How do organizations foster innovation - Research Paper Example

? How Do Organizations Foster Innovation? How Do Organizations Foster Innovation? Introduction Innovation refers to the creation of an effective product, services, processes, technology and ideas that are conducive for markets, society and the government. It involves the use of new ideas and methods to spur growth. The world is actually where it is because of innovation. For instance, mobile phone came into being as a result of innovating processes undertaken by people and organizations. Even airplanes came into being due to the desire of use a new idea in the transport sector. Innovation is particularly important to the society since its aids comfort, efficiency and convenience in life. In economics and business sectors, innovation is seen to spur growth. The government is also not left out as it requires innovation to spur economic growth. In fact, performance of organizations differs mainly due to differences in innovation initiatives created by the organizations. Some organizations do not perform well because they do not create an environment that promotes innovation. With regard to organizations, innovation is linked to positive changes in productivity, efficiency, quality, market share and competitiveness and many more. All organizations are capable of innovating but, the question that ponders on the minds of many is how organizations spur innovation. This paper will explore the ways in which organizations foster innovation. The need for innovation in an organization is paramount and universal if the organization is to be successful. For organization’s customers and members to keep coming back over and over again, they must have the feeling that there will be a chance to see and do something different or new each time (Yao et al., 2006). As institutions evolve and the world keeping on changing, an organization needs to change its products and programs so as to be able to reach new markets to achieve the organizations missions. This calls for an environment that fosters innovation. There are three different variables that have been identified as the stimulus of innovation in an organization. These are the organization structure, human resource practices and organization culture. Yao et al (2006) notes that innovative organization are defined mostly by decentralized decision making, few hierarchal distinctions and lateral communication networks. In this case, he noted that information flow must be open and persuasive with a relatively flat organizational structure. For innovation to thrive in an organization, Yao et al (2006) suggest that organizations must be structured in a manner that is reflective about their practices by making an attempt to learn from their mistakes (France, 2011). This is because these organizations are capable of incorporating different points of view in an organization which is a factor that enables innovation to thrive. In this case, a rigid organizational structure neither recognizes nor implements innovation. Yao et al (20006) notes that many organizations foster innovation by ensuring that there are a well-developed formal practices within the organization that tap into informal activities. He notes that connecting informal and formal practices within an organization creates an environment for innovation which allows for its adoption and implementation. The connecting practices identified by Yao at al (2006) include promoting communication, socializing and creativity in the formal systems and creating a path that brings the best that emerges in the informal system into the informal system for implementation and development. Allowing employees free time to think is very crucial as it fosters creativity. Yao et al. (2006) notes that 3M usually allows its researchers to spend fifteen minutes of their research time working on whatever pleases them. On the other hand, Tech staff were noted to old informal brown bag launches to share what they have leaned after returning from their visit to science centers. Innovation involves interaction of different people with different ideas. These in most cases involve the use of technology. For instance social networking has spurred innovation in many organizations. Yao et al. (2006) argue that social network has formed a basis of connecting practice utilized by many organizations to foster innovation. He notes that almost all the informal activities that take place in an organization takes place within informal social networks, and complex relationships among employees within an organization and beyond. Yao et al. (2006) asserts that persons within these networks facilitate the transfer of information and information sharing and ideas. An organization that understands how its informal networks works and who its key players are can use this knowledge to get the pulse of the organization and learn about new ideas and target information for dissemination (Yao et al., 2006). According to Yao et al. (2006), utilizing social network is the easiest connecting practice to implement by an organization as a means of fostering innovation. This is due to the fact that a majority of people interact with others informally as they work. More than often this has formed the major mode of communication, as opposed to the formal channels (France, 2011). This form of communication has been evident in The Tech Company. In this case, he notes that he participates in the informal system in a very conscious manner. In this case, the organization has created an environment in which employees seek out for conversations with other colleagues. In the process, new ideas are generated which fosters innovation. Innovation in an organization also depends on the organization style adopted by managers. In this case, many innovative organizations were seen to foster innovation by adopting management by walking round (Yao et al. 2006). According to David Packard, innovating managers should get out into the business and engage their people at all levels so that they can know what is going and pick up ideas that middle managers and supervisors may not have taken as important. Seeking innovative ideas is another way by which organizations fosters innovation. According to Peter Drucker, conscious and purposeful searching is frequently possible for innovation (Yao et al., 2006). This implies that seeking ideas from other organizations is one way by which an organization can foster innovation in the organization, For instance, Yao et al. (2006) notes that General electric usually holds town gatherings to solicit ideas. However, for this method to be effective, it is necessary that the