Argumentative

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Creativity, Innovation & Design

Creativity at the Organisational level

=> 2. Enhancing entrepreneurial behavior (including creativity) in organisations

Prepared by Dr Gerrit de Waal

What can organisations do to ensure employees are creative on the job and innovate?

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Chapter 13 presents 19 ways to establish a climate for innovation

http://www.pinchot.com/intrapreneuring/(Pinchot, 1985)

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1. Transmitting Vision and Strategic Intent Hierarchy of Strategic Intent

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2. Tolerance of Risk, Mistakes and Failure

Managers struggle with the concept of failure • There is a tendency within companies to develop “zero error cultures” as

companies strive to meet ever-higher performance standards in a hypercompetitive marketplace

• This results in innovation incompetence, where bold initiatives are avoided and initiatives are pursued only when there is an apparent guarantee of outcomes

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A culture of “successful failures” • Nokia: “this is a place where you are allowed to have a bit of fun, to think

unlike the norm, where you are allowed to make a mistake” • BMW: “flop of the month award”

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3. Support for corporate entrepreneurs (intrapreneurs)

Creating a Work Environment conducive to creativity and innovation

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4. Managers who sponsor innovation

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5. Empowered cross-functional teams

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6. Decision-making by the doers

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7. Discretionary time

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8. Attention on the future

Exploitation (focus on today’s core business) versus

Exploration (focus on tomorrow’s new business)

Firm ambidexterity (firms that can do both well) (O'reilly & Tushman, 2013)

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9. Self-selection Corporate entrepreneurs cannot be assigned or appointed; they must be volunteers who bring a clear vision of what they want to create.”

(Morris, Kuratko, & Covin, 2011)

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10. No hand-offs

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11. Boundary crossing

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12. Strong organisational community

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13. Focus on customers

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14. Choice of internal suppliers

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15. Measurement of innovation • Innovation Audits • If you don’t measure it, you can’t manage it! (Drucker)

Product Innovation example metrics: • Percentage of sales from new

products • Number of patents registered • Number of NPD projects

Entrepreneurship and Innovation Health Audit

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16. Transparency and Truth

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17. Good treatment of people

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18. Social, Environmental, and Ethical Responsibility

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19. Avoiding the home-run philosophy

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The role of leadership in promoting creativity

• Transformational leaders promote creativity in followers by developing an environment or climate where creative ideas are likely to emerge.

• But they also develop an organizational culture that facilitates creativity and innovation

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Summary

Innovative Culture Strong customer focus

Intrapreneurship is encouraged An openness to new ideas

Submission and sharing of new ideas by all employees

Risk-taking and acceptance of failures without punishment

Innovative Climate Learning organization

Knowledge management Cross-functional teams

Reward systems Free time and sufficient resources

for undertaking creative activities

Pleasant work environment

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References • O'Reilly, C. A., & Tushman, M. L. (2013). Organizational Ambidexterity: Past, Present, and Future. Academy of

Management Perspectives, 27(4). doi:https://doi.org/10.5465/amp.2013.0025

• Pinchot, G. (1985). Intrapreneuring: Why You Don't Have to Leave the Corporation to Become an Entrepreneur. New York: Harper & Row.