Innovation tension lies in our layers and structures

Reduce the tension in the layers or structures for innovation to emerge.

A really hard part of managing in larger organizations is in managing the layers and competing forces. Hierarchy dominates the speed of what we do.

The tensions surrounding innovation
The tensions surrounding innovation

Often we forget to reinforce the very design within our organizational structures, we leave role structures incomplete and uncertain and we set the deliverables in often ‘woolly’ ways so we can side step the often intransigence within our organizations way of working . This just further promotes uncertainly and it is not an adaptive organization but one left open so the leadership can side step when it suites their purpose.

In leaving this so open to ignoring one minute, using it as the ‘whipping boy’ the next they slowly immobilize those underneath. These create unnatural built-in tensions and often create a shearing effect.

They grind against each other, like tectonic plates that force further disruption and upheaval.

Cracking the complexity code

There was a good article within the McKinsey Quarterly, published in 2007 entitled “Cracking the complexity code” written by three authors Suzanne Heywood, Jessica Spungin and David Turnbull.

Cracking the complexity code of organizations
Cracking the complexity code of organizations

They lead this article with “one view of complexity that holds that it is largely a bad thing- that simplification generally creates value by removing unnecessary costs”. Certainly we all yearn for a more simplified life, structure, organization, approach to systems or just reducing complexity in our daily lives to find time for what we view as improving its ‘quality’.

Within the article they argue there are two types of complexity – institutional and individual.

Combining four foundation pillars.

wealth

We need to think about recognizing the ‘combining effects’ of four foundation pillars; of value creation (vc), business models (bm), intellectual capital assets (ica) and innovation capital (ic). It is the dynamics within the multiple combinations that will generate the future wealth creation we need.

We are in need of having a better understanding of the integrated value focal points of these four pillars combining, they need connecting so we can build the supporting structures and place the roof of need, our wealth creating one, to give us a new potential of harnessing our innate abilities to be creative. These four pillars offer perhaps a new core, a new transforming power, they make our activities connected and dynamic.

Establishing Distinct Capabilities for Innovation Success

IFD emphasis on design

The emphasis needs to be placed upon building distinct capabilities for innovation success.

Announcing the building of dynamic innovation capabilities for your fitness
Announcing the building of dynamic innovation capabilities for your fitness

the dynamics within the existing capabilities need to be fully understood and then you need to design the new capabilities on clear understanding of the direction, vision and mission required from innovation to be more successful in meeting the strategic needs”.

Irrespective, there are big, consistent growing questions still nag away in the CEO’s mind on innovation

Q: “What and where do I place my limited (and scarce) resources to maximise the impact of our innovation efforts and how can I be sure?”

“What are those capabilities that generate differential advantage?” How can the CEO or CIO identify the links and connections they want to make their innovation activity align more with the overall capabilities system they have in place? Where does the CEO place his ‘bets’ to get the limited resources he has available aligned to gain this better return on the investments in innovation?

Can we identify a common set of critical innovation capabilities?

Yes, I believe we can.

Innovation tension lies in our layers and structures

Reduce the tension in the layers or structures for innovation to emerge.

A really hard part of managing in larger organizations is in managing the layers and competing forces. Hierarchy dominates the speed of what we do.

The tensions surrounding innovation
The tensions surrounding innovation

Often we forget to reinforce the very design within our organizational structures, we leave role structures incomplete and uncertain and we set the deliverables in often ‘woolly’ ways so we can side step the often intransigence within our organizations way of working . This just further promotes uncertainly and it is not an adaptive organization but one left open so the leadership can side step when it suites their purpose.

In leaving this so open to ignoring one minute, using it as the ‘whipping boy’ the next they slowly immobilize those underneath. These create unnatural built-in tensions and often create a shearing effect.

They grind against each other, like tectonic plates that force further disruption and upheaval.

Cracking the complexity code

There was a good article within the McKinsey Quarterly, published in 2007 entitled “Cracking the complexity code” written by three authors Suzanne Heywood, Jessica Spungin and David Turnbull.

