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Leadership for innovation
      Rethinking management and
        organization paradigms


Edward Erasmus MA
   Mini workshop
 University of Aruba
 November 28, 2011
A little about me…
Leadership for Innovation: Rethinking Management and Organization Paradigms
What we will do in the next 30 minutes…

• Have a conversation about innovation,
  leadership, and organizations…

Agenda
•   Explain innovation (briefly)
•   Challenges for leaders
•   Leadership qualities of the 21st century
•   How organizations need to adapt
•   Creating a climate for Innovation
•   Questions / discussions
Innovation?...
. . . is generally understood as the successful
introduction of a new thing or method . . .
Innovation is the embodiment, combination, or
synthesis of knowledge in original, relevant,
valued new products, processes, or services.”
                - Luecke and Katz (2003)
We see innovation
Title
      as a means to:
    • unlock talents of all of our
      people

    • develop every area of the
      economy and, in particular,
      wherever high value added
      businesses can flourish and grow

    • generate sustainable prosperity
Our own definition of innovation…
     “Transforming the (current) resources of our
       nation (Aruba) through the creativity of
       people into new resources and wealth.”
No innovation
 no change
  no development….




 ….without visionary leaders
Key leadership challenges…


    SPEED      PEOPLE
   TOMORROW   MANAGEMENT
              PARADIGMS
1. SPEED!!
    Radical innovation and technological developments is
          going to dominate your daily schedule….




if you walk you stand still, so
you’ll need to run pretty fast to
advance just a little.
Radical innovation
…….an improvement or advancement that enhances a
product, service or a process in a manner that has never
been expected by the market…..

• Good for consumers
• Disruptive for existing industries
  (some will adapt, others will fade away)
Radical innovation
Radical innovation
Radical innovation
Radical innovation…

 The biggest fear by big companies in this
 technological innovation era is not to be able
 to recognize radical innovation and (timely)
 capitalize on it when it appears….

“Successful organizations face considerable difficulty in maintaining their
strength and might. Of the 25 largest companies in 1900, only two have
remained in that select company. The rest have failed, been merged out of
existence, or simply fallen in size.”
                                      ~ Paap & Katz, 2004
Coping with ‘Speed’…
• Do not fear radical transformations….
• In its place, look for opportunities instead of
  deterring threats.
• Or… seek to be at the forefront of innovation
2. PEOPLE
You don’t control consumers…
Consumers control you...
Leadership for Innovation: Rethinking Management and Organization Paradigms
Thanks to social networking:
• Society is moving towards a more social,
  collaborative, interactive and responsive web

• Higher interconnectivity

• Building communities


SN gives people a powerful voice…..
From social media to social movement
Leadership for Innovation: Rethinking Management and Organization Paradigms
Say goodbye to the era of
    monologue
The new communication model is

      dialogue
Social Networking has changed the
‘game’ in marketing and communication,
but also how organizations need to
respond to consumer needs….
Mass customization….
 Co-creation…
  and co-branding….
      take on new forms
massively
multiplayer
online role-playing
game (MMORPG)
Leadership for Innovation: Rethinking Management and Organization Paradigms
Co-creation….
Starbucks gave consumers a
    voice....the result:




 over   50,000 product ideas
• Forget B2C or B2B……
 it’s now P2P (person-2-person)

…customers want to connect and interact with
 companies on a 1:1 social level
…and those who can deliver that, will gain
 substantial competitive edge...
Engaging ‘People’…
• Allow customers ‘inside’ your organizations.

• Opportunities to engage in creative new
  forms of online communication with all sorts
  of stakeholders.

• Use the ‘consumer voice’ to enhance your
  competitive edge.
3. TOMORROW!!
     “We are living on this planet as if we
     had another one to go to.”
                 - Terri Swearingen
Leadership for Innovation: Rethinking Management and Organization Paradigms
Leadership for Innovation: Rethinking Management and Organization Paradigms
Think sustainable….

• Environmental resources are limited and are
  quite sensitive to everything that we do.
• We are starting to experience the effects of the
  actions of generations that came before us.

To make sure that future generations will not
experience worse, we need to be aware of the ideals
and requirements of sustainability….
Why adopting sustainability practices..?

Companies have learned the hard lesson that
  without a sustainable society, there is no
  sustainable business….

