Hbo report 1
- 1. What is innovation and why is it so important? • Innovation – The process of creating new ideas and putting them into practice. • Innovation is a continual process of: – Exploitation • Focuses on refinement of and reuse of existing products and processes. – Exploration • Calls for the organization and it managers to stress freedom and radical thinking, opening the firm to big changes – what some call radical innovations.
- 2. How to manage organizational culture and innovation? • Management philosophy – Links goals with key collaboration issues and comes up with a series of general ways by which the firm will manage its affairs. • A well-developed management philosophy : – Establishes generally understood boundaries for all members of the firm. – Provides a consistent way for approaching new and novel situations. – Helps hold individuals together by assuring them a known path to success.
- 3. • Strategies for managing organizational culture – Managers help modify visible aspects of culture, such as language, stories, rites, rituals, and sagas. – Through reward systems – two common patterns: • Steady state (hierarchical, ‘clan’ cultures) • Evolution and change (market culture) • Common mistake in changing culture – Trying to change people’s values from the top down without also changing how the organization operates and recognizes the importance of individuals does not work very well. • Organizational lag – The dominant cultural patterns are inconsistent with emerging innovations. – Cultural change is hampered by a legacy of established behaviors, with an overreliance on rule following and reinforcement of old patterns of action.
- 4. Thank You • Techniques for overcoming ‘cultural lag’ and promoting innovation: – Demonstrate how shared values and common assumptions can be applied to new innovations. – Balance rule changing with rule following.