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Chapter 11

Leading Innovation

Applying InnovationBy David O’Sullivan and Lawrence Dooley

© Sage Publications 2008

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Reflections Explain the main ideas behind project portfolio

management. What are the four key overlapping approaches used

in portfolio management? Name one tool that can be used for each of the four

approaches. In a bubble diagram of risk versus reward, what are

each of the four quadrants commonly called? Explain the portfolio dominant approach to balancing

a portfolio of projects. Explain how organizations can end up with a large

number of lowbenefit and high-risk projects (i.e., white elephants).

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Activities

[Discussion of selected student ‘Activities’ from previous chapter]

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Learning Targets Explain the leadership role in the innovation process Describe support roles played by individuals in the

innovation process Understand a number of alternative leadership styles Explain how to develop an innovation culture Describe the difference between empowerment and

responsibility Discuss some of the key issues of conflict resolution List a number of core competencies necessary for

successful leadership

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Effective Leaders

Leadership is the ability to influence a team towards the achievement of common goals

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Leadership Styles

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Leadership Traits

Vision Ambition and Desire Energy Honesty and Integrity Ability Self Motivated

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Innovation Leadership

Vision and goal setting Developing core competencies Motivating people Nurturing ideas

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Leadership Roles

Gate keeping Sponsorship Championing Project or team leading Mentoring or coaching Idea generation

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Leadership Attributes

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Leadership Skills

Listening Empowering Adapting Delivering Self-understanding

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Leadership and Culture Goals are understood by all. Risk taking is encouraged and accepted. New ideas are welcomed. Information exchange is open and shared. Access to new knowledge is extensive and

uncontrolled. Good ideas are supported. Innovations are recognized and rewarded. People are given room to be creative. There is a choice of structure.

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Culture at 3M A conscious effort to recruit creative, independent people

with specialist knowledge to support their divisions. A company mantra of “better to ask forgiveness than

permission” that encourages people to pursue ideas they believe in even if not supported by their immediate boss.

A 15% rule, which allows people to devote up to 15% of their work time to innovative initiatives they think will benefit the organization. This slack gives people the opportunity to experiment with concepts and make discoveries that may have commercial potential.

A goal that 30% of the company’s annual turnover must be generated from products that are less than 4 years old. This ensures that all employees understand the importance of continuously developing new products rather than resting on past successes.

Active training and development of all people to maximize their contribution to organizational sustainability.

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Conflict

“the result of incompatible potential influence relationships. The process begins when one party perceives that another party has impeded, or will frustrate, one or more of its concerns.”

(Gordon, 1991)

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Conflict Management

Creating the right climate Facilitating discussions Achieving closure

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Conflict Resolution

“the process begins when one party perceives that another party has impeded, or will frustrate, one or more of its concerns”

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Negotiation Techniques

BATNA (Best Alternative to a Negotiated Agreement)

http://www.batna.com/

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Individuals vs. Objectives

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Summary Explain the leadership role in the innovation process Describe support roles played by individuals in the

innovation process Understand a number of alternative leadership styles Explain how to develop an innovation culture Describe the difference between empowerment and

responsibility Discuss some of the key issues of conflict resolution List a number of core competencies necessary for

successful leadership

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Activities

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Search Online

http://mitworld.mit.edu/ The Innovation Economy: How

Technology Is Transforming Existing Industries and Creating New Ones (Clayton Christensen)

Leading Innovation (Daniel Vasella)

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