possibility for adoption be made clear and that decisions are followed swiftly by genuine feedback clearly justifying the action taken (Yao et al., 2006). He also noted that The Tech organization seeks its ideas by creating food for thought luncheon. In this case, the president of the organization invites different groups of people from different organization and from different departments to an informal lunch, hosted by the board members of the organization. The luncheon is purposely meant to discuss what they wish is necessary. Yao et al., (2006) note that some of the conversations have seen changes to practices which had not initially been recognized by the leadership of The Tech. Company. According to Kelly and Littman (2001), devoting resources to tinkering and finding new ideas foster innovation. For instance, IDEO’s Tech Box consist of array of parts, pieces and other things that an individual may borrow and consequently inspire them to think about the design this was seen to inspire innovation within IDEOs Tech Box industry (Yao et al., 2006). Yao et al., 2006) notes that Pfizer scientist is free to follow ideas whenever they go. They believe that they only way the company can discover what tomorrow holds for drugs is by moving away from the rigid process. In this case, they suggest that employees should be set free from rigid procedure. Story telling is another way by which organization can foster innovation. Yao et al. (2006) note that story telling is a powerful tool through which knowledge and culture can be shared. Stories are used explain that an organization do and why the does it. In the process, people learn new ideas, which result into innovation. This is one of the tools used by IDEO company to instill innovation in the industry. For instance, IDEO provides recreational space for teams to show their work and share stories with their colleagues and others (Yao et al., 2006). In this case, it has been seen that having informal displays to handle and talk about promote information sharing and new ideas. However, it is necessary to not that despite the fact that stories can promote innovation, it also has the potential of locking an organization into its existing practices as was noted by Sherman and Schultz in 1998 (Yao et al., 2006). Therefore, it is important that an organization should not get fixed to stories that promote attitude. Yao et al. (2006) notes that the challenge to many organizations is to strategically capture and tell the stories which are true and are capable of guiding and illustrating the mission of an organization’s culture. Systematic connecting practices have also been identified as a strategy employed by organizations to foster innovation. This may take the form of evangelism practices. According to Gareth Morgan, evangelism is the work of strategic termite (Yao et al. 92006). In this case, he suggests by discussing ideas and approaches informally, creating understanding, support and doing things a new way an organization would be able to create an array of interests leading to formal adoption. For instance, the grants coordinator of The Tech narrates that by the time he joined the management team of The Tech, the organization seldom used evaluation technique except for big projects that provided funding to outside consultants. In his position as a coordinator, he saw the need for a better evaluation but quite a number of people gave a deaf ear to his ideas. Therefore, the coordinator had to talk to people about their challenges and discussing the vision of the company for the future. In the process, he shared with the colleagues whatever he had learnt about evaluation pertaining to their challenges. With time, people started becoming conscious about evaluation developed. This idea was then incorporated by the organization (Prather, 2009). Prather (2009) asserts that to foster innovation, an organization must be able to embrace emerging roles of employees. Yao et al. (2006) note that innovating organizations define roles for each employee. It is therefore important for an organization to develop a structure that enables new roles and relationships to develop as work evolves. Embracing the emerging roles implies that organizational structure has to be restructured to fit the patterns that emerge from the work. To ensure that this happens, innovative organizations ensure that staff volunteers are not put in fixed department for each new project on the basis of their interests and knowledge. (Yao et al., 2006). Prather (2009) notes that by keeping changing project team-groupings, an organization will be at a position to increase the range of knowledge sharing and interactions among its employees with different experiences, approaches and ideas (Yao et al., 2006). This strategy is employed by the tech organization to foster innovation. In this case, the Tech has developed Learning Experience Group which embraces emerging roles in the organization. Yao et al., (2006) asserts that, as The Tech focus on their work and responds to economic and audience changes, it has amalgamated three separate outreach programs aimed at reaching key target audiences. As the work of the organization changed, staff roles shifted, and new responsibilities came up. With time, Yao et al., (2006) argue that the dynamics of program delivery of The Tech Company changed, and different staff members found to be working as a team quite often. Instead of coming up with a new organization structure and hustling to fit the work within it, the organization only changed formal organization structure to match how the company accomplishes its work (Yao et al., 2006). Some organizations foster innovation by allocating part of the working time specifically for innovation. This is ensured by letting employees of the organization be as inventive as possible as asserted by Scott cook, of Intuit Company. In this case, Intuit Company encourages this by allowing their product managers and engineers at various departments to take ten percent of their routine work to new ideas. In doing this, company is able to develop products and features that much need of its customers (Inc. Staff, 2010). Motivation is also key in encouraging employees to be as innovative as possible. A motivated employee usually tends to find new ideas of how to improve the performance of an organization (Davila, Epstein and Shelton, 2007). Many organization managers are a ware of this fact and always employ various means of ensuring that innovative employees are motivated. In this case, it has been a common practice that many organizations foster innovation, by rewarding innovation, as was evident in Fog Creek Software