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The Innovation Paradox -The Innovation Paradox -

Applied Creativity Applied Creativity in Organizationsin Organizations

Avinoam KolodnyAvinoam KolodnyTechnion - Electrical Engineering DepartmentTechnion - Electrical Engineering Department

June 2007June 2007

* F. Chu, A. Kolodny, S. Maital and  D. Perlmutter,  “The innovation paradox:  Reconciling creativity & discipline – How winning organizations combine inspiration with perspiration,” Proceedings of IEEE International Engineering Management Conference, October 2004.

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“… “… In every good project, there is a time In every good project, there is a time when you have to shoot the engineer when you have to shoot the engineer and start production”.and start production”.

(Anonymous Intel employee, CA ~1980)(Anonymous Intel employee, CA ~1980)

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Story:Story: The Chinese Emperor and the Painter The Chinese Emperor and the Painter

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The Innovation ParadoxThe Innovation ParadoxCreativity and project implementation Creativity and project implementation

often require contradictory mindsets often require contradictory mindsets

Creativity Creativity Project Project

Chaos Discipline Chaos Discipline

Innovation/Surprise PredictabilityInnovation/Surprise Predictability

Flexible time Fixed scheduleFlexible time Fixed schedule

Best effort GuaranteeBest effort Guarantee

High risk Low riskHigh risk Low risk

Inspiration PerspirationInspiration Perspiration

IndividualIndividual

Organization Organization

HierarchyHierarchy

StabilityStability

CommitmentCommitment

SafetySafety

Teamwork Teamwork

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Need Both:Need Both:Creativity and OrganizationCreativity and Organization

Win the competition by creativityWin the competition by creativityUse organizational power to executeUse organizational power to execute

The conflicting values must be The conflicting values must be reconciledreconciled!!

""סיסמה ניהולית: "גם וגםסיסמה ניהולית: "גם וגם

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Applied Creativity Applied Creativity

Method to reconcile creativity and disciplineMethod to reconcile creativity and discipline Not by tradeoff, by synergy! Not by tradeoff, by synergy!

We identified five approaches to applied We identified five approaches to applied creativity, used by successful organizations creativity, used by successful organizations

CreativityCreativity DisciplineDiscipline

DisciplineDiscipline

(perspiration)(perspiration)

CreativityCreativity

(inspiration)(inspiration)

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1) “The Great Dictator”1) “The Great Dictator”A single creative leader A single creative leader Comes up with ideasComes up with ideasDecides which of them to implement, and howDecides which of them to implement, and howThe organization follows him in discipline modeThe organization follows him in discipline mode

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2) “Separation of Forces”2) “Separation of Forces”

CreativeCreative Department Department

ImplementationImplementation Department Department

ArbitratorArbitrator

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3) “This Train Runs on Time”3) “This Train Runs on Time”Separate project phases, driven by a timetable:Separate project phases, driven by a timetable:– IdeationIdeation

– Proof of conceptProof of concept

– PrototypingPrototyping

– ProductionProduction

Time

DisciplinedImplementation

ChaoticCreativity

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4) “Elders of the Tribe”4) “Elders of the Tribe”

Ideas are advanced by young creative membersIdeas are advanced by young creative membersCross-examination by experienced membersCross-examination by experienced membersCulture: Culture: – Manage for disciplineManage for discipline

– Admiration of creativity Admiration of creativity

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5) “Head in the Clouds,5) “Head in the Clouds, Feet on the Ground” Feet on the Ground”

Same people iteratively shift gears between Same people iteratively shift gears between creativity and discipline:creativity and discipline:

Creative, wild brainstorming Creative, wild brainstorming – No idea is rejected (“head in the clouds”)No idea is rejected (“head in the clouds”)

Detailed evaluation of ideasDetailed evaluation of ideas– By practicality and benefit (“feet on the ground”)By practicality and benefit (“feet on the ground”)

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Challenges of Challenges of Applied Creativity Applied Creativity

Conceiving new ideasConceiving new ideas

Choosing a good ideaChoosing a good idea

Managing executionManaging execution

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What is the Right ApproachWhat is the Right Approach for for My Organization?My Organization?

There are probably many more ways to There are probably many more ways to achieve achieve Applied CreativityApplied Creativity

Find an approach which suits your Find an approach which suits your organization’sorganization’s– cultureculture– structurestructure– peoplepeople

Essential issue: Essential issue: Let the people know the organization’s Let the people know the organization’s problems and difficulties!problems and difficulties!