Enablers And Barriers Of Innovation
The aim of this paper is to examine and identify the barriers and enablers of innovation within the construction industry in which the company Gelli Civil Engineering Ltd conducts its business and how strategic leadership changes can be applied to encourage and sustain innovation and creativity. Conclusions will be based on facts, research and examples. This assignment will discuss a few of the definitions of innovation which will highlight the definition that I will adopt for this assignment, in terms of process, product and organisational innovation and which will be best suited for the company to promote its growth. The assignment will allow exploration of similar perceptions of invention and creativity.
The Construction Future Wales ILM Level 7 programme that I currently study is assisting me in guiding the organisation and its team members to become a dynamic company. As a director of the company, I identified that the company needed to be more efficient to survive and be more competitive. The programme has demonstrated so far, that it is crucial for businesses to have good Leadership and Management skills to survive and bring about a more “competitive edge” to the way we conduct our business. Innovation is a word that is often mentioned in the business world, but very few understand.
What is innovation? Fundamentally, innovation is knowledge, change, introducing new ideas, a new process or new product. It can also be change to existing processes/procedures or product to allow improvement. Innovation is the outcome of problem solving, even if the problem wasn’t identified in the first instance. It is the process of interpreting an idea into a service that generates value, resulting in exceeding client expectations and needs - leaders need to adopt and embrace a culture of innovation. Various types of innovations need to be considered, such as product, process, organisational, management, production, commercial/marketing and service innovation. For this assignment organisational innovation will be discussed. Definition of Innovation, according to Myers and Marquis (1969) “Innovation is not a single process but a total process of interrelated sub processes. It is not just the conception of a new idea, nor the invention of a new device, nor the development of a new market. The process is all these things acting in an integrated fashion ”(Trott 2008)
Definition of organisational innovation “ means the implementation of a new organisational method in the undertaking’s business practices, workplace organisation or external relations that are based on organisational methods already in use in the undertaking, changes in management strategy, mergers and acquisitions, ceasing to use a process, simple capital replacement or extension, changes resulting purely from changes in factor prices, customisation, regular seasonal and other cyclical changes, trading of new or significantly improved products are not considered innovations…”
An example of a recently implemented organisational innovative change in the company, was introducing regular office meetings between management and admin staff. An initial meeting was held to explain why the meetings are being conducted and how as a team we could change the organisational culture of doing things and to give a background of what’s not working and why meetings could help achieve wanted results. This process allows opportunity for staff to bring new ideas to the table and feel involved, as well as discussing existing processes and where they can be improved upon. An agenda for the meeting is set where topics such as, minutes of last meeting, on-going contracts and tendering opportunities, Objectives and Targets, health safety and environmental issues, training and appraisals, technological issues, customer feedback/complaints and tenant satisfaction questionnaires are conversed. To further promote the skill-set of a member of the admin team, they were asked to record and transcribe the minutes – a task that the member had not done before.
There is much to be gained by bringing new or improved processes to the market, such as increase in efficiency, improved customer satisfaction, less defects, increase in productivity and profit margin. It could be argued that improving product or processes are not innovations, but why not? The company recently changed its Integrated ISO Management Systems 9001, 14001 to meet the new 2015 International Standards and procurement procedures, considering the proposed changes to the new OHSAS 18001 standard. These Management Systems are the underlying mental models which frame what the company does. Changing the systems to meet requirements enables sustainability to procure future contracts. Kotter (2012) identifies eight common errors to organisational change efforts and their consequences.
