absorptive capacity - Innovation Thinking and Resources

The world is working within increased complexity, are you?

By @paul4innovating June 19, 2018Capabilities and Capacities, Dynamic capabilities, Natural & Unnatural tensions, The Big Challenges

The challenges of managing in today’s worlds are tough, very tough and demanding. It is so volatile, potentially disruptive and full of risk. Organizations are simply struggling to shed their clothes in the 20^th century and find a way to smoothly manage to become more adaptable and agile in form. They are adjusting to offer consistent responses to instability in the most effective ways, to keep adapting to the consistent market challenges, and in so doing profiting from meeting that latest challenge or disruptive opportunity.

The problem is you simply can’t manage this smoothly, it will be highly disruptive as the organization re-equips themselves and learns, often in the hardest way possible, through failure, through experimentation, through risk-taking. Innovation is increasingly seen as the pathway forward in capturing growth and grabbing any advantage, even if these are increasingly transient. Yet as we look towards building our innovation capabilities we need to work in totally different ways and see ‘things’ in new ways.

Innovation in itself is also a force of instability and we need to find ways to embrace much of its uncertainties by understanding its dynamics. We need to have a major shift in our organizational thinking, needed to find the appropriate new balance within those dual ‘tensions’ of ‘stability’ through efficiency, with its opposite, ‘change’ driven by innovation. It is these dynamic forces within the world we work that need us to respond by building that capacity for managing those ‘dynamic’ innovation capabilities, that today’s markets are requiring and organizations are needing to master.

Struggling with counting ALL the sums of our capital

By @paul4innovating June 12, 2018Absorptive Capacity, Capabilities and Capacities, Dynamic capabilities, Fitness Landscaping Regimes, Outcomes & Expectancies, The Big Challenges

Organizations have been focused for far too long around the importance of financial capital. It determines and drives organizations destinies. We are caught in a constant focus upon our achieving a return on our (financial) capital as our measuring criteria. Organizations strive for improving their ROCE, RONA, IRR, EVA and a host of other financial measures.

As Clayton Christensen has been arguing the agenda of organizations begins and ends with the “search for numbers”. I think there is a time for changing this, we need to search for the knowledge that makes-up eventually the numbers.

There has been a distant voice for some time putting forward the need to appreciate and value the other capitals sitting within organizations. Much of the discussions have been housed under the term “intellectual capital” which denotes the sum of knowledge made up and contributed by our human assets, our organizational structures and our relationships that are developed.

These are the ‘capitals’ that transform into economic value through organization action. It is the financial capital that simply finances this.

Putting some dynamic tension into the system

By @paul4innovating June 8, 2018Absorptive Capacity, Capabilities and Capacities, Dynamic capabilities, Natural & Unnatural tensions

There is a growing need for having some dynamic tensions within the organization’s system; these helps generate the better conditions for innovation to thrive. We are learning more on the better tools, techniques and approaches available for putting the learning tensions into our work, making them more dynamic, linked and increasingly relevant to the work to be done.

1). A common language is essential

Any dynamics in the system needs that ability to talk the same language, something that becomes common and embedded to support the routines and move quicker to the concepts and solutions, as others can ‘understand’ them as well. It is through working on the inner stories and appreciating the history, it is having an appreciation of events, good and bad, it is through local slogans, your jargon and dialogues that bring people together. The power of storytelling helps gain adoption and identification to those needs for working on a common cause.

Organizational legacy so often chokes innovation

By @paul4innovating June 4, 2018Absorptive Capacity, Capabilities and Capacities, Natural & Unnatural tensions, Pathway dependence curves

Often organizations are weighed down by legacy; it chokes off innovation and much of the potential creativity. This comes in many forms; in its culture, in its history, its core markets or products, in its systems, structures, and processes built around innovation practice.

Today, we are confronted with a very different global marketplace than in the last century. National borders and regulations built to protect those that are ‘within’ in the past have rapidly become a major part of the ‘containing- restraining’ factors that are rendering many previously well-respected organizations as heading towards being obsolete and not in tune with today’s different world where global sourcing determines much.

They are increasingly trapped in declining markets, starved of the new capabilities and capacities to grow a business beyond ‘traditional’ borders, so this means they are unable to take up the new challenges that are confronting them. They see themselves as reliant on hanging on to the existing situation as long as they can, often powerless to make the necessary shifts, failing to open up, finding it increasingly more than difficult to find the ways of letting go, of changing. They are trapped in legacy.

Building Differentiating Capabilities for Innovation

By @paul4innovating February 9, 2017Building Innovation Capability, Polymers1 Comment

We so often get caught up in the building of our capabilities. In some ways, I keep attempting to “peel the innovation onion” in explaining the need to focus on building the capabilities in different ways but to be honest, it needs these various approaches to an ever-changing environment.

A different intensity of innovation onion perhaps? Why, well we have the business of today, the emerging business of tomorrow and the future business that will provide a radically different set of capability building needs?