Company in which the manager of the company had to offer an equity stake reward Noah Weish if he agreed to return to the company. This was a way of encouraging other employees to be innovative as possible so that even them can be rewarded for their innovative contribution as was the cases with Weiss (Inc. Staff, 2010). Any organization that contemplates succeeding knows very well that nothing comes easy. It is for this reason that organizations encourage risk taking behaviors in an organization. In this case, some organizations encourage employees do something that they have never done before. This technique has been evident with BrightHouse Company. In this case, they organize companies yearly events known as March Fo(u) rth. Here, employees are required to perform certain tasked which they have never been involved. These include jumping from a plane, beginning writing a novel or scuba-dive. In the process, these employees will learn new ideas, which will instill growth of the organization (Prather, 2009). Some organizations appreciate intern contest as a way of fostering innovation. For instance, La Jolla Group Company of apparel in Irvine, California, noticed in 2007 that it lacked designers specializing in surf fashions. In an attempt to solve the issue, the chief executive officer proposed that a contest be organized to get talented people to fill the vacancy. This has become a norm in which every September a handful of youths would gather and compete for runway fashion, which are judged by audience members through text message. After the competition, the winner is then invited and offered an internship at the company. This technique has proved very fruitful in fostering innovation as teen know that by being creative, they would be able to be offered internship and a scholarship at the company. The fact that completion is involved is very important since it allows the organization to get the person who has the best innovative ideas (Davila, Epstein and Shelton, 2007). Some organizations introduce new software as a technique to round up employees ideas. This method is usually very useful in cases where employee is extremely shy to pipe up as was the case with Solar System Company in California. In this case, the chief executive officer decided to adopt an online survey tool to allow its employees to review the ideas of their peers’ submissions and tag a price of $500. In this case, the company knew that there would be those people who might be shy of submitting their ideas. The employees were also given a forum which encourages all employees to share. The management then reviews the ideas submitted from each employee and adopts the best. However, with standard suggestion box, the company noted that employee ideas submitted to the management quite often disappeared before review. It is for this reason that the organization uses technology to trace and rank every employee’s submission to ensure that all ideas get a fair shake. This has enabled the company to get many ideas from employees (France, 2011). Fostering diversity in the workplace is another way by which organizations foster innovation. For a company to be innovative, it must be able to embrace a culture that embraces diversity. It is therefore crucial for an organization to establish an infrastructure that not only encourages diversity but that which also celebrates it. The company’s culture should reflect an environment under which all employees feel comfortable and valued and that in which employees opinions are encouraged (Prather, 2009). Simma Lieberman argue that, an organization need not just incorporate diversity training or just train one person, but an organization needs to have a culture that form part of the organization. By putting up an organization that embraces employee diversity, this has the potential of creating opportunity for people to interact in a good way within the organization. Incorporating diversity in an organization is helpful to the organization in that it has an impact on internal employee relation and can assist in obtaining new clients (France, 2011). Diversity innovates in an organization in that it gives a company or organization access since it makes customers recognize different elements in an organization. Incorporating different cultures in an organization have also seen the development of near ideas from this cultural background which is quite helpful to an organization (Davila, Epstein and Shelton, 2007). In conclusion, it is evident that the success of an organization also depends on its ability to innovate by coming up with new ideas. This is because for organization’s customers and members to keep coming back over, and over, again, they must have the feeling that there will be a chance to see and do something different or new each time they interact with the organization. The world’s dynamic nature also requires that an organization keeps pace with the changing times by adopting innovations by changing its programs and product niche. These have led to the development of a number of strategies being used by different companies to foster innovation. One such strategy is ensuring that there is a well-developed formal practice within the organization that taps into informal activities. This include promotion of communication, socializing and creativity in the formal systems and creating a path that brings the best that emerges in the informal system into the informal system for implementation and development. Some organization encourages risk taking behaviors with in the organization to tap on talents and new ideas. Some organizations foster innovation by creating an environment which allows employees to think. This is by giving them a chance to do as they wish. Some consider holding intern contest to tap on ideas, and in some cases, a reward scheme is organized for those employees who have contributed to the organization through innovation. This is mainly to encourage hard work among employees to be innovative. References Davila, T., Epstein, M., & Shelton, R. (2007). The creative enterprise. Westport: Greenwood publishing Group France, D.R. (2011). An organization case study of how individuals foster innovation in Others. New York: BiblioBazaar. Inc. staff (2010). 8 Ways to foster Innovation in Your Company. 16 April, Retrieved on 16 March 2012 from: http://www.inc.com/guides/2010/04/fostering-innovation-in-companies.html Prather, C. (2009). The manager’s guide to fostering innovation and creativity in Teams. New Jersey: McGraw-Hill Professional. Yao, C., Dierking, L.D, Dierking, L.Y. & Anderson, P.A. (2006). Handbook for small science centers. Plymouth: Rowman Altamira. Read More