Mobilizing Creativity and Innovation - Case Study Example

Mobilizing Creativity and Innovation - CoInnovate Co Case Study Name Professor Institution Course Date Mobilizing Creativity and Innovation Introduction In the current competitive business environment, experts argue that many managers now understand the need for the organizations to change in order to sustain change and gain competitive change. Basadur & Gelade (2006, p.46) believes that for a manager to re‐engineer an organization effectively, he or she ought to rely on breaking paradigms as opposed to employing usual knowledge. This is true according to the statement that doing the same thing over time will always lead to similar results. Moultrie & Young (2009, p.301) contend that to break away from the chains of doing the same things, managers must create a culture of creativity and innovation within the organization. In fact, creativity and innovation are the daily drivers to realizing competitive and strategic advantage in the present and in future. Therefore, drawing on the contribution of the influential people on creativity and innovation climate within the organization, this paper explains why intrinsic motivation is critical in sustaining creativity and innovation in CoInnovate Co. Also some of the aspects that will be discussed include the role of leadership in innovation, entrepreneurship and innovation, organizational culture and psychological climate, role of HRM and HRD policies and practices in innovation. Overview of the company in focus CoInnovate Co is a group of companies with several companies under it including banking, insurance, mutual funds, leisure resorts and construction. Today, the company is estimated to have an assets value of more than £10bn. The company has grown over the years and between 2008 and 2009, it created up to 400 new products which greatly increased its revenue. The company has created the two positions for the director of innovation processes with 20 middle level managers who support the innovation all over the organization. CoInnovate Co went ahead to create an effective internal communication channel which would be used to update the organization members on innovation and progress. Within a period of three years, the company had made a lot of progress with regards to return on innovation (ROI). Creativity and innovation in business Amabile & Kramer (2011) describes creativity as the people’s capability to transform their perception into realism. By changing perception, they can then make new hypotheses, ideas, approaches and other approaches in life. On the other hand, innovation implies taking a current idea like the new product, business model and service concept and changing it to reality (Amabile & Kramer 2011). Similarly, in business, business managers must change the view on how they conduct day-to-day business. Hirst (2009, p.284) contends that companies capable of creativity, innovation and differentiation of their products or services from rivals are on averagely twice as advantageous as other companies. In addition, employees’ engagement in new ideas promotes loyalty to a business and high levels of interest in the effective accomplishment of ideas (Miron-Spektor, Gino& Argote 2011, p.231). Creativity, so business thinkers state, is a company’s key valuable asset. That is why there are mantras that say: “ideas are the future, therefore innovate or be faced off” passing the message is simple enough however for many companies building and harnessing creative concept is easier said than carried out (Hotho & Champion 2011, p.35). However, companies like CoInnovate Co have implemented based on this notion and are still afraid that their innovation process might not just last. The management feels that innovation that comes from internal motivation is much better than that which is prompted by external forces like competition in the market. In recent times, Intrinsic Motivation at its contribution to sustainable creativity has gained a lot of attention amongst laypersons. The situation is prompted by bestselling book Drive by Daniel Pink published in 2010, which interestingly describes the positive impacts of intrinsic motivation on numerous factors of performance as well as creativity (Pink 2009). Why intrinsic motivation is central to sustaining creativity and innovation According to Grant & Berry (2011, p.73), intrinsic motivation is described as motivation which is controlled by individual’s interest and enjoyment of the task itself. This form of motivation lies inside a person as opposed depending on the external forces. Such motivation is created by the psychological, social and organizational climate existing within CoInnovate Co. Amabile argue that intrinsic motivation, creativity-related processes and domain-appropriate skills interact increasingly. For instance, if CoInnovate Co creates a high degree of creativity skills through their innovation and creativity program yet there is a low degree of intrinsic motivation, the result of the program will only lead to moderate creative performances. Grant & Berry (2011, p.74), state that intrinsic motivation, thus, is crucial to sustainable creativity and innovation behavior that may be inspired by an encouraging climate. For instance, training and coaching in creativity skills may improve creativity skills. Today, CoInnovate Co has created that platform where managers have been hired to monitor innovation progress. The managers can now hire trainers on creativity and innovation to impact skills of the employees. Woodman model hold’s that motivation at the individual level can be impacted with social interaction between the employees (Hunter, Bedell & Mumford 2005, p.99). The company can also enhance individual intrinsic through promotions and recognition. According to Hunter, Bedell & Mumford (2005, p.106), the model also suggests that group creativity and innovation reconciles individual creativity by means of interaction with other organizational members and is impacted by diversity, group composition and group traits. This implies that CoInnovate Co needs to form groups to allow its employees to interact and learn from each other. Organizational culture and climate predict the level of intrinsic motivation. Culture takes how people behave, symbols used by the organization, power structure, control systems, paradigm and organizational structure (Isaksen 2007a, p.4). In this dynamic and flexible environment in which contemporary organizations operate; managers must understand the need to cope with culture, fundamental assumptions and values, and to adapt to ever-changing conditions. On the perspective of creativity and innovation, CoInnovate Co can emulate