Organizational Emphasis on Human Factors

The Industrial Revolution made thinking, feeling, human beings, cogs in the wheel. Fortunately, competition has forced us to bring back humanity into the workplace, because it could increase profits. Instituting co-operation and commitment is key to innovation and better performance. The study of some large Indian companies showed that Stars have actively fostered a culture that stimulates innovation and view it as their source of life. Wal-Mart’s Sam Walton, became the second richest man in the world by using innovative methods, particularly in supply chain management.

Breakthrough ideas must be welcomed

Mindwaves are the cultural shifts that sweep across the organization, creating transformational change. Involvement at all levels in developing strategy ensures organizational commitment. Breakthroughs need the support of top management. Budgets have to be set apart and human resources deployed, to achieve breakthrough ideas.

Doing things not done by others

A key innovation characteristic is doing things not done by others. The first mover advantage in innovation is the key to high profits. Two companies, which introduced creativity programs, United Technology and Federal Express, realized a high return on investment (ROI) from their creativity programs. Federal Express achieved a factor of two ROI, or 200%. The ROI for United Technology was even higher, a factor of six.

Improve existing tasks

In order to be innovative, one needs to ensure that all existing tasks are done in the most optimal way. Routine matters are often dealt with automatically and inefficiency often creeps in, eating into the profitability of the organization. The techniques of innovation see existing tasks as a vast area, with great potential for improvement. The Japanese are always looking for better ways of doing anything. They say in effect, “This is being done very well. Let us study how to do it better.” This is what drives them to amaze the world, incessantly, with their miraculous creations. While it allows the status quo to remain, they are constantly looking for ways to do existing things more efficiently. A well-known manufacturer of travel luggage in India was deeply concerned about the high cost of transporting bags. During a brainstorming session, one of the members asked “Why do you transport air? All the bags are just full of air.” In effect, a nesting system was created, where one bag sat snugly inside a larger bag. The reduction in logistics costs led to the company buying up its nearest rival and enjoying a virtual monopoly for many years.

Replicating best practices

Copying the best practices from other players in the field can improve efficiency. Replicating the ideas that work across the organization, can save time and other resources. Paying attention to the mishaps of other players and avoiding what does not work for them, is also usable information.

Do away with unnecessary tasks

A great deal of organizational energy is wasted by duplication of activities that are being done by others and duplication of activities that can be done by suppliers or other stakeholders. This is a result of overlapping responsibilities. Once unnecessary tasks are eliminated, there will be a focus on relevant activities and with it will come relevant innovation.

Doing the right things

This concerns choosing the right way to do things by benchmarking with the best organizations in the world. The internet provides us with direct access to best practices from around the world. Once good and better ways of doing things right are discovered, they must be shared across the organization on a consistent and relevant basis. Unilever has Innovation Centers in every region that are dedicated to studying the best way of doing everything. These processes are then replicated across the globe.