Innovation and Creativity Yu Fu

Learning objectives Define innovation and creativity Explain the personality traits of creative people Describe the creative process Explain the organisational conditions that hinder and promote creativity Organisational Behaviour 22

3 Creativity Creativity is the development of ideas about products, practices, services, or procedures that are new and potentially useful to the organisation. Organisational Behaviour 2

Innovation Innovation is the implementation of new ideas at the individual, group or organisational level. “I have not failed, I’ve just found 10,000 ways that won’t work”. - Thomas Edison Organisational Behaviour 24

5 Types of innovation Invention – creation of a new (novel) product or service. Something that has not been tired before. Extension – expansion of an existing product or service. This would mean that the entrepreneur takes an existing idea and applies it differently e.g. a new use for a product. Duplication – copying (replicating) an existing product or service and then adding the entrepreneurs own creative touch. In order to improve it. Organisational Behaviour 2

6 Innovation leaders Boeing (US) Virgin Atlantic (UK) Toyota (Japan) RBS (UK) Du Pont (US) Samsumg (S Korea) LEGO (Denmark) BP (UK) H&M (Sweden) Reckitt Benckiser (UK) PepsiCo (US) Tesco (UK) Apple (US) Aviva (UK) Google (US) Canon (Japan) Novartis (Switzerland) Microsoft (US) Adidas (Germany) Organisational Behaviour 2

7 The creative people How are they different? Personality traits Cognitive creativity skills Domain-specific knowledge Intrinsic motivation Organisational Behaviour 2

8 Personality traits of creative people Persistence Self-confidence Independence Attraction to complexity Tolerance of ambiguity Intuitiveness Have broad interests Energetic Drive to achieve Love their work Take risks Organisational Behaviour 2

9 Cognitive creativity skills Think creatively Generate alternatives Engage in divergent thinking Suspend judgment Organisational Behaviour 2

10 Stages in the creative process Organisational Behaviour 2 Idea generation Incubation Verification Illumination Preparation

Stages in the creative process Idea generation - the seeding stage of a new idea. It is the stage where the entrepreneur recognises an opportunity exist. Preparation - the innovator consciously searches for information. He/she gathers, sort, and integrates information to provide for a breakthrough. Incubation - is the subconscious assimilation of information. It is basically fantasising. Organisational Behaviour 211

Stages in the creative process Illumination - is when the idea pops up clearly and the individual recognises the idea as feasible and realisable, ready for launch. Verification - is where the idea is verified to prove that it has value. This is the most difficult phase of creativity as obstacles begin to appear. The idea may also start evolving and taking a different direction. Some times the individual is forced to go back to the previous phases. Organisational Behaviour 212

13 Determinants of organisational creativity and innovation Organisational Behaviour 213 Organisational Innovation Organisational Climate Resources & Skills Structure & System Organisational culture Leadership styles

14Organisational Behaviour 2 How can organisations foster creativity? Hire creative & diverse workforce Design complex & challenging jobs Set clear org. goals Recognize & reward creativity Set creativity goals Use diverse teams Create the right org. culture Provide resources esp. time “Be Creative!”

Management style and creativity Encourage risk taking Provide autonomy Encourage productivity Supportive supervision, climate, and work group Participative leadership Organisational Behaviour 215

16 Organisational design and creativity Organisational Behaviour 2 Flexible Flat Structures Internal & External Interaction Close Contact with Customers That promote

17 Creativity killers Excessive focus on extrinsic motivation Limits set by superiors Critical evaluation Close, controlling supervision Competition in a win-lose situation Control of decision making Control of information Organisational Behaviour 2

18 Creative thinking techniques Brainstorming rules – Expressiveness - say whatever ideas come to mind without focusing on constraints – Non-evaluation - no criticism allowed; all are valuable – Quantity - produce as many ideas as possible – Building - expand on other people’s ideas Organisational Behaviour 2

19 Innovation within the organisation Organisational Behaviour 2 19 Management Practices Organizational Motivation Resources I

20 Innovation within the organisation depends upon: Organisational motivation – the basic orientation of the organisation toward innovation; shared vision; providing rewards and recognition; lack of internal politics, and lack of overemphasis on the status quo. Resources – everything the organisation has available to aid in the area targeted for innovation, including time, funding, information and materials. Management practices – allowing freedom and autonomy in the practice of work; providing challenge; specifying clear strategic goals and forming work teams comprised of individuals with diverse skills and perspectives. Organisational Behaviour 2

21 Innovation leadership: attitudes Deliberate climate creation and cultural influence Innovation vision Encourage challenge & risk taking Collaboration Resources for innovation Celebration Organisational Behaviour 2

22 Innovation leadership: innovation competence Model and coach for innovation and creativity Develop innovation teams and leaders Generate breakthrough ideas Capitalise on entrepreneurship Customer service Insight into drivers and opportunities Organisational Behaviour 2

Innovation leadership: metrics, systems and practices Measure innovation costs & benefits Incorporate innovation in performance management Establish supportive systems Use innovation to increase profit Seek to accelerate breakthrough thinking Organisational Behaviour 223