Creating an organisational wide innovation culture

January 7, 2008

Ever heard people say…

“What we need in this organisation is innovation”, “Creativity will give us the edge”.

Leaders often utter these words with little realisation of the difficulties of bringing about a fundamental shift in the behaviour necessary to create an innovation culture across the enterprise. “We can empower people to bring new ideas, we’ll run some workshops on creativity” if only it were that simple. But alas this Procrustean approach is unlikely to reap rich rewards.

You remember Procrustes of course, the famous innkeeper of greek mythology? According to legend he was single-minded in his approach to hospitality, he kept an inn on the road to Athens and what distinguished this inn from any other was that it had only one room containing only one bed. Procrustes believed that all travellers who stayed in his hostel should fit in the bed, and this is where he was single-minded, those who were too tall swiftly had their feet cut off whilst those too short were stretched to fit. An unfortunate side effect of this unwarranted attention to detail meant that by the time he had executed the necessary adjustments many of his guests were, well, dead!

A one size fits all approach denies the reality that people are different and in developing an approach towards encouraging innovation these differences need to be surfaced and reconciled.

One organisation has devised a more enlightened strategy. Recognising early on that building a culture of innovation requires some foresight and hard graft in building a critical mass of people who understand their own, and others innovation style they targeted successive intakes of graduates to build new ways of thinking and acting to realise their innovation potential.

Around 40 graduates a year participate in the graduate development programme, after successfully completing an assessment centre. Critical reasoning tests are part of the selection process but interestingly, so too is a creative thinking test that explores, fluency – the number of ideas generated, originality – how original are the ideas and lateral flexibility – how diverse these ideas are. Candidates are chosen according to their strengths either in critical reasoning or creativity – some even have strengths in both domains! Importantly, whatever their strengths each have a vital role in the innovation process.

At the very first module of their development programme they are introduced to two important topics – learning and innovation. Each individual learns about their own preferences for learning which involves a combination of thinking and action (after Kolb) and understand the strengths and limitations of each preference. Prior to the module they are asked to complete a Creatrix™ inventory and when attending are introduced to the underlying concepts that describe innovation capacity – creativity and risk taking. The blend of these constructs gives unique profiles that describe typical approaches and attitudes towards the behaviours associated with innovation. Through an understanding of their own approach and strengths towards innovation the groups develop awareness of the need to balance innovation teams, too many innovators and a surfeit of ideas but no action, too many sustainers and no ideas will see the light of day. Appreciating their own and others styles helps in several ways; they recognise their own unique contribution to the innovation process; they identify potential barriers and possible levers that can help navigate from ideas to action; they develop a language for describing and understanding innovation; they identify ways of making things happen by circumventing the organisational “permafrost” that kill possibilities prematurely; they develop individual action plans for switching on their own capacity for innovation; and build a network across the organisation to act on those thorny cross functional problems.

This fresh approach of seeding the organisation with new entrants untainted by the inevitable cynicism seasoned campaigners in the organisation is beginning to bear fruit. Hungry to make a mark many of the graduates are pushing new ideas and making a succession of small wins from streamlining processes to developing new products – and what’s more getting the support of the person at the top. As this population grows with each successive stream a critical mass of young innovators is being formed who want to push the boundaries even further.

For this group in the organisation, change and innovation is not a threat, they feel empowered to drive it and, for them, it is the opportunity for more learning.

With innovation, as in other aspects of life, diversity brings real advantages, a concept that was lost on poor Procrustes.

By Mike Morrison & Vince Whittle

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For more information on creating an innovative culture see: www.rapidbi.com/creatrix & www.rapidbi.com/bir

For more management articles see www.rapidbi.com/articles

© This article is copyright RapidBI 2006, 2008 – it may be copied providing the authors are credited, and links maintained


PRIMO-F Business development model

January 1, 2008

PRIMO-F Business Growth Model

The PRIMO-F model was developed as part of a SWOT analysis of an organization. It provides a consistent framework for comparison either from within the organization or to benchmark against a previous analysis or benchmark against other organizations.

The PRIMO-F model was based on some work from the Durham University Business School (DUBS), and what makes an organization and its management effective. This research demonstrated that an effective organisation needed to fulfill the following equation:

Organizational Growth Effectiveness

=

Performance to date * Potential for the future.

Where Performance to date (FiMO) included:

  • Finance,
  • Operations

and Potential for the future (RECoIL) included:

  • Resources,
  • Controls and Systems
  • Innovation and
  • Leadership

This was sometimes called FiMO/ RECoIL.

One of the problems with this method was the lack of consistent application, as a tool it is fine, however many manager, consultants and business advisors have their own priorities. For example a person who has a financial background will major on finance, a person with marketing will focus on marketing etc. After all we are all human. One of the problems with the model in the ‘field’ is that often key issues were missed. The BIR was developed to take these factors and review them consistently.

In many situations it is difficult for managers to differentiate between performance to date and potential for the future, as several areas overlapped, for example resources, operational leadership and management. To solve this problem we developed the PRIMO-F. A simplified way of showing strengths and weaknesses in the relevant areas.

The PRIMO-F Model:

PRIMO-F

People
Resources
Innovation & Ideas
Marketing
Operations
Finance

PRIMO-F business growth model

Performance of the business.

How good is it in terms of its Finance, Marketing & its Operations?

Potential for Growth
People in terms of their experience, their leadership and the controls in place in the organization.
Experience:

Age of the business

Management experience of:

  • borrowing.
  • product development
  • different types of market
  • use of external agents
  • moving sites
  • managing growth

Leadership:

Involving a senior management
age of owner manager
occupational base of owner manager
personal objectives and ambition in line vision of the future
education and training
attitude to staff development
family influence
management style
attitude to change
degree of strategic awareness and understanding of environment

Control:

Adequacy of information and control systems
Ability to use information
Degree of professionalism and Responsibilities of management
Adequacy of planning and monitoring
Level of delegation
How performance is assessed

Resources

Liquidity and availability of finance
Technology level and capability
Physical assets: age and state
Product range and life
Use of and access to appropriate external agents

Innovation and Ideas
Number and source of ideas innovation is being considered
How they are assessed
Level of development or market testing of these ideas
Level of market planning of these ideas
How creative they are.

Using the PRIMO-F model

At its most simplistic the model can be used as an agenda for change, where a facilitator works with the management team and between them they score the business and identify areas of action.

For a template on using the PRIMO-F

The BIR (Business Improvement Review) is a proven tool which take this process to the next level, with 360 feedback from managers and staff, with the option of having external feedback from customers and suppliers. The BIR process is one of the most robust and quickest strategic review processes available. Typically a whole business review can be completed in less than two days, regardless of organizational size. If a large organization also want a divisional breakdown, this will take longer. A Free version looking only at the People and leadership aspects is available For information on the three diagnostic reviews in the BIR family please visit www.rapidbi.com/bir/

Other pages of interest http://www.rapidbi.com/articles/

management models

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Mike Morrison is director of RapidBI, an organisational effectiveness consultancy. He has been involved in HR, OD and strategic development for over 20 years. He can be contacted via www.rapidbi.com © This article is copyright RapidBI 2006, 2008 – it may be copied providing the authors are credited, and direct links maintained


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