Competency Center
Innovation
Key Takeaways
Executive Summary
• Innovation requires the ability to implement
new ideas as well as generate them.
The ability to generate, manage, and promote
innovation is an important part of driving growth
and adapting to changing business conditions.
Innovation allows people to generate and identify new ideas, and put them to work in support
of known goals. These innovations may be major
breakthroughs or small-scale improvements of
existing products or processes.
•Innovation skills allow companies to develop
new products and services, improve existing products and services, and keep up with
changes in the market.
•Developing innovation requires an understanding of business goals and boundaries,
but individuals must be able to work independently and champion their own ideas.
•Innovation also requires high-level interpersonal skills that enable individuals to
collaborate with others, identify valuable contributions from external sources, and work in
a productive, competitive environment that
maximizes results.
•Excessive risk aversion, poor communication skills, inability to cooperate, and lack of
persistence are factors that will hinder innovation.
Innovation differs from pure creativity in one
important regard: It involves implementation as a
second step after creating or recognizing a new
idea, trend, product, or approach. Follow-through
is a necessary component of innovation.
Several factors may hinder the development of
innovation skills. These include fear, risk aversion,
insecurity, personal jealousies, poor communication, and a business environment that limits freedom,
shoots down new ideas, or promotes groupthink.
Successful innovation requires a willingness to
accept uncertainty and potential failure, as well as
the interpersonal skills needed to function in an
atmosphere of healthy competition. Professionals who want to become more innovative must be
able to clearly communicate their ideas, advocate
for themselves, and respond to criticism.
Techniques for Development
Many factors influence the growth and implementation of innovation, but there are four major
elements that contribute to its development:
1. Effective boundaries. The what, when, and
why of innovation must be established and
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Competency Center
Innovation
Individuals
articulated as a holistic strategy that will
guide individuals in their thinking. Otherwise,
innovation may develop in ways that are not
useful to the But freedom and the ability to
work independently also are critical. “Stretch
ideas,” or breakthrough innovation thinking
must be supported, as well as incremental
achievements. Providing time, space, and
resources for exploring new ideas will enable
people to gain confidence in their abilities as
innovators and managers of innovation.
Employees who want to be innovative must:
•
Develop clear and persuasive communication
skills.
•
Exhibit creativity and a willingness to work independently.
•
Demonstrate the ability to collaborate with
diverse groups.
Employees are more likely to be innovative when
they have genuine interest in their work and a sense
of ownership coupled with a clear understanding
of expectations and business goals Managers
and executives should allow individuals freedom
to develop the innovation competency, as well as
freedom from negative consequences associated
with trying different approaches. But individuals
must demonstrate confidence and assertiveness
in asking for support, expressing new ideas, and
articulating ways in which new ideas might be
implemented.
2. Productive competition. Innovation is often
heightened by productive competition (e.g.,
two teams working on different approaches to
the same problem). Healthy competition spurs
creativity and persistence, but this can be a
double-edged sword. Successful innovation
requires focus on shared goals, not individual
achievements; harmful conflicts and defensiveness must be guarded against.
collectively. Individuals must
understand innovation as a collective goal
but also reach beyond themselves for inspiration and ideas. This may involve networking,
building collaborative team relationships,
establishing space for the exchange of ideas,
and working in multidisciplinary groups. Innovation must be recognized as the result of
many individuals’ contributions, and rewards
should be allocated accordingly.
3. Thinking
Managers
Managers who want to be innovative should learn
to balance risks and rewards, the demand for innovation, and the potential to generate new ideas and
competing resource uses. Managers must also:
and analytic skills. Project
management, time management, and risk
management skills are necessary for analyzing, selecting, and implementing the best ideas
and approaches generated by innovation.
•
Communicate clearly with employees and
executives in order to portray innovation as a
necessary part of business growth.
•
Explain how innovation will translate into
rewards for individuals and the company.
•
Build trust, differentiate between good and bad
ideas, and create opportunities for diverse team
members to collaborate.
