In 1958, Ron Lippitt, with his colleagues Jeanne Watson and Bruce Westley, wrote a book called The Dynamics of Planned Change. After Lippitt, a few other consultants (Havelock - Ed Psyc; Reddin - MBO) riffed of of Lewin's work, but nothing that stuck. The power of McKinsey was that they practiced social science according to professional discipline rather than an academic discipline. You must have JavaScript enabled in your browser to utilize the functionality of this website. Play a melody with our 7 factors of organizational change powerpoint diagrams presentation slides graphics 0912. You can begin creating a presentation by using this pre-designed diagram, and move on to custom-designing them in time. While, business process management (BPM) is a key component of ERP success, most ERP consultants aren’t well-versed in this competency or don’t dedicate enough time to it during implementation. The majority of organizations don’t realize expected business benefits from their ERP implementations. Given the importance of business process management and consultants’ lack of focus in this area, it is important for your organization to identify consultants who understand this key success factor. Finding an ERP consultant that meets all three of the above criteria is no easy feat.  Even the best business process management consultants may not have the “soft” skill sets required for organizational change management. Learn more by registering for our on-demand webinar, Business Process Management: A Critical Success Factor of ERP Implementations on August 21. After 15 years of ERP consulting at large firms including PricewaterhouseCoopers and SchlumbergerSema, Eric realized the need for an independent consulting firm that really understands ERP. Sign up for our newsletter to have the latest ERP thought leadership delivered to your inbox every Wednesday morning. This is a€?OCC Dimension 8: Innovative Culturea€?, chapter 10 from the book Beginning Organizational Change (v. This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book. PDF copies of this book were generated using Prince, a great tool for making PDFs out of HTML and CSS. For more information on the source of this book, or why it is available for free, please see the project's home page. helps people like you help teachers fund their classroom projects, from art supplies to books to calculators. The achievement of excellence can only occur if the organization promotes a culture of creative dissatisfaction.
Organizations in all developed economies (and increasingly many developing economies) want to be innovative.
Many people equate creativity with innovation, and while this is understandable it is also a mistake.
In this chapter, I argue that the key to making an organization innovative is to cultivate an innovative culture, our eighth and final dimension of organizational capacity for change. A second aspect of organizational culture that is fundamental to creativity is the cultivation of diversity of thought. A third aspect of organizational culture that can facilitate innovation is the ubiquity of weak ties. A fourth aspect of organizational culture that nurtures creativity and innovation is an organization-wide ability to look long term. A fifth aspect of organizational culture that makes creativity and innovation possible is the tolerance of ambiguity and failure. A sixth aspect of organizational culture stems from the reality that most innovations come from collaboration within and across teams, not the genius or perseverance of a single individual. There is a wide variety of cultural typologies in the organizational sciences, but one of the most popular is the a€?Competing Valuesa€? framework advanced by Kim Cameron and Robert Quinn. As Cameron and Quinn point out, some cultures are more open to innovation and change than others, but the reason for this is that there are competing values tugging the culture in multiple directions. Innovation is fostered by information gathered from new connections, from insights gained by journeys into other disciplines or places; from active, collegial networks and fluid open boundaries.
Clearly, the more open the culture is to new ideas and connections, the more likely that it will be innovative and capable of change.
Similar to previous chapters, we conclude this chapter with a discussion of seven practices that can be used to enhance your organizationa€™s capacity for change in this particular area. In too many organizations, innovation is assumed to be the responsibility of the top management team, or the research and development unit.Hargadon and Sutton (2000). According to Peter Drucker, innovation and entrepreneurship are capable of being presented as a discipline. All innovation depends on the generation of new ideas, but no new ideas will be generated in the absence of human creativity. However, creative individuals arena€™t the only ones required to cultivate a more innovative culture. Most organizations are uncomfortable with a€?mavericksa€? who shake up the status quo and display irreverence for accepted wisdom.
A popular but controversial mantra in innovative organizations is a€?fail fast, fail cheap.a€? The idea here is that it is important to get your new ideas in rough form out into the marketplace, and learn from your customers. However, fast and cheap are not enough; the innovative organization also needs to learn from the experience in order to make the a€?failurea€? pay off.