In order for a business to be truly sustainable, it
  must sustain not only the necessary
  environmental resources, but also its social
  resources, including employees, customers (the
  community), and its reputation
Sustainable enterprise…

• Reduced packaging materials for products
• Reengineered its logistics by rerouting trucks and
  save 100 million miles

• Helped save $200 millions in costs, while reducing
  fuel consumption (and emission) and lowered
  disposal costs to landfills
Sustainable enterprises



1. Incorporating principles of sustainability into each
   of their business decisions.
2. Supplying or consuming environmentally friendly
   products or services that replaces demand for non
   green products and/or services.
3. Greener than traditional competition.
4. Enduring commitment to environmental principles
   in their business operations.
Coping with ‘Tomorrow’…
• Think ‘sustainability’ in every decision
• Creating value through sustainable enterprising
• Focus on triple bottom line: people, planet and
  profits….
4. MANAGEMENT PARADIGMS



Too much of today’s management thinking is
  still rooted in the industrial revolution…
Design to control:
Workers seen as machines made up of
interlocking parts that each play a clearly
defined role in the functioning of the
whole…
Old-fashioned leadership styles
Businesses are organized to operate, not to create…

• People employed to make the organization operate
  as efficiently as possible.
• A small number of people are selected to lead the
  people who are operators.
• An even smaller number of people are selected to
  lead an entire business function, and
• One person to lead the organization itself.
Old-fashioned leadership styles
  Exploitation of resources, like nature, people,
  capital and trust for the purpose of short-term
  profits…




….and guess what?....
Leadership for Innovation: Rethinking Management and Organization Paradigms
Leadership for Innovation: Rethinking Management and Organization Paradigms
Leadership for Innovation: Rethinking Management and Organization Paradigms
Leadership for Innovation: Rethinking Management and Organization Paradigms
New leadership paradigm
• Create and embrace diversity in knowledge,
  people and sources.
• Focus on ‘creation’…not just ‘operation’.
• Think ‘Win-Win’ and long-term.
• Embrace new forms of capital.
New forms of capital

           Intellectual
             Capital




Creative                  Social
Capital                   Capital
Intellectual capital
    Collective knowledge (whether or not documented) of
    the individuals in an organization or society.
    This knowledge can be used to produce wealth, multiply
    output of physical assets, gain competitive advantage,
    and/or to enhance value of other types of capital.

    IC can include:
•   skills and knowledge that a company has developed about how to
    make its goods or services;
•   individual employees or groups of employees whose knowledge is
    deemed critical to a company's continued success (knowledge about
    processes, customers, research results, and other information)
Social capital
                = Social relations that have productive benefits.

                People acting and interacting well in communities can
                create better solutions, greater accountability, and more
                economic growth.

“Social capital is about
  the value of social
  networks, bonding
  similar people and
   bridging between
 diverse people, with
 norms of reciprocity.”
  (Dekker and Uslaner,
         2001)
Creative capital
•   Passion and drive of people / societies seeking to
    understand, embrace, and nurture creativity.

       Creativity -> Invention -> Innovation
“…creativity will be the single most important
leadership quality for organizations forging a path
through the complexity of today’s marketplace,
workplace, and community.”
                  ~IBM Global CEO Study (2010)
Time to start educating our
leaders in a new paradigm…
Time to start educating our
leaders in a new paradigm…
CLO’s needed….




Chief
Listening
Officers
CNO’S needed….


    Chief
 Networking
  Officers
CEO’S needed….




Chief
Empowering
Officers
Rethinking organizations…
Organizations?..
•   An organization neither has a conscience or a soul,
    only the people in the organization have them.

•   An organization is a series of conversations and
    dialogues, external or internal, in pursuit of
    solutions….
Sir, yes sir!
Hierarchy models




….too rigid and not welcoming for innovation
Building new forms of organizations


We need to rethink organizations for a
more open, transparent and competitive
world…
Network-based structure
Rethinking organizations…
Designing organizations to create…not
just to operate….

Focus on:

•    Creativity
•    Networks
•    Collaboration
•    Learning
Leadership: Creating a climate for
                   Innovation
Head – establishing clarity of purpose.
Leaders need to make a personal commitment to innovation, communicate what it means
inside the company, and lead by example, emphasizing innovation in their day-to-day
decisions.



Heart – cultivating an open and supportive environment.
Leaders must have the ability to build trust and mutual respect with employees, foster open
airing of problems and disagreements, and solve conflict in creative ways.


