.Foss, Nicolai (2000),New HRM Practices, Complementarities, and the Impact on

    Innovation Performance. Howitzvej 60, 2000 Frederiksberg, Denmark. Copenhagen Business School

    Papageorge, Andrew. (n.d). To Increase Innovation, Reduce Fear. Retrieved Dec 8, 2008 from

    http://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=349

    Phillips, Jeffrey ( June 11, 2007) The Role Of HR In Innovation. Retrieved on Dec 20th, 2008 from

    http://innovateonpurpose.blogspot.com/2007/06/role-of-hr-in-innovation.html

    Phillips, Jeffery(2008, Dec 9). Communicating your innovation goals. Retrieved Dec 25, 2008 from

    http://innovateonpurpose.blogspot.com/2008/12/communicating-your-innovation-goals.html

    Termpaper- fall 2008 semester

    http://www.realinnovation.com/content/what_is_innovation.asphttp://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=307http://www.scs.ch/index.php?id=28&L=1http://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=349http://innovateonpurpose.blogspot.com/2007/06/role-of-hr-in-innovation.htmlhttp://www.realinnovation.com/content/what_is_innovation.asphttp://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=307http://www.scs.ch/index.php?id=28&L=1http://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=349http://innovateonpurpose.blogspot.com/2007/06/role-of-hr-in-innovation.html
  • 8/14/2019 Change Report 97 Auto Saved)

    21/22

    Applying the change theory withreferences to Innovation

    Reynolds, Clive (n.d).HRM and Innovation people planning for innovation tool. Retrieved Dec 25, 2008

    from

    http://www2.warwick.ac.uk/fac/sci/wmg/research/pard/pardprojects/skills/results/tools/11.0_tool_summary

    _people_planning_for_innovation_01nov07.pdf

    Selma, Jim. (1999)Leadership and Innovation: Relating to Circumstances and Change [Electronic

    Version].

    Smith, Howard. (n.d) what innovation is . [ Electronic Version ]. A CSC white Paper.

    Stevens, Tom. (2004).Leading for innovation Retrieved Dec 6, 2008 from

    http://www.thinkleadershipideas.com/leadershipideasblog/files/leadinnovation.php

    Ting-A-Kee, Marcus(march 27, 2006)From Start To End: Types Of Innovation. Retrieved Dec 8, 2008

    from http://rationalizedthoughts.blogspot.com/2006/03/types-of-innovation.html

    Ten types of innovation. (n.d). Retrieved Dec 7, 2008, from

    http://www.doblin.com/ideas/TenTypesOverview.html

    Types of innovation. (n.d). Retrieved Dec 6, 2008, from http://www.strategyn.com/innovation.asp

    Webster, Mariam (2006). What is innovation. Retrieved Dec 6, 2008 from

    http://www.realinnovation.com/content/what_is_innovation.asp

    What is innovation. (n.d). Retrieved Dec 23, 2008 from http://www.innovation-unit.co.uk/about-us/what-is-

    innovation/what-is-innovation.html

    Why innovation is becoming more important.(n.d). Retrieved Dec 25, 2008 from

    http://www.johnstark.com/in8.html

    Termpaper- fall 2008 semester

    http://www.thinkleadershipideas.com/leadershipideasblog/files/leadinnovation.phphttp://rationalizedthoughts.blogspot.com/2006/03/types-of-innovation.htmlhttp://www.doblin.com/ideas/TenTypesOverview.htmlhttp://www.strategyn.com/innovation.asphttp://www.realinnovation.com/content/what_is_innovation.asphttp://www.innovation-unit.co.uk/about-us/what-is-innovation/what-is-innovation.htmlhttp://www.innovation-unit.co.uk/about-us/what-is-innovation/what-is-innovation.htmlhttp://www.johnstark.com/in8.htmlhttp://www.thinkleadershipideas.com/leadershipideasblog/files/leadinnovation.phphttp://rationalizedthoughts.blogspot.com/2006/03/types-of-innovation.htmlhttp://www.doblin.com/ideas/TenTypesOverview.htmlhttp://www.strategyn.com/innovation.asphttp://www.realinnovation.com/content/what_is_innovation.asphttp://www.innovation-unit.co.uk/about-us/what-is-innovation/what-is-innovation.htmlhttp://www.innovation-unit.co.uk/about-us/what-is-innovation/what-is-innovation.htmlhttp://www.johnstark.com/in8.html
  • 8/14/2019 Change Report 97 Auto Saved)

    22/22

    Applying the change theory withreferences to Innovation

    Term