Cultural Aspects of Innovation

Survey results for SMEs show priority concerns

SME’s – what is working and what it not when it come to an environment for innovation!

We have broken out our survey results by size of organization and compiled the results for all respondents reporting to have 100 or fewer employess; thus more related to the size of SMEs than the overall survey results.

What we have found

1. The biggest concerns lie with two factors which come under the heading of ‘idea management’; reward mechanisms for innovators (F14), and the general availability of resources (F19).

2. Of least concern are risk tolerance in the planning process (F9), use of independent work groups (F11), the formality of the decision process (F13), tolerance for mavericks (F3), R&D budgets (F23), attitudes to mergers etc. (F16), and the role of employee organizations (F25).

3. For the balance of Factors, SMEs noted a significant difference between their ‘Ideal’ for each Factor and their own ‘Reality’, In terms of Factors , 3 of 4 Factors come under leadership, 4 of 8 Factors are under day-to-day management, and 4 of 6 Factors come under idea management practices. Thus gaps in innovative performance surface in all 3 major topics covered by the survey.

Most of the gaps are addressable by management by carefully choosing the appropriate – not just one - enabling mechanisms.

If you would like further background information on the survey results for SMEs just follow the link above (survey results) and download the 4 pages.

Posted on Tuesday, January 3rd, 2012 at 9:26 pm in Best Management Practices, Cultural Aspects of Innovation, Idea management, Leadership, Rewards for Innovators.

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Tags: innovative, management practices, SMEs
India’s Innovation Management Practices

India survey results to date. We have analyzed the most recent results posted on our survey from those in India. Here are some early conclusions.

1. There is substantialconcern that innovation in India corporates is on the decline, that it is very difficult to retain ‘innovators’ and part of this may be that there is little recognition given to the work of innovators. ‘Innovation Outcomes’; Factors; 24, 21, and 7.

2. There is little use of independent work groups (one of the key identifiable management techniques of highly-innovative companies). Management is highly centralized with little encouragement of ideas from staff overall. ‘Day-to-day management’ approaches appear to be lacking; Factors; 11, 12, 18, and 20.

3. There is every indication that tolerance on a number of fronts is lacking; tolerance of failure, of mavericks, and for variations from a corporate norm. ‘Idea management’; Factors 3, 5 and 8.

In summary, and based on respondents input to date, India corporates appear to be highly centralized, make little use of the delegation of authority and resonsibility, and demonstrate little tolerance – all characteriistics which are evident in highly-innovative companies in the U.S., Canada, Japan, and Europe. Perhaps these are the Factors which contribute to the negative ‘Innovation Outcomes’.

Further, it appears that employee organizations (see Factor 25) are a major contributor to a lack of innovation in the country.

In somewhat sharp contrast to the negativity implied by the above noted results, there was less concern with respect to leadership. Management’s were seen to have a balanced view on the attainment of profits (F#1), were calling for innovation (F#2), seeking new opportunities (f#4) and were willing to entertain risk in the planning process (F#9).

Comments are most welcome, in particular the reference to employee organizations (F#25), and their negative impact on innovativeness.

Posted on Friday, December 30th, 2011 at 9:01 pm in Best Management Practices, Cultural Aspects of Innovation, Rewards for Innovators.

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Tags: culture, India innovation, innovation, innovative, management practices, tolerance
John Deere’s ability to sustain innovation over decades. How come?

John Deere’s founders had a tremendous impact on the culture of this global manufacturer of agricultural equipment. What is even more amazing is the ability of following generations of management to sustain innovation. How does this happen? What are the management practices which contribute to continued success? Our most recent corporate profile (21 pages, dated October 3, 2011 and found under Profiles/Papers) delves into the reasons why. We also look at Deere’s spectrum of innovation; a distinguishing characteristic of highly-innovative companies.

Posted on Tuesday, November 1st, 2011 at 2:48 pm in Best Management Practices, Cultural Aspects of Innovation, Leadership, The role and place of R&D in innovation..

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Tags: global business, innovation, innovative, research and development
RIM’s (Research in Motion) Innovative Capacity in Reponse to a Crisis

Co-Authors Paul White, P.Eng., FCMC, and Peter Farwell, F.C.A., CFA, examine RIM’s strategy and management practices in light of recent product development and management issues impacting RIM. Our conclusion, set out in a 36-page report, highlights the changes in strategy and the changes in management structure and performance that we believe will be essential to RIM’s future success. Download an Overview of Full Report. The full report is available, for fee, at: http/www.corporateinnovationonline.com under Profiles and Papers/Corporate Profiles – Innovation.