Some mistakes are more lethal than others, so mistakes that do not jeopardize the survival of the organization need to be accepted, even welcomed by leaders. Once again, the human resources system can be instrumental in helping to create the psychological safety to enable innovation. In the 1970s and 1980s, many organizations tried to create specialized subunits where their mandate was to make the organization more innovative.
Recall from the previous chapter that one key way to change a culture is to intentionally shift the cultural artifacts in the direction of the desired change. Fundamentally, cultures are not changed by new thoughts or words, they are changed by new behaviors that reinforce the cultural attributes that are desired. Culture change does not occur until the underlying assumptions that pervade the organization are challenged and replaced with some new assumptions. In conclusion, the eighth and final dimension of organizational capacity for change is an innovative culture that fosters and celebrates creativity and innovation. We understand that you may need some help to ensure that your plan, strategy, people and processes take you in the right direction…forward! It all begins with a detailed and thorough analysis of your business, challenges and goals. From there, we assist you to refine what specific business model will be most effective and scalable.
Now that the building blocks are in place, we facilitate how you reach your short term and long term goals and objectives together with the action plans for success. We will evaluate emotional intelligence, communication style, personality, job fit, agility, resiliency, and other key factors to make sure that the each individual is the right fit and in the right position.
Training programs will be developed to ensure that existing and future employees have the education they need to help guide the organization to success. Your vision and goals as well as your values mean little if there are no actionable steps to achieve them.
Action planning establishes the stepping stones that need to be hit on the way towards bigger, long term objectives and the specific time frames needed to achieve them. Learn more about how to manage performance effectively through our High Performance Leadership program. As a business consultant, speaker, author and executive coach, I am dedicated to helping leaders succeed and their organizations grow.
Sign up for our newsletterStay updated with the tools and strategies that can help you or your ogranization succeed, subscribe to our newsletter. Business processes are either not well-defined prior to the technical implementation of the software, or organizations simply “pave the cowpaths” in a rush to finish the project on time.
In addition, a poll on our website asks participants to select the component that they believe to be most important to ERP implementation success. He began his career as an ERP organizational change management consultant and eventually broadened his background to include implementation project management and software selection.
See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed.

While cost control, cost parity, or both are important to be competitive, organizations in developed economies simply cannot compete with the low cost advantages that developing economies offer. Creativity is the process of generating something new; while innovation is the application of creativity to a new product or service that has value. The philosopher Plato observed that a€?necessity is the mother of invention.a€? This observation suggests that problems are the stimulus for creativity and innovation and that persistence is required.
There are many reasons why creative ideas and innovative projects are killed within organizations. But elements of organization can and frequently do stifle creativity and innovation.a€?Florida (2002), p. Although many organizations pay lip service to the need to diversify their workforce, diversity of observable demographic traits is typically the emphasis, not diversity of thought. Strong ties are relationships we have with family members, close friends, and longtime neighbors or coworkers. As Woody Allen states, a€?If you are not failing every now and again, ita€™s a sign youa€™re not doing anything very innovative.a€? Clearly, not all new ideas will work out as hoped, so ideas that lead to dead-ends are an inevitable part of the innovation process. However, the research consensus is that organizational culture is the primary source of comprehensive and sustained innovation.Garvin (2004). The a€?hierarchyA type of organizational culture that places an emphasis on control, accountability, and stability, and that limits the overall capacity for change.a€? culture, with its inward integration coupled with a stability and control focus, is the exact opposite of the adhocracy culture. Innovation arises from ongoing circles of exchange, where information is not just accumulated or stored, but created.Wheatley (2006), p.
While these two groups of people are essential, this emphasis will fail to capture the a€?wisdom of the anthill.a€?Hamel and Prahalad (1994). Consequently, the hiring process needs to emphasize the importance of selecting individuals who have creative potential. However, mavericksIndividuals who play a vital role in making an organization more innovative; they are typically independent thinkers who do not embrace the status quo. This is in contrast to the a€?goa€“no goa€? approach where companies want new ideas to be 95% right before taking any action.Hall (2007). The concept of a€?winninga€? is an important one, and being labeled a a€?winnera€? is usually a key to organizational advancement. Relatedly, it is more important to focus on the ideas rather than the individuals behind the ideas so that failure is not personalized.
