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Declaration
I, Tim Malone, declare that I am the sole author of this assignment and the
work is a result of my own investigations, except where otherwise stated.
All references have been duly cited.
Introduction
Since the 1950s, interest in innovation in the fields of science and technology, social
sciences such as history, management and economics, and in the arts has grown so
rapidly that today the word has almost lost its meaning. The word innovate is derived
from the Latin, innovare, dating back to 1540 and means "to renew or change." (Online
Etymology Dictionary). According to Godin (2008), the first theory of innovation was
documented by the French sociologist Gabriel Tarde in the late nineteenth century. Tarde
believed that innovation was a catalyst for change and he used the word in the context of
novelty.
Early theories of innovation began to evolve during the 1920s and as technology gathered
momentum, so too did the study of innovation. By the mid-1900s, organisations came to
the fore as society began to change dramatically. Mass production made material goods
available to a greater number of people, more economically and faster. The era of
materialism had arrived and to keep up with consumers apetites for new and better
goods, organisations had to undergo continual change. (Godin, 2008).
Today, literature on innovation and change abounds and the 2010 McKinsey Global
Survey in which 84% percent of executives said innovation was extremely or very
important to their organisations growth strategy illustrates the importance of innovation as
an organisational strategy for growth, even survival.
Much has been written on innovation methodology (how innovations are realised), but I
have found surprisingly few comprehensive, well-documented theories. This is perhaps
because the innovation process begins with creativity, a complex process that is
particularly difficult to research. As Yu-Ting Cheng, Van de Ven (1994) put it, innovation is
an exploration into the unknown processes by which novelty emerges and an article by
Wolfe in the Journal of Management in 1994, stated that There is a belief amongst some
Tim Malone MALIC tim@tim-malone.com
organisation to refine and improve existing products and processes. These innovations are
therefore more conservative as proposed by Abernathy and Clarke and continuous as
Porter asserts.
Radical innovations require completely new knowledge and/or resources to introduce
totally new concepts and are therefore breakthroughs or in Porters words discontinuous,
meaning that the organisation cannot continue operating in the same way it did in the past.
From the literature that I have reviewed, I am of the opinion that the theories of innovation
are in fact incremental innovations in themselves. Few, if any, of the theories propose
breakthrough ideas about how innovation comes about and simply build on theories that
went before. In support of this supposition, in the book Seeing Whats Next: Using
Theories of Innovation to Predict Industry Change (2004), Christensen and his
colleagues, claim that there are three core theories of innovation: the Disruptive Theory;
the Resources, Processes and Values (RPV) theory; and the Value Chain Evolution theory
that untangle the messy process of innovation. I have my doubts that these three
theories do actually untangle the mystifying process of innovation. If innovation can be
untangled by the writing of one book, why do so many organisations have such difficulty
innovating consistently?
Christensens Disruptive Innovation theory is closely related to that Porters 1986 theory of
Continuous and Discontinuous Innovation. The RPV theory is similar to the Transilience
Map theory of Abernathy and Clarke (1985), in that both theories conclude that the
resources and processes of an organisation define its capacity to innovate. The major
difference between the RPV theory and that of Abernathy and Clarke is that the RPV
theory, in addition to resources and processes, includes company values as an indicator
as to how an organisation might innovate.
The third theory put forth by Christensen et al. is the Value Chain Evolution Theory and in
essence, this is similar to what Henderson and Clarke (1990) called Architectural
Innovation. Henderson and Clarke proposed that innovation involves rearranging known
parts (components) into new patterns (architectures) to achieve higher levels of system
performance. The two theories differ in that the Value Chain theory focuses specifically on
innovations that add value in areas that matter most to customers. Christensen cites the
example of handheld wireless devices where battery life was an issue for customers.
Research In Motion developed a battery that lasted up to three weeks between charges
and so gained a significant advantage for its early Blackberry products.
A search of Amazon.com for book titles that include the word innovation produced 42 415
results. Of course, not all of these books are specifically about the theory of innovation, but
the quantity of material available supports the view of some researchers that it is indeed
impossible to develop a general theory of innovation. I agree with these views and one
possible reason for the difficulty in developing a general theory is that the pace of change
has become so fast that by the time a theory has been researched and developed, the
environment in which the theory was developed has already changed.
