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© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance. Creative Climate: Creative Climate: A Leadership Lever for Innovation A Leadership Lever for Innovation Developed and presented by: Developed and presented by: Andy Wilkins Andy Wilkins Senior Honorary Visiting Fellow, Cass Business School Senior Honorary Visiting Fellow, Cass Business School Partner, Perspectiv LLP Partner, Perspectiv LLP

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© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Creative Climate:Creative Climate:A Leadership Lever for InnovationA Leadership Lever for Innovation

Developed and presented by:Developed and presented by:

Andy WilkinsAndy WilkinsSenior Honorary Visiting Fellow, Cass Business SchoolSenior Honorary Visiting Fellow, Cass Business School

Partner, Perspectiv LLPPartner, Perspectiv LLP

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

My preferred definition of creativity andMy preferred definition of creativity andinnovationinnovation

Newnessthat isuseful

(at least to the creator)

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

The spectrum of newnessThe spectrum of newness

Dev

elo

pm

ent

Ad

apti

on E

xplo

ration

Inven

tion5 4 3 2 1

Innovation can tend toward…

1. Absolutely new: it changed the industry and is new to the world.Examples include a new category, technology, invention, brand,process etc.

2. Reasonably new: there is nothing very much like it in the industry3. Fairly new: there are some similar things in the industry

4. A little new: there are a small number of things that mark it out asdifferent

5. Hardly new at all: it is basically a repackaged version of an alreadyexisting product or service but still requires creative input, fundingand resources

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Press

Product

Process

People

At the highest level, innovation depends on howAt the highest level, innovation depends on howwell the following 4Ps are attended towell the following 4Ps are attended to

© Creative Problem Solving Group Inc.

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Have you ever considered theworkplace climate or atmospherein your team or organisation or

around you?

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

“Isn't trying to understand atmosphere liketrying to nail jelly to the wall?”

“Anyway, how can you measureatmosphere?”

“And I don't really believe it is as important asthe hard and technical stuff.”

You might be thinking to yourselfYou might be thinking to yourself……..

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

ResourcesWork Environment, People, Machinery, Concepts, Funds,Rewards, Management, Hierarchy, Tools, Methods, etc.

Effects onQuality, Creativity & Innovation, Productivity,

Well-Being, Job Satisfaction, Profit, etc.

Climateorganisational & Psychological Processes

Problem-Solving, Decision-Making,Learning, Motivation, Communication, etc.

© Creative Problem Solving Group Inc.

Climate moderates between resources andClimate moderates between resources andresultsresults

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Climate is the psychological aspect of theClimate is the psychological aspect of theenvironment (in contrast to the physical)environment (in contrast to the physical)

Physical

• The buildings, offices, desks,factories, décor

• The ‘hard’or ‘tangible’stuff• Reflects lower levels of

Maslow’s hierarchy of needs• Reflects Herzberg’s

‘hygiene’factors or thedissatisfiers

Psychological

• The atmosphere, feel,culture, climate, context

• The ‘soft’or ‘intangible’stuff• Reflects Maslow’s higher

needs• Reflects Herzberg’s

‘motivational’factors orsatisfiers

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

© The Creative Problem Solving Group Inc. 2003.

There are many different words used whenThere are many different words used whentalking about the workplace environmenttalking about the workplace environment

Place

Context

Culture

Climate

Environment

Situation

Press

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Climate is different to cultureClimate is different to cultureClimate

The observable habitsthat characterise life in an

organisation.

CultureThe values and beliefs that

reflect the deeperfoundations of the

organisation.

