ORGANIC - Continuous Organisational Learning in Innovation and Companies Richard MESSNARZ1, Romana Vajde Horvat2, Katja Harej2, Eva Feuer3 1 ISCN GesmbH, Schieszstattgasse 4, A-8010 Graz, Austria Tel: +43 316 811198, Fax: + 43 316 811312, Email: rmess@iscn.com 2 CIT, Gosposvetska cesta 84, 2000 Maribor, Slovenia Tel: +386 2 228 2351, Fax: +386 2 35 5134, Email: cit@cit.si 3 MTA SZTAKI, Kende U. 13-17, H-1111 Budapest, Hungary Tel: + 36 1 279 6285, Fax: +36 1 279 5269, Email: eva.feuer@sztaki.hu Abstract: This paper discusses different studies about innovation management which have been performed between 1996 and 2003 and describes key success factors of innovative organisations. These factors are taken into account for the design of an innovation manager skill card in the EU Leonardo project ORGANIC (2003 – 2006, http://www.innovationmanager.org ). The project results in a skills card , an online skills portal (result from former MM 1032 project CREDIT, 1998 – 2001) which European managers can access to self assess their current skills and receive guidance about individual skills gaps in that area, and a trainer CD so that trainers can hold courses in the foreseen skills units. Recently a further complementary project SOQRATES EPI (Educational Partnerships in ICT) started which integrates the skills portal system with a set of large e-learning portals in different countries. This will allow that after receiving a learning portfolio automatically online courses can be entered . 1. The Need for Job Roles and Skills Cards in Innovation Management At the moment there are many different innovation process models available which look at different process factors. Roles like process promoter, innovation champion, innovation team leaders, top managers are discussed and certain process steps are recommended. However, in reality the way innovation management works is dependent on the existing nature of business, the existing team and innovation structures, the skills and motivation of staff to deal with new requirements, etc. So it is not just a copy and paste of a ready to use innovation management model and then the innovation might work, it requires rather the skills of an experienced innovation manager who can transfer the different models and (mostly university based and theoretical publications) concepts to his/her practical working environment. Therefore the work in this project bases on the practical field studies from industry and does not try to create another theoretical process model. The project rather tries to analyse and identify the specific skills inside firms that made these firms market winners and innovative, and include these skills in an overall skill card against which innovation managers across Europe can assess their current skills online. A skills definition concept (skill card) is an approach where by using standards (NVQ National Vocational Qualification Standards) a common sense is created among different countries and institutions (as a collection of good practices and required skills) and illustrated in a standard skills description structure. This will allow a benchmarking of required skills against a European proposed skills set and the establishment of learning portfolios to upgrade the skills of nowadays innovation managers to a higher efficiency. See also the description of some typical user scenarios at the end of this paper. 2. Underlying innovation management studies The skills which are being incorporated into the skills card have been derived from three large European studies which analysed key competencies of market winning and innovative firms. 2.1 – Best Regional Innovation Transfer Study A study in 1998 (EU Leonardo da Vinci Project BESTREGIT – Best Regional Innovation Transfer, 1996 – 1999) analysed how innovative organisations operate and compared 200 organisations in Europe ([1], [5],[7]). The study outlined that innovative organisations invest time and money into the understanding of the fundamentals of the forces of change, understand the different cultures through personal contacts using networking at a personal level, study trends and they are always up-to-date, concentrate their energy in areas where they excel or where no one else can operate, outsource all other non-core activities, are practical users of information technologies and have information technology strategies in place . This study illustrates the development in the mid 90s where organisations became more networked, the market became more global [10], and the learning and innovation is largely influenced by a networked learning society. 2.2 – Team-working and Team-Learning Study In a project TEAMWORK ([5], [6]) with 13 partners from 7 countries (IST-2000-28162 TEAMWORK, 2001 - 2003) a generic platform has been developed that shall support these networked team-working and team-learning and tested this platform with teams from 59 organisations in 13 countries of Europe. The working behaviour of the users (team-working and team-learning members of the networked platform) has been analysed and a study with key success factors for social team-learning and team-working has been produced as a project deliverable. There were 42 different projects running through the system using the defined environment and managed by a virtual team leader. The team size of each project varied between 13 and down to 2 different organisations involved. This study based on the situation at the end of the 90s where developments were not done any more by single operations but a supply chain or a partnership of different companies integrating joint solutions. And these networked teams were multinational , multicultural , and consisted of members of different organisations. So the question was “How to manage the complexity of the distributed, multinational team-working and teamlearning partnerships ?”