Mature organizations, confronted with their lack of innovative capabilities, readily turn to standard recipes. In an effort to create a quick fix, they blindly follow the core myths about innovation. Creating a sustainable stratgegy for survival requires an integral approach though, one that looks beyond technological innovation and includes the systemic dimensions of the oranization's social fabric.

1. THE MYTH OF INNOVATION
STRATEGIES FOR CORPORATE SURVIVAL
Benny Corvers
25 March 2014

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CLIENT Market, Sell, Design, Produce & Deliver
IN THE BEGINNING, THERE WAS A START-UP

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CLIENT Market, Sell, Design, Produce & Deliver
IT ATTRACTED MANY CLIENTS

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CLIENT
LOADS OF CLIENTS, ACTUALLY …
Market, Sell, Design, Produce & Deliver

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TIME FOR OUR FIRST NEW HIRE!

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CLIENT
SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW
Market, Sell, Design, Produce & Deliver
Admin

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CLIENT
THEN WE DECIDED TO SPLIT SALES & OPERATIONS
Sales & Marketing
Admin
Design, Production &
Transport

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CLIENT
BUT THOSE DAMN CLIENTS KEPT COMING …
Sales & Marketing
Admin
Design, Production &
Transport

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TIME FOR OUR SECOND HIRE!

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CLIENT
SO WE ADDED OUR FIRST MANAGEMENT LAYER
Sales & Marketing
Admin
Design, Production &
Transport
Sales Management

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CLIENT
THEN WE SPLIT UP OPERATIONS
Sales & Marketing
Admin
Design
Sales Management
Production &
Transport

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CLIENT
AND WE ISOLATED MARKETING FROM SALES
Sales
Admin
Design
Sales Management
Marketing
Production &
Transport

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AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT?
Sales
Admin
Design
Sales Management
Production &
Transport
Marketing Presales

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NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY
Sales
Admin
Design
Sales Management
Production &
Transport
Marketing Presales
Operations
Manager

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WHO STARTED BY CREATING TWO MORE UNITS
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations
Manager

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AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations
Manager
Invoicing

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EVEN THE OPERATIONS NOW NEED SUPPORT STAFF
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations
Manager
Invoicing Quality Warehouse

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IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP

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SO WE ADDED SOME BIG HONCHOS ON TOP
Admin
Design
Sales Director
TransportMarketing Presales
Supervisor
Production
Invoicing Quality Warehouse
CTO
COOCEO
Sales

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WE ARE NOW LOSING SIGHT OF OUR CLIENT

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OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX

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AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS

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THE END RESULT? WE ARE LOST …

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HOW CAN WE BECOME MORE ‘INNOVATIVE’?
TEN ‘PROVEN’ RECIPES
#1 Change the company culture
#2 Hire an Innovation Manager
#3 Set up an Innovation Board
#4 Provide some funding
#5 Create a spin-off or acquire a start-up
#6 Set up an innovation pipeline
#7 Roll-out a training program
#8 Kick-in new incentives
#9 Set up co-creation initiatives
#10 Start from #1

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MYTH #1: IT’S A BIG BANG

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INCEPTION
ORGANIZATIONAL LIFE CYCLES
TIME
SALESVOLUME
GROWTH
MATURITY
DECLINE
* Source: Smith et al. (1985)

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MYTH #2: IT’S ABOUT LUCKY SHOTS

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TRENDS GAZELLEN ARE NO LUCKY SHOTS
Actions Difference
New methods for producing/delivering
products or services
+6%
Logistics innovation +28%
Technological innovation +6%
Organization design +15%
Human resources management +19%
* Source: Hendrik Delagrange (2011) - SERV

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MYTH #3: IT’S ABOUT CULTURE

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MYTH #4: IT’S ABOUT YOUNG PEOPLE AND START-UPS

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MYTH #5: IT’S ABOUT TECHNOLOGY
Technology Innovation Social Innovation
Technological knowledge
Investment in ICT
Research & Development
Knowledge creation
Management knowledge
Investment in education
Organization & Collaboration
Acquire, integrate and apply
new knowledge
Explains 25% of
innovation success
Explains 75% of
innovation success
* Source: Henk Volberda, Erasmus University Rotterdam (2013)

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FIVE MYTHS OF INNOVATION
INNOVATION
It’s a big
bang
It’s about
lucky shots
It’s about
Culture
It’s only for
start-ups
It’s about
Technology

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CLIENT
SO HOW CAN WE GET BACK TO THE EARLY DAYS?
Market, Sell, Design, Produce & Deliver
Clients take center stage
A simple and transparent organization
Efficiency and low overhead cost
Agility to change course

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FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS
FUNCTIONAL STRUCTURE
Function 1 F2 Fn…
FLOW
BASED
STRUCTURE
Client Order 1
O2
On
…

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WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS
CLIENT
PROSPECTING
ACCOUNT
MANAGEMENT
BUSINESS
ADVISORY
SKILLS
PRESALES
EXPERTISE
PRICING
KNOWLEDGE
TECHNICAL
WRITING
SKILLS
OPERATIONS
EXPERTISE
HR EXPERTISE

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IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES
LARGE
ACCOUNT
MANAGER
MARKETING
SPECIALIST
BUSINESS
CONSULTANT
PRESALES
CONSULTANT
PRODUCT
MANAGER
HR SPECIALIST
ACCOUNT
MANAGERS
MARKETING
SPECIALIST
BUSINESS
CONSULTANT
TECHNICAL
WRITER
QUALITY
MANAGER
FINANCE
SPECIALIST
LARGE
ACCOUNT
MANAGER
ACCOUNT
MANAGERS
BUSINESS
CONSULTANT
PRESALES
CONSULTANT
LEGAL
OFFICERS
BUDGET &
CONTROL
SPECIALIST
STREAM A
STREAM B
STREAM C

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WITH MORE ENGAGEMENT AND MOTIVATION
JOB CONTROL
JOB DEMANDS
LOW-STRAIN
JOBS
ACTIVE
JOBS
HIGH-STRAIN
JOBS
PASSIVE
JOBS
MOTIVATION &
LEARNING
STRESS
* Source: Karasek, 1979

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Client-Centric
Organization
THE END RESULT
Ownership Motivation
Agility
Reduced
Complexity
Better
Coordination
CLIENT

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THE IMPLICATIONS FOR IT DEPARTMENTS
CLIENT
Client-Centric
Organization
Enabling horizontal
coordination
Catering for
Diversity
Let people focus on
the primary process
Supporting Client
Centricity

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MORE ABOUT WORKPLACE INNOVATION

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IT CAN BE DONE …