Intrinsic motivations:

opportunities for
Toward a Stewardship growth, achievement,
theory of management affiliation, and self-
(1997) actualisation.
Higher needs of
Maslow’s Hierarchy
Behaviour which is rewarded
Reward and reflects the values of the
recognition organisation
Reward risk taking,
Building organisational culture experimenting and generating
that stimulates creativity and new ideas.
innovation (2003)
Use intrinsic rewards like
autonomy, opportunities for
personal and professional
growth.
15% of time dedicated
to generating new
ideas and working on
favourite projects.
Using internet to communicate
and share ideas.
Recruitment, selection,
appointment and
maintaining employees
is an important part of
Support Mechanisms. Building organisational promoting creative
culture that stimulates culture.
creativity and
innovation (2003) Values and beliefs of
management are
reflected in the type of
people appointed
Intelligence, knowledge, risk
taking, inquisitiveness, energy
Availability of and most importantly diversity.
resources: Time, IT,
Creative people. Diversity brings richer
ideas and new
Each factor crucial and processes to stimulate
inter-dependent creativity.

Soft Factors: Skills, Staff, This is also the stage

When an organisation embarks 3. Bird in the Hand
Strategy, Shared Values where entrepreneurs
on a monumental change, it Principle. Start with look at their 3Fs, better
must first analyse its ability to do what they have, what
Hard Factors: Structure, known as friends,
so. they know, and whom
Systems, Styles family and fools. From
they know - their own this point, they will look
traits, tastes, and at their abilities. So an
abilities; the knowledge
McKinsey’s 7 S Framework Causation and entrepreneur does not
corridors they are in;
(2016) Effectuation (2001) start with a given goal,
and the social networks but with the tools he or
they are a part of.
Definition: Causation processes she has.
take a particular effect as given
and focus on selecting between Effectuation is using So an entrepreneur
means to create the current resources does not start with a
that effect. available to pursue given goal, but with the
unknown futures with tools he or she has.
contingencies
EFFECTUATION Best approach to developing a
Effectuation processes take creative and innovative culture.
a set of means as given and
focus on selecting between Holistic approach that allows the
possible effects that can be investigation of
created with that set of interdependence, interaction,
means. and interrelationship of the
different sub-systems and
OPEN SYSTEMS APPROACH elements of the organisational
culture in an organisation.
Through identification,
an organisation CULTURE: values, norms and
becomes an extension beliefs will either support or
of the steward's inhibit creativity and innovation,
psychological structure depending on how they
influence individuals and
Takes comments about groups.
Organisation success the organisation
contributes to personally, as Identification:
managers self-image reference to Managers must accept
and self-attribution Toward a Stewardship
themselves. the organisation's theory of management
mission, vision, and
Organisational (1997)
objectives, producing a The primary difference lies in the
commitment: the satisfying relationship.
strength of the assumptions about human
individual's nature. According to agency
identification with and theory, people are individualistic,
involvement in a STEWARDSHIP THEORY utility maximisers. According to
particular organisation. stewardship theory, people are
Reduce attrition, collective self-actualisers who
Stewardship theory defines achieve utility through
increase value situations in which managers
commitment. organisational achievement.
are not motivated by individual
Focus on the future goals, but rather are stewards
whose motives are aligned with
Vision and Mission the objectives of their
Customer and market
orientated. Solving customer Strategy. principals.
problems.
Experiment rapidly, iteratively,
Disruptive technologies:
Emphasise quality rather and inexpensively with both the
Catching the wave (1995)
effectiveness. product and the market.
Building organisational culture
Important for employees to that stimulates creativity and Mistake handling. Celebrate failures as an
understand vision and mission Building organisational culture opportunity to openly discuss
innovation (2003) that stimulates creativity and
and the gap between current and learn from mistakes.
situation and reaching V+MS. innovation (2003)
Focus on support over viability
Innovation is chaos within
Guidelines. Top management Be inquisitive
set strategic goals but allow Encourage personal to
personnel freedom within the talk to others within
context of the goals. Building organisational and external to the
Continuous learning culture that stimulates company.