. The social experts team in the TEAMWORK project applied the social patterns analysis methodology [4] and also performed a set of interviews which were analysed to draw a number of conclusions concerning the social factors influencing team-working. This methodology analyses and selects typical patterns of behaviour. Some selected results of the 2003 study about organisations were: Management Style Related It was significant (statistical analysis) that people were happy with the more democratic distributed team management and team learning style of a TEAMWORK environment. Actually people from university, public service, and research centres were happier, than from large enterprises. We have found, that there was a significant difference how people from university, public service, and research centres feel the effect of such this tool to enhance teamwork spirit, for managers from large enterprises it was felt more that it gives negative affect to their influence. The difference between research and large traditional companies was due to the fact that if you set up a team and you involve a large organisation it is not sufficient to just define your agreed team-working processes, but also to integrate properly the existing hierarchies inside the collaborating large organisation. Innovation Related It was significant that people from university, public service, and research centres believed that a TEAMWORK environment encouraged an innovative approach to solving problems together, and creating new ideas together, people from traditional large enterprises believe it might interfere with existing procedures. It was significant that people from university, public service, and research centres believed that e-working helped them to improve the understanding of team roles. It was an observation that larger organisations want to have more impact and decision power on projects and innovations, while the distributed team-working concepts (role based) only gave them equal weight among all team members (independent from their size). Some selected results of the 2003 study about individuals were: Community of Trust „If you are building a human networked organisation you must have a foundation of trust and respect for effective communication at levels deep enough to sustain growth.“ Work-Flows Inward „If you want information to flow to the innovative producing roles in an organisation then put the developer at the centre and see that information flows toward the centre, not from the centre.“ This means that innovation is carried out by a selected set of highly intelligent people (producers) who should not be hindered by too many hierarchies above them but become a central role in a networked organisation, to unleash the innovation power. Altogether the study produced some 200 criteria and proposed a list of 17 criteria which shall be considered by managers [3],[6]. 2.3 – Innovation Management Study at 124 Multinational Large Companies While these first two studies were carried out with involvement of research centres, SMEs and to some extent by large companies, the third study has only been performed at 124 very large multinational companies. Thus it largely represents now the viewpoint on innovation by large co-operations [8]. Large co-operations had the following expectations from learning organisations: Learn faster than competitors Balance teamwork with personal performance Reward high performers Develop ambidextrous thinking Transformational rather than incremental change Create and exploit new knowledge Ensure customer & company-wide diffusion of ideas Inherently entrepreneurial with a high risk tolerance The favourite approach to implement innovation in a large corporation were Pilot programme with review 30% Company wide process with review 18% Systematic implementation 15% Project by project 14% Area specific 9% Benchmarking with competitors 5% Don’t know 9% And the drivers that influenced the success of an innovation were Executive management commitment 26% Supportive organisational structure 17% Positive culture with global reach 15% Young technically literate employees 13% Realistic milestones - fewer layers 6% Don’t knows 13% The overall model for the implementation of an innovation management programme contained seven phases : 1. Understanding the learning antecedents (nature of global business, anthropomorphism, dissatisfaction with traditional paradigm, customer responsive culture, intellectual capital) 2. Creating an environment of innovation 3. Analysing the perceived need and the required learning mechanisms 4. Executive challenge and implementing a learning processes 5. Including cultural and human factors and joint mission building 6. Organisational wide learning 7. Sustaining a learning organisation And already in the first phase a number of parameters appeared which seemed to deal with factors that influenced the difference in opinion between large organisations and SMEs, research centres and universities in the study mentioned in section 2.2 of this paper. A large co-operation very much focuses on the protection of the intellectual capital and global business opportunities and thus a networked learning and working across organisations needs additional controlling parameters to ensure the commitment from top managers. And as we see in the study the top managers by 26% have the largest influence on the success of an innovation in a large co-operation. (compare with results in section 2.2). 3. 3. A skills card and skills portal for the innovation manager job role The job role of an innovation manager (see Figures 2, 3) therefore is a specific position in an organisation who understands all these factors: networking, learning, organisational and social factors and is able to encourage, promote, manage, control, and disseminate innovation strategies in an organisation. For structuring a skills set the EU leonardo da Vinci project ORGANIC followed the EU standards for skills cards [2] (see Figure 1). A Domain, contains Job Roles, which contain Units, which contain Elements, which contain Performance Criteria, which must be proven by Evidences. Figure 1: Basic elements of the skills definition model Job Role Innovation Manager Domain: Innovation Skill Unit Skill Unit Know ledge About Innovation Mgmt. Learning Elements: Introduction Know ledge Management Skills Management Customer Relationship Management Netw orking Market Research Skill Unit Communication Skills Leraning Elements: Literacy in E-Skills Reporting & Presentation Skills Team Working Learning Elements: Team Communication Conflict Management Distributed Team Mgmt. Motivation Building Cross Cultural Succes Factors Figure 2: Skills Card of an Innovation Manager Job Role Part 1 Domain: An occupational category, e.g. childcare, first level management or software engineering. Job Role: A certain profession that covers part of the domain knowledge. E.g. domain = automotive, job role = automotive SW project leader Unit (UK standards): A list of certain activities that have to be