Corporate Leadership and Innovation Mussa J ASSAD PhD Associate Professor of Accounting University of Dar es Salaam Business School President, PAFA Chairman, NBAA Governing Board Presentation to ICPAK – C Suite Seminar 6 th August 2014

corporate adjective adjective: corporate 1.1. relating to a large company or group. noun noun: corporate; plural noun: corporates 1.2. a corporate company or group.

TRANSFORMATIONAL Process of engaging with others to create a connection that increases motivation and morality in both the leader and the follower  Leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential. Mohandas Gandhi – raised the hopes and demands of millions of his people and in the process was changed himself Leadership Defined Burns (1978)

4 Corporate leadership, innovation and competitive advantage  Sustainable competitive advantage relies on creativity and innovation.  Creativity is the generation of a novel idea or unique approach to solving problems or crafting opportunities.  Innovation is the process of creating new ideas and putting them into practice.

The Most Innovative Companies? 1. Apple 2. Google 3. Microsoft 3. Microsoft 4. IBM 4. IBM 5. Toyota Motor 6. Amazon.com 6. Amazon.com 7. LG Electronics 7. LG Electronics 8. BYD 8. BYD 9. General Electric 10. Sony 10. Sony 11. Samsung Electronics 11. Samsung Electronics 12. Intel 12. Intel 13. Ford Motor 14. Research In Motion 15. Volkswagen 16. Hewlett-Packard 17. Tata Group 18. BMW 18. BMW 19. Coca-Cola 20. Nintendo 20. Nintendo 21. Wal-Mart Stores 22. Hyundai Motor 22. Hyundai Motor 23. Nokia 23. Nokia 24. Virgin Group 24. Virgin Group 25. Procter & Gamble 25. Procter & Gamble BusinessWeek, April 15, 2010 BCG survey of 2,700 executives in 70 countries st Time Over ½ of Companies Not EU or US

6 The challenges of corporate leadership and innovation?  Two forms of innovation: –Process. Results in better ways of doing things. –Product. Results in the creation of new or improved goods and services.  Innovations require invention and application. – Invention. Act of discovery. Development of new ideas. –Application. Act of use. Implementation of new ideas.

7 Attributes of highly innovative organisations - corporate strategic leadership and innovation? ………… –Corporate strategy and culture should: Emphasize an entrepreneurial spirit. Expect innovation. Accept failure. Be willing to take risks. –Organization structure should: Be organic. Have lateral communications. Use cross-functional teams and task forces.

8 The nature of organizational change  Change leader. –A change agent who takes leadership responsibility for changing the existing pattern of behavior of another person or social system.  Change leadership. –Forward-looking. –Proactive. –Embraces new ideas.

What do Executives want from Innovation? 9

Show, Don’t Tell Innovation is about what doesn’t exist yet Most of our brain is used to visualize Seeing is believing You need to help people see Put them in the movie A day in their life Proof the concept 10

What Stops us/them from Having Innovation? 11

12 Dealing with Resistance to Change  Methods: – Education and communication – Participation and involvement – Facilitation and support – Facilitation and agreement – Manipulation and co-optation – Explicit and implicit coercion