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High-Involvement Innovation: Building and Sustaining Competitive Advantage Through Continuous Change PDF

257 Pages·2003·1.77 MB·English
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HIGH-INVOLVEMENT INNOVATION This Page Intentionally Left Blank HIGH-INVOLVEMENT INNOVATION BUILDING AND SUSTAINING COMPETITIVE ADVANTAGE THROUGH CONTINUOUS CHANGE John Bessant School of Management Cranfield University Copyright2003 JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester, WestSussexPO198SQ,England Telephone(+44)1243779777 Email(forordersandcustomerserviceenquiries):[email protected] VisitourHomePageonwww.wileyeurope.comorwww.wiley.com AllRightsReserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem ortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording, scanningorotherwise,exceptunderthetermsoftheCopyright,DesignsandPatentsAct1988 orunderthetermsofalicenceissuedbytheCopyrightLicensingAgencyLtd,90Tottenham CourtRoad,LondonW1T4LP,UK,withoutthepermissioninwritingofthePublisher. RequeststothePublishershouldbeaddressedtothePermissionsDepartment,JohnWiley& SonsLtd,TheAtrium,SouthernGate,Chichester,WestSussexPO198SQ,England,oremailed [email protected],orfaxedto(+44)1243770620. Thispublicationisdesignedtoprovideaccurateandauthoritativeinformationinregardtothe subjectmattercovered.ItissoldontheunderstandingthatthePublisherisnotengagedin renderingprofessionalservices.Ifprofessionaladviceorotherexpertassistanceisrequired,the servicesofacompetentprofessionalshouldbesought. OtherWileyEditorialOffices JohnWiley&SonsInc.,111RiverStreet,Hoboken,NJ07030,USA Jossey-Bass,989MarketStreet,SanFrancisco,CA94103-1741,USA Wiley-VCHVerlagGmbH,Boschstr.12,D-69469Weinheim,Germany JohnWiley&SonsAustraliaLtd,33ParkRoad,Milton,Queensland4064,Australia JohnWiley&Sons(Asia)PteLtd,2ClementiLoop#02-01,JinXingDistripark,Singapore129809 JohnWiley&SonsCanadaLtd,22WorcesterRoad,Etobicoke,Ontario,CanadaM9W1L1 Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappears inprintmaynotbeavailableinelectronicbooks. LibraryofCongressCataloging-in-PublicationData Bessant,J.R. Highinvolvementinnovation:buildingandsustainingcompetitiveadvantagethrough continuouschange/JohnBessant. p.cm. Includesbibliographicalreferencesandindex. ISBN0-470-84707-7(pbk.:alk.paper) 1.Competition.2.Organizationalchange.I.Title. HD41.B3782003 658.4(cid:1)06—dc21 2003041083 BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary ISBN0-470-84707-7 Typesetin10/12ptPalatinobyLaserwordsPrivateLimited,Chennai,India PrintedandboundinGreatBritainbyTJInternational,Padstow,Cornwall Thisbookisprintedonacid-freepaperresponsiblymanufacturedfromsustainableforestry inwhichatleasttwotreesareplantedforeachoneusedforpaperproduction. CONTENTS Acknowledgements ix 1 ‘ManyHandsMakeLightWork!’ 1 1.1 Innovation—ASurvivalImperative 1 1.2 TheRangeofInnovation 2 1.3 ‘ButThat’sNotReallyInnovation...’ 3 1.4 ManagingtheInnovationAgenda 4 1.5 Learning,KnowledgeManagementandInnovation 6 1.6 TheInnovationParadox 7 1.7 FromDoingtoThinkingOrganizations 10 1.8 High-InvolvementInnovation 11 1.9 What’sinaName? 12 1.10 What’sNotintheBook? 12 1.11 StructureoftheBook 13 References 15 2 IsitWorthit? 17 2.1 DoPeopleReallyMatter? 17 2.2 LearningabouttheLearningCurve 18 2.3 PerformanceImprovementthroughPeople 19 2.4 MobilizingHigh-InvolvementInnovation 23 2.5 CaseStudies 27 2.6 Summary 29 References 29 3 What’stheProblem? 33 3.1 CogsintheMachine? 33 3.2 WhatMakesanInnovativeCulture? 34 3.3 OrganizingforInnovation 35 3.4 TheQuestionof‘Culture’ 37 3.5 TheConceptofBehaviouralRoutines 38 vi CONTENTS 3.6 BuildinganInnovationCulture 39 3.7 LearningtoManageInnovation 41 3.8 HighInvolvementvs.FocusedDevelopmentofInnovation Culture 43 3.9 High-InvolvementInnovation 46 3.10 Summary 49 References 49 4 AModelforHigh-InvolvementInnovation 53 4.1 MeasuringInnovationCulture 53 4.2 DevelopingaModel 54 4.3 CreatingtheModel 56 4.4 DevelopingHigh-InvolvementPractice 64 4.5 ComponentsofHigh-InvolvementCapability 65 4.6 Towardsa‘ReferenceModel’forHigh-InvolvementInnovation 67 4.7 EnablingDevelopmentofHigh-InvolvementInnovation 70 4.8 ContingencyIssues 71 4.9 Summary 71 References 72 5 GettingtheInnovationHabit 73 5.1 UnlockingHigh-InvolvementInnovation 73 5.2 ToBoldlyGo... 75 5.3 SomeExamples 76 5.4 CharacterizingLevel1InnovationCapability 76 5.5 What’stheProblem? 78 5.6 ...andHowtoDealwithit 81 5.7 Summary 87 5.8 AnExtendedExample—TheCaseofFridayMotorsLtd 88 References 90 6 SystematicHigh-InvolvementInnovationCapability 91 6.1 TakingHigh-InvolvementInnovationSeriously 91 6.2 MakingHigh-InvolvementInnovationaPartoftheCulture 94 6.3 CharacterizingLevel2InnovationCapability 95 6.4 WhatStopsUsGettingThere? 