Assign target value to 1. Aspire: combine culture creativity and
relevant business high-level aspirations innovation (2003) Keep knowledge and
owner and cascade it with estimates of the skills up to date
McKinsey: 8 essentials
down business value that innovation of innovation (2015)
segment as should generate to Learn creative thinking
performance targets meet financial-growth skills
and timelines. objectives.
Management support by looking
Re: see Google’s 5 for new and improved ways to
keys to successful Purposefulness do things
teams. Building organisational culture
that stimulates creativity and Create a vision with emphasise
Flat structure innovation (2003) on change
High level of Building organisational Reveal positive attitude to
responsibility and culture that stimulates change
accountability Flexibility
creativity and
accompanies flexible innovation (2003) Establish funding for new
organisational business outside of core.
structure. Reevaluate position in value
For independent spinoffs, keep chain and look for new business
overheads low to permit profit McKinsey’s 8 essentials of 4. Evolve models to deliver value.
even in emerging markets. innovation (2015) Sponsor pilots projects outside
Necessary only when of core business to combat
the disruptive narrow conceptions of who and
technology has a lower what the organisation is.
profit margin than the
mainstream business 5. Accelerate
and must serve the Place responsibility for Talent should include a
unique needs of a new building a disruptive diverse set of skills and be able
set of customers. technology business in to deal with ambiguous data.
Assign a small group of an independent
organisation. Teams should be separated
engineers and from day-to-day operations.
marketers in a facility in
a different city, or Disruptive Although never the dominant Funding should come from
generally aware from technologies: Catching activity, transformational outside the normal budget
the main business the wave (1995) initiatives are vital to a cycle.
operation. company’s ongoing health, and
firms must recognise that they Pipeline management
In order to survive, the Support for change demand unique management should focus on the iterative
company must be approaches. development of a few promising
willing to see business ideas, not the ruthless
units die because if filtering of many.
they don't kill them off
itself, competitors will. Metrics should recognise
Keep the disruptive non-financial achievements in
Once a small spin-off organisation early phases.
has become independent. Freedom: Autonomy,
commercially viable, it Empowerment, Talent: designers, creators.
should remain separate Decision-Making
Managing Your Innovation Metrics: Use a combination of
from the mainstream noneconomic and internal
resources of the Portfolio (2012)
metrics to assess transformation
organization. efforts. E.g. Learn > Earn
External from main Funding: Significant and
organisational culture and Mature companies attempting to sustained investment. Should
structure Swisscom Outpost
enter new businesses fail as come from an entity above
Relaxed management. often as 99% of the time. This normal annual budget allocation
reflects the hard truth that to (e.g. CEO or executive). Avoid
“Chaos within guidelines" Areas of management that
achieve transformation—to do “innovation tax”, create a
serve the three levels of
different things—an organisation completely different funding
Management must innovation. (Focus on
usually has to do things structure for transformational
believe in personnel transformational)
differently. It needs different innovation, one that’s separate
and encourage them to Building organisational people, different motivational from the regular P&Ls
be more creative culture that stimulates factors, and different support of the business, like a fund.
creativity and systems.
Empower > Control innovation (2003) Integration: People involved are
Fast decision-making separated financially,
as cultural norm organisationally, and sometimes
promotes innovation. physically.

Stewardship theorists Pipeline Management: Avoid

Low Power /
Collectivist, Low
Sometimes conflicting Power / individualist,
but eventually work
High power collectivise,
out. e.g. USA + Japan High power,
individualist
People in a low power
distance culture are
more likely to develop
principal-steward
relationships
than are people who
are in a high power
distance culture
Cross-functional teams
that encourage social
and technical
interaction between
developers and
implementers
Can we take risks on
this team without
feeling insecure or
embarrassed?
Can we count on each
other to do high quality
work on time?
Are goals, roles, and
execution plans on our
team clear?
Are we working on
something that is
personally important for
each of us?