practices and ideas from companies that are currently doing well, such Microsoft, Starbucks and Samsung Company among others. All these companies over the years have relied on its team of employees to achieve creativity. CoInnovate Co must move fast and form teams to protect collectivism and allow staff to interact and acquire various skills from individual group members. Several models have been embraced to instill intrinsic motivation. The Componential Theory of Creativity by Amabile considers that all employees having normal abilities normal are capable of producing at least fairly creative product in some realm with the social environment influencing the process (Amabile & Pillemer 2011). The three key elements of this model consist of creative-thinking skill, expertise and intrinsic task motivation. Expertise is considered the basis for creative work. It is the cognitive pathways which are normally followed for doing a certain task. When expertise combined with talent at CoInnovate Co, long term strategies for innovation is laid which can go for several generations. Amabile & Pillemer (2011) assert that the expertise also has various components for it to work, including memory for the accurate knowledge, special talents and technical skill in their work domain. For instance, the company offers product in banking, insurance, mutual funds, leisure resorts and constructions. This means innovation skills that is offered by CoInnovate Co should be aligned with those products and services. Creative thinking also plays part in the psychological climate for innovation. This element offers that extra force to creative performance. Actually, some experts contend that creativity comes first before expertise. Amabile & Pillemer (2011) holds that creative thinking relies to personality attributes associated with self-discipline, independence tolerance for uncertainty, perseverance and orientation towards risk taking. The factors can be determined during hiring and be improved through training provided in the CoInnovate Co innovation program. Goran Ekvall is another professor and researcher who has emphasized on the importance of organizational climate for innovation. In his 10-dimension model, Ekvall classifies various aspects which companies can use to sustain creativity and innovation in work place (Hunter, Bedell & Mumford 2005, p.107). These aspects include, challenge and involvement, freedom, trust and openness, idea time, playfulness and humor, conflicts, idea support, debates and risk taking. The researcher claims that organization must create a climate which is dynamic, inspiring, electric and challenging to make workforce aim higher. In this process, involvement is also crucial to make the learning be aligned in the system. Role of leadership in innovation CoInnovate Co has set the foundation for creativity and innovation over the years. However, that cannot be complete without setting framework for sustainable creativity and innovation. Therefore, what the company now needs is transformational leadership which will create an organizational culture which will promote entrepreneurship. With transformation leadership entrenched into CoInnovate Co management system, employees will be empowered to have imaginative and pioneering mindset. Spinelli (2006, p.11) postulate that empowerment through talks, encouragement, training, coaching and providing the necessary tools of work will help employees discover their potential talents, power and gifts to make them contribute positively to the organization through innovation. According to Hirst (2009, p.289), transformational leadership will be able to communicate a vision which inspire employees, set long-term organizational goals and focus on interpersonal and social skills. For example, between 2008 and 2009, CoInnovate Co created 20 new products. With sustainable innovation driven by transformational leadership, they can project the number of new products to increase by four times in the next five years. By embracing transformational leadership, CoInnovate Co will look for prospective motives in the workforce, engage them and look to satisfy their needs. In the current business arena, the leadership creates a culture where everyone becomes an entrepreneur. In this stance, every employee is prepared to have the mindset of an entrepreneur to look for an opportunity and use ideas or concept to create unique products from what the competitors offer (Parnell & Lester. 2007, p.74). Combining the concept of entrepreneurship and innovation mindset can be a sustainable approach to CoInnovate Co. However, it starts by recruiting or creating traits and skills that match those of entrepreneurs. Employees are people who can be guided to be successful entrepreneurs by their harnessing critical attributes. The managers and directors that are currently overseeing creativity and innovation can act as an enabler to help to spot and create employee with innovation talents. Apple has in the past used their managers to create employees who are entrepreneurs in their own right. For instance, former Apple Inc. CEO Steve Jobs used to be an entrepreneur and founded Apple used his attributes to make people/employees who would become great entrepreneurs in future. Parnell & Lester (2007) argues that having managers who are themselves entrepreneurs and innovators make employees to want to identify themselves with such people. The culture may continue even when entrepreneur leaves the company. During his time at Apple, the corporation invented the iPod and iTunes Store in 2001 and 2003 respectively. The company also invented iPhone Smartphone and iPad in 2007 and 2010 respectively. These inventions were led by the three Apple founders Audet & Couteret (2012, p.517). This communicates a message that entrepreneurship skills were being impacted from the top down to employees. Whilst Steve Jobs was strolling with health concerns such as the liver transplant and pancreatic tumor, he was still concerned with the creativity, innovation and performance of the company. Audet & Couteret (2012, p.518) postulate that in June of 2011, the same year he died, Steve Jobs unexpectedly took part in the launch of iCloud. This is a culmination of the passion he had for creativity and even the company itself. Even after his death, the company went ahead and created a new model of iPhone, iPhone 5S and iPhone iPhone 5C. It means a culture of sustainable creativity and innovation was created that will last for several years to come. Out of 2000 employees who had developed creativity and innovation, knowledge and skills, the company can start identifying ones who are curious and have passion for creating new product. They can equip