Developing Creativity for Business - Essay Example

Developing Creativity for Business Table of Contents Page Introduction………………………………………………………………………...4 2. Marks and Spencer: The Company and its Concept of Creativity………………..5 3. Developing Creativity in the Business and the Brain Model………………………7 4. Problem Choice……………………………………………………………………..8 5. Problem Solving Cycle……………………………………………………….….…9 5.1. Current Issues, Problems, Challenges……………………………………….10 5.2. Generating Idea: Encouragement and Development of Creativity…….....12 5.3. Evaluation of the Problem……………………………………………….....14 5.4. Implementation by Technique………………………………………………15 5.5. The Changing Theory……………………………………………………...17 5.6. Measurement and Assessment of Creativity in Businesses………….....….18 6. Conclusion……………………………………………………………….………...19 7. References…………………………………………………………………………21 8. Appendices………………………………………………………………………...25 List of Figures Page Figure 1: Concept of Creativity…………………………………………………………….…5 Figure 2: Whole-Brain Creativity………………………………………………………….….7 Figure 3: Components of Creativity……………………………………………………….…13 Figure 4: Value and Reputation of Retail Stores……………………………………………..14 Figure 5: Comparison of Retailers Supporting Family Values……………………………...14 Figure 6: Management Process in Creativity………………………………………………...16 Figure 7: Lewin’s Theory of Change…………………………………………………….…...18 Figure 8: The Creativity Awareness Programme………………………………………….…19 List of Appendices Page Appendix A: Income Statement of M&S……………………………………………….……25 Appendix B: Plan A of M&S Company…………………………………………………..…26 1. Introduction: The concept of creativity involves using and organizing the known information and knowledge in bringing new and innovative ideas out of them. It actually leads to a better and improved understanding of a concept or idea that was existent but needed advancement and steps forward in using it for the betterment of the society as a whole. Maslow had considered his studies based on the concept of creativity and determined two different levels of creativity. Primary creativity according to him is a basis for a new innovation to discover something that would be different from the existent concept. Secondary creativity on the other hand was explained by him as an extension of any discovery that early researchers had made through their studies (Creativity and its importance in business, n.d.). The concept of creativity and innovation is more significant and needed in today’s businesses owing to the increasing levels of competitions among competitors in the world of business. In order to stay ahead of the competitor companies in respect of technological advancements, facing new competitors, as well fulfill the demands and requirements of the customers, organizations need to focus on continuous change and creativity. In other sense, creativity leads to value addition to the service being provided by an organization towards their customers (Degraff, 2006, pp.1-2). Creativity thus involves the use of knowledge, concepts, technology, and business theories towards innovation of any idea for the benefit of the society as a whole. The following chart provides an idea of the concept of creativity as can be applied within an organization. Figure 1: Concept of Creativity (Key Concepts in Innovation, 2012). The present study focuses on the concept of developing creativity in businesses and taking the company Marks and Spencer into consideration, and tries to learn about its creative concepts as well as the barriers that have been encountered by the company over the years and might be encountered in the future as well, thus determining some measures that might be suitable for the improved success of the company. 2. Marks and Spencer: The Company and its Concept of Creativity: Marks and Spencer (M&S) is a leading retailer in the United Kingdom (UK) with a very large customer base. The company offers variety of products including clothing, home products, as well as food. While around 49 percent of the business deals with home products and clothing, the rest of the business provides its customers with variety of high quality food products. Also the company has its focus on the environmental impacts and hence has its eco plan in concern (Company Overview, 2012). There are more than 700 retail stores of M&S in the UK itself spreading across the high streets, stations, airports, and other locations (Where we are, 2012). The company is focused on improving its business by serving its customers through original and high quality products. Their primary creativity lies in their trying to present to the world the products that are unique to their company that they term as ‘Only at M&S’ (Our plan, 2012). Marks and Spencer is known to be successful for its innovations that the management of the company is concerned about. The status of the company’s success can be learnt from the financial results of the company that it has achieved based on its creative approaches (Appendix A). One of the early creative approaches that the company was known to have introduced effectively is the handling of paper work. Sir Simon Marks in the 1950s had taken the concern on the employees who had to spend their time in the nights managing cards and sheets associated with the company’s records. He considered the issue to determine the importance of such work and managed paper work elimination process that enabled cost savings for the company along with helping the employees with their work (How to Deal with Paper Work: Learn from the Marks and Spencer Experience, 2012). One of the creative approaches that the company has considered in the recent times is its launch of an online version of its discount retailing thus enabling the customers to order online according to their choices as well as convenience (Baker, 2012). 