Creativity and Innovation 9 Creativity and Innovation

Learning Outcomes Follow this Learning Outline as you read and study this chapter. Define Creativity Explain how individuals and organizations differ in their ability to be creative. Stimulating Innovation Explain how creativity and innovation differ from one another. Describe the structural, cultural and human resource variables that are necessary for innovation.

Creativity Creativity can be defined as the generation of a new idea and innovation as the translation of a new idea into a new company, a new product, a new service, a new process, or a new method of production.

Individual Creativity Individuals differ in their ability to be creative. Creative people also tend to be more flexible than noncreative people. They are able and willing to shift from one approach to another when tackling a problem. They prefer complexity to simplicity and tend to be more independent than less creative people, sticking to their stubbornly when their ideas are challenged. They also question authority quite readily and are apt to disobey orders that make no sense to them.

Organizational Creativity and Innovation Organizations differ in their ability to translate the talents of their members into new products, processes, or services. The creative process in organizations involves three steps: idea generation, problem solving or idea development and implementation. Generation of Ideas Generation of ideas depends on the flow of people and information between the firm and its environment. Outside consultants and experts are important sources of information for managers.

Organizational Creativity and Innovation Idea Development Idea development is dependent on the organizational culture and processes within the organization. Organizational characteristics, values and processes can support or inhibit the development and use of creative ideas. Implementation The implementation stage consists of those steps that bring a solution or invention to the marketplace.

Kanter’s “Ten Rules for Stifling Innovation” Regard any new idea from below with suspicion—because it’s new, and because it’s from below. Insist that people who need your approval to act first go through several other levels of management to get their signatures. Ask departments or individuals to challenge and criticize each other’s proposals. (That saves you the job of deciding; you just pick the survivor.) Express your criticisms freely, and withhold your praise. (That keeps people on their toes.) Let them know they can be fired at any time. Treat identification of problems as signs of failure, to discourage people from letting you know when something in their area isn’t working.

Kanter’s “Ten Rules for Stifling Innovation” Control everything carefully. Make sure people count anything that can be counted, frequently. Make decisions to reorganize or change policies in secret, and spring them on people unexpectedly. (That also keeps people on their toes.) Make sure that requests for information are fully justified and make sure that it is not given out to managers freely. (You don’t want data to fall into the wrong hands.) Assign to lower-level managers, in the name of delegation and participation, responsibility for figuring out how to cut back, lay off, move people around, or otherwise implement threatening decisions you have made. And get them to do it quickly. And above all, never forget that you, the higher-ups, already know everything important about this business.

Some Prescriptions for Fostering Organizational Creativity Develop an acceptance of change. Encourage new ideas. Permit more interaction. Tolerate failure. Provide clear objectives and the freedom to achieve them. Offer recognition.

Figure 9.2 Systems View of Innovation

Figure 9.3 Innovation Variables

Stimulating Innovation Structural Variables Adopt an organic structure. Make available plentiful resources. Engage in frequent inter-unit communication. Minimize extreme time pressures on creative activities. Provide explicit support for creativity.

Stimulating Innovation (cont.) Cultural Variables Accept ambiguity. Tolerate the impractical. Have low external controls. Tolerate risk taking. Tolerate conflict. Focus on ends rather than means. Develop an open-system focus. Provide positive feedback.

Stimulating Innovation (cont.) Human Resource Variables Actively promote training and development to keep employees’ skills current. Offer high job security to encourage risk taking. Encourage individual to be “champions” of change. Idea Champion Dynamic self-confident leaders who actively and enthusiastically inspire support for new ideas, build support, overcome resistance, and ensure that innovations are implemented.

Terms to Know creativity innovation idea champion