1. G-Number 1 The Innovation Paradox - Applied Creativity in Organizations The Innovation Paradox - Applied Creativity in Organizations Avinoam Kolodny Technion - Electrical Engineering Department June 2007 * F. Chu, A. Kolodny, S. Maital and D. Perlmutter, “The innovation paradox: Reconciling creativity & discipline – How winning organizations combine inspiration with perspiration,” Proceedings of IEEE International Engineering Management Conference, October 2004.

2. G-Number 2 “… In every good project, there is a time when you have to shoot the engineer and start production”. (Anonymous Intel employee, CA ~1980) (Anonymous Intel employee, CA ~1980)

3. G-Number 3 Story: The Chinese Emperor and the Painter

4. G-Number 4 The Innovation Paradox Creativity and project implementation often require contradictory mindsets Creativity  Project Creativity  Project Chaos Discipline Innovation/Surprise Predictability Flexible time Fixed schedule Best effort Guarantee High risk Low risk Inspiration Perspiration Individual Organization Organization HierarchyStabilityCommitmentSafetyTeamwork

5. G-Number 5 Need Both: Creativity and Organization Win the competition by creativity Win the competition by creativity Use organizational power to execute Use organizational power to execute The conflicting values must be reconciled! סיסמה ניהולית: "גם וגם"

6. G-Number 6 Applied Creativity Method to reconcile creativity and discipline Method to reconcile creativity and discipline Not by tradeoff, by synergy! Not by tradeoff, by synergy! We identified five approaches to applied creativity, used by successful organizations We identified five approaches to applied creativity, used by successful organizationsCreativityDiscipline Discipline(perspiration)Creativity(inspiration)

7. G-Number 7 1) “The Great Dictator” A single creative leader A single creative leader Comes up with ideas Comes up with ideas Decides which of them to implement, and how Decides which of them to implement, and how The organization follows him in discipline mode The organization follows him in discipline mode

8. G-Number 8 2) “Separation of Forces” Creative Department Creative Department Implementation Department Implementation Department Arbitrator

9. G-Number 9 3) “This Train Runs on Time” Separate project phases, driven by a timetable: Separate project phases, driven by a timetable: –Ideation –Proof of concept –Prototyping –Production Time Disciplined Implementation Chaotic Creativity

10. G-Number 10 4) “Elders of the Tribe” Ideas are advanced by young creative members Ideas are advanced by young creative members Cross-examination by experienced members Cross-examination by experienced members Culture: Culture: – Manage for discipline – Admiration of creativity

11. G-Number 11 5) “Head in the Clouds, Feet on the Ground” Same people iteratively shift gears between creativity and discipline: Same people iteratively shift gears between creativity and discipline: Creative, wild brainstorming Creative, wild brainstorming –No idea is rejected (“head in the clouds”) Detailed evaluation of ideas Detailed evaluation of ideas –By practicality and benefit (“feet on the ground”)

12. G-Number 12 Challenges of Applied Creativity Conceiving new ideas Conceiving new ideas Choosing a good idea Choosing a good idea Managing execution Managing execution

13. G-Number 13 What is the Right Approach for My Organization? There are probably many more ways to achieve Applied Creativity There are probably many more ways to achieve Applied Creativity Find an approach which suits your organization’s Find an approach which suits your organization’s – culture – structure – people Essential issue: Let the people know the organization’s problems and difficulties! Essential issue: Let the people know the organization’s problems and difficulties!