Guts – facilitating idea generation.
Leaders should challenge people to consider alternative approaches and give them
time and resources to pursue innovative ideas.
Leadership: Creating a climate for
                Innovation


   New             New
Leadership      Organization     Innovation
approaches        models
Leadership: Creating a climate for
           Innovation




       …and many others
Final thought…



      Instead of thinking
    “outside the box”, just
      get rid of the box…
Final thought…

              Act Different,
             Think Different,
            Make a Difference



     “The people who are crazy enough to think they
     can change the world are the ones who do.”
            ~ Apple’s “Think Different” Campaign (1997)
Leadership for Innovation: Rethinking Management and Organization Paradigms
Edward M. Erasmus, MA
e.erasmus@fzanv.com
erasmus.bpas@gmail.com
Facebook: http://www.facebook.com/edwardmerasmus
Twitter: http://www.twitter.com/em_erasmus
LinkedIn: http://www.linkedin.com/in/edwardmerasmus
QUESTIONS???

More Related Content

Leadership for Innovation: Rethinking Management and Organization Paradigms

  • 1. Leadership for innovation Rethinking management and organization paradigms Edward Erasmus MA Mini workshop University of Aruba November 28, 2011
  • 4. What we will do in the next 30 minutes… • Have a conversation about innovation, leadership, and organizations… Agenda • Explain innovation (briefly) • Challenges for leaders • Leadership qualities of the 21st century • How organizations need to adapt • Creating a climate for Innovation • Questions / discussions
  • 5. Innovation?... . . . is generally understood as the successful introduction of a new thing or method . . . Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services.” - Luecke and Katz (2003)
  • 6. We see innovation Title as a means to: • unlock talents of all of our people • develop every area of the economy and, in particular, wherever high value added businesses can flourish and grow • generate sustainable prosperity
  • 7. Our own definition of innovation… “Transforming the (current) resources of our nation (Aruba) through the creativity of people into new resources and wealth.”
  • 8. No innovation no change no development…. ….without visionary leaders
  • 9. Key leadership challenges… SPEED PEOPLE TOMORROW MANAGEMENT PARADIGMS
  • 10. 1. SPEED!! Radical innovation and technological developments is going to dominate your daily schedule…. if you walk you stand still, so you’ll need to run pretty fast to advance just a little.
  • 11. Radical innovation …….an improvement or advancement that enhances a product, service or a process in a manner that has never been expected by the market….. • Good for consumers • Disruptive for existing industries (some will adapt, others will fade away)
  • 15. Radical innovation… The biggest fear by big companies in this technological innovation era is not to be able to recognize radical innovation and (timely) capitalize on it when it appears…. “Successful organizations face considerable difficulty in maintaining their strength and might. Of the 25 largest companies in 1900, only two have remained in that select company. The rest have failed, been merged out of existence, or simply fallen in size.” ~ Paap & Katz, 2004
  • 16. Coping with ‘Speed’… • Do not fear radical transformations…. • In its place, look for opportunities instead of deterring threats. • Or… seek to be at the forefront of innovation
  • 17. 2. PEOPLE You don’t control consumers… Consumers control you...
  • 19. Thanks to social networking: • Society is moving towards a more social, collaborative, interactive and responsive web • Higher interconnectivity • Building communities SN gives people a powerful voice…..
  • 20. From social media to social movement
  • 22. Say goodbye to the era of monologue
  • 23. The new communication model is dialogue
  • 24. Social Networking has changed the ‘game’ in marketing and communication, but also how organizations need to respond to consumer needs….
  • 25. Mass customization…. Co-creation… and co-branding…. take on new forms
  • 29. Starbucks gave consumers a voice....the result: over 50,000 product ideas
  • 30. • Forget B2C or B2B…… it’s now P2P (person-2-person) …customers want to connect and interact with companies on a 1:1 social level …and those who can deliver that, will gain substantial competitive edge...
  • 31. Engaging ‘People’… • Allow customers ‘inside’ your organizations. • Opportunities to engage in creative new forms of online communication with all sorts of stakeholders. • Use the ‘consumer voice’ to enhance your competitive edge.
  • 32. 3. TOMORROW!! “We are living on this planet as if we had another one to go to.” - Terri Swearingen
  • 35. Think sustainable…. • Environmental resources are limited and are quite sensitive to everything that we do. • We are starting to experience the effects of the actions of generations that came before us. To make sure that future generations will not experience worse, we need to be aware of the ideals and requirements of sustainability….
  • 36. Why adopting sustainability practices..? Companies have learned the hard lesson that without a sustainable society, there is no sustainable business…. In order for a business to be truly sustainable, it must sustain not only the necessary environmental resources, but also its social resources, including employees, customers (the community), and its reputation