97 6.5 BarrierstoHigh-InvolvementInnovation andHowtoOvercomethem 99 6.6 SomeCaseExamplesofLevel2Capability 121 6.7 Summary—ReachingtheLimitsofLevel2 127 References 128 7 StrategicInnovation 129 7.1 ‘PrettyinPink’ 129 7.2 WhatIstheProblemwithLevel2? 130 7.3 MovingtoLevel3—StrategicInnovation 131 7.4 Level3inPractice—ABriefExample 132 7.5 TwoKeystoLevel3—StrategyDeploymentandMeasurement 133 CONTENTS vii 7.6 CharacterizingLevel3InnovationCapability 135 7.7 SomeDetailedExamples 139 7.8 ItIsnotjustJapan 153 7.9 MakingitHappen 158 7.10 MonitoringandDevelopingHighInvolvement 159 7.11 Inter-FirmImplications 160 7.12 Summary—TheLimitsofLevel3 161 References 161 8 AutonomousInnovation 163 8.1 TheLimitsofContinuousImprovement 163 8.2 PatternsofInnovation 165 8.3 HandlingDifferentInnovationTypes 168 8.4 R&DforAll? 169 8.5 HighInvolvementinHigh-ImpactInnovation? 170 8.6 SomeCaseExamples 171 8.7 CharacterizingLevel4InnovationCapability 174 8.8 BarrierstoMovingtoLevel4 174 8.9 EnablersforDevelopingLevel4Capability 177 8.10 Summary 178 References 178 9 LearningOrganizations 179 9.1 LearningMatters 179 9.2 IntotheStratosphere 180 9.3 WhyKnowledgeMatters 182 9.4 HowLearningHappens 184 9.5 LearningandHigh-InvolvementInnovation 185 9.6 EnablingLearninginOrganizations 186 9.7 MovingOn—ExtendingtheLearningOrganization 191 9.8 Summary 193 References 193 10 DoingIt! 197 10.1 ToRecap... 197 10.2 SomeJourneys 199 10.3 AGenericOrganizationalDevelopment(OD)Model 206 10.4 TheRoleofFrameworkApproaches 207 10.5 TheHigh-InvolvementInnovationModel 209 10.6 ImplementationinPractice 210 10.7 RoadstoRome 212 10.8 Summary 213 References 213 11 FurtherChallenges 215 11.1 Introduction 215 11.2 Challenge1.FurtheronuptheRoad 215 11.3 Challenge2.Developing‘DoDifferent’InnovationRoutines 216 viii CONTENTS 11.4 Challenge3.Inter-OrganizationalInnovation 217 11.5 Challenge4.FocusofInnovation 220 11.6 Challenge5.Inter-CulturalLearning 220 11.7 Conclusions 221 References 222 Appendix DetailsontheHigh-InvolvementInnovationReferenceModel 225 A.1 ResearchBaseandProblemStatement 225 A.2 KeyFindings 225 A.3 Towardsa‘ReferenceModel’forContinuous Improvement 226 A.4 DetailedBehaviour/CapabilityAnalysis 229 Index 239 ACKNOWLEDGEMENTS This book is an excellent demonstration of the principles of high-involvement innovation—quitesimply,withoutthehelpofagreatmanypeopleitwouldnot havebeenpossibletoproduceit!Iamgratefultomanyfriendsandcolleaguesfor their help and encouragement and would like to take this opportunity to say a large‘thankyou’toallofthem. InparticularIwould like tomentionthevariousmembersoftheCIRCAteam at the University of Brighton—Steve Webb, John Gilbert, Jane Burnell, Sarah Caffyn, Maeve Gallagher, Sarah Austin, Jeff Readman, Michael Vaag and, of course, Pauline Nissen, who held the whole project together, ran the Network and was always around to ensure that the project stayed on a continuously improving trajectory. In the same vein, I owe a debt to the many members of the CIRCA and CENTRIM networks who shared the company perspective on high-involvement innovation and who taught me a great deal about how the problemsofimplementationemergeandarehandledinpractice. IwouldalsoliketothankmanycolleaguesintheEuro—andnowglobal—CINet foralltheirhelpfulcommentsandheroiceffortstoputCIonthemap—especially Harry Boer, Jens Riis, Frank Gertsen, Ritta Smeds, Ross Chapman, Mariano Corso, Paul Hyland, Jose Gieskes and Paul Coughlan. Thanks too are due to KristianStokbroandcolleaguesattheConfederationofDanishIndustriesfortheir long-standinginterestinandsupportofourworkoncontinuousimprovement. I am very grateful to several friends who patiently read the manuscript and gavemesomehelpfulsuggestionstoimproveit—especiallyDaveFrancis,Raphie Kaplinsky,CarlotaPerezandHowardRush.Insimilarvein,mythanksgotothe anonymous reviewers who provided some clear guidance on the overall shape anddirectionofthebook,aswellasencouragementtogoahead.Andtotheteam atJohnWiley—especiallySteveHardmanandSarahBooth—forsteeringthebook throughtoeventualpublication. In the final stages of putting this book together in late 2002 we learned of the suddenandtragicdeathofKeithPavitt,afriendandcolleagueatSussexandco- author,withJoeTiddandmyself,ofthetextbookManagingInnovation.Keithhada deepunderstandingofthechallengesininnovationandhadamajorinfluenceon

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At a time when the turbulent and uncertain environment demands more innovation than ever, most businesses only engage a small proportion of their staff in innovative activities. Whilst they may have groups and individuals who are ‘licensed to innovate’ by virtue of their particular departmental
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