carried out in the workplace. It is the top-level skill in the UK qualification standard hierarchy [9] and each unit consists of a number of elements. Element (UK standards): Description of one distinct aspect of the work performed by a worker, either a specific task that the worker has to do or a specific way of working. Each element consists of a number of performance criteria. Performance criterion (UK standards): Description of the minimum level of performance a participant must demonstrate in order to be assessed as competent. A performance criterion may have different relevant contexts. Evidence: Proof of competence. In ORGANIC we have identified 6 skills units and 24 learning elements for an innovation manager. These skills are available for online browsing and for online skills self-assessment. Job Role Innovation Manager Domain: Innovation Skill Unit Management Skills Learning Elements: Innovation Skills Needed in - Innovation Project Management - Innovation Process Management - Corporate Innovation Management - Risk Management Skill Unit Skill Unit Personal Characteristics Case Studies Learning Elements: Know ledge about Personal Characteristics Learning Culture Cross-Cultural Skills Learning Elements: New Markets New Structures New Products and Services Figure 3: Skills Card of an Innovation Manager Job Role Part 2 Figure 4: Sample Self Assessment and Formal Assessor Profile For each learning element ORGANIC develops a training module. The training module covers all performance criteria listed for the learning element in the skills card. A skills portal has been configured with the skills card and supports the steps of browsing required skills (see Figure 5), self assessment, formal assessment, evidence collection, generation of skills profiles (see Figure 4), and learning recommendations. Figure 5: Online Skills Requirements Browsing 4. 4. Typical Scenarios of Usage 4.1 – Accreditation scenario examples A skill card can be used to accredit training providers as well as to certify people. For the job role (skill card) certified software tester, for instance, represented by ISQI (International Software Quality Institute in Bavaria) and the Austrian Testing Board (ATB) for central Europe, accreditation is offered. Already many hundred certificates have been issued since 2003. Concerning e-commerce related job roles, for instance, (skill cards) two projects plan to merge their interest to offer 4 job roles, such as e-commerce engineer, e-business manager , e-strategy manager and an e-marketing manager. This way institutions from Hungary, Austria, Spain, Ireland, Germany, and Czech share the same content / skill criteria for these professions. Through the skill card different participating universities have used it to refine their study programmes to cover all aspects of the skill card and become comparable on a European level. In some cases, e.g. University of Valladolid, the development of a skill card influenced the establishment of a whole new study programme of an e-business manager. For the certified innovation manager a similar approach is expected where the project will include a critical mass of training providers, and educational institutions and to establish a standard against which the training of an innovation manager will be benchmarked. 4.2 – Learning scenario examples – Learning from the work place While universities create study programmes which focus on 4 to 5 year long learning schemes where students learn all skills related with general skill domains (a skill domain = computer science – telematics engineer, or computer science – software engineer, etc.), the industry (under constant time pressure and competition) has to focus and tailor much towards specific skills sets and job roles (software architect, tester, etc.) . And learning must become possible from the work place to upgrade skills for specific job roles. The service portal of the ORGANIC project will allow managers to access the server online, browse the required skills, do a self assessment, print an individual (confidential) skills profile and receive a generated learning plan / portfolio. 4.3 – Service Delivery Scenario – Virtual Competence Centers In July 2004 , for instance, a selected group of managers from China visit Europe and 20 managers attend the certified e-business manager course. This inter-continental collaboration could be extended by offering this accreditation between Europe and China through an e-portal with skills assessment and online attendance of courses . With the completion of the complementary SOQRATES project EPI this will become possible due to an integration of the skills portal software with a set of e-learning systems. 5. Acknowledgements We acknowledge the support for this paper from the following project partners from ORGANIC: D. Ekert (ISCN), B. Wöran (Danube), K. Ennsfellner (IMC Krems), A. Gvishiani (EDNES), N. O’Shea (Tecnet), G. Velasco (FGUVA). We acknowledge the support for this paper from the following project partners from EPI: Miklos Biro (BUESPA) and Gearoid O Suilleabhain and Ray Coughlan (CIT-IRL). References [1] M. Biro, R. Messnarz, A. Davison (2002) The Impact of National Cultures on the Ef-fectiveness of Improvement methods - The Third Dimension, in Software Quality Professional, Volume Four, Issue Four, American Society for Quality, Sep-tember 2002 [2] Feuer E., Messnarz R., Best Practices in E-Commerce: Strategies, Skills, and Processes, in: Proceedings of the E2002 Conference, E-Business and E-Work, Novel solutions for a global networked economy, eds. Brian Stanford Smith, Enrica Chiozza, IOS Press, Amsterdam, Berlin, Oxford, Tokyo, Washington, 2002 [3] Feuer E., Messnarz R., Wittenbrink H., Experiences With Managing Social Patterns in Defined Distributed Working Processes, in: Proceedings of the EuroSPI 2003 Conference, 10-12 December 2003, FTI Verlag, ISBN 3-901351-84-1 [4] Project EASYCOMP (IST Project 1999-14191, homepage: http://www.easycomp.org/) [5] Messnarz R., Stubenrauch R., Melcher M., Bernhard R., Network Based Quality Assurance, in: Proceedings of the 6th European Conference on Quality Assurance, 10-12 April 1999, Vienna , Austria [6] Messnarz R., Nadasi G., O'Leary E., Foley B., Experience with Teamwork in Distributed Work Environments, in: Proceedings of the E2001 Conference, E-Work and E-commerce, Novel solutions for a global networked economy, eds. 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