Review on classical management book Review on classical management book

The power of The power of unexpected……unexpected……Corporate Corporate creativitycreativity

Book review from Corporate Creativity, by Alan G. Book review from Corporate Creativity, by Alan G. Robinson, published by Beret-Koehler Publishers Inc. San Robinson, published by Beret-Koehler Publishers Inc. San Francisco, 1997Francisco, 1997

By Mohammed Akbar Gani By Mohammed Akbar Gani NCRD’S Sterling Institute of Management StudiesNCRD’S Sterling Institute of Management StudiesMMS 1MMS 1stst year batch year batch Roll no. 35Roll no. 35

Dated 30/9/2005.Dated 30/9/2005.

THE TRUE NATURE OF CORPORATE CREATIVITYTHE TRUE NATURE OF CORPORATE CREATIVITYA company is creative when its employees do something new and A company is creative when its employees do something new and potentially useful without being directly shown or taught. Corporate potentially useful without being directly shown or taught. Corporate creativity leads to improvements (changes to what is already done) and creativity leads to improvements (changes to what is already done) and innovations (entirely new activities for the company), both of which are innovations (entirely new activities for the company), both of which are essential for the long term survival and success of the company. Generally, essential for the long term survival and success of the company. Generally, most creative acts are improvements.most creative acts are improvements.A critical realization has now dawned, about the true nature of corporate A critical realization has now dawned, about the true nature of corporate creativity. Most creative acts are not planned for and come from where creativity. Most creative acts are not planned for and come from where they are least expected. Nobody can predict who will be involved in them, they are least expected. Nobody can predict who will be involved in them, what they will be, when they will occur, or how they will happen. But this what they will be, when they will occur, or how they will happen. But this should not make us feel that nothing can be done about this. Companies should not make us feel that nothing can be done about this. Companies can enhance their creative performance by recognizing the nature of their can enhance their creative performance by recognizing the nature of their creativity and learning how to actively promote unanticipated creativity and learning how to actively promote unanticipated improvements and innovations.improvements and innovations.

THE SIX ESSENTIAL ELEMENTS OF CORPORATE CREATIVITYTHE SIX ESSENTIAL ELEMENTS OF CORPORATE CREATIVITYThere are six elements that play a key role in promoting consistent There are six elements that play a key role in promoting consistent corporate creativity. It is not possible to predict the specific creative acts corporate creativity. It is not possible to predict the specific creative acts that will be the result, but the likelihood of their occurrence gets vastly that will be the result, but the likelihood of their occurrence gets vastly enhanced when all these six elements are present. “Managing” creativity is enhanced when all these six elements are present. “Managing” creativity is about raising probabilities. Taking care of these six elements will help a about raising probabilities. Taking care of these six elements will help a company in increasing the frequency with which creative acts occur. These company in increasing the frequency with which creative acts occur. These six elements are alignment, self-initiated activity, unofficial activity, six elements are alignment, self-initiated activity, unofficial activity, serendipity, diverse stimuli, and within-company communication.serendipity, diverse stimuli, and within-company communication. Alignment Alignment This ensures that the interests and actions of all employees are directed This ensures that the interests and actions of all employees are directed toward a company’s key goals, so that any employee will recognize and toward a company’s key goals, so that any employee will recognize and respond positively to a potentially useful idea. But their consistent respond positively to a potentially useful idea. But their consistent creativity requires strong alignment. Most companies overlook alignment creativity requires strong alignment. Most companies overlook alignment since it is intangible and elusive. Its effects on corporate creativity are since it is intangible and elusive. Its effects on corporate creativity are visible only if the company is either very strongly aligned or completely visible only if the company is either very strongly aligned or completely misaligned. The focus of this company is on cost savings. And it is quite misaligned. The focus of this company is on cost savings. And it is quite well aligned to solicit cost-saving ideas from its employees. This strong well aligned to solicit cost-saving ideas from its employees. This strong alignment makes its suggestions system high-performing. It is not easy to alignment makes its suggestions system high-performing. It is not easy to find strongly aligned companies. This is because this requires discipline, find strongly aligned companies. This is because this requires discipline, persistence, and hard work. The organization has to really feel the need for persistence, and hard work. The organization has to really feel the need for alignment. Only then will it take steps in the right direction. Misalignment alignment. Only then will it take steps in the right direction. Misalignment has to be eliminated as a starting step. There are three factors that make has to be eliminated as a starting step. There are three factors that make up strong alignment. First of all, the organization has to be clear about its up strong alignment. First of all, the organization has to be clear about its goals. goals.