Do we fundamentally
believe that the work
we’re doing matters?
focus on structures that strict stage gate process. Give
Toward a Stewardship promising ideas time to develop.
facilitate and empower theory of management
rather than those that Disagreements between
(1997) Disruptive
monitor and control. departments may signal new
e.g. CEO-Chair technologies: Catching disruptive innovations. Signal for
the wave (1995)
Steward seeks to senior management to explore.
obtain the objectives of Tolerance of conflict
the organisation.
Stewards protect and Conflict must be
maximise Structure. Determinants of Conflict handling constructive.
shareholder’s wealth organisational structure Building organisational
through firm culture that stimulates Understanding different
performance, as it
that influence creativity creativity and individual thinking
maximises stewards and innovation. innovation (2003) styles
utility functions. Train personnel to use
Collectivistic constructive
behaviours have higher confrontation process
utility than Effectuation emphasises
individualistic, strategic alliances and pre-
self-serving behaviours 2. The Crazy Quilt Principle -
Toward a Stewardship Causation and Effectuation commitments from stakeholders
Strategic alliances rather than
People in a collectivist theory of management (2001) as a way to reduce and/or
competitive analyses.
culture are more (1997) eliminate uncertainty and to
likely to develop Competitiveness erect entry barriers.
principal-steward Building organisational
Encourage debating of ideas
relationships than culture that stimulates
are people who are in creativity and Support subjects based
an individualistic innovation (2003) on information flow
culture. Behaviour that
encourages innovation. PROCESS: Spell out
Low power distance: expected results,
organisations are assign responsibility of
decentralised, monitoring, measure
there is more risk taking to someone
consultation in decision in organisation, create
Building organisational
making, and the tolerant space where
culture that stimulates
differences in mistakes are accepted
creativity and
salary and perquisites as part of taking
innovation (2003)
are minimised. initiative, regard
Shared values on trust mistakes as learning
and problem solving. experiences, and
assume a fair chance
Trust and respect, Cooperative teams and of risk being
understand different group interaction successful.
perspectives, style of
functioning, be open Calculate how much
and question new loss is affordable and
ideas 1. Affordable Loss focuses on
Building organisational Principle - affordable experimenting
culture that stimulates loss rather than with as many strategies
creativity and expected returns. as possible
innovation (2003) with the given limited
means.
The logic for using
effectuation
Well established, processes is: To the
diverse and individual extent that we can
talents that control the future, we
complement one do not need to predict
another it.
The founder, along with
others, creates the
1. Psychological safety: 4. The Pilot in the
market by bringing
Plane Principle - together enough
Controlling an stakeholders who "buy
unpredictable future into" the idea to sustain
2. Dependability rather than predicting the enterprise. Since
an uncertain one the structure of what
Causation and exactly the enterprise
The 5 keys to a Effectuation (2001)
3. Structure & clarity Successful Google is is left open and is
Team (2015) dependent upon the
particular commitments
made by the
stakeholders, the need
4. Meaning of work Risk taking for prediction is greatly
reduced, if not
completely obliterated.
5. Impact of work Proposition 1: Pre-firms
or very early stage
firms created through
At this stage, the company is not processes of
yet born. It exists as a gleam in effectuation, if they fail,
the Founder’s eye. The focus is will fail early and/or at
lower levels of
necessarily on dreams and investment than those
possibilities. The primary goal of created through
Courtship
this stage is to build the processes of
Founder’s enthusiasm and causation. Ergo,
commitment to this dream. The effectuation processes
allow the economy to
higher the risk, the deeper the experiment with more
commitment needed. numbers of new ideas
at lower costs.
