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Recommendations for Organizational Changes to Support Continuous Innovation

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Recommendations for Organizational Changes to Support Continuous Innovation

How I Would Make Innovation a Part of the Company’s Values and Culture Permanently

One of the strategies I would use to make innovation a part of the company’s values and culture is introducing an annual innovation day that will promote creativity among the employees. The innovation day would include presenting employees’ latest innovations and creative ideas and selecting the innovations and ideas to be implemented in the organization. The second strategy would be introducing pitching contests where all employees are asked to create ideas. Subsequently, management can engage external experts to vet the ideas and review their appropriateness and alignment with the organization’s culture, goals, and objectives. Lastly, the third strategy uses innovation contests to maintain continuous innovation in the organization and award employees with the best ideas. Additionally, the organization may introduce a common theme to create fairness in the contests and yield appropriate ideas.

Specific Recommended Organizational Structures and Processes

One of the organizational structures that I would recommend to create a long-term innovation culture is the divisional structure. The structure is ideal for encouraging innovation because it ensures that all innovations meet the organization’s mission, vision, and objectives (Mäkimattila et al., 2014). I would also recommend using a non-hierarchical organizational structure. This type of structure encourages innovation by allowing employees to implement their innovative ideas without waiting for top management’s approval. A non-hierarchical structure also encourages innovation because employees can get the resources they need to implement innovative ideas within the shortest time possible.

One of the processes I would recommend is good leadership that supports employees’ innovative ideas and creates autonomy to encourage employees to be creative. The second process is good communication, characterized by clearly outlining the organization’s mission, vision, and objectives. The organization should also ensure a proper flow of information so that employees get the support they need to implement their creative ideas. The third process is performance measurement. Employees are highly likely to be innovative if they know that their performance is being reviewed and rewarded (Kanama & Nishikawa, 2015). The rewards may include promotions, benefits, and incentives. Rewards also encourage innovation by improving employee morale and creating a sense of responsibility, increasing commitment to improving organizational performance.

Potential Roadblocks to Making the Company More Innovative

Areas of Organizational Resistance

One of the areas in which I would expect to find organizational resistance is adjusting employee roles and responsibilities. Employees may argue that the innovation requires them to complete more complex tasks that they may not be able to meet because they are not willing to adjust to the complex work environment. Another resistance area is adapting to the new work environment that requires employees to be more innovative. Employees may also resist the innovation because they may be required to undergo additional training to equip them with the knowledge and skills needed to manufacture autonomous cars. They may also feel that the individuals outsourced to train them may take over their jobs because they have more expertise and experience.

Overcoming This Resistance

One of the steps I would take to overcome the resistance is promising a salary increase for employees who successfully complete the training. Success can be evaluated based on how the employee performs in the new tasks that require the knowledge and skills equipped during the training program. The second step is preparing the employees for the innovation before implementing it and allowing them to give feedback on any concerns they may have. The feedback can then be applied to determine the most effective way to reduce resistance.

References

Kanama, D., & Nishikawa, K. (2015). Does an extrinsic reward for R&D employees enhance innovation outcomes? Evidence from a Japanese innovation survey. R&D Management, 47(2), 198-211. https://doi.org/10.1111/radm.12165

Mäkimattila, M., Saunila, M., & Salminen, J. (2014). Interaction and innovation – Reframing innovation activities for a matrix organization. Interdisciplinary Journal of Information, Knowledge, and Management, 9, 131-152. https://doi.org/10.28945/2023

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Question 

Overview

You work as a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks. It has been a very busy couple of months for you. You have already submitted your plan for enabling innovation in the organization, including your recommendations for the type of innovation (incremental or discontinuous), a strategic plan, and improvements in organizational structures for an Internet of Things (IoT) innovation project. Additionally, you are leading a cross-functional team that is in charge of implementing the IoT innovation project. Now, it is time for your final recommendations to make the organizational changes permanent. In this assignment, you will share your plans for futureproofing the company’s processes, structures, and culture of innovation in an executive summary, which your team will use to take your recommendations forward.

Recommendations for Organizational Changes to Support Continuous Innovation

Prompt

Draft an executive summary listing the recommendations for futureproofing the company’s processes, structures, and culture of innovation.

Address the following criteria in the executive summary:

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