3. Developing Creativity in the Business and the Brain Model: It has been revealed through studies that in order to incorporate creativity and innovation in the business strategies of an organization, a balanced approach is required. Whole brain thinking is a concept that has proved to be efficient in this regard. Leaders and managers are the most important organizational members involved in the decision making process of creativity and innovation within an organization. Studies suggest that creativity “requires whole-brain thinking; right-brain imagination, artistry and intuition, plus left-brain logic and planning” (Whole-Brain Thinking for Creativity and Innovation, n.d.). The whole-brain creativity concept can be understood through the following diagram. Figure 2: Whole-Brain Creativity (Shaw, 2011). It is ideally believed that a person would have a creative mind as described in the figure above. Such a person would try to discover and study in detail any problem that he/she comes across, considering a large number of possible solutions and then determining the one that suits best to the situation. However, in reality every human being may not have a complete brain concept like the one discussed. Thus in order to achieve creativity, effort needs to be put on the strengths and skills to be more competitive and successful (Shaw, 2011). In regard to a business organization the concept becomes essential with respect to the creative minds carried by leaders and managers. In case of lack of creativity, a company would require to focus more on its strengths and opportunities in order to gain competitive advantage over its competitors. In M&S, the leaders and managers ever since the 1950s have proved to be creative leading to newer innovations in their products and services. 4. Problem Choice: There are different problems that an organization might face owing to creative approaches. In the particular study, three different problems are discussed. The sacrifice of creation: Whenever a company sets plans for something new or creative in its plans and programs, it can be realized that the organization and its members would require sacrificing several of its previous systems and instead accepting newer policies and rules. This at many times might create problems for the organizational members to easily accept and become comfortable and hence may require significant time (Ferlic, 2008). For example, a company wants to produce new products that would require the knowledge of newer technologies. In such a case, the members would require time to learn and adapt to the newer technologies that might create problems for them. Fear of the unknown: Since a new or creative idea would mean newer measures as well as new results, thus there remains a fear of actions that might not be able to be predicted. These can be referred as the fear of the unknown. It might not be possible to predict all circumstances and if encountered with any such trouble, the company might face serious difficulties (Ferlic, 2008). For example, in the case of M&S as will be learnt in the further sections of the study, while on one hand the online facility was thought and proved to be beneficial for the company; on the other hand, the fear was there to lose the sales volume in the normal stores, a problem that the company could not predict from before. All individuals may not survive the changes: When creative measures are adopted, since new techniques and policies would be require to be accepted and adapted, it might prove to be difficult for several individuals to accept and manage those changes. In such cases the company may even lose its members (Ferlic, 2008). 5. Problem Solving Cycle: The problem solving cycle in an organization is primarily focused on conducting a detailed study on the problems prevailing in an organization, trying to determine the probable solutions and then selecting the best solution for implementation intended to solve the problems. This can be represented through the following diagram: The problem that is most suited to the organization – Marks and Spencer - selected for the particular study is the fear of the unknown. In the following sections, the problems relating to M&S and the probable solutions that might help the company out of its problems have been discussed. A creative problem solving measure may be applied to the problems in the M&S Company that may include different techniques in different stages of the cycle. 5.1. Current Issues, Problems, Challenges: While M&S Company is focused on innovative measures to improve and gain competitive advantage, the company encounters problems by losing connection with the smaller markets in the industry. Many times, the products prove to be more expensive against what consumers might be able to afford (Marks & Spencer- Case Study, 2010). The plan A of the company gives the details of the innovative plans that the company has been concentrating on (Appendix B). In comparison to other retail stores, M&S has also been known to prove to be the winning brand as well as supportive of the family values (Shakespeare, 2009). In fact the online shopping facility introduced by the company was a measure undertaken by the company in order to manage the problems being encountered (Marks & Spencer- Case Study, 2010). While the company introduced the online outlet facility, along with it, they provide the consumers with huge discounts that are not available in the retail stores on streets or other locations. The problem or the challenge that arises in this regard is that customers might tend to get attracted more towards the online stores owing to the discounts available as well as the time constraints been removed. Thus if customers switch their shopping from the normal outlets to these online stores, it would affect the normal sales of the company (Poulter, 2012). Lotus blossom technique that deals with the determination of the problems (Sefertzi, 2000, pp.9-11) can be applied in this stage of the problem solving cycle thus effectively listing the problems which can then be sorted out through determination of measures. The primary problems that could be determined through the use of this technique include the relationship problems of M&S Company with the smaller markets and the fear of the losing sales in the normal stores owing to the online facilities being provided to the consumers. Among these, the decrease in sales proved to be a more severe issue and hence would require immediate solution to it. Since online stores provide the customers with better offers, consumers would tend to get attracted more to the online facilities thus becoming a severe problem for the company. In this context, a mind map can be drawn that can provide with a picture of the main problem and the ideas generated and implemented towards solving the problem. The mind map in regard to the M&S Company can be