THREE (3) KEYS TO FORGING AN INNOVATIVE ORGANIZATION.

In today`s knowledge-driven economy the ability to innovate is a crucial survival factor. Innovation helps firms to optimize the commercial exploitation of new ideas as products, processes, and organizational techniques. It is a process that facilitates the realization of new products, new marketing techniques, and new forms of management to improve operational efficiency, productivity, and organizational growth.

While many enterprises are aware of the strategic role that innovation plays, they lack the knowledge and skills to innovate. Douglas McGregor in his book “Human side of Enterprise“ offers Theories X and Y as possible reasons why organizations find it difficult to innovate. Theory X posits that employees are unreliable and uncommitted, chasing a paycheck. This theory aligns with the belief that failure to innovate is occasioned by people who do not really care about innovation.

Theory X is the reigning philosophy in most large institutions. While this view is greatly opposed by people in authority, `our practices belie our values`. Take a closer look at how organizations manage people. It appears that employees cannot operate without supervision. Arie de Geus, the author of `The Living Company, cautions that treating an enterprise as a machine for making money rather than as a living community and, people regarded as `human resources` waiting to be employed or dis-employed` are some of the reasons behind innovation impotence in many organizations.

The word `resource` means standing in reserve waiting to be used. Therefore, based on the above reasoning a business will fail to innovate because most people will not desire to do so. Theory Y on the other hand presents employees as responsible adults wanting to contribute. The theory indicates that people at the workplace truly desire to make a difference and, therefore, to innovate. Regardless of your school of thought, innovation is an elusive concept in many organizations.

Peter Ducker offers the following three ingredients that can help us establish innovative organizations.

1.PURPOSE/MISSION AND PRINCIPLES

A purpose and principles that elaborate our deepest beliefs can be the hardest work we will ever do. Without these, however, there is no way to create an enterprise that can truly thrive. A great number of organizations today have purpose statements as well as a vision and organizational values. Unfortunately, few admit that their mission has transformed their enterprise. Hence, one is left to wonder why romance with lofty ideals that do not match the reality of organizational life.
There is a big difference between having a mission statement and being truly mission-based. To be truly mission-based means that key decisions can be referred back to the mission. It means that people can object to management edicts that do not connect to the mission. Everybody makes it their job to continually think about the mission. Unfortunately, the reality is that no one would dream of challenging a management decision on the grounds that it does not serve the mission. The fact is, most people in an organization are under the dictates of those in power rather than the mission. Being truly mission-based is difficult due to the fact that it gets to the core of power and authority. It is radical. In essence, you are making the mission more important than the boss. You are declaring to those in authority that they are not the source of legitimate power. That power lies in the organizations ideas. While this may appear appealing, living it is extraordinarily challenging. For the majority of us, authoritarianism is the only system that weve ever known. But it can be done and when done it can work.

2.VISION

The second key is defined results. Managers are by nature pragmatic; they are not only concerned about results but also must concentrate on how not just why. A Vision translates the mission into truly meaningful intended results and guides the allocation of time, energy, and resources. It is through a compelling vision that a true sense of purpose comes alive. It describes the desired outcome that invokes a vivid mental picture of our goal and describes ongoing actions in which the organization will engage. As leaders, a vision statement should inspire and energize us, our subordinates, our colleagues, and other stakeholders. It is what we return to whenever we get confused about our business goal or its subordinate business objectives. Having a good vision in place awakens passion from the deep longing of every human being to make a difference and, to create an impact.

3.ASSESSMENT OF RESULTS

The third element is assessment. Assessment has two components; 1) Measurement and, 2) Interpretation. Interpretation requires Understanding, Participation, and Physical presence. Relying purely on statistical interpretation can be disappointing. Presence can lead to more revelation. A team could be at a brick of a breakthrough. Premature assessment in this case destroys learning. Hence, someone sitting on the outside judging rather than fully understanding can make effective assessment impossible.
Awareness brings about another challenge. Willingness to abandon what doesn’t work after assessing results Abandonment produces innovation. It clears the deck for trying something new. As much as this sounds simple, many organizations find it difficult to abandon what isnt working; they Cant quit tradition; they Can`t punish one person but can punish a thousand people.

To find out what isn`t working in ways that do not involve defensiveness, one must build a culture in which people can express their views without fear of reprisal. Fear makes people tell you what you wish to hear and cover up incorrect ones. This undermines inquiry, which is essential to realizing innovation. Assessment should, therefore, be learning-centric rather than evaluation centric. The latter involves defensiveness.

In conclusion, mission, vision, and assessment blend creating an ecology; a set of fundamental relationships that forms the bedrock of business innovation. These tools allow people regardless of their job titles to effectively participate in shaping the future of their organizations. The failure of many organizations to embrace these three components: 1) Purpose, 2) Vision and, 3) Assessment of results, shows how far there is to go to meet the challenges of the 21st Century. This article was written by Beatrice Mwasi – Director of the Center for Business Innovation & Training (CBiT).