“Common errors: -
• Allowing too much complacency
• Failing to create a sufficiently powerful guiding coalition
• Underestimating the power of vision
• Under communicating the vision by a factor of 10 (or 100 or 1000)
• Permitting obstacles to block the new vision
• Failing to create short-term wins
• Declaring victory too soon
• Neglecting to anchor changes firmly in the corporate culture
Consequences: -
• New strategies aren’t implemented well
• Acquisitions don’t achieve expected synergies
• Reengineering takes too long and costs too much
• Downsizing doesn’t get costs under control
• Quality programmes don’t deliver hoped for results. ”Arguably downsizing doesn’t work every time, but with careful strategic thinking and planning it can work. When the economic downturn occurred in 2008 the company adopted the innovative decision to downsize the whole operation to go forward and survive the downturn – and the decision worked. According to Dougherty (2006) definition of Product Innovation “The development of commercially viable new products requires that technological and market possibilities and linked effectively in the product’s design. . . ”Product and process innovation within the company would be complex to accomplish considering that contract specific conditions are set at tendering stage. As the company tenders for local authority contracts the design and product specifications are highlighted, providing reference to project timescale; drawings (occasionally CAD drawings) and the available supply chain source. Certain grades of asphalt or concrete cannot be changed if the specification is stipulated. Products and materials are chosen to meet the requirements of project environmental and topographical surroundings. Currently our scope of work does not include design of product. Possibly in the future as the company grows, it could include design processes into its scope. There are supplementary tools to support companies identify level of risk, such as the risk matrix which is used to determine the probability or likelihood against the severity of consequence and the R-W-W (real, win, worth it) tool Schrello, D. M (1990), in which management can ask a series of questions, “is it real?”, “can we win?” and “is it worth doing?”, companies can dig very deep in finding honest and credible answers, which in turn will allow management to delve into their individual creativity. (Day 2013)According to Trott (2008) “Corporations must be able to adapt and evolve if they wish to survive. Businesses operate with the knowledge that their competitiveness will inevitably come to the market with a product that changes the basis of competition. The ability to change is essential to survival. . . ”Creativity and innovation in construction can be challenging at the best of times due to inconsistency of project opportunities for small and medium sized business, such as ours. We need to seek and encourage new opportunities to promote growth or face getting left behind. Chancellor (2015) suggested “…a recent study published in the Journal of Financial and Quantitative Analysis (a rip-roaring read!) suggests that more than 50% of companies won’t survive to age 16, with highest corporate mortality occurring in the fourth year…”In this study of four major companies namely Comet, Compaq, Borders the global book retailer and ARS Digita, it identified the challenges that companies were up against and why they failed. In the study’s conclusions it recognised that companies which fail to embrace change and restructure themselves will be forgotten regardless of past success. Companies need to analyse failings to ensure that the same problem does not occur and learn from it. For companies to survive, management need to have an insight to their companies from a customer’s viewpoint – hence feedback from existing and potential clients is a positive step towards a successful continuation of business. Businesses are faced with technological, social and environmental barriers of innovation. Pink suggests that “management can be classed as a technology to get compliance and to get people to do what we want them to do. But to get engagement, technology is self-direction, that is how as humans we engage with colleagues. ” By giving employees the interaction of areas of need such as time to focus on the task and improve their techniques within a team environment can significantly improve the organisations technological processes. https: //www. youtube. com/watch?v=x8PsRWvJz00Many barriers affect innovation, such as the resistance to change from top level management who are often set in their ways, misguided leadership; strategic failings and market fluctuations and competitiveness, behavioural barriers from power crazed personnel not allowing other team members to have their say, i. e. “it’s their way or the highway”, cultural barriers such as individuals feeling inferior to top level management and if they voiced their suggestions it would be dismissed, possibly leading to hostility towards people with authority within the company. Management should show that they have faith and trust in the ability of staff to be creative and innovative. Negative human behaviour in a company can be a barrier to innovation and individual’s attitudes towards their work responsibilities. How can leaders change the mindset and attitudes of individuals and “get them on board” to start thinking creatively? Do leaders “dangle the carrot” to get results? There is also the “if-then” motivator i. e. if you do this then you get that, which are good for simple short-term tasks but not so good for complex and long-term tasks. https: //www. youtube. com/watch?v=x8PsRWvJz00 Dan Pink (2018) suggests that “…in the end, human beings aren’t much different from horses – that the way to get us moving in the right direction is by dangling a crunchier carrot or wielding a sharper stick. But what this operating system lacked in enlightenment, it made up for in effectiveness. It worked well – extremely well. Until it didn’t. . . ”The company has applied the process of “dangling the carrot” in the past by offering bonuses to its employees, which satisfies individuals for a short time – but fails longer term. True, money is a motivator, but people always want more! We need to change how we think about what we do to get effective results and be appreciative of all individuals within the company. Not every individual believes they have the traits or creativity to come up with new innovative ideas. If the individual has shown commitment to the business, it demonstrates positivity to management who can listen and invest good leadership coaching and communication to bring out the creative qualities in the individual. “Not the cry but the flight of the wild duck leads the flock to fly and to follow. . . ”(Adair 2010)
Transparent “suggestion boxes” have recently been provided in site offices. Where members of the workforce, clients, the public affected by our work activities and other external stakeholders involved with projects can freely write down their suggestions (anonymously if they choose) for improvements, whether it be product, process or organizational change. The concept behind the transparent boxes is to encourage more suggestions - even if there is only one suggestion in the box it will allow other people to start thinking about their ideas, getting them out there and not fear voicing their ideas. The simpler it is for employees to input ideas, via a variety of channels and technologies such as the suggestion box or social media, the better the response. But leaders need to recognise and praise the value of creative ideas even if they can’t be used – but if it works, develop and pilot it.