represented as follows: 5.2. Generating Idea: Encouragement and Development of Creativity: In the present business world of competition, it becomes difficult for organizations to achieve competitive advantage without incorporating innovative strategies and measures in the marketing and service activities. For this an appropriate organizational culture proves to be highly essential. Also, the strategy that the company follows determines the effectiveness of the creative approach being suggested. Organizational structures as well as the level of freedom provided to the organizational members are essential factors to be looked after in order to make creative strategies successful for a business (Okantey, 2011). Figure 3: Components of Creativity (Cio, 2012) The above figure reflects on the necessary components that are required to be focused on by the creative managers and leaders of an organization in order to involve the entire organizational team towards working effectively on the creative approach planned. The technique of brainstorming can be applied in this case where the different team members would be given the opportunity to provide their opinions and generate ideas in solving the problems encountered by the organization (Sefertzi, 2000, pp.9-11). Considering M&S, the brainstorming method can be utilized by bringing the different organizational members together in a meeting and allowing them to give their opinions in solving the problems encountered. The different ideas that can be generated for M&S Company through this technique include: (i) opening up more small stores such that customers who have lack of time do not have to move to distant places for the products; (ii) lowering the prices in general might solve their problems to great extents; (iii) heavy discount retailing at every normal stores along with the facilities of online stores; (iv) limiting the facilities of the online stores such that customers would require to go the normal stores for their necessary products; (v) spreading the stores increasing in number such that greater number of consumers can be approached. The best solution would be selected from the different ideas generated through the technique. 5.3. Evaluation of the Problem: Figure 4: Value and Reputation of Retail Stores (Shakespeare, 2009). This figure shows that the reputation of the M&S Company is at the highest level among the consumers. Figure 5: Comparison of Retailers Supporting Family Values (Shakespeare, 2009). This figure also reflects on the positive attribute of the M&S Company in comparison to other retail companies. From both the figures it is apparent that the company is highly popular as a brand among its consumers and thus prefers to buy products from the retail stores of M&S. However, as the problems that have already been discussed before reflect on, it can be understood that: (i) firstly, there are certain sections of individuals who might not be able to afford the high priced products that are offered at the retail stores, (ii) some people although interested in M&S products might not have enough time to go and buy products themselves, (iii) although the above mentioned two issues get resolved by the online outlet facility being provided by the company, this on the other hand tend to affect the company’s sales if all customers shift from normal stores and start preferring the online stores. While the evaluation of the problems is considered, the technique of mapping could prove to be effective that enables determination of a specific plan particularly focused to the problem(s) (Sefertzi, 2000, pp.9-11) that can help the company to achieve their creative objectives successfully. The technique of mapping can be utilized by M&S in exploring the problems and the solutions to the details and step-by-step. This technique follows an integrated method and hence follows the steps one-by-one initiating with the determination of the main problem that has been obtained to be the lowering of sales volume with the online discount retailing being available. This has been followed by the generation of different ideas that might provide solutions to the problem. Depending on the problem that requires the company to initiate some measures that might enable the consumers to have better offers and facilities as well as the company not losing its sales, the best solution would be to combine the different ideas that have been generated, and thus let the company open new stores, encourage discount retailing in normal stores, as well as limit the facilities in the online stores. 5.4. Implementation by Technique: As far as techniques are concerned there are several techniques that can be applied for the implementation of creative ideas into business performances. The process of improvisation (Embrace Change and Improvise Creative Solutions, 2012) proves to be highly effective for creative organizations like M&S. However there are other techniques as well. Brainstorming is a group based technique that depends on the views of a number of individuals who present their opinions in front of a leader. Thus several ideas can be generated in the process that can then be applied in the decision making in choosing the appropriate idea for the company in concern. (Sefertzi, 2000, pp.7-8). Lotus blossom is a technique that looks deeply into the determination of various problems. Checklists technique is used for the purpose of improvement or modification of products. Morphological analysis is also applicable in the improvement of products or processes. Mapping is a popular method and helps the team to determine a specific plan that can then be followed for the achievement of the creativity goals. New thoughts and ideas are welcome through the technique of excursion. Apart from these, there are other techniques as well that are based on the use of computers (Sefertzi, 2000, pp.9-11). Figure 6: Management Process in Creativity (Building Client Management Capabilities in Professional Service Firms, 2012). The figure presents the needs required to be fulfilled by the team of management in an organization while deciding on the application of creative measures. Considering the different techniques available, in regard to M&S Company, it can be said that the company needs to consider all of these techniques and realize which one would suit the most in different stages of the problem solving cycle thereby focusing on an approach that can benefit the customers as well as the company and its sales. The implementation stage would make use of all the techniques and implement the measure that can best provide a solution to the problem. From the ideas generated, and the opportunity of selecting the best solution, in the case of M&S, it can be said that the best solution would be to open new stores providing discount retailing at different corners of a country or city. This would enable the consumers to have easy access to the stores even if they have lack of time. Also, discount retailing would encourage increasing number of customers for the normal stores as well and the problem related to customers only getting attracted to online facilities. Moreover, the online facilities need to be restricted such that consumers would require visiting the normal stores for their choices of products. 