B25 The Innovation Challenge -Encouraging and Institutionalising Innovation 2

 This is the second and final part of the 2 part series that looks at how to address the challenge of Limited innovation happening within the organization

The first part ( http://tinyurl.com/innopart1 )looked at symptoms and their likely causes and the second part looks at things organizations can do to encourage innovation as a way of life within the organization 

There are 3 broad ways in which one can encourage innovation and institutionalize that within organizations.

1. People skills

2. Systems and processes

3. Structural Changes 

People skills 

Enhancing people skills in the domains of

• Creativity and innovation
• Idea filtering and selection
• Risk taking and strategic orientation
• Developing appreciation of issues outside ones domain (thru Cross functional stints, appreciation training etc )is a powerful catalyst .

Do ensure that people across organization levels including senior leadership and the board members are covered. 

Systems and processes 

Institute or redesign the following systems and processes to address the following

• Performance Management Process

· To reflect, measure and reward not just operational measures but innovation and growth measures

· To ensure failure in new initiatives are not penalized

• Reward and Recognition Programs

· To provide for attractive financial incentives to reward ideators and implementers

· To widely publicize successful efforts

· To provide opportunities to showcase achievements within and outside the organization.

• Skill and competency management Process

· Through Identification of key competencies like relationship and partnership management critical to the business

· Ensuring that this is linked to the Performance management process to measure periodic demonstration of these competencies 

Structural Changes

Create formal new projects /ideas monitoring and approval processes and Integrate it with the existing decision making forums and structures. What is also important is holding people in these forums responsible and accountable for their results.

Create communities of practice built around an area of expertise, each comprising volunteers from different parts of the organization. Let these teams solve specific problems and participate in monthly summits with representatives from units/sub units. 

A word of caution . Do not attempt all these at once. Prioritize them basis your critical needs. 

The following article gives examples of some successful practices in organizations http://hbr.org/products/R0706J/R0706Jp4.pdf

B24 The Innovation Challenge - Symptoms and Causes

 Innovation is today taken as a necessary given for organizational success, yet a lot of us struggle to institutionalize it . 

This 2 part series will look at how to address the challenge of Limited innovation in an organization. 

The first part looks at symptoms and their underlying causes and the second part will look at how to instil innovation as a way of life. 

Do you see the following happening within the organization 

1. No new ideas coming up from within the business units, sales offices, factories
2. No new ideas coming from interdisciplinary teams
3. No ideas , suggestions, coming in from external partners, suppliers, consultants , customers etc
4. Ideas being generated but not being converted to meaningful projects

If so I am sure you have wondered why this is happening. Here is what we have concluded based on our experience. 

The underlying causes behind some these symptoms are 

No new ideas coming up from within the units

• Silo-ed thinking in people.
• People skills in creativity and innovation needing upgradation
• People focusing only on immediate priorities
• No incentive to generate /no reward-recognition processes for new ideas
• Fear of failure

No ideas coming from interdisciplinary teams

• Lack of inter disciplinary forums
• Lack of appreciation of others functional areas and domains
• Interdisciplinary forums not having sufficient authority
• Lack of shared responsibility.
• People concerned only about their domains.
• Poor collaborative culture

No ideas coming in from external partners , suppliers , consultants , customers etc 

• Inadequate external networks
• External partnerships are formal and contractual
• Absence of multiple nodes of relationships with external partners
• (Relationship and interactions are held only by some key individuals)
• Ideas are generated but are not being converted to meaningful projects
• No formal process to channelise these ideas
• Ideas of differing sizes, varying cost resource commitments , impact , risk levels )
• People in key positions lack skills to appreciate new ideas or are risk averse
• Too many layers of hierarchy for approval
• No dedicated / accountable set of people to champion new ideas

Think about it and also see what all hold true for your organisation

The next part will look at how you can address these causes from the following three perspectives
1. Skills 
2. Systems and processes 
3. Structural mechanisms 

Reference : http://hbr.org/products/R0706J/R0706Jp4.pdf

B23 Retention of Blue Collar employees: An issue of organisational survival

 Paradoxical as it might sound the reality is that in India a large number of organisations especially in the manufacturing sector are faced with a problem of very high attrition among their blue collar work force. The ready to wear garment industry is one example. 

This is not merely a HR problem, or an issue that they need to address/fix because attrition needs to be curbed for its own sake, but one that has a very high impact on the survival of the business and their business model namely: “The ability of the organization to live up to the commitments that it makes to its customers, and thereby build its brand equity and trust quotient “ 

We see the roots of the problem in a mismatch of perceptions and expectations on issues like future opportunities, job tasks, working conditions and environment, job security and total compensation that the organisation provides. 

The ability of an organisation to clearly identify the areas of mismatch, and address then at both the pre hiring stage and during the tenure of the employment is what leads to successful retention. 

If you are an organisation faced with this challenge you could adopt a combination of the following means to identity the root causes. 

1.Survey a sample population of current employees (This could be a paper and pencil survey in a language that the respondents understand.). The survey should be anonymous to ensure accuracy of responses and protect confidentiality .Use an external agency if you think that will help in greater trust in the process.
2.Interview a sample set of employees who have left the organisation: This should be face to face or telephonic in case the former is not possible for any reason. 
3.Interview key managers as well as people who are involved in recruitment, selection and management of the blue collar employees. 
4.Interview supervisory and managerial personnel who have spent sizable time with the organization and who have through their position, experience and disposition a close rapport with the blue collar workforce. 
5.Conduct a process study and analyse all management processes impacting the blue collar employees . 
6.Analyse existing documentation like exit interview records 
7.Hold discussions with companies of comparable size operating in the same industry and the same geography to understand their experience and views. 

Analyse the findings, do a cause effect study and choose the solution mix based on a feasibility analysis of the potential solutions. 

The feasibility analysis could be on factors like 
• Impact on business financials 
• Extent of change required 
• Resistance from employees 
• Time to impact 
• Resources needed to transition, etc. 

Even what they choose to do next will give you insights into what you need to do to retain them. So where do these employees go. 
They return back to their native place to pursue traditional occupations /skills (Agriculture, animal husbandry, marginal businesses, tradecrafts, etc)
Move to another organization within the same industry (Same geographic location, or another location) 
Move to a new industry where similar skills are given due credit 
Become self employed