The struggle to date is that innovation remains hard to manage well; we strive to systematize it and then attempt to replicate any success we then have, so as to achieve more, yet more often than not. we do not take into account all the variables that came together for that particular winning outcome. Often this does not work on a repetitive basis as the variables that make up innovation can be different for each innovation event or activity but we can learn under a growing ‘range of’ differentiating capabilities.

Taking advantage of emergence for discovery

By @paul4innovating January 25, 2017Molecules2 Comments

So this week my research was moving around issues of complexity within innovation and I came across a great paper, written by Deborah Dougherty “Organizing for innovation in complex innovation systems”

Although she is addressing within this paper the bigger more complex social and economic challenges we are facing in healthcare, alternative energy, water scarcity, climate management, poverty and economic revitalization, she is attempting to reframe these into problem resolutions from breaking down discovery into four distinct channels. I liked this thinking.

The new innovating world we face in the 21st Century

Her opening insight is in the twenty-first century we are all requiring more reliance on social technologies that are designed to allow the different technologies to emerge and be allowed to integrate, due to the diversity and diffusion of knowledge. This is different from past practices found within organizations. Dr Dougherty points out much of what takes place today is still based on nineteenth-century practices where organizations were designed to stabilize, scale up and optimize, mostly internally, the scientific and technological knowledge into large working configurations.

Building the Core Competencies for Innovation

By @paul4innovating December 28, 2016Advancing innovation, Building Innovation Capability, Molecules4 Comments

For my final post of the year, I went back to some of my thinking through, those around the building blocks needed in developing the core competencies for innovation that we need to have in place for realizing its true potential.

For me, the bedrock of innovation is built upon competencies, capabilities, and capacities and all these involve people as well as technology. They go hand in hand in our connected world.

Building these is the core of my own innovation offering in consulting, in advising, mentoring and coaching. My work constantly “maps” back to this essential three “C” of competencies, capabilities, and capacities.

Let me offer some thoughts that build around a framework I work through.

So how do you manage exploiting and exploring for Innovation?

By @paul4innovating September 7, 2016Achieving innovation engagement, Advancing innovation, amplifying the innovation signal, gaining innovation momentum, Improve Collaboration & Communication, Shifting dynamics in innovation

So how do businesses organise their structures to be able to simultaneously manage the needs to exploit and explore innovation?

In this post I wanted to explain my thinking through on this ability to be ‘ambidextrous’, knowing the difference of when to exploit and when to explore as essential to leveraging innovation, in all its forms and watching out for some of the traps in not managing this well.

Managing this, in all honesty, though, is hard to get the balance right but highly valuable if you do achieve it, it can transform the business. Many of our organisations struggle to manage both successfully as they tend to focus more on separation mostly in organisational structures alone as their attempt to become ambidextrous. It is far more than ‘just’ this. Get the balance right across the organisation’s design and in its leadership management, it becomes a very powerful mechanism for accelerating performances by delivering significantly new innovation and equally sustaining and leveraging the core business you have today.

Recently I contributed a blog post over on the Hype Innovation Blog ” Balancing Exploitation & Exploration for Changing Performance” that opens up the subject but then extensively dives into three examples of Apple, GE and Google that are working in highly ambidextrous ways, pursuing exploiting and exploring in their own unique ways.

Dealing with the innovation legacy lying within your business.

By @paul4innovating July 6, 2016Achieving innovation engagement, Advancing innovation, amplifying the innovation signal, Antibodies, Foster Performance, Fresh thinking, Improve Collaboration & Communication, Integrated Innovation Thinking1 Comment

I know the feeling, there has been such a considerable investment that has gone into previous innovation processes to get them established but much of this is actually out of date, it has become today a real ‘legacy’ issue but there is, of course, a real reluctance to challenge it. Well you should!

Often this reluctance to dispose of these old systems, processes and inadequate frameworks is holding innovation back.

I would argue that perhaps many of our current innovation practices are ‘frozen’ in past times and they significantly slow us down, in a world that is becoming one built increasing on speed, flexibility and adaptability.

We lose precious time as we should be forward looking. constantly learning and experimenting with new concepts and approaches to innovation and what and where these can bring in new growth, sustainability and value to our organisations.

Striving for the innovation balance: between exploring and exploiting.

By @paul4innovating December 16, 2015Achieving innovation engagement, Advancing innovation, amplifying the innovation signal, Foster Performance, gaining innovation momentum, innovation execution delivery, Integrated Innovation Thinking, Shifting dynamics in innovation, Uncategorized14 Comments

We never seem capable of adapting as well as we should do.

Adapting always seems a work-in-progress, or it is often something where we are simply making little or no progress!

We often stay ‘stuck’ in the way we do ‘things’ around here, never seemed able to break out into something new or different.

To adapt we need to open ourselves up to learning and adjusting our organizational ‘form’ in new ways.

In business, there should be a constant battle to reconfigure the assets and extend the existing capabilities. Yet often these stay ‘static’ not learning or improving.

In our innovation activities, there is an even greater pressing need to build into our thinking the ability to find more dynamic capabilities. It is a constant innovator’s dilemma to think through and get right.

What might help?