Environmental, economic and social obstacles can stand in the way of promoting creativity. Leaders can ask the questions “are we green enough?”, “can we prepare and plan for changes and can we resource and fund changes?”. The company’s operations are governed by environmental legislation which is adhered to via our Environmental Management System (EMS). If a good innovation or change has been identified it will be analysed to ensure its compatibility to environmental legislation. Society can create a barrier to innovation and change. We experience such social negativity to change in work we carry out for Wrexham CC. Tenants object to the timescale of the works and the disruptiveness of plant and machinery as additional traffic in the housing estate. To overcome this, we have a dedicated Tenant Liaison Officer who communicates sympathetically to resolve their concerns. “The goals of an organisation are the reason for its existence. The activities of the organisation are directed to the attainment of its goals. . . ”(Mullins 2007)The company has a Vision and Mission Statement, has set Objective and Targets which are regularly reviewed and communicated to the workforce. They allow the company and the team to focus on where it wants to be in the future.
For innovation that encourages strategic growth over a realistic timescale, changes need to be considered and piloted for a short period of time: -
• Personnel within the company are often the best people who can bring innovative ideas to the fore – often their contributions are innovative. As director, I appreciate and value their contributions in improving ways of working
• Set and communicate aims/goals and decide where it wants to take the company
• Create the idea with the people around (staff and stakeholders) – have a purpose (if there is no purpose people become negative, de-motivated and detached from the idea)
• Listen and learn – ask questions, learning from others will help in thinking imaginatively
• Make it sustainable
• Plan it, try it out, get people on board with the idea – be critical to improve on ideas, don’t use if it doesn’t work
• Communicate the idea and be passionate about it – be open to suggestions for further improvements
• Set realistic budgets, targets and timescales for the process to be implemented – mistakes can occur if the “stake is too high and the scope too narrow”
• See it through from cradle to graveKotter’s (2012) eight-stage action process can also be utilized for successful change in any size organisation. “We came to the conclusion that the organizational model we prescribe – a partnership between a dedicated team and their performance engine – is surprisingly versatile.
It can be adapted to initiatives that span many innovation categories – sustaining and disruptive; incremental and radical; competence enhancing and competence destroying; new processes, new products, new businesses, and high-risk new ventures. ”(Govindarajan and Trimble 2010) On the Framework contract the company carries out for Wrexham CC, performance is measured via (external) Key Performance Indicators (KPIs), this allows Management to improve on the weakest indicator. How can this be done? Leaders and management of the company intend to implement internal KPIs which will allow top level management to measure its goals that are characteristically associated with the company’s strategy for growth, revealed through performance management tools such as the Balanced Scorecard. If the process is implemented properly and workers are engaged to the change, KPIs can increase profitability and productivity. “Implementing the key performance indicators of a balanced scorecard typically includes four processes:
• The company translates its corporate vision into measurable operational goals that are communicated to employees.
• These goals are linked to individual performance goals which are assessed on an established periodic basis.
• Internal processes are established to meet and / or exceed the strategic goals and customer expectations.
• Finally, Key Performance Indicators are analysed to evaluate and make recommendations to improve future company performance.
On contract completion, the management team reviews the overall contract and the work carried out and analyses how delivery of the contract and work could be improved upon and the lessons learnt from errors. Clients are invited to complete a Questionnaire on the performance of the company, to include team performance, product performance, delivery performance etc. Questionnaires can be used to generate new ideas, improve and promote them. Getting good feedback from Clients is very motivating, providing that it’s communicated to all concerned with the work. To avoid traps, “…Kanter (2013) advocates applying lessons from past failures to your innovation efforts. For instance, augment potential “big bets” with promising midrange ideas and incremental innovations. And add flexibility to your innovation planning, budgeting and reviews. Your reward? Better odds that the new ideas percolating in your company today will score profitable successes in the market tomorrow. ”It takes team work, individual input, good leadership skills and the goal for strategic changes to happen successfully. Leaders need to have an open mind, be aware and listen to creative ideas as well as questioning own views when listening to others.
This assignment and indeed the ILM Level 7 course, has taught me that there are techniques, processes and tools that can be used to tackle innovative challenges that leaders can be faced with, be it strategical or operational. In my role as Director, I often make strategic and operational decisions which can affect people associated with the workforce and stakeholders and always look at how existing processes within the company’s Integrated ISO Management Systems can be improved, thus promoting a more efficient and streamlined company. I gather as much information, assess my options and consult with as many personnel as possible. Finding the right balance of contributors limits the scenario of, ‘too many cooks…’. The company must consider the procurement processes of the local authorities in North to Mid Wales – it needs to move swiftly to keep up with compulsory changes. Those innovative tools and techniques or management change models chosen must be appropriate for company needs and adapted to suit if needs be. Quality tools and creativity models such as the Listen Connect Do (LCD) Model for Creativity which builds on the idea of Design Thinking by Kelley and Kelley (2013) or Innovation Mapping which can systematically uncover more innovative ideas following a process of eight steps Bettencourt and Ulwick (2013) can be obtained and if the process is followed then the results will be beneficial for all.
