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Successfully Creating an

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Innovative Organization

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AIM-Seminar
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Summer Term 2008

Markus Massar
Companies focus on single elements
rather than considering a wholistic
composition of a corporation

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Organizations strive for

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competitive advantage
by simply implementing

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What key elements do
innovation processes.
successful organizations

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But companies do NOT
look at when creating an
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unfold full innovative
innovative organization?
potential or even fail
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introducing innovation
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processes.
 Developing essential organizational
elements is key to a successful
creation of an innovative organization

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Corporate

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Culture

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Leadership Strategy Business Processes

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Goal orientation
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Framework of choices Stimulation
Nature of organization Flexibility
Role models
Direction Contribution
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Source: Brache 2001

 Continuously assessing and improving C

innovation maturity fosters a wholistic L S P

perspective on corporate culture

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Innovation Maturity 5 Stage Model

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Measured in terms of High
Level
5
Innovative Capabilities

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from individual random problem solving
Level
to sharing of radical innovation
4

(cultural artifacts)
Innovation Results

Results
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Level
from single innovations
3
to strategical breakthroughs
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Level
relates to 2
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Level
1
Corporate Low
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Low High
Culture Capabilities
(learning stage)

Business
Leadership Strategy
Processes
Source: Bessant 2003
 Influenced by culture, leadership C

fosters a fundamentally innovative L S P

business strategy

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Hybrid Leader

Conventional Leader

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Excellent in managing daily standard operations

Lateral Leader
Leadership

develops
Outstanding performance in motivating teams

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Strategy
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Communication tasks
Identify challenge for continuous
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improvement
Imagine a possible bright future
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Discuss prospective goals

Source: Sloane 2003

 Business strategy deriving from C

leadership creates business processes L S P

strongly supporting innovation

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Commitment to innovative culture

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Imperative for corporate viability

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Development of corporate culture

generates
Strategy

Long-term learning process

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Business
Processes
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Organizational setup
Supporting policies and processes
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Metrics and measurement

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Feedback on creative efforts

Sources: Brache 2001, Bessant 2003, Sloane 2003

 Business processes derived from C

strategy reinforce innovative corporate L S P

culture, thus boost innovation maturity

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Innovation-supporting processes

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Standard business processes…
Business Processes

e.g. payment schemes, career planning, educational

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offers, training-on-the-job, job-rotation, internal
communication, controlling processes

reinforce
…need to be deeply linked to

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Corporate
Culture
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Innovation processes
Methodologies and policies
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implemented on different
organizational levels
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e.g. problem finding/solving cycle at employee level,

innovation funnel at management level, decision-
making authority depending on maturity level

Sources: Brache 2001, Bessant 2003, Sloane 2003

 Assessing and continuously improving
corporate innovation maturity is key to
successfull implementation of an innovative
corporate culture and innovation processes!

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High

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C

Level 5
L S P

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C

Level 4
(cultural artifacts)
Results

L S P

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C

Level 3
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Level 2
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L S P

Level 1
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L S P
Low
Low Capabilities High
(learning stage)
Source: Bessant 2003
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Thank you for your attention!
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 C

Main sources
L S P

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Bessant, John 2003. High-involvement Innovation: Building and Sustaining Competitive

Advantage Through Continuous Change. Chichester: John Wiley & Sons Ltd.

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Brache, Alan 2001. How Organizations Work: Taking a Holistic Approach to Enterprise Health.

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New York: John Wiley & Sons Inc.

Sloane, Paul 2003. The Leader's Guide to Lateral Thinking Skills: Powerful Problem-solving

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Techniques to Ignite your Team’s Potential. London: Kogan Page Ltd.
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