Leadership innovation
Leadership and innovation are essential components of any successful business. While many organizations may recognize their importance, it can be difficult to know how to effectively implement these concepts in practice. By being able to come up with original solutions that challenge traditional ways of thinking, leaders can ensure their teams/organizations remain competitive in today's ever-changing marketplace.
What is innovation?
Innovation is the application of better solutions to meet new requirements, unarticulated needs, or existing market needs. It is the key to organizational survival, and processes that support innovation are to be studied by researchers and practitioners.
Why is innovation important?
High market unpredictability, as well as its enormous complexity, forces organizations to undertake certain innovative actions, which determine the necessity to create, develop, utilize, and protect their intellectual capital, i.e., non-material and knowledge-related assets.
Every company needs to constantly evolve when operating in markets in which the external environmental conditions are determined mainly by the processes of globalization and competitiveness. When you additionally consider the shortening product life cycle, you might come to the idea that companies ought to more explicitly focus on investments regarding new technologies, the advancement of business models, and the development of intellectual capital.
One of the main factors contributing to the company's efficiency is its competitiveness in both domestic and international markets. Innovativeness is one of the elementary factors influencing the company's competitive potential. Innovativeness denotes a tendency and an ability to create and increase the value and novelty of produced goods, new or altered technological processes, or organizational and technical modes of management and motivation[1].
In our present environment of instant access to information, rapid change, innovation, and communication can be critical to a company’s continued existence.
Business organizations that are interested in launching into the future must see innovation as a key solution, especially in today’s ever-changing business world.
Though lots of cultural qualities are essential to constructing a suitable environment for innovation, the most important is that by taking a real interest in the growth of all levels of the business and promoting open communication, employees will have the inspiration and drive to develop groundbreaking and fresh ideas.
As the time for capitalizing on innovations reduces and the speed of innovation becomes even faster, becoming a competitively unpredictable organization is key to running a successful business in the decades ahead.
Evidently, the core of outmaneuvering the competition in ways that they can never see coming is robust innovation traditions that set the correct conditions and framework for breakthrough, fast-paced innovation to flourish.
Key factors contributing to innovativeness
Innovativeness is determined by a broad spectrum of factors that can be analyzed as barriers and stimulants. Innovation can be considered a technical as well as a social phenomenon[2]. It is an internal process, at the same time technical and social and equally cultural and organizational; it is the result of real processes and not only apparent behaviors. According to A. Pomykalski, innovation is a process that involves every activity related to the creation of an idea, the development of an Invention, and the introduction of an updated product or service[3].
Innovation can be analyzed from many different methodological standpoints. Psychology treats this concept mainly in terms of individual ingenuity, talent, and their causes. Psychology identifies innovativeness as creative output that encapsulates creativity, ingenuity, and novelty, i.e., one's abilities to think divergently and take risks. Sociology sees innovativeness as a function of the social system or as a result of social reality-defining processes.
The level of innovativeness depends on both exogenous and endogenous factors. Exogenous factors include e.g., technological, socio-cultural, or macroeconomical preconditions. Endogenous factors are understood mainly in terms of economic, intellectual, or psychological determinants.
Although the biggest barriers to the development of innovativeness are supposedly capital barriers, namely the high costs of initializing innovative activity and limited access to research and development funding, cultural factors also play a vital role in the process.
The elements of innovative companies are as follows:
· A winning business strategy
· Great talent
· Valued and empowered workforce
· Free flow of ideas
· Open communication
· Customer insight
· Quality Capabilities
Innovation needs its own sole set of skills and company structures. There is no remarkable method in creating a culture of Innovation.
Establishing one, and making it stick, depends on understanding the climate. How is the firm going to react throughout the periods of experimentation? Which behaviors, structures, goals, and people should be in place to unlock Innovation? And which, if positioned improperly, would create discord?
Innovation is not just a pet project. From R&D to human assets, consumer service to financial procedures, success depends on a continuous assessment of creativity—it’s everybody’s job, all the time.
Innovation is not a rare quality characteristic in a lucky few—it’s a way of behaving and thinking that comes to us naturally. An organization must foster the correct climate to let loose its employees’ instinctive, ground-breaking tendencies. Innovation needs strong leadership with a solid vision for business. The inner principles of a business, together with the outer culture through which it operates, will influence its capacity to transform.
Innovation flourishes in a culture that’s not scared of taking risks, thus promoting the worth of experimenting, is adaptable, and therefore rewards enterprise. Innovation generally wants to be led by the top administration of the business.