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Some practical strategies leaders can takeSome practical strategies leaders can taketo increase innovation through climateto increase innovation through climate

•Measure the climate for creativity and innovationusing KEYS or SOQ (Situational OutlookQuestionnaire - www.soqonline.net - the SOQ isour preference due to the Buros Institute review)

•Developing leadership practices that enable acreative climate

•Take the ‘Michael’–the Masters in Innovation,Creativity and Leadership at City University

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

DIMENSION DESCRIPTION

Challenge/Involvement

The degree to which people are involved in daily operations, long-termgoals, and visions

Freedom The independence in behaviour exerted by people

Trust/Openness The emotional safety in relationships

Idea-Time The amount of time people can (and do) use for elaborating new ideas

Playfulness/Humour

The spontaneity and ease displayed within the workplace

Conflict The presence of personal and emotional tensions

Idea-Support The ways in which new ideas are treated

Debate The occurrence of encounters and disagreements between viewpoints,ideas, differing experiences and knowledge

Risk-Taking The tolerance of uncertainty and ambiguity exposed in the workplace

The SOQ measures 9 dimensions of climateThe SOQ measures 9 dimensions of climate

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Stagnated climateDimensionProductive climate

Committee bound, slow to action, intolerantof uncertainty, failure punished

Risk TakingActions taken, tolerance withuncertainty, failure seen as learnings

Little questioning, voices do not speak up &are not heard

DebateContentious voices heard, new insightsexplored

Poor listening, critical & knee jerk feedbackSupportActive listening, professional &affirmative feedback

Unproductive discounting and negativepersonal comments, turf wars exist

ConflictDiversity and disagreements betweenpeople are valued and dealt with

productively

Dull, seriousPlayfulnessHappy, humorous

Little off task experimenting, reflection,learning

Idea timeOff task experimenting, reflection,learning

Suspicious, defensive, fearful participation,expectations not met

Trust &Openness

Safe participation, expectations met

Passive, rule boundFreedomIndependent choice

Rationally engaged in the outcome,indifferent, alienated

InvolvementEmotionally engaged in the process,enjoyable, energetic

The 9 dimensions of climateThe 9 dimensions of climate

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

The climate for innovation dimensionsThe climate for innovation dimensionsand the normative dataand the normative data

Sour ce:Ekvall,G.CCQInter nationalNor ms. SwedishCouncil forManagementand*N=NumberofCompanies

Innovative(*N=10)

ClimateVariables

Stagnated(*N=5)

Average(*N=15)

Freedom

Idea Time

Conflict

Debate

174

111

88

128

153

97

140

105

210

148

78

158

Challenge & Involvement

Trust and Openness

Playfulness/Humor

Idea Support

Risk -Taking

190

160

169

164

112

163

128

140

108

53

238

178

230

183

195

International Organizations

© Ekvall & Arvonen

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Strategies to address climateStrategies to address climate

Organisation-wide ImprovementsMeasure the climate and then help the entire organisations, or divisions withinlarger organisations, to create a climate more conducive to innovation,change, and growth.

Developing Leadership SkillsMeasure the 360 climate around leaders to help those responsible for leadingand managing others to better understand the impact of their behavior onclimate creation.

Improving Collaboration and TeamsMeasure the team climate to help groups function more creatively andproductively.

© The Creative Problem Solving Group, Inc. 2005

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

050

100150200250300

Challenge&Involvement

Freedom

Trust&Openness

IdeaT ime

Playfulness/HumorConflict

IdeaSupport

Debate

Risk-Taking

ABC CompanyInnovative Stagnated

Organisational or Team Application ExampleOrganisational or Team Application Example

Number of Companies:

InnovativeCompanyAverages

ClimateVariables

StagnatedCompanyAverages

ABCCompanyAverages

Freedom

Idea Time

Conflict

Debate

Challenge & Involvement

Trust and Openness

Playfulness/Humor

Idea Support

Risk-Taking

10 Companies 5 Companies

178

114

81

182

222

168

203

190

137

210

148

78

158

238

178

230

183

195

153

97

140

105

163

128

140

108

53

1 Company

© The Creative Problem Solving Group, Inc. 2005

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Leadership Development ExampleLeadership Development Example

050

100150200250300

Challenge &Involvement

Freedom

Trust & Openness

Idea Time

Playfulness/HumorConflicts

Idea Support

Debates

Risk-Taking

Total Group Your Observers Your Score

Climate Variables Total Group Your Observers Your Score

Challenge & Involvement 181 222 243

Freedom 148 117 167

Trust & Openness 147 180 200

Idea Time 113 69 133

Playfulness/Humor 140 114 83

Conflicts 61 74 33