Overall, we are not optimistic that RIM can survive in the current environment unless the real issues are addressed and quickly. So far there is little information from the company that the issues we have identified are being addressed and almost no information that the issues are understood let alone acted upon at this critical time. Stakeholders, particularly shareholders, deserve more than a ‘have-faith’ platitude.

Posted on Friday, August 19th, 2011 at 2:44 pm in Best Management Practices, Cultural Aspects of Innovation, Idea management, Leadership, News, Rewards for Innovators, The role and place of R&D in innovation..

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Tags: innovation, management practices, research in motion, strategy, tolerance, turnaround
Argentina’s Innovative Capacity

Three authors – two from Argentina and one from Canada – review and comment on national and corporate policies and practices which contribute to Argentina’s capacity to innovate in the 21st century. One is left with the impression that while there has been progress in the last few years, significant challenges remain. Unless addressed at the corporate and national levels, Argentina’s economic development will continue to lag behind expectation. Download Argentina Arriving.

Posted on Monday, July 4th, 2011 at 5:52 pm in Best Management Practices, Cultural Aspects of Innovation, Economic development, The role and place of R&D in innovation..

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Tags: Economic development, infrastructure, research and development
Starbucks, the role of innovation

Howard Schultz’s book, Onward, provides rare insight into the role innovation in the corporate world and the thinking of a founder. A short, 17-page, profile on this site, under Profiles and Papers/Profiles-Innovation, parses innovation at this inventive company. Starbucks Download. Comments are welcome.

A brief – 2-page – document Download Starbucks Innovation Profile Only provides an outline of the range of innovation at Starbucks. Use this example to profile your own ‘spectrum of innovation’.

Posted on Thursday, May 12th, 2011 at 9:04 pm in Best Management Practices, Book Reviews, Cultural Aspects of Innovation, Idea management, Leadership, The role and place of R&D in innovation..

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Tags: global business, research and development, Retail industry, Starbucks
Is innovation inhibited in mainly-Muslim countries?

A recent article in the New Yorker magazine prompts further research into this issue. Innovation, the main driver of economic development and the creation of jobs, may be inhibited by religious beliefs but progress in several Islamic countries seems to refute this notion. For more background information have a look at some of the ideas set out in a paper; Download the discussion on Innovation and Religion.

Posted on Thursday, March 31st, 2011 at 3:17 pm in Cultural Aspects of Innovation, Discussion, Economic development.

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Tags: Economic development, innovation, religion
BP’s Newest Culture – what do we know?

Tony Hayward’s initiatives were on the way to changing BP in a positive manner. Progress was disrupted by the Macondo drilling well disaster. Bob Dudley is again remaking BP; yet again changing priorities amongst safety, cost reduction and profit improvement. We comment on Hayward’s changes and his legacy, Dudley’s initiatives so far, and the potential impact on BP’s risk profile. Read more; Download BP’s Newest New Culture.

Posted on Monday, November 1st, 2010 at 9:21 pm in Cultural Aspects of Innovation, Discussion, Leadership, News, Rewards for Innovators.

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Tags: culture, innovation, innovative, performance, risk
The ultimate tinkerer – Dyson of vacum cleaner fame

Evidently, Dyson, the inventor of the high-end vacum cleaner which has ‘cleaned up’ the market with the application of new cyclonic technology, built 5,271 prototypes, before he was fully satisfied. This is an example of professional tinkering which, in this case, has made a significant difference. Read the article in The New Yorker, September 20th, 2010, Annals of Invention. Fascinating article!

Posted on Sunday, October 24th, 2010 at 7:27 pm in Cultural Aspects of Innovation, Economic development, Rewards for Innovators, The role and place of R&D in innovation..

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Tags: development, research, tinkering
Tinkering and economic development? Compare the U.S. with 3 countries.

U.S. innovative economic success is based largely on four notions; ‘tinkering’, materialism, a flexible financial infrastructure and a high tolerance for failure at both the corporate and individual level. Tinkering puts ideas into action. Consumer-driven materialism ensures a ready market for new ideas. A flexible financial infrastructure facilitates the relatively easy establishment and destruction of enterprises. An open attitude to failure encourages individuals and corporations to try new ideas, gadgets, and business models. All four are most prevalent in the United States economy while only one, two or three may be present in other economies.Compare the presence of these four notions in the U.S., Canada, Russia and Japan. Download ‘Tinkering etc.’

Posted on Thursday, July 15th, 2010 at 1:33 pm in Cultural Aspects of Innovation, Economic development.

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Tags: failure, infrastructure, materialism, research, tinkering, tolerance