Resources for innovation
The apportionment of resources for Innovation includes personnel and finance, and it is reliant on management’s understanding of the benefits of new concepts. Regrettably, business overheads on Innovation are often characterized as an outflow rather than an investment, and progress to operational procedures is not seen as Innovation at all. Income needs to be allotted to Innovation, even if it just gives staff time to spring up fresh ideas.
A free flow of data and concepts up, down, and across the business inspires the growth of new ways of carrying out tasks and can lead to the growth of new products. Practices that enable employees to suggest ideas and developments, circulate these concepts, and be content with their entrepreneurial behavior can be affected.
Modern times are so dynamic that change is currently the most unchanging phenomenon. Every day introduces us to new products, new businesses, and changes in the economic situation. Changes in technology make it necessary to deploy new solutions and continually develop employees through training to keep up with the competition.
Changes occur everywhere: in the environment, in the economy, in politics, in culture, and society. Implementation of new solutions is commonplace in both micro companies and large corporations. Those who benefit from this dynamic are the people who can foresee changes in both the external and internal surroundings of the company. They aptly analyze this information and adequately implement carefully measured changes.
"Business, as well as any other form of organization, must be oriented towards change today - it must be one of their basic activities. They have to induce change, not just respond to it "[4].
The main benefit of introducing changes is improvement in competitiveness. More specifically, the positive effects of the changes may concern, e.g .:
1. increasing the overall efficiency of the organization;
2. costs reduction;
3. increasing profitability;
4. quality improvement
5. improving customer service and client satisfaction;
6. shortening production cycles eliminating unnecessary operations and reducing delays
7. expanding market share by increasing the attractiveness of your products and maintaining quality;
8. adapting to the needs of the employees;
9. additional profits for customers and shareholders;
10. shortening the time needed to provide information;
Innovation and entrepreneurial culture
Readiness to change is a prerequisite for the development of an entrepreneurial culture. Such an attitude has to be complemented by the ability to see opportunities for change. Peter F. Drucker once said: "innovators are successful in those areas where they can define
and reduce the risk. They are successful in areas where they systematically analyze the sources of opportunities for innovation. Then they grab and take advantage of these opportunities, even though they are fraught with risk" [5]. Anticipating and outrunning the upcoming changes is what we call proactivity. The term proactivity was popularized by Stephen Covey, who made it the first habit described in his now classical book - "The Seven Habits of Highly Effective People". Proactivity relates to such concepts as initiating change, creativity, and the search for new solutions. With such an attitude, entrepreneurs control the market situation and not only respond to it. A proactive attitude is especially useful in the field of management. Proactive managers do take control and shape their working environment so that it can be full of opportunities. They also tend to better cope with changes that are imposed on them within the organization. This fact is caused, among other things, by the fact that their ability to adapt is much higher[6].
Innovation and creativity are key traits in leadership
Leadership is a complex concept and one which can be difficult to define. While most would agree that it involves the ability to manage people, inspire them towards excellence, and make decisions in times of crisis - many other elements of leadership often go unnoticed or overlooked. One such element is innovation and creativity; traits which are essential for any leader looking to not just survive, but thrive in today's ever-changing business environment.
What is innovation & creativity?
Innovation and creativity can mean different things depending on the context – however, generally speaking, they refer to new ways of thinking or approaching a problem. Innovation typically refers to coming up with something entirely original (e.g., a product), while creativity usually involves taking existing ideas/concepts and reworking them into something better (e.g., an improved process). In both cases though, these activities require individuals who have the capacity for lateral thinking – being able to think outside the box when presented with difficult situations so as come up with unique solutions that challenge traditional ways of doing things.
Why are innovation & creativity important for leaders?
For leaders, having an innovative mindset can prove invaluable during periods of change or uncertainty within their organizations/teams. Being able to come up with creative solutions when faced with unexpected events or challenges ensures teams remain competitive in today's rapidly shifting marketplace by allowing them to adapt quickly without becoming overwhelmed by obstacles along the way. Furthermore, it also allows leaders better understand customer needs, enabling the design of more effective marketing campaigns/products tailored toward specific target audiences. Finally yet importantly too, being inventive means staying ahead of the competition; providing customers products and services no one else has thought of before will help differentiate from rivals and attract more attention from potential buyers.
How do you foster innovation &creativity?
