Managing to innovate: business innovation still seeking sponsors

Citation

(1999), "Managing to innovate: business innovation still seeking sponsors", Leadership & Organization Development Journal, Vol. 20 No. 5. https://doi.org/10.1108/lodj.1999.02220eab.003

Managing to innovate: business innovation still seeking sponsors

Managing to innovate: business innovation still seeking sponsors

Keywords: Innovation, Managers, Creativity, Corporate culture, United Kingdom

Much of British business is still struggling with what innovation means despite almost universal recognition that it is critical in making companies and nations more competitive. This is one of the conclusions of a recent study examining how managers fit innovation into the overall strategy and the day-to-day working of their companies.

The study, led by Professor John Storey of the Open University Business School, revealed that most organizations can sport a few enthusiasts - "innovation champions" but they often face an uphill struggle with their colleagues who take a more sceptical and entrenched position.

As a result, innovators can find themselves in a vulnerable position. The exceptions are in sectors where companies take for granted that innovation is vital, notably pharmaceuticals and electronics.

In most organizations, Professor Storey says: "There is no consensus among managers about the place or importance of innovation to success of the businesses. Even among top team members there is significant variation in judgement about the wisdom of pursuing an innovative, fast-follower, or some other strategy."

The project, "Managing to innovate", financed by the Economic and Social Research Council (ESRC), involved in-depth interviews with managers in many leading companies including Hewlett Packard, NatWest Bank, GDA/GEC, as well as bodies such as the BBC, Oxfam, Age Concern and a number of NHS Trusts. Many smaller and medium-sized enterprises also took part including call centres and consultancies, as well as small manufacturers and other service companies more usually associated with innovative practices.

By questioning the managers closely, the research aimed to identify the barriers to innovation in so much of British activity. It is generally accepted that while the British can be very inventive as individuals, companies tend to be poor at translating novel ideas into products and services with a market impact. In other words, companies may have lots of creative people but still be poor at delivering innovating. The managers produced lots of explanations, including: lack of resources (time and money); short-termism; people confined to (and indeed sometimes preferring) their narrow "boxes"; and fear of failure as it was safer to ply the routine than take risks.

The managers also identified what might initially drive innovation: an unexpected crisis; dissatisfaction with the status quo; responding to an opportunity; or planned strategic change. What might be needed to turn any of these into "an effective innovative response"? Suggestions included: an open, supportive culture which values new ideas; breaking down internal organizational boundaries; much greater involvement of staff; sharing "road maps" - that is, keeping suppliers and customers fully informed about forward plans so as to allow some joint action; and building more flexibility into the company.

The diversity of views among managers, even about what innovation means, has made the research team determined not to come up with blueprints, or "best practice" checklists. Respecting the range of views, and working with them, is the recommended way forward.

For more information, contact Professor John Storey. Tel: +44 (0)1908 655882; Fax: +44 (0)1908 655898; E-mail: j.storey@open.ac.uk or Kathy Ham, David Ridley, Jacky Clake, ESRC External Relations. Tel: +44 (0)1793 413032/413118/413117.