them with the right tools and fund their projects. In that manner, they will be instilling the entrepreneurship skills in their employees; a concept that is likely to remain even if the employees have left the company. Some of the intrinsic motivation which can encourage is the vision to spot an opportunity and have a passion to go ahead and create a product that has not been done before to satisfy customer needs (Parnell & Lester 2007, p.75). CoInnovate Co has several companies under it and that most new invention or innovation can still fall under one of them. Intrinsic motivation can also emerge as a result of organizational learning. Intrinsic motivation will inspire the manager to create a learning organization within the company. Since intrinsic motivation leads in expert learning, it is particularly significant to specify the forces which engender and those that weaken it. In employees, intrinsic motivation serves not only for motivation purposes, or volitional act, but a pervasive one. Hirst (2009) argues that from the time they get into a learning organization, employees, in the healthiest way become curious, inquisitive, active, showing a ubiquitous willingness to learn and discover even with superfluous incentives to work. When such environment is built, employee will work hard for the company they are loyal to. Creating a leaning organization starts with creating systems such as development, creativity and innovation center (Hirst 2009, p.284). The next step is bringing on board innovators who have experience and can work as lectures to instill such knowledge into employees. It can also be complimented by bringing guest speakers who have created or invented a product before to talk to your employees. Great minds that have created products which have changed the world that CoInnovate Co can look up to include Larry Page, and Sergey Brin, who are founders of Google Inc., Bill Gate of Microsoft and Jeff Bezos who founded Amazon among others. The company can go ahead even to form partnership with these people. This is because these companies are in the forefront of creativity and innovation. Timmons & Spinelli (2009) posit that creating partnerships between creativity and innovation focus companies usually establish a knowledge link between the employees of both the organizations. They also claim that knowledge and skills acquired by individual employees are then used by the company to create new products continuously. Role of the Human Resource Management and Development in supporting CoInnovate Co’s aspirations to creativity and innovation Today, CoInnovate Co not only debate on creating systems and environment which support innovation and offer opportunities to change ideas and concepts into quality products or service. The managers also think that their interest depends on the ‘human resource related’ practices and processes that can be found in innovation organizations (Jørgensen & Laugen 2007, p.365). Shipton & West (2006, p.4) argue that organizations should distinctly embed HRM and HRD in their organizational strategy so as to enable innovation. Shipton & West (2006 p.8) also went ahead to state that four factors of HRM consisting of structure, staffing, system support and strategy are critical to successful and effective creativity and innovation, and that making sure a company has the right people who can effectively be managed. A survey conducted Australian about organizations in 2003 reveals that critical recruitment and retaining policies and practices, remuneration, training and coaching, and talent management are some of the practices HR departments can use to sustain novelty (Jørgensen & Laugen 2007, p.369). Sustainable creativity and innovation starts with recruitment and selection process in the organization. There are two types of recruitment that companies often employ; internal and external. CoInnovate Co has already laid foundation for sustainable creativity and innovation by establishing an innovation program being overseen by two directors and 20 managers. This implies that there are in the process of developing their talents within the company. For that matter, it is advisable to recruit for a position from within because such employees already understand the system and the policy of the organization. Provided the program is a long term initiative of CoInnovate Co, filling the position with the current employees will depict continuity and development in the process. When CoInnovate Co recruits from within, there are positive effects on staff’s intrinsic motivation and morale (Shipton & West 2006, p.7). In such perspective, staffs feel valued that the organization rewards their work by providing a chance to take up new roles or being moved step further to a department where a staff has a greater interest. Jørgensen & Laugen, (2007, p.469) asserts that employees who are allowed to realize their career development tend to be loyal. However, when employees are by-passed to bring in people from outside, the company may experience employees’ turnover from employees who look for organizations where they can get promotion. Such situation would only mean that innovation program run by CoInnovate Co is not continuous because the company would be losing already trained employees to competitors. Currently, nearly 2000 staffs have grown creativity and innovation skills and losing them will point out that the innovation program is not sustainable. On the other hand, business is a competition and having who are experienced in the market operations and posses new ideas is also viable for a growing business like CoInnovate Co. In that way, external recruitment will also improve the sustainability of innovation. Using external recruitment will be beneficial to CoInnovate Co because new individuals with fresh and creative ideas will be brought on board to provide experience acquired from other annotative organizations. For instance, the company can retire old managers whose creativity and innovation does not suit the modern strategies and replace them with young innovative employees who understand contemporary business approach. Shipton & West (2006, p. 21) contends that recruitment process must also look at the motivation level and hobbies to match the long term plan of sustainable innovation. Conclusion The research has pointed out several factors and models which can be used by CoInnovate Co managers to not only sustain their creativity and innovation programs but also the act itself. They form the foundation for which performance and competitive advantage can be achieved. However, such factors and models remain a theory until there are implemented. 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