Self-initiated activitySelf-initiated activityThis allows employees to pick a problem they are interested in and feel ableThis allows employees to pick a problem they are interested in and feel able to solve, for whatever reason. Self-initiated activity ensures that the to solve, for whatever reason. Self-initiated activity ensures that the intrinsic motivation is much higher than if the project had been planned or intrinsic motivation is much higher than if the project had been planned or given to them by someone else such as the management. Planning of new given to them by someone else such as the management. Planning of new and useful activities by companies only leads them in anticipated directions.and useful activities by companies only leads them in anticipated directions. But path breaking, unanticipated developments generally come from self-But path breaking, unanticipated developments generally come from self-initiated activities. Such activities are usually not accorded much attention initiated activities. Such activities are usually not accorded much attention in organizations and in fact, tend to get ignored at most places. Unleashing in organizations and in fact, tend to get ignored at most places. Unleashing self-initiated activity on the part of employees needs systems in the self-initiated activity on the part of employees needs systems in the company that can respond effectively to employees’ ideas. This system mustcompany that can respond effectively to employees’ ideas. This system must reach everyone. Creative acts are not the forte of only a certain cadre or reach everyone. Creative acts are not the forte of only a certain cadre or level of employees. Just about anyone can get creative ideas. It is importantlevel of employees. Just about anyone can get creative ideas. It is important that every employee must be aware of the system that is in place in the that every employee must be aware of the system that is in place in the organization to encourage self-initiated activity. The system must also be organization to encourage self-initiated activity. The system must also be easy to use. Only then will it lead to usage by employees. The system must easy to use. Only then will it lead to usage by employees. The system must also have a strong follow-through. Writing up ideas is important since this also have a strong follow-through. Writing up ideas is important since this ensures accountability. Writing also clarifies and refines proposals. Lastly, ensures accountability. Writing also clarifies and refines proposals. Lastly, the system must be based on intrinsic motivation. Rewards must be the system must be based on intrinsic motivation. Rewards must be minimized in the long run so that the inherent motivation of employees to minimized in the long run so that the inherent motivation of employees to think and generate winning ideas is tapped.think and generate winning ideas is tapped.

Unofficial activity Unofficial activity This is activity that occurs in the absence of direct official support, and withThis is activity that occurs in the absence of direct official support, and with the intent of doing something new and useful. Resistance and opposition to the intent of doing something new and useful. Resistance and opposition to new ideas are quite common in any organization. Unofficial activity new ideas are quite common in any organization. Unofficial activity provides such new ideas a safe haven to incubate till such time that they provides such new ideas a safe haven to incubate till such time that they are strong enough to overcome such resistance. According official status to are strong enough to overcome such resistance. According official status to any new idea also stunts its progress by setting up barriers to creativity. any new idea also stunts its progress by setting up barriers to creativity. That is why every planned project encounters such barriers throughout its That is why every planned project encounters such barriers throughout its life.life.SerendipitySerendipityA serendipitous discovery is one made by fortunate accident in the A serendipitous discovery is one made by fortunate accident in the presence of sagacity (keenness of insight). Creativity often involves presence of sagacity (keenness of insight). Creativity often involves recombining or making connections between things that may appear recombining or making connections between things that may appear unconnected. The more abstruse the connection, the greater the unconnected. The more abstruse the connection, the greater the intellectual distance that must be traversed to make it. Serendipity helps in intellectual distance that must be traversed to make it. Serendipity helps in bridging this distance. Companies can promote serendipity in three ways. bridging this distance. Companies can promote serendipity in three ways. The first approach is to increase the frequency of accidents that could turn The first approach is to increase the frequency of accidents that could turn out to be fortunate. This can be achieved by adopting a bias for action, out to be fortunate. This can be achieved by adopting a bias for action, toward tinkering, toward empirical research work. The second approach is toward tinkering, toward empirical research work. The second approach is to increase awareness of the accidents that do occur. Companies must to increase awareness of the accidents that do occur. Companies must educate employees not to overlook exceptions. This will make them try to educate employees not to overlook exceptions. This will make them try to understand the underlying phenomena that drive accidents leading to understand the underlying phenomena that drive accidents leading to serendipitous discoveries and creative acts. The third useful approach is to serendipitous discoveries and creative acts. The third useful approach is to increase the company’s domain of sagacity to turn more accidents into increase the company’s domain of sagacity to turn more accidents into fortunate ones. For this the company should deliberately create unused fortunate ones. For this the company should deliberately create unused potential, such as human potential, for change. An organization should potential, such as human potential, for change. An organization should encourage its employees to take classes that are not directly related to encourage its employees to take classes that are not directly related to their work, to go to conferences where they are not making a presentation, their work, to go to conferences where they are not making a presentation, to take study leaves or sabbaticals with the purpose of learning something to take study leaves or sabbaticals with the purpose of learning something

