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Everything Changes after a Recession

Written by: G.J. Miller

Article Overview: “If change is happening on the outside faster than on the inside, then the end is in sight” Jack Welch, CEO, G. E. In fact, the world is rapidly changing and organizations need to keep up. Innovation has become one of the top business objectives in organizations that want to grow, out perform their competitors and, indeed, survive by creating a high value proposition. More than 70% of senior executives said “innovation will be at least one of the top three drivers of growth for their companies in the next three to five years”.

Everything Changes after a Recession

According to this McKinsey survey, leading strategic thinkers are moving beyond product innovations to innovations in business processes, distribution, value chains, business models, and even the functions of management. So why do 65% of the same group express concern about the ability to stimulate innovation? The desire to innovate simply does not make it “so”. Specific actions need to be taken so it becomes part of the culture:

Creating the Environment
People and Culture are the most important drivers of innovation but leadership is the best predictor of innovation performance. The following cultural ‘stimulus’ is required:

1. Strong leaders who encourage and protect innovation coupled with top executives who manage it, measure and drive it.
2. An environment that encourages calculated risk taking
3. A culture that fosters new ideas
4. A leadership team, at all levels, that models the behaviours of innovation – in other words set the tone.

Framing Innovation

1. Define the kind of innovation that will drive growth and meet your strategic objectives. Ask for new ideas in specific areas; delivery, customer satisfaction. Otherwise employees come back with incremental or often familiar ideas.
2. Make innovation part of formal meeting agendas. This sends the signal of its importance.
3. Set metrics. Both financial and behavioural metrics are necessary. Sample metrics:
a. 20% of revenue from products launched within the past 3 years
b. Targets for new ideas to ensure they can impact performance
c. 25% of all ideas must come from external sources (partners, suppliers, customers etc.)

Providing a ‘vehicle’

Create a way for ideas to be viewed, debated and enhanced by all. TaylorMade Golf created “Harold” a corporate social networking site that allows all 1400 employees to brainstorm ideas. CEO, Mark King, says “What’s important about Harold is not the technology – it says ‘you can have an imagination here’. King believes if he can guide employees’ creativity in the right direction, TaylorMade might take a trophy in “more than drivers”. The idea for Harold came from someone in the organization who would not have been heard in their old culture.

The Right People

When it comes to people, you need leaders that foster innovation, yes. But you also need the right ‘mix’ of people in the organization and on project teams;

1. Those who generate ideas; ask the right questions and are willing to take risks
2. Those who love to do research; like detail and seek new information
3. Those who like to ‘get things done’
4. And those who orchestrate the work; within teams and across teams

Identifying the types of behaviours required can be time consuming and is considered a pseudo science, at best. However, assessments help avoid the pitfalls of politics and relationships by using a methodology to hire, determine project members and identify individuals that value and foster innovation. Understanding each individual’s talents, values and needs provides for better role and project assignment.

Keirsey identifies the talents, values and needs for each ‘temperament’ within their tool. Temperaments are further broken down into 4 subsets that allow more specific characteristics to match people to roles.

Below is a brief synopsis of the four broader types or temperaments.

Guardians
• Value experience, security, authority and responsibility
• Have logistical talents in establishing processes, managing goods & services and upholding standards
• Can be counted on to “mind the store”, attending to the details of a project and seeing it through to completion
Rationals
• Value knowledge, competence, reason, and achievement
• Have strategic talents in planning, structural design, and systems analysis
• Can be counted on to “think outside the box”, offering new ideas and strategies for accomplishing well-defined goals
Idealists
• Value meaning, integrity, and human investment.
• Have diplomatic talents in guiding personal development, resolving conflicts and improving communication
• Express themselves enthusiastically while championing causes and inspiring others to reach their potential.
• Can be counted on to “see the best in people”, and finding new possibilities for growth
Artisans
• Value potency, generosity, creativity, and adaptability.
• Have tactical talents in marketing, operations, arts & crafts, and crisis management
• Can be counted on to “just do it”, improvising actions seizing opportunities, and forging onward when others have given up.

Using Keirsey an organization will be able to generate excitement for and sustain innovation if they combine the right people, the framework and a vehicle, with the right leader.

Just as surely as the business landscape changed after the recession of 1990, it will be different after this turnaround, so companies must prepare for change in the way they do business. We believe the entities that factor organization and leadership development into their strategic objectives, specifically innovation, will be winners.

Surviving the downturn and achieving long term growth strategies simply can’t be achieved with the ‘wrong’ people.

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Article Tags: behaviours, brainstorm ideas, business models, ceo mark, customer satisfaction, external sources, functions of management, impact performance, innovation performance, leadership team, mckinsey, meeting agendas, performance c, product innovations, social networking site, strategic objectives, strategic thinkers, taylormade golf, top executives, value chains



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