There has been some debate as to whether innovation leads to change or that changes in
the environment are catalysts for innovation? Schumpeter, one of the earliest researchers
to refer to innovation, claims that innovation inevitably leads to change (Schumpeter
1942). Christensen argues that the introduction of a technology that renders existing
technologies redundant, leads to change and Hagedoorn (1989), also proposed that
innovation inevitably leads to change. An example is the introduction of the telephone. In
1876, Western Union turned down the opportunity to acquire the telephone technology
developed by Alexander Graham Bell, believing that it would never replace its own
telegraphy business. Just a year later, when the consumer uptake of the technology began
Tim Malone MALIC tim@tim-malone.com
to make a significant impact on its business, Western Union realised their mistake and
attempted to develop their own telephone system, but fell foul of copyright law. Western
Unions market share fell continuously until 31 years later, AT&T (originally American Bell,
the company that financed Alexander Graham Bells work) acquired a controlling interest
in the company.
Few theorists have argued that change is the catalyst for innovation. One such author is
Jon Sundbo who believes that innovation is a sociological phenomenon that has economic
consequences. In other words, when society goes through a change, a natural disaster for
example, this leads to innovation in order to adapt to overcome the effects of the change.
(Sundbo, 1998).
I doubt that either assumption is absolute and am of the opinion that innovation is indeed a
catalyst for change and that change can also cause the initiation of innovation.
More recently, a number of authors have hypothesised that it is strategy that drives
innovation (Chan Kin and Mauborgne 2001; Johnston and Bate 2003). In more recent
years, support of this theory has grown immensely and the connection between the
leadership of innovation and the management of change has become increasingly
apparent.
The leadership of innovation and change
Change and innovation are inevitable no matter which comes first and for organisations to
survive, the leadership of both is becoming increasingly important.
The greatest challenge in leading innovation is to build what is commonly called a culture
of innovation within the organisation (von Stamm, 2003). If one agrees with Sutton (2001),
that Managing for creativity means taking most of what we know about management and
leading change are also connected. I would argue that the leadership of innovation cannot
succeed without the effective leadership of change because the overriding issue in both
cases is the management of people. As Linda Holbeche says, Managing change is not
about managing change; its about managing people. (2006).
Leaders must motivate, inspire and support innovation throughout the organisation until it
becomes entrenched as an organisational value. Similar requirements can be seen in the
leadership of change as leaders may need to overcome resistance, feelings of shock,
anxiety, uncertainty and confusion and a reluctance to change old habits. (Kotter and
Schlesinger, 1979; Kanter, 1983; Holbeche 2006).
In support of my argument that the leadership of innovation and the leadership of change
are inter-linked, consider the similarities between Kotters Eight Steps of Change (1996)
and the leaders role in innovation as described in Managing Creativity and Innovation.
(Luecke, 2003).
Kotters Eight Steps of Change
Develop a vision
Empower management
within
which
In conclusion, although there are many complementary theories of both innovation and
change, no general theory for either has emerged, primarily because of the very nature of
both innovation and change. Theorists, authors and leaders agree that both are
unpredictable, can come about without warning and that leadership should be more about
Tim Malone MALIC tim@tim-malone.com
employees write CVs and apply for jobs. They also approached competitive
companies to see what positions were available
2. Grey offered recruitment companies generous bonuses to place retrenched
employees
3. Free transport was offered for people to attend interviews
4. Training was provided for those workers who needed additional skills to make them
more employable
The result of these initiatives (never before offered by a South African advertising agency)
was that every single person who was retrenched found work, at the same or a higher
salary, before their retrenchment packages were exhausted. In addition, as Shepherd puts
it, How we handled the retrenchments was a test of sincerity and the staff realised that
Grey was now a company that strived to kept its people safe.
Having established an element of trust, Shepherd and his team began to build a culture
based on a few simple propositions:
1. We trust you
2. We will give you whatever you need to get the job done
3. It is OK to say I dont know
4. Take the occasional risk
5. You wont get fired for making a mistake as long as you learn from it
Kouzes and Posner (1990), discuss how leaders can make their roles legitimate and
working on the assumption that leadership is conferred rather than being inherent in the
title. They argue that without followers, there can be no leaders, a concept supported by
Stephen Covey (1982).
According to Kouzes and Posner, the attribute that followers deem most important in
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between Kotters Eight Steps of Change and the way in which the process unfolded at
Grey.
Kotters Eight Steps of Change
Develop a vision
Empower management
New premises
Throughout the following years, Grey grew steadily under Shepherds leadership. In 2005,
he retired from Grey, with the company once again one of South Africas top agencies,
with a ranking of 15th. (Financial Mail, 2006 p.102-103).