  • 37. Sustainable enterprise… • Reduced packaging materials for products • Reengineered its logistics by rerouting trucks and save 100 million miles • Helped save $200 millions in costs, while reducing fuel consumption (and emission) and lowered disposal costs to landfills
  • 38. Sustainable enterprises 1. Incorporating principles of sustainability into each of their business decisions. 2. Supplying or consuming environmentally friendly products or services that replaces demand for non green products and/or services. 3. Greener than traditional competition. 4. Enduring commitment to environmental principles in their business operations.
  • 39. Coping with ‘Tomorrow’… • Think ‘sustainability’ in every decision • Creating value through sustainable enterprising • Focus on triple bottom line: people, planet and profits….
  • 40. 4. MANAGEMENT PARADIGMS Too much of today’s management thinking is still rooted in the industrial revolution…
  • 41. Design to control: Workers seen as machines made up of interlocking parts that each play a clearly defined role in the functioning of the whole…
  • 42. Old-fashioned leadership styles Businesses are organized to operate, not to create… • People employed to make the organization operate as efficiently as possible. • A small number of people are selected to lead the people who are operators. • An even smaller number of people are selected to lead an entire business function, and • One person to lead the organization itself.
  • 43. Old-fashioned leadership styles Exploitation of resources, like nature, people, capital and trust for the purpose of short-term profits… ….and guess what?....
  • 48. New leadership paradigm • Create and embrace diversity in knowledge, people and sources. • Focus on ‘creation’…not just ‘operation’. • Think ‘Win-Win’ and long-term. • Embrace new forms of capital.
  • 49. New forms of capital Intellectual Capital Creative Social Capital Capital
  • 50. Intellectual capital Collective knowledge (whether or not documented) of the individuals in an organization or society. This knowledge can be used to produce wealth, multiply output of physical assets, gain competitive advantage, and/or to enhance value of other types of capital. IC can include: • skills and knowledge that a company has developed about how to make its goods or services; • individual employees or groups of employees whose knowledge is deemed critical to a company's continued success (knowledge about processes, customers, research results, and other information)
  • 51. Social capital = Social relations that have productive benefits. People acting and interacting well in communities can create better solutions, greater accountability, and more economic growth. “Social capital is about the value of social networks, bonding similar people and bridging between diverse people, with norms of reciprocity.” (Dekker and Uslaner, 2001)
  • 52. Creative capital • Passion and drive of people / societies seeking to understand, embrace, and nurture creativity. Creativity -> Invention -> Innovation
  • 53. “…creativity will be the single most important leadership quality for organizations forging a path through the complexity of today’s marketplace, workplace, and community.” ~IBM Global CEO Study (2010)
  • 54. Time to start educating our leaders in a new paradigm…
  • 55. Time to start educating our leaders in a new paradigm…
  • 57. CNO’S needed…. Chief Networking Officers
  • 60. Organizations?.. • An organization neither has a conscience or a soul, only the people in the organization have them. • An organization is a series of conversations and dialogues, external or internal, in pursuit of solutions….
  • 62. Hierarchy models ….too rigid and not welcoming for innovation
  • 63. Building new forms of organizations We need to rethink organizations for a more open, transparent and competitive world…
  • 65. Rethinking organizations… Designing organizations to create…not just to operate…. Focus on: • Creativity • Networks • Collaboration • Learning
  • 66. Leadership: Creating a climate for Innovation Head – establishing clarity of purpose. Leaders need to make a personal commitment to innovation, communicate what it means inside the company, and lead by example, emphasizing innovation in their day-to-day decisions. Heart – cultivating an open and supportive environment. Leaders must have the ability to build trust and mutual respect with employees, foster open airing of problems and disagreements, and solve conflict in creative ways. Guts – facilitating idea generation. Leaders should challenge people to consider alternative approaches and give them time and resources to pursue innovative ideas.
  • 67. Leadership: Creating a climate for Innovation New New Leadership Organization Innovation approaches models
  • 68. Leadership: Creating a climate for Innovation …and many others
  • 69. Final thought… Instead of thinking “outside the box”, just get rid of the box…
  • 70. Final thought… Act Different, Think Different, Make a Difference “The people who are crazy enough to think they can change the world are the ones who do.” ~ Apple’s “Think Different” Campaign (1997)
  • 72. Edward M. Erasmus, MA e.erasmus@fzanv.com erasmus.bpas@gmail.com Facebook: http://www.facebook.com/edwardmerasmus Twitter: http://www.twitter.com/em_erasmus LinkedIn: http://www.linkedin.com/in/edwardmerasmus