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(Since Culture Eats Strategy for Breakfast anyway) — Let Them Eat Cake!
Posted on January 15, 2018 | Veronica Adams
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Originally written May 2011. Revised January 2018.

I am a passionate evangelist for "management innovation." This term was popularized by American management expert Dr. Gary Hamel in his great Harvard Business Review article, "The Why, What, and How of Management Innovation." It refers to an approach to leadership that allows ingenuity efforts to succeed. Once leaders have re-envisioned their own roles (as the "stand-out" leaders in the IBM CEO study did), the journey of "innovation management" can begin. But without this as the starting place, that of management "innovating itself," efforts to foster inventiveness elsewhere in these organizations will likely fail. This is key ingredient #1.

Bowl with flour and broken egg in preparation for cookingKey ingredient #2 is that leaders need to be clear that creating an innovative organization is a journey one commits to; this is the heart of "kaizen," or continuous improvement. ("What Does 'Innovation' Mean") Isolated incidents of new initiatives (whether this is a process improvement, or a novel product or service) does not an “innovative organization” make. The genius of certain organizations, those that can rightly be called innovative, is that the conditions and processes to do this repeatedly have been standardized. (Langdon Morris, Permanent Innovation and Agile Innovation).

Numerous guidelines are readily available on how to make organizations more innovative. However, having an overarching mental model for the key components and how they relate to one another can be helpful. –The one I came up with happens to very much resemble the form of a two-layer cake!

 

The Bottom Layer: A Solid Foundation:

There are the basic, fundamental structures and processes that are necessary to the stability of any organization. Think of it as the bottom layer of the cake. Vision and missions should be well understood and aligned; legal and fiduciary structures must be in place; clear accountability and communications systems are needed, and so on.

Once in place, this basic foundation requires regular assessment and maintenance in order to ensure ongoing organizational and fiscal health.

This layer must be solidly in place before adding the next, which contains the structures and practices that foster ingenuity. However, even if one's organization is on shaky ground, just as the successes of kaizen clearly demonstrate, integrating some continuous improvement programs among staff may help guide the organization to more solid ground. Regardless of whether an organization is ready to go fully to the next level, smart leaders engage their employees by soliciting their problem-solving and improvement suggestions.

Top Layer: Innovation Processes: 

It is here that the structures and procedures specific to innovation are added and integrated into the organization, such as:

  • The continuous collection of and reward for ideas solicited from employees, customers and stakeholders
  • Formal vetting processes to determine which ideas to explore and which to shelve
  • Rapid-prototyping to test new ideas to ascertain quickly which ones should be developed
  • Pipelines for short, medium, and long-term projects, so that the organization has a mixed "portfolio" of experimental initiatives in order to diversify its investment and risk
  • Creating “Intra-preneur” programs that reward employees to spend a modest percentage of their time developing viable ideas that may benefit the organization
  • The implementation of systems such as Lean and Agile to improve efficiency, effectiveness, speed, collaboration, and learning cycles
  • Skunk works (independent "branches") and “Organizations within Organizations,” when the organizational structure or culture is not yet conducive to integrating innovative processes
  • Practices that encourage both formal and informal cross-functional collaboration

"Management innovation" practices (see opening paragraph):

  • Systems and metrics that reward managers for experimentation and taking some risk, and not just ROI
  • Open communications systems that increase transparency, facilitate cross-functional collaboration, and that can push some decision-making downward
  • Implementation of formal roles such as "innovation champions" and MBWA (Management by Walking Around) practices

And now, for the final element…Two-layer cake cake in process of being frosted

The Icing: Daily Operations Re-thought!!  

The icing or frosting covers and runs through the center of the two-layer cake, just as culture covers and permeates an entire organization. Yes, some people prefer their cake plain, with no icing. But in this model, frosting is not an option!

 

The icing, or culture, is the “special sauce” or "glue" of an organization that will make, or break, any initiative. In this case, innovation efforts.

 

As the saying goes, "Culture eats [even the best] strategy for breakfast."

What many leaders don't understand is that creative thinking is not just a switch that can be turned on upon request, and then off for the remainder. The creative lens is a more fluid way of looking at the world. It is the one that we were all born with — before we began suppressing it around adolescence because our peers thought it too "weird" to think and speak imaginatively. Conformity became the path to fitting in and finding acceptance. To compound this, convergent, inside-the-lines/box thinking is generally reinforced by our public-school systems, religious institutions, and workplaces.

So, it doesn't work to ask employees to "turn on" their best creative thinking at a brainstorming session, but to then spend most of their working hours staying within the lines of the accepted cultural norms and adhering to "how things are done," lest they be reprimanded in some way. This simply produces " cognitive dissonance" — not a safe environment that is conducive to original thinking.

 

It is no coincidence that the most innovative companies have cultures that are anything but staid. They are designed to encourage playful, divergent thinking. (Southwest, Google, Virgin Air, IDEO, etc.) Creative thinking is a core value and encouraged as a norm. Their approach is both clear to see, and effective.

In organizations committed to increasing innovation, teams should be rewarded for coming up with creative approaches to how everything is done, from:

  • Recruiting
  • On-boarding
  • How meetings are run
  • The design and delivery of training
  • Communications
  • How staff is rewarded for pushing through tough deadlines
  • Celebrations
  • And so on….

Creative, experimental approaches should be encouraged for all daily, "mundane" operations by those who have the inspiration and imagination to re-envision them. Think of it as creativity applied to designing the organizational culture.

 

(There are some great ideas for this in John Putzier's wonderful book, Get Weird: 101 Innovative Ways to Make Your Company a Great Place to Work.)

In closing…

When it comes down to it, most leaders are not prepared to do what is necessary to create innovative organizations. Their comfort zones are generally the top-down approaches to management which, then reinforced by the culture, allows them to retain full control and, they may think, "risk less." However, this system is antithetical to fostering cultures where divergent thinking can thrive. Such organizations may be "doing fine" at present time, but they will not be innovative or as successful as they might have been, and they certainly will be more vulnerable to waning competitiveness going forward.

However, for those who are committed to doing whatever it takes to lead and thrive into the future, the good news is that some great road maps have been created by those who have been part of the many success stories. Creative thinking is contagious. Once the systems that foster innovation are put in place, and the culture is designed to stimulate creativity, permanent innovation becomes possible — with benefits that keep on giving.

Build it, Bake it – And they will come!

 
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