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company, Cornerstone Advertising was one of the 15 companies that Billboard acquired.
The initial share price was R147.50, yet just twelve months later the stock had fallen so
low that the JSE suspended the trading of Billboard shares and shortly after, the company
was de-listed.
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and owner of one on the acquired companies and the Board of Directors consisted mainly
of outside investors with little or no understanding of the advertising and marketing
business. With the exception of Perry and Huyser, the board was not involved in the
running of the Group and most were overseas investors who only attended Board
meetings occasionally.
Huysers appointment was based on historical performance, yet what the Billboard
management failed to realise, was that his success was based on relationships with
members of the Apartheid Government and other Afrikaans business leaders who would
soon begin to lose their influence as Nelson Mandela and the ANC came to power. His
style was autocratic, conservative and dictatorial.
In direct contrast, the leaders of the acquired companies were entrepreneurs - innovative
leaders whose styles were more open, democratic and participative.
Applying the model developed by Beer and Nohria (2000), the leaders of Billboard applied
Theory E change (top-down, focusing on structures and systems) whilst leaders of the
acquired companies were expecting Theory O, participative and emergent change focused
on the development of culture and learning.
This autocratic approach led to the alienation of individuals within the acquired companies,
which in turn led to negative reactions that Beckhard, and Harris (1987) identified as some
of the possible reactions to change opposition and lack of commitment.
Huyser was of the belief that because his company was the largest in the Group, the
culture prevalent at The Agency should be forced upon the entire Group. What he did not
recognise was that the success of the other companies in the Group could not be
sustained in an environment where participation in decision-making was not an option.
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I personally experienced this during a meeting between Huyser, myself and the MD of a
design consultancy purchased by Billboard, in which Huyser announced without
discussion, that he had decided that our two companies should merge. When I enquired
as to whether we could discuss other options, his reply was Tim, there are no other
options.
The implications for myself and the other small business leaders were clear. The cultures
of entrepreneurship, trust, freedom and creativity we had fought so hard to build were at
odds with Billboards approach. Many of our key employees resigned and a number of our
clients moved their business to competitors because we were no longer able to offer the
service that satisfied their needs.
Emotionally drained, disillusioned and angry, myself and eight of the other small business
leaders invoked a clause within our sales agreements that allowed us to repurchase our
companies and remove them from the Billboard Group.
In conclusion, if one compares the process undertaken by Billboard to that reflected in the
work of Beer, Eisenstat and Spector (1990), it becomes clearer as to why this process was
such a spectacular failure. They advocate a six-step process that could help organisations
undergo change with more success. These steps are:
1. Mobilise commitment through organisation-wide discussions as to what change
should take place
2. Develop a shared vision
3. Foster consensus for the vision, competence to enact it and cohesion to keep it on
track
4. Spread revitalisation without pushing down from the top
5. Institutionalise revitalisation through policies, systems and structures
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The failure of the Billboard Group can be summed up in this quote from W. Edwards
Demming, It is not necessary to change. Survival is not mandatory.
My own performance as a leader of innovation and change.
Throughout my 25 years working as a Creative Director in advertising agencies, I have led
many teams of highly creative people with varying degrees of success. I have also been a
part of a number of change processes, most of which were, in my opinion, failures.
My experience in leading innovation has been confined mainly to what Smith and
Reinertsen described in 1991 as the fuzzy front end; the unpredictable, unstructured and
sometimes chaotic nature of ideation that is a fundamental element of innovation. As a
Creative Director, my responsibility was to lead and manage teams of Art Directors and
Copywriters in their endeavours to produce engaging and novel concepts to help our
clients market their products and services.
I have found leading the creative process to be extremely rewarding and much easier than
managing the individuals in my teams. Most overtly creative people are, in my experience,
opinionated, averse to rules and regulations, diverse thinkers, highly intuitive and rarely
motivated by money. These traits mean that successfully managing these people requires
a balanced approach allowing freedom to explore whilst maintaining a focus on the task at
Tim Malone MALIC tim@tim-malone.com
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hand. As Theresa Amabile (2008) maintains, One doesnt manage creativity. One
manages for creativity.
Because I did not study advertising after leaving school, my success as a Creative Director
was gained as a result of some excellent training and mentoring from the many talented
and experienced advertising executives I was fortunate enough to work with. Of equal
importance, I also worked for a number people who were not so successful in leading
creativity and innovation and where I recognised the cause of these failures; I was able to
learn from their mistakes.
