Innovative organization implies more than just a structure; it is an integrated set of components which work together to create and reinforce the kind of environment which enables innovation to flourish.
1. Shared vision, leadership, and the will to innovate.
o Clearly articulated and shared sense of purpose
o Stretching strategic intent
o Top management commitment
1. Appropriate structure
o Organization design which enables creativity, learning and interaction
o Not always a loose “skunk works” model.
o Key issue is finding the appropriate balance between organistic and mechanistic options for contingencies.
1. Key Individuals
o Promoters
o Champions
o Gatekeepers
Other roles
1. Effective Team Working
o Appropriate use of teams to solve problems
o Requires investment in team selection
o Investment in Team building
1. Continuing and Stretching individual development
o Long term commitment to education
o Long term commitment to training
o To ensure high level of competence
o To learn effectively the skills
1. Extensive communication
o Within and between the org
o Internally in 3 directions
o Upwards, downwards, lateral
1. High involvement in Innovation
o Participation in org-wide
o Continuous improvement activity
1. External Focus
o Internal and external orientation
o Extensive networking
1. Creative Climate
o Positive approach to creative ideas
o Supported by relevant motivation systems
1. Learning Organization
o High levels of involvement
o Within and outside the firm
o Proactive experimentation
o Finding and solving problems
o Communication and sharing
o Knowledge capture and dissemination
• Simple Structure
• Key Features
o Centralized organic type, centrally controlled but can respond quickly to changes in the environment.
o Usually small and often directly controlled by one person
o Designed and controlled in the mind of the individual who decides
o Strengths: speed of response and clarity
Weaknesses: Vulnerability to misjudgment or prejudice and resource limits on growth
• Organization Archetype: Machine Bureaucracy
• Key Features
o Centralized mechanistic type, centrally controlled by systems
o Design stresses the functions of the whole specialization of parts - interchangeable
o Success comes from developing effective systems, simplified tasks, routine behavior
o Strengths: ability to handle complex integrated processes
o Weaknesses: potential for alienation of individuals and build-up of rigidities in inflexible system