To foster a culture where innovative approaches are welcomed and encouraged, there few steps leaders should take to ensure this happens: First, create an atmosphere of open dialogue and debate; encourage team members to share their ideas and opinions freely without fear of criticism and judgment. Additionally, provide resources and opportunities to explore and develop skills related to decision making problem-solving so employees feel empowered to tackle issues head-on rather than relying solely upon senior management’s guidance direction every time. Lastly yet importantly too, reward those who demonstrate initiative and courage and suggest new initiatives whether successful or not - this will show staff members that their efforts are valued and recognized even if they don't always work out as expected the first time around!
What type of leadership style best encourages innovation &creativity ?
There are multiple theories regarding what makes a good leader; however, all tend to agree upon a couple of key points: Firstly strong communication skills are necessary between top management subordinates to ensure everyone understands tasks and each other’s roles responsibilities organization structure Secondly trust and mutual respect must exist between groups otherwise morale motivation suffer detrimentally over long term period Lastly delegation authority critical aspect allow teams operate autonomously effectively while remaining under overall control supervision senior managers This combination techniques creates environment ripe fostering productive collaboration amongst colleagues thus leading increased levels employee engagement satisfaction ultimately resulting higher quality output.
Innovation and creativity are essential components of successful leadership in today's ever-changing business environment. Leaders must be able to think innovatively when faced with difficult situations so as come up with solutions that challenge traditional ways of doing things. Additionally, they need to foster a culture where these activities are welcomed and encouraged by providing employees with the resources they need to develop their decision-making/problem-solving skills, creating an atmosphere of open dialogue and debate, and rewarding initiative even if outcomes don't turn out as expected at first. Finally yet importantly too, leaders should strive towards becoming innovative thinkers themselves – this will help their teams/organizations remain competitive in today's rapidly shifting marketplace while also demonstrating the importance they place upon such traits within their organizations/teams.
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J. Westland provides a short formula for innovation:
Idea + Commercialization = Innovation[1]
According to J. Westland, innovations:
· are connected with creating new products but they also consist in improving the already existing products,
· require “insane” creativity - a large number of ideas, a few of which are chosen for execution,
· require time and means for their implementation[2].
Four types of innovations are distinguished in business practice but they often occur together, comprehensively covering various areas of the enterprise:
1. Technological and technical innovations provide the largest added value and generate the highest entrepreneurial income. However, they are the most expensive innovations. They lead to the development of products and services. They are based on the results of scientific studies and research activities. This type of innovation is often the source of organizational and process innovations.
2. Organizational innovations - changes in the method of work or enterprise management organization. They are often implemented without incurring costs.
They are aimed at better functioning of the enterprise or adaptation to changing environmental conditions, e.g., legal provisions or customers' requirements.
3. Process innovations - mostly associated with implementing cutting-edge technical solutions, e.g. changes in the production or service provision process.
4. Marketing innovations - connected with sales and distribution of finished products and services, i.e. new packaging or new marketing strategies[3].
“Innovation is an idea, procedure, or object that is new and better in terms of quality. The notion of innovation can be perceived in two basic ways. Some authors understand innovation as changes in the production sphere leading to new process solutions and new products; others interpret it much more broadly, believing that innovation covers any processes of research and development aimed at the application and usage of improved solutions concerning technique, technology, and organization”[4].
Innovation literature and bibliography
[1] Kowalik J.: Innowacje jako czynnik przewagi konkurencyjności polskich przedsiębiorstw [w:] Innowacyjne aspekty przedsiębiorstwa globalnego w zintegrowanej Europie, Red. Naukowy L. Sobolak, Wydawnictwo Wydziału Zarządzania Politechniki Częstochowskiej, Częstochowa 2007, str. 288.
[2] Kwiatkowski S. (2000), Przedsiębiorczość intelektualna, PWN, Warszawa, s.84
[3] Pomykalski A. (2001), Zarządzanie innowacjami, PWN, Warszawa-Łódź, s. 17.
[4] P. Drucker, Zarządzanie…, op. cit., s.49.
[5] P. Drucker, Myśli przewodnie Druckera, MT Biznes Ltd, Warszawa 2000, s.413-414.
[6] S. Covey, The Seven Habits of Highly Effective People, Dom Wydawniczy Rebis Sp. z o.o., Poznań 2003, s.65-92.
[1] Westland J., Global innovation management. A strategic approach, Palgrave, New York 2008, p. 8.
[2] Westland J., Global innovation management. A strategic approach, Palgrave, New York 2008, pp. 42-43.
[3] <www.pi.gov.pl> 30.12.2013.
[4] Brzozowski M., Kopczyński T., Przeniczka J., Metody organizacji i zarządzania, Wydawnictwo Akademii Ekonomicznej w Poznaniu, Poznań 2001, p. 181.
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