Cracking the complexity code of organizations
Cracking the complexity code of organizations

They lead this article with “one view of complexity that holds that it is largely a bad thing- that simplification generally creates value by removing unnecessary costs”. Certainly we all yearn for a more simplified life, structure, organization, approach to systems or just reducing complexity in our daily lives to find time for what we view as improving its ‘quality’.

Within the article they argue there are two types of complexity – institutional and individual.

Nine steps leading to understanding your dynamic innovation capabilities

The Nine Steps needed for developing an understanding of your innovation capabilities to make them more dynamic.

This is my adopted approach to work through this in a systematic way.

No question, this is designed to make sure those involved take their time working through the different levels of understanding needed. A journey where you ‘transform’ your innovation capabilities is likely to be realistically over twelve months or more. So much does get in the way to deflect you, to block you, to divert you. This is the nature of organizations, any approach to making ‘transformational’ change, and this is what this is, needs to go at the right speed and deal with the obstacles and constraints in thoughtful, well designed and clear ways.

Why is this potentially a long journey?

Nine steps in building innovation capability
The steps in building innovation capability

Well to appreciate what you require you must firstly need to understand not only what you have but what it currently provides.

Then you need to construct a clear strategic position of where you want to go in your innovation activities and these are totally different and unique to each organization.

Any journey like this needs to be well thought through, considered for all its implications and potential impact and disruption to what is existing.

It is a journey you have to want to travel and your fitness levels need to be progressively built up.

So these steps may have ‘individual wrinkles’ to them but most probably follow the same innovation discovery pathway.

Moving along the path to innovation fitness

Here, we are searching for the dynamics within the innovation system, that once recognized, can be constructed for a more dynamic innovation fitness solution. We are looking to improve the innovation performance engine within organizations.

These dynamics are made up of the capabilities and competencies that reveal and clarify what is required as the relevant traversing points needed to achieve improving innovation success, to move you more effectively towards your strategic innovation goals and build a fitter, more responsive and dynamic organization around its needed innovation capacities.

The lead explorer to walk you across this innovation terrain is Paul Hobcraft

The Journey Roadmap for Traversing with Innovation Fitness Dynamics

By exploring and modelling the mutual dependencies you get to see how the existing and alternative future innovation system  will behave as you begin to map out and recognize the different emphasis points that make up your innovation system. You can begin to identify what are the more important dynamic ones that require a more dedicated focus and placing more of your resources behind, while others can evolve at their own pace or simply improve as they are far more dependent on the dynamic ones than you realized initially. These can get simply get ‘pulled along’ and rise equally in their performance.

Understanding Absorptive Capacity

IFD AC only

Understanding Absorptive Capacity and how it works

“Absorptive capacity” is a term introduced through some academic research by Cohen & Levinthal, back in 1990 to describe an organizations “ability to recognize the value of new, external information (knowledge), assimilate it, and apply it to commercial ends”. Since then there has been significant academic contributions for exploring and validating this, in order to improve innovation performance and competitive advantage, yet it is still not well integrated into our innovation process. Why is that?

What we do need is to do is improve our HR management and network systems to build a more efficient transfer of knowledge throughout the organization so as to acquire and leverage new knowledge . This is part of applying the principles of absorptive capacity as we increasingly use more networks, external partners and collaborate with others we are accessing wider skills, inputs and competencies. We need to invest and learn what this does provide, to aid the innovation process. The theory goes that the more we understand, the more the innovative behavior and capability does goes up in potential and the more we have available a richer innovation choice .

The Model of Absorptive Capacity explores potential and realized knowledge.

Cultivating Absorptive Capacity

The flow of knowledge as our alternative currents
The flow of knowledge as our alternative currents

We need to cultivate Absorptive behaviour and allow it to flow.

We need a system to capture and allow knowledge to flow. For me the adoption model seems to be one worth investigating. If we want to achieve the goal of distributed innovation we need to have in place this possible framework around absorptive capacity to encourage different learning behaviours.. Nesta (www.nesta.org.uk) produced a useful report some time back called “Innovation by Adoption” and I feel this has a good framework that support distributed innovation.

The report argues in a place with a strong absorptive capacity three main outputs subsequently result from the flow of external or distributed knowledge: (1) the creation of new innovation; (2) the creation of new knowledge; and (3) that it does lead to new economic and social value.