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Opening Outline of Dynamic Capabilities

Introduction to dynamic capabilities

The study of dynamic capabilities, the organization’s capacity to change its operations and adapt them to the environmental requirements, has taken centre stage in the debate on strategic management as well as organization theory (Teece, Pisano and Shuen 1997, Eisenhardt and Martin 2000, Zollo and Winter 2002, Winter 2003) in recent times. The notion, which has received several, and only partially aligned, definitions, lies at the heart of of the organization’s ability to enact change in a systematic and fruitful way.

Winter (2003) clarifies that organizational change happens in one of two ways: the first with ad-hoc problem driven search, and the second through the action of “stable patterns of activity aimed at creating or changing operating routines in pursuit of enhanced organizational effectiveness”, the definition of dynamic capabilities in Zollo and Winter (2002).

The different dynamics IFD — The two points for dynamics in innovation

What is Dynamic Capabilities?

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The Outcomes Expected from this Work

All I can share are the result outcomes I would like to achieve from this work with you:

Expected results I am seeking out of this work for you will lead too:

A framework that moves towards a company-wide development program that gains identification and the target of company-wide improvement of routines and different skills required for innovation to succeed/ improve and be distinctive.
Pursuing limited or ‘selective’ development will not have the desired effect, it is not just a human resource department exercise or individual division or team level exercise, but provide a framework that offers the real answer to innovation and why it does require a ‘holistic’ view of innovation development to manage.
Be in a position to challenges long-established organizational capabilities and routines that are taking place by knowing where (and why) they reside and are often more ‘static’ in reality than understood. Often many of these ‘static’ capabilities are simply not valuable to further invest in, the waste of precious funds just for the sake of it, as other areas identified offer a more dynamic aspect closer to achieving the strategic results set within the corporate strategy for innovation return.
Importance of linking capability to become dynamic with the strategy gives greater alignment and potential and can offer a clear capability portfolio where resource needs to be applied to bring new value and alignment to the organizations goals.
The internal dialogue generates a self-reflection process for identification of true and ‘false’ dynamic capabilities and identifies the more static ones that often just need reinforcement. The solutions draw out internal discussions for a recognition and reality of the present and future needs in this area of innovation resource allocation.
It provides the means to achieve additional resource allocation and raising the importance of these to support the strategic intent of the company and it intensifies and solidifies the studies and importance of innovation within the framework of the organization as an area of specialised knowledge.
Results achieved from this raises the need to understand dynamic innovation capability. Knowing the importance and effect of dynamism for the growing need of greater flexibility and agility in changing, challenging times becomes a clear focus. Then through seeking routines and knowing the diversity within these choices, one can identify the basis of sound differentiation to meet different innovation challenges.

Knowing your innovation fitness is critical

Each organization needs to know its Innovation Fitness Landscape- why?

There is a pressing need for a firm is to consistently build and reconfigure internal and external competencies and capabilities to address rapidly changing environments. It is the mastering of this ability to achieve new, more innovative forms in rapid changing market conditions that will enable certain organizations to emerge as the winners of the innovation race.

This view requires a more ‘dynamic’ set of capabilities. Often the question becomes one of “which are the critical ones to focus upon to improve the chance of greater success?

Knowing your fitness landscape does provide a good understanding of your existing position and set of capabilities and can ‘point’ you towards the ones that you need to have to move towards to have in place to improve your innovation capacity and achieve closer to your goals.

Survival of the fittest dominates

Each organization has limited resources, it is to know where to focus your limited resources to maximise your abilities to deliver better innovation. The key is to map out those current innovation capabilities to the tasks (and aspirations) at hand and identify the opportunity spaces and gaps that need to be filled to match aspiration with abilities, so as to deliver against the stated strategic need. It does seem Darwin seemingly raises his head in much of what we do to simply keep up and adapt. So we do need to understand innovation in more of its entirety not only to survive but to thrive.

An opening CSF for innovation

A brief overview of critical success factors for innovation to check against.

The organization: structure of innovation processes to be explicit by treating innovation as a systematic process and continued ongoing process
Keep innovation separate from daily work routine, remove barriers, give accoutability
Set ambitious goals and a vision and combine these with small attainable steps
Focus on results, doing things for clear results, satisfying evaluation criteria
Learn from the innovation process for courage, acknowledge mistakes, continuous
Create a climate for creativity- trust, openness
Foster values that enhance innovation- core ideology, values, diversity
Break patterns, abandon accepeted truths and historical myths, contrarian thinking
Motivate personnel- good ideas, risks and achievements rewarded and recognised
Make people central to it all- the real power of innovation
Communicate about innovation- positive signals, setting example, commitment, faith.
Involve the top directly- word and deed, setting the example, protective shield
Search for and make use of opportunities- systematic inside and outside
Be customer-orientated- use as a source, the ‘burning platform’
The use and involvement of multiple stakeholders- open and flowing
Define the context, the clarity and prespective of the problem faced
Search to obtain the experience with the subject on hand
Pursue a range of paths and solutions
Evaluate problems, trigger ideas and access success
Commit sufficient resources, time and space.

The Vital Attributes for an Innovation Organization

Understanding what is needed for innovation- unlocking the mysteries

* Innovation organizations tend to be more decentralized, more informal, minimally stratified or layered and more generalist than specialized.

* They have cultures that value independent thinking, risk taking and ongoing learning.

* They are tolerant of failure and they value diversity.

* Open communication is reinforced and there is a high degree of trust and respect between individuals that collaborate.

These attributes should include, but not limited too:

Organizations have a clear vision
Innovative organizations change because they see a better way and not because they have to change
Innovation organizations are always on the lookout for new products, new markets and new ways of doing things
Innovation organizations value substance over form- putting the ideas to work
They build creatively and innovation into the fabric of the company
They have organizational structures that are more often team-based than hierarchical
Innovation organizations tend to operate through open communications rather than through formal processes
Innovation organisations do not personalize conflict
Innovation organizations focus on who you know as well as on what you know
Innovation organizations appreciate individuality and diversity
Innovation organizations encourage fun at work- engaged, enlivened, fully participative and empowered
They reward curiosity and working smarter
Innovation organizations do not believe in the answer and allows space for wondering, thinking and reflection and numerous ways to get to a solution
Innovation organizations encourage people to bend the rules, being different and having pride if they emerge with adding new value to the organization.
Innovation organizations tolerate errors and avoid punishment where creativity is appreciated
Innovation organizations finally encourage behaviours that allow for thought, time for incubation, openness to wonder and sometimes irreverence that can elicit different, creative reasoning that wants to be measured on creativity and innovativeness.