Later in my career, I read avidly on the subject of creativity. Writings that have most
influenced the way I have tried to lead creativity and innovation include various works by
Teresa Amabile; Its Not How Good You Are, Its How Good you Want To Be by Paul
Arden; Some Things I Know and Some Things I Believe by Norman Berry, and
Confessions of an Advertising Man by the late, great David Ogilvy. I also had the
privilege of attending a creative thinking workshop led by Edward De Bono and the
Stephen Covey Principle-Centered Leadership course.
David Ogilvy once said Any fool can write a bad advertisement, but it takes a genius to
keep his hands off a good one and according to Teresa Amabile (1998), killing creativity
is far easier than inspiring it. Amabile asserts that creativity is a function of three interlinked
components expertise, creative thinking skills and motivation.
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Expertise is, in a
word, knowledge
technical, procedural
and intellectual.
Creativethinking
skillls
Expertise
Creativity
Creative-thinking skills
determine how flexibly and
imaginatively people
approach problems. Do
their solutions upend the
status-quo. Do they
persevere through dry
spells?
Motivation
Source: Teresa Amabile, How to Kill Creativity, Harvard Business School Review, September October 1998.
Amabile maintains that leaders and managers can influence these components
favourably or adversely through workplace practices and conditions.
When I have been most successful in leading creativity and innovation, I have been able
to create an environment where:
individuals are given the freedom to explore without fear of criticism
time is allowed for the seed of an idea to germinate
great ideas are recognised (not necessarily through financial reward)
risk taking is encouraged and
some degree of failure is accepted.
In some agencies where I worked, the CEOs believed that innovative ideas were the
Tim Malone MALIC tim@tim-malone.com
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demotivated because management was not open to innovative ideas and they rightly
expected that I would change the situation. I was not able to do so and in retrospect, my
failure was due to the fact that I did not manage the change that the organisation went
through. I expected management to support the changes I felt were necessary without
question because, after all they had hired me to improve the creative profile of the
company. I became angry that the systems I had put in place were being side-stepped,
argumentative when innovative ideas were not accepted and ultimately, I failed to achieve
what I was hired to do.
Action plan to support my further development.
What I have learned from this module of the MALIC programme has both supported and
expanded my perceptions of innovation and change.
I now have a greater understanding of why I was successful in some instances and failed
in others.
I passionately believe that creativity and innovation can change not only organisations, but
society as a whole. The foremost reason for my undertaking the MALIC programme is so
that I can expand on the experience gained in advertising to help individuals and
organisations harness the power of creativity and innovation to help create a better South
Africa.
I have recently become a practitioner of Innovation StylesTM* and William Miller has
become a mentor in this regard. Through the development of the Innovation StylesTM
methodology, my ultimate goal is to become South Africas innovation guru and to coach,
mentor and train people to think more creatively and become successful innovators.
*Innovation Styles is a methodology developed by William Miller for promoting and fostering innovation for individuals,
teams and organisations. www.innovationstyles.com.
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Developing a strategy in this regard has been challenging but it has helped me establish
areas on which to focus.
Personal SWOT analysis
STRENGTHS:
WEAKNESSES:
Presentation skills
Lack of high level business contacts
style
inclusive
and
Good motivator
Broad range of interests
THREATS:
credentials
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The first stage of my action plan is to ascertain which of my strengths can be utilised to
overcome the weaknesses. I should also use them to nullify some of the threats and take
advantage of the opportunities I have identified.
I have concluded that in order to achieve my goal of becoming South Africas most
influential person on creative thinking and innovation, I should use my greatest strength
that of my ability to present in an interesting and compelling manner to both large and
small groups of people to overcome my weaknesses and exploit the opportunities.
Goal 1 Improve networking competence
Action steps
Attend all relevant seminars, workshops and meetings
Improve online profile Linkedin, blogging, Facebook
Re-establish contacts with former employers and clients for whom I have run
creativity workshops in the past
Goal 2 Develop profile as an expert in the field
Action steps
Ensure I am aware of and understand current research and opinion
Identify the main issues that South African leaders are most concerned about
regarding innovation
Develop articles, presentations and speeches that address these issues
Use blogging to publish abstracts of the above
Identify relevant media and send regular articles to them this could also lead to
Tim Malone MALIC tim@tim-malone.com
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