different. It is difficult to know in advance when new knowledge will be of different. It is difficult to know in advance when new knowledge will be of use. Nevertheless, it is better to constantly keep acquiring such knowledge.use. Nevertheless, it is better to constantly keep acquiring such knowledge.

Diverse stimuliDiverse stimuliA stimulus may help in providing fresh insight into something that a person A stimulus may help in providing fresh insight into something that a person is already set to do, or it might show him something very different. It is is already set to do, or it might show him something very different. It is impossible to predict how an individual will react to a stimulus; another impossible to predict how an individual will react to a stimulus; another may not even notice what provokes one person. Companies can leverage may not even notice what provokes one person. Companies can leverage this element by providing employees the opportunity to communicate with this element by providing employees the opportunity to communicate with each other about various stimuli that they encounter at their place of work. each other about various stimuli that they encounter at their place of work. This may help some of the stimuli to have an impact on suitable individuals.This may help some of the stimuli to have an impact on suitable individuals. Companies must identify stimuli and provide them to employees. Rotation Companies must identify stimuli and provide them to employees. Rotation of employees into every job they are capable of doing should be common of employees into every job they are capable of doing should be common practice. Companies must also arrange for their employees to interact with practice. Companies must also arrange for their employees to interact with those outside the company who are likely to be the source of their stimuli. those outside the company who are likely to be the source of their stimuli. Employees should be encouraged to bring into the organization stimuli theyEmployees should be encouraged to bring into the organization stimuli they get on their own. get on their own.

Within-company communicationWithin-company communicationPlanned activities in organizations are carried out with the support of well-Planned activities in organizations are carried out with the support of well-knit lines of communication. But such networks do not facilitate corporate knit lines of communication. But such networks do not facilitate corporate creativity. Unanticipated within-company communication helps individuals creativity. Unanticipated within-company communication helps individuals in getting the needed knowledge and information to pursue their new ideas.in getting the needed knowledge and information to pursue their new ideas. Smaller companies provide better within-company communication Smaller companies provide better within-company communication opportunities than larger ones. Larger companies have a lot more opportunities than larger ones. Larger companies have a lot more components that can spur creative acts. But due to their size, bureaucracy components that can spur creative acts. But due to their size, bureaucracy sets in and within-company communication suffers leading to lower levels sets in and within-company communication suffers leading to lower levels of corporate creativity. Companies should promote unanticipated exchange of corporate creativity. Companies should promote unanticipated exchange of information to enhance their creative performance. There are three waysof information to enhance their creative performance. There are three ways in which an organization can promote within-company communication. in which an organization can promote within-company communication. Firstly, it should provide opportunities for employees who do not normally Firstly, it should provide opportunities for employees who do not normally interact with each other to meet. Secondly, the company should ensure thatinteract with each other to meet. Secondly, the company should ensure that every employee has a sufficient understanding of the organization’s every employee has a sufficient understanding of the organization’s activities to be able to tap its resources and expertise. The third and most activities to be able to tap its resources and expertise. The third and most important point is to create a new organizational priority: all employees important point is to create a new organizational priority: all employees should know the importance of being responsive to requests for informationshould know the importance of being responsive to requests for information or help from other employees.or help from other employees. These six elements offer a way to realize the tremendous creative potentialThese six elements offer a way to realize the tremendous creative potential that each company possesses. They also serve as benchmarks against whichthat each company possesses. They also serve as benchmarks against which other companies and their practices can be evaluated in order to learn and other companies and their practices can be evaluated in order to learn and improve an organization. These elements will force people to question their improve an organization. These elements will force people to question their assumptions and to realize the enormous possibilities that exist within eachassumptions and to realize the enormous possibilities that exist within each company.company.