5.5. The Changing Theory: Kurt Lewin had contributed his studies on the changing model or theory that focused on three phases that successfully completed the process of change. These three phases include: (i) unfreezing, (ii) movement, and (iii) refreezing. When the members of a group can be convinced to accept and follow a change, the process if referred to as unfreezing. In the movement phase, the plans and strategies are identified and determined that can be effectively applied in the implementation of the change desired and concerned. In the refreezing phase, the team is focused on stabilizing the change process that was undertaken such the results can successfully be achieved (Marquis & Huston, 2009, pp.167-169). Figure 7: Lewin’s Theory of Change (Change theory, n.d.). Considering the case of M&S, this model can be understood to be applicable in terms of the innovations that the company is continuously concerned about. M&S Company in order to successfully continue its performance need to involve their team members in the similar way as Lewin suggested in his model. This proves to be an effective way of involving organizational members in a complete understanding of the creative approach that might also result in various opinions being suggested for the best decision to be considered by the management. 5.6. Measurement and Assessment of Creativity in Businesses: In order to measure and assess the creativity in a business organization, creativity awareness program or model can be used that explains the factors needed to be focused on. Improvisation would also prove to be essential in this regard since in order to understand the model of creative awareness, a creative minded team would be desired by the organization. The following figure represents the model that reflects on five primary criteria. Morphological analysis technique can also be applied in this stage that focuses on improvement of the processes according to the need of the organizational objectives (Sefertzi, 2000, pp.9-11). Figure 8: The Creativity Awareness Programme (Mostert & Frijling, 2001). Five criteria are concerned in the model of which the first three are used to determine what the employees of an organization feel and opine about the level of creativity that they possess among themselves. The last two criteria are specifically focused towards how the creativity plans can be implemented by the organization in their performances (Mostert & Frijling, 2001). Thus companies including M&S can use this model to study and learn the status and effects of these five criteria and thus be able to measure and assess the creativity plan that they intend to incorporate in their performances. 6. Conclusion: The above study has been focused on the development of creativity in business. Considering the Marks and Spencer Company, it has been realized that the management of the company has its focus on innovative and creative measures thus trying to gain competitive advantage over its competitors. However, in spite of being innovative in its measures, the company has challenges and issues as well that it can expect to encounter. This can be associated with the lack of the company’s concern on a complete structured planning for the implementation of the creative plan in their performances. With the different models as discussed in the study as well as the creativity awareness program based on the problem solving cycle, it can be assumed that the company’s fear might be overcome. If the company plans to provide its customers with online facilities with huge discounts on products, the company also needs to focus on the fact that all customers do not shift to the facility thus affecting the sales of the company. Instead, a policy needs to be such applied that can benefit the consumers as well as the company and its sales. The business models if properly studied and applied can be expected to bring significant development of creativity in the business. References 1) Baker, R. 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(2000), Creativity, urenio, available at: http://www.urenio.org/tools/en/creativity.pdf (accessed on March 6, 2012) 20) Shakespeare, S. (2009), Happy New Year for Sainsburys and Waitrose, wordpress, available at: http://stephanshakespeare.wordpress.com/category/brandindex/ (accessed on March 5, 2012) 21) Shaw, J. (2011), Unlocking Creative Potential – A Neuroscience Approach, Part II, managementhelp, available at: http://managementhelp.org/blogs/training-and-development/2011/12/19/unlocking-creative-potential-a-neuroscience-approach-part-ii/ (accessed on March 5, 2012) 22) Where we are (2012), marksandspencer, available at: http://corporate.marksandspencer.com/aboutus/where/uk_stores (accessed on March 5, 2012) 23) Whole-Brain Thinking for Creativity and Innovation (n.d.), available at: http://www.creativityatwork.com/innovation-consulting-whole-brain-thinking/ (accessed on March 5, 2012) Appendices Appendix A: Income Statement of M&S (Consolidated income statement, 2011). 52 weeks ended 2 April 2011 ?m 53 weeks ended 3 April 2010 ?m Revenue 9,740.3 9,536.6 Operating Profit 836.9 852.0 Finance income 42.3 12.9 Finance costs (98.6) (162.2) Profit before tax 780.6 702.7 Income tax expense (182.0) (179.7) Profit for the year 598.6 523.0 Appendix B: Plan A of M&S Company (Marks & Spencer- Case Study, 2010). 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