Infancy begins the moment
financial risk has been 2. Choose. When
undertaken and the Founder choosing projects,
companies should set
quits her paying job, signs the Create some boundary
McKinsey’s 8 in motion more projects
loan documents or promises conditions for the
essentials of innovation than they will ultimately
40% of the company to outside opportunity spaces
(2015) be able to finance, they want to explore
investors. Infant organisations which makes it easier
Infancy to kill those that prove
are necessarily action-oriented
less promising.
and opportunity-driving. The
focus instantly changes from Firms that
ideas to action. The time for outperform their peers
talking is over; it is time to get to tend to allocate their
Firms pursue investments in a
work and produce results (sales certain ratio: 70% to
innovation at three
and cash.) levels of ambition: safe bets in the core, Inverse ratio applies to
enhancements to 20% to less sure returns on innovation.
A Go-Go organization is a Managing Your things in adjacent
core offerings, pursuit
company that has a successful Innovation Portfolio spaces, and 10% to
of adjacent
product or service, rapidly (2012) high-risk
opportunities, and
growing sales and strong cash ventures into transformational
transformational initiatives.
flow. The company is not only
surviving, it’s flourishing. Key territory. Mid-stage technology
customers are raving abut the firm: 45% Core, 40%
products and ordering more. Adjacent, 15%
Go-Go Transformational
Even the investors are starting
to get excited. With this Encourage new ideas
Building organisational without being harmed.
success, everyone quickly culture that stimulates
forgets about the trials and creativity and Focus on what is
tribulations of Infancy. Continued innovation (2003) supported, instead of
success quickly transforms this what is not viable
confidence into arrogance, with A valuable problem to
a capital Adizes Corporate Lifecycle 3. Discover. Look for solve
insights by
McKinsey’s 8
During the Adolescent stage of methodically and A technology that enables a
essentials of innovation
the organizational lifecycle, the systematically solution,
(2015)
Idea generating scrutinizing three
company is reborn. This second areas: A business model that
birth is an emotional time where generates money from it.
the company must find a life Toward a Stewardship Use involvement
apart from that provided by its Increase training, empowerment
theory of management orientated approach to
Founder. This critical transition Adolescence and trust in workers.
(1997) manage risk
is much like the rebirth a
3. The Lemonade
teenager goes through to Principle - Exploitation
establish independence from Causation and of contingencies rather
Effectuation (2001)
their parents.The Adolescent than exploitation of
company teeters on the brink of preexisting knowledge..
both success and disaster. Slack instead of emails Uber, Nuheara
Prime is the optimal position on Weekly All-hands Google, Automation Anywhere
the lifecycle, where the
Open and transparent
organization finally achieves a communication based
balance between control and on trust.
flexibility. Prime is actually not a
Teach employees that
single point on the lifecycle disagreement is
curve. Instead, it is best acceptable, since it can
represented by a segment of the show paradoxes,
Open Communication Building organisational conflict and dilemmas,
curve that includes both growing
Prime culture that stimulates
and aging conditions. This is creativity and Personnel must feel
because flexibility and self- innovation (2003) emotionally safe to be
control are incompatible and able to act creatively.
there is no stable equilibrium. Open door
Sometimes the Prime communication policy
organization is more flexible between individuals,
than controllable, and teams and
sometimes it’s not flexible departments to gain
new perspectives.
enough.
In an uncertain
environment, with high
labor costs, a focus on
long-term effectiveness
and quality through
self-inspection, or the
involvement-
High Commitment Involvement oriented approach, has
Communication. Management emphasises self- significant advantages
Philosophy: highly control, self-
Involvement orientated When labor costs are
participative, open management and no
> Control orientated low and unemployment
communication, separation between
empowerment of thinking controlling and is high, the
Toward a Stewardship workers, establish trust doing work. control-oriented
theory of management approach may work
(1997) well, because turnover
due to employee
dissatisfaction will be
minimal and
replacement costs are
low.
Personal power is
Use personal power slower to develop but
(expert, referent) to can be maintained over
influence people rather longer periods of time.
than institutional
(coercive, legitimate, Part of the individual,
reward) unaffected by position
or title.
Companies need
transparency into what
people are working on
and a governance
McKinsey’s 8 process that constantly
essentials of innovation assesses not only the
(2015) expected value, timing,
and risk of the
initiatives in the
portfolio but also its
overall composition.