4. Logistics
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•
Innovation
Related Resources
Possess strong interpersonal skills and diplomacy in order to encourage productive—not
destructive—competition aimed at generating
new ideas from multiple teams or individuals.
Making Innovation Work
How to Manage It, Measure It and Profit from It
By Tony Davila, Marc J. Epstein, and Robert
Shelton
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=32686420&site=ehost-live
Executives
Innovation is fostered from the top down and
needs a strong sense of executive leadership and
vision. Because of the risks and uncertainty associated with innovation, executives need exceptional
communication skills so they can outline their
innovation strategies and expectations clearly, consistently, and often. Executives must also be open
to multi-directional feedback from stakeholders,
including customers, employees, and managers,
because innovative ideas can come from unexpected sources. Executives also need to make
sure that their companies’ values, incentives, and
hiring processes are aligned with innovation goals.
The New Age of Innovation
Driving Co-Created Value Through Global
Networks
By C.K. Prahalad and M.S. Krishnan
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=34003317&site=ehost-live
The Ten Faces of Innovation
IDEO’s Strategies for Beating the Devil’s
Advocate & Driving Creativity Throughout Your
Organization
By Tom Kelley and Jonathan Littman
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=23487481&site=ehost-live
Obstacles
Unleashing Innovation
How Whirlpool Transformed an Industry
By Nancy Tennant Snyder and Deborah L.
Duarte
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=44717204&site=ehost-live
Skepticism, fear of disapproval, and a reluctance to
examine new ideas that are unfamiliar will prevent
people from innovating. Unclear lines of communication that prevent new ideas from reaching key
stakeholders will also thwart innovation, as will
timidity, lack of confidence, and an inability to gain
buy-in from others.
Innovation Is Everybody’s Business
By Robert B. Tucker
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=73961375&site=ehost-live
Lack of persistence can also thwart development
of innovation skills. Innovation requires individuals,
managers, and executives to generate or identify
new ideas, select those that are most appropriate, and put them to work. Individuals who cannot
navigate the entire innovative process, from idea to
impact, will not master the competency. Patience,
dedication, creative problem-solving, ability to
anticipate and prevent potential challenges,
and a clear vision that can be communicated to
others are all necessary to complete the process.
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EBSCO Publishing Inc. • 800-653-2726 • www.ebscohost.com
Further Reading
Dervitsiotis, K. (2010, September). A framework for the assessment of an organisation’s
innovation excellence. Total Quality Management & Business Excellence, 21(9), 903–918.
Retrieved October 18, 2010, from EBSCO
Database Business Source Complete. http://
search.ebscohost.com/login.aspx?direct=true
&db=bth&AN=52757106&site=ehost-live
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Competency Center
Innovation
Ferrari, B. & Goethals, J. (2010). The art of
innovation. McKinsey Quarterly, 3, 98–104.
Retrieved October 18, 2010, from EBSCO
Database Business Source Complete. http://
search.ebscohost.com/login.aspx?direct=true
&db=bth&AN=52645934&site=ehost-live
Iguarta, J., Garrigos, J., & Hervas-Oliver, J.
(2010, May/June). How innovation management techniques support an open innovation
strategy. Research Technology Management,
53(3), 41–52. Retrieved October 18, 2010,
from EBSCO Database Business Source
Complete. http://search.ebscohost.com/login.
aspx?direct=true&db=bth&AN=51197065&site
=ehost-live
Kehoe, J. (2010, October). How to save good
ideas. Harvard Business Review, 88(10),
129–132. Retrieved October 18, 2010, from
EBSCO Database Business Source Complete. http://search.ebscohost.com/login.aspx
?direct=true&db=bth&AN=53879626&site=eh
ost-live
Yuan, F. & Woodman, R. (2010, April). Innovative behavior in the workplace: The role of
performance and image outcome expectations. Academy of Management Journal,
53(2), 323–342. Retrieved October 18, 2010,
from EBSCO Database Business Source
Complete. http://search.ebscohost.com/login.
aspx?direct=true&db=bth&AN=49388995&sit
e=ehost-live
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