In this case, the system can be designed to permit and even celebrate failure.Bowen and Ostroff (2004). This structural approach to innovation largely failed, either immediately or in the long term. As a result, ad hoc interdisciplinary teams appear to be the proper structural approach to fostering innovation.
When creativity and innovation is desired, it is important to be more flexible in the work environment. For example, some organizations celebrate failed experiments based on imaginative new ideas. For example, GMa€™s automobile plant in Fremont, California, transformed its culture by adopting the lean manufacturing behaviors advocated by its new venture partner, Toyota Motors.
Too often, organizations are quick to set their standard for success without an honest evaluation of where they are or a clear path on how to get where they going. With the development of a winning proposition and strategy, we will identify what you can uniquely provide to achieve success for your business and your customers.
Specific, measurable steps are the only way to ensure success, so we help you closely monitor progress, evaluate organizational performance, innovate and adapt when necessary. After defining your company’s guiding principles, you want to ensure that your people share those same core values and that they have the right competencies to excel in their work; this involves a thorough assessment of the people currently within the organization or those you might be hiring.
The next step is in learning how to bring on new talent through “fool proof hiring.” Learn the skills needed to effectively attract, hire and retain the highest performers and discover the proper rewards and recognition to achieve top performance.
From there, we can focus on leadership development and executive coaching so the entire organization is aligned. With the right execution, your organization can be sure that it will fulfill its purpose and reach its full potential. With a systematic scorecard, you can accurately evaluate and measure progress along the way and receive continuous support and feedback to guide performance.
We use a system of Right Focus, Right People and Right Execution to help our clients achieve outstanding results. In other words, organizations struggle in their business process reengineering efforts, which typically leads to project delays, budget overruns and lost business benefits. The results at the time of this blog reveal that “well-designed processes and workflows” is the #3 most important success factor, after organizational change management and executive buy-in and support.
There is a big difference between the gunslinger approach to business process reengineering versus a more predictable and repeatable approach. The ideal ERP consultant has a team, methodology and toolset that address both organizational change and business process management. Eric’s background includes extensive ERP software selection, ERP organizational change and ERP implementation project management experience. You may also download a PDF copy of this book (2 MB) or just this chapter (357 KB), suitable for printing or most e-readers, or a .zip file containing this book's HTML files (for use in a web browser offline). As a result, more and more organizations voice or attempt to embrace the 21st-century mantra, a€?Innovate or die.a€?Peters (2006). Product innovations add direct value to customers; process innovations add indirect value to customers by lowering costs, increasing the quality of new or existing products, or both. Notably, almost all of them have to do with an overweighting of the risks to existing operations, and an underassessment of the returns associated with new ideas based on the overarching organizational culture. When the workforce is highly diverse, then misunderstandings are likely, conflict often ensues, and productivity can decline. They tend to be ties of long duration, marked by trust and reciprocity in multiple areas of life. They are so busy exploiting existing markets, they dona€™t have the time or resources or capacity to explore new markets. Unfortunately, most organizational cultures seek to blame individuals who fail, rather than accepting occasional failures and attempting to learn from the experience. Nonetheless, many organizations seek to hire employees who are extremely intelligent, come from prestigious universities, or both, and these are often the individuals who have the most problems collaborating with others. The primary reason for this is that innovation is a teachable discipline that involves many different people in collaboration.Drucker (1993).
These four organizational cultures vary in their relative emphasis on flexibility and discretion bestowed upon individuals and their external focus on variation and differentiation.
Indeed, hierarchical cultures are useful for addressing matters of accountability, as discussed in the previous chapter.
Gore and Associates as a€?pound for pound, the most innovative company in America.a€? They argued that their impressive string of innovations were a direct result of their culture, which was designed specifically to be innovative.
Innovation is essentially a collaborative endeavor, where collective imagination yields new business opportunities.Hammer (2004). Most important for us in this chapter, Drucker asserts that it can be fostered and encouraged throughout an entire organization.Drucker (1996).
