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Innovation Leaders Invest in a Better Future for Organisations and their People

ƵileleBiz 2010: HayGroup / Harry Meintassis

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Page 1: ƵileleBiz 2010: HayGroup / Harry Meintassis

Innovation LeadersInnovation LeadersInvest in a Better Future for Organisations and their People

Page 2: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Most executives are disappointed with the levels of innovation...

Creativity without proper leadership and processes will not result in sustainable innovation...

Page 3: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Innovation Model

Leadership and Direction

Novel Combinations of Existing Approaches

Generation of New Ideas

Culture and Climate

Effective Implementation

Organizing for innovation: A conceptual model

Page 4: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Innovation Model

Leadership and Direction

Novel Combinations of Existing Approaches

Generation of New Ideas

Culture and Climate

Effective Implementation

Organizing for innovation: A conceptual model

Page 5: ƵileleBiz 2010: HayGroup / Harry Meintassis

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“Formally integrate innovation into the strategic management agenda”

Innovation encouraged AND managed, tracked, measured...

Page 6: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Leadership and Direction

Innovation is guided by leadership direction

63

69

69

76

80

81

0 10 20 30 40 50 60 70 80 90 100

We have a vision for innovation, clearly identifying the areas in which we will pursue new ideas .

We are proactive in addressing issues and opportunities.

Managers and employees are actively encouraged to innovate (i.e., to “fix" things that aren't broken).

Peer GroupInnovation Leaders

% Agree

Page 7: ƵileleBiz 2010: HayGroup / Harry Meintassis

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52%

63%60%

58%

42%

59%

35th

45th

55th

65th

Coerc

ive

Autho

ritat

ive

Affiliat

ive

Partic

ipativ

e

Paces

ettin

g

Coach

ing

Percentile

Normed against Hay Group global databases

Leadership and Direction

What is the Leadership styles profile in innovative organizations

Page 8: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Innovation Model

Leadership and Direction

Novel Combinations of Existing Approaches

Generation of New Ideas

Culture and Climate

Effective Implementation

Organizing for innovation: A conceptual model

Page 9: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Supportive Cultures

•Teamwork

•Customer Focus

•Fair Treatment of Employees

•Taking Initiative

•Achieving Budgeted Objectives

•Supporting Management Decisions

•Respecting Chain of Command

VS

Page 10: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Trust

Page 11: ƵileleBiz 2010: HayGroup / Harry Meintassis

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56%57%

53%

58%

55%

51%

40th

42th

44th

46th

48th

50th

52th

54th

56th

58th

60th

Flexibi

lity

Respo

nsibi

lity

Rewar

ds

Stand

ards

Clarity

Team

Com

mitm

ent

Normed against Hay Group global databases

Percentile

Supportive Climates

Innovation-oriented work climates score high in standards, responsibility, and flexibility

Page 12: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Innovation Model

Leadership and Direction

Novel Combinations of Existing Approaches

Generation of New Ideas

Culture and Climate

Effective Implementation

Organizing for innovation: A conceptual model

Page 13: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Investment in Innovation

Focused investments in innovation

58

44

70

65

0 10 20 30 40 50 60 70 80 90 100

% Agree

We invest more resources in new initiatives than do our major competitors.

We have clear procedures for determining the level of investment in innovative ideas.

Peer GroupInnovation Leaders

Page 14: ƵileleBiz 2010: HayGroup / Harry Meintassis

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High Levels of Empowerment

Empowerment promotes innovative behavior

% Agree

Peer GroupInnovation Leaders

Decisions are generally made at the right level (i.e., where the most appropriate knowledge and expertise resides).

Managers are given the decision-making authority to carry out their responsibilities.

Staff given time to pursue and develop innovative ideas.

Page 15: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Risk Taking is Encouraged

People are supported in taking chances

70

80

82

91

0 10 20 30 40 50 60 70 80 90 100

% Agree

Managers and employees are encouraged to take reasonable risks in an attempt to increase our effectiveness.

Innovative ideas can fail without penalties to the originating person or group.

Peer GroupInnovation Leaders

Page 16: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Innovation Model

Leadership and Direction

Novel Combinations of Existing Approaches

Generation of New Ideas

Culture and Climate

Effective Implementation

Organizing for innovation: A conceptual model

Page 17: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Novel Combinations of Existing Approaches

Cross-functional teamwork and collaboration fosters innovation

59

81

76

84

0 10 20 30 40 50 60 70 80 90 100

% Agree

We do a good job of capturing innovative ideas/best practices and diffusing them throughout the organization.

Peer GroupInnovation Leaders

We frequently make use of cross-functional (or cross-organizational) teams to encourage innovative approaches.

Page 18: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Innovation Model

Leadership and Direction

Novel Combinations of Existing Approaches

Generation of New Ideas

Culture and Climate

Effective Implementation

Organizing for innovation: A conceptual model

Page 19: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Effective Implementation

Innovation leaders balance patience and accountability

59

62

69

75

0 10 20 30 40 50 60 70 80 90 100

% Agree

We are patient with promising ideas that don't generate immediate returns (i.e., we don't withdraw funding or support too quickly).

Individuals and groups who initiate innovative new approaches are held accountable for seeing them through to full implementation.

Peer GroupInnovation Leaders

Page 20: ƵileleBiz 2010: HayGroup / Harry Meintassis

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Effective Implementation

Performance management systems must support innovative activity

% Agree

Peer GroupInnovation Leaders

74

42

45

86

53

57

0 10 20 30 40 50 60 70 80 90 100

Innovation is directly measured in scorecard and reward processes for executives.

Innovation is directly measured in scorecard and reward processes for managers (below the executive level).

We do a good job of providing recognition to individuals or groups who generate innovative ideas.

Page 21: ƵileleBiz 2010: HayGroup / Harry Meintassis

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“Innovation isn't something confined to a company's R&D unit.

It's a mindset… It takes leaders, entrepreneurial spirit, great ideas, good management, and the right organizational structures.”

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Innovation needs motivation, and the right incentives – no extrinsic rewards!

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10-20% rule (time people spend on personally satisfying)

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Final thought...

What fuels Innovation is Autonomy, Mastery, Purpose