More importantly, the human resources system needs to focus on developing that creativity and retaining individuals who show creative promise.Mumford (2000). Knowledge brokersIndividuals who collect ideas and combine them in unique and valuable ways. Hence, a key ingredient to becoming more culturally innovative is the importance of designing relatively small-scale, but rigorous tests or a€?experiments.a€? For example, Capital One, a highly successful retail bank, was founded on experimental design where new ideas were constantly tested. Unfortunately, failure is an integral part of innovation, so innovative cultures need to create the psychological safety whereby failure in certain circumstances is acceptable.Edmondson (2008). And a€?failure-tolerant leaders emphasize that a good idea is a good idea, whether it comes from Peter Drucker, Readera€™s Digest, or an obnoxious coworker.a€?Farson and Keyes (2002), p. For example, General Motors created the Saturn division as a built-from-scratch innovative new way to produce and sell cars.
Today, IDEO is one of the most innovative firms in the world, and their approach to business is centered around interdisciplinary teams.Kelley and Littman (2005). So flexibility in working arrangements, dress codes, and organizational titles becomes important.
Other organizations promote individuals who took a risk on a promising new idea that did not work out. For example, nothing was as transformative at this particular plant as the a€?simplea€? act of empowering frontline employees to stop the productive line at any time due to quality concerns.

The organization must thoughtfully identify what the old assumptions are and work to instill new assumptions that support the culture desired.
Whatever the term that is used, organizational members need to think deeply about where their culture limits innovation, and to identify what cultural assumptions are the limiting factor. Together, these two dimensions complete our understanding of how to make your organization more change capable. Our dedicated team has the expertise and focus to design and implement change initiatives that will accelerate your success.
The first step is in clearly and honestly defining where you currently are and where you want to be.
Having the right focus means that your objectives are defined, your strategy is set and the path to success is clear; it is imperative to accurately define your current state, set short term goals and lay out your vision for long term success.
Role clarity aligns each individual’s purpose with that of the company, and that is brought together to establish overall team goals for a decisive path to achieve big wins. With proper change management, you can ensure that the entire organization is on board and remains committed until goals and objectives are achieved. No one person can possibly be an expert in all functional areas, such as supply chain, manufacturing, finance and sales and marketing, so your consultant should have a strong methodology that enables the team to leverage a more extensive knowledge base.
It’s just as – if not more – important to look for cross-industry experience that will augment industry knowledge with best practices from other industries. It’s one thing to define a business process at a conceptual level and a much different thing to implement that process. Throughout his career, Eric has helped dozens of high-profile and global companies with their ERP selections and implementations, including Kodak, Samsonite, Coors, Duke Energy and Lucent Technologies. Value is generated by taking a creative new idea and moving it through a series of stages in order to yield a practical new innovation. Clearly, not all ideas should be pursued and the pursuit of new ideas needs to be selective. Organizational cultures become creative and innovative when they encourage a€?combinatorial play.a€?Shames (2009). Clearly, none of these outcomes is a pleasant experience and they do not automatically lead to innovations. In contrast, weak ties are those relationships that are more on the surfacea€”people we are acquainted with but not deeply connected to.
However, organizational cultures that enable the organization to both exploit and explore markets make it possible for its leaders to a€?fly the plan while rewiring it.a€?Judge and Blocker (2008). The a€?adhocracya€? culture is reported to be the one cultural type that is most conducive to innovation since it emphasizes flexibility and discretion over stability and control and external differentiation over internal integration.Cameron and Quinn (1999). However, too much emphasis on control and an overly inward focus will limit the overall capacity for change of the organization.
One of the keys appears to be to create a collaborative, a€?information-richa€? environment in which all employees are invited to contribute.Kanter (2006).
They are skilled at cultivating a more innovative organizational culture by keeping new ideas alive.
For example, Jack Welch, a relatively famous maverick who led General Electric through a very innovative period, stated, a€?Here at GE, we reward failure.a€?Farson and Keyes (2002). Tests are most reliable when many roughly equivalent settings can be observeda€”some containing the new idea and some not.Davenport (2009).
Consequently, the key is to create sufficient psychological safety within a culture so that the organization can a€?dance on the borderline between success and failure.a€?Wylie (2001). In sum, the ad hoc interdisciplinary team appears to be the structural solution to innovation, not a self-contained innovative subunit as some suggest.
And changing the formal values statement to incorporate an explicit statement about creativity and innovation highlights its new importance. This new policy had dramatic impacts on the revitalization of this unionized plant.Shook (2010). This requires a collective perspective; very rarely can a single leader come to this realization.
We will help you clarify your mission and vision to establish the reason your organization exists, future aspirations and your core values as an organization. When digging into this area, it is important to understand the specific processes your consultants will follow, see specific templates that will be used and view sample deliverables. Many of our manufacturing clients love the fact that we have extensive experience in the manufacturing and distribution industry, but they also appreciate the fact that we bring accounting best practices from our experience in the financial services industry – as well as repair and maintenance best practices from the oil and gas industry. Your ERP consultant should be well-versed not only in reengineering best practices and cross-industry best practices, but they should also know how to manage those changes from an organizational change management perspective.
In addition to his extensive ERP experience, Eric has also helped clients with business process reengineering, merger and acquisition integration, strategic planning and Six Sigma initiatives. However, very few organizations know how to fully explore new ideas and develop the best ideas into innovative new ventures. In other words, employees need to imaginatively combine ideas in new ways and then play with them to see how the new combination works in reality.
However, if diversity of thought is welcomed in an organizational culture, creativity and innovation are more likely.Basset-Jones (2005). Research has shown that creative individuals have many a€?weak tiesa€? inside and outside their work organizations.Granovetter (1973).
In sum, there must be a balance struck between innovation and accountability for those organizations that seek to expand their capacity for change. For example, they emphasize the power of small, interdisciplinary teams over formal organizational structure.
Commenting on the success of the Sundance Film Festival, Robert Redford stated, a€?If you create an atmosphere of freedom, where people arena€™t afraid someone will steal their ideas, they will engage with each other, they will help one another, and they will do some amazingly creative things together.a€?Zades (2003), p.
Similarly, IDEO, perhaps the most innovative design firm in the world, is a staunch proponent of encouraging experimenters who prototype ideas quickly and cheaply.Kelley and Littman (2005). However, the lessons learned from Saturn never translated to the rest of the organization and recently the Saturn division was eliminated.Hanna (2010).
Since most organizations have a bias for action, this reflection can be especially difficult.
It is also helpful to know whether the methodology incorporates aspects of Six Sigma and Kaizen principles of improvement. Experienced business process consultants are able to optimize and improve business processes regardless of the industry.
Effective organizational change management and implementation of new business processes should include training, employee communication, change impact analysis, benefits realization and a host of other activities critical to making the changes “real” within the organization. In sum, creativity and innovation are essential for just about any organization today, but they are different concepts and neither comes easily.
Perhaps that is why the stock market values Apple so highly, due to its rare ability to keep coming up with a steady stream of innovative new products and services year after year. Consequently, organizational cultures that encourage flexible working conditions and external networking make innovation more likely.
They often are not the originators of the ideas, but they have a skill at keeping new ideas alive and seeing where they lead. Similarly, too many large organizations try to rely solely on their research and development units for innovation, which greatly constrains the idea production and development process.Stringer (2000).
For example, creating a a€?blank canvasa€? culture evokes an image of artists operating without artificial constraints.
However, organizational learning often requires unlearning old and harmful assumptions and this is especially true for cultivating innovativeness.Senge (1990).
All of these traditional cultural norms and values thwart the development of innovation since creative employees usually value imagination and play and pursuing new ideas into unknown realms, and are highly motivated by intrinsic rewards. The firm takes the long view as much as possible; and it emphasizes the importance of face-to-face communication.
Prahalad note that a€?true strategy is the result of deep, innovative thinking.a€?Hamel and Prahalad (1994), p.
Sometimes older workers lose their creative spark but serve as knowledge brokers to keep the spark alive.
Arthur carmazziwe present a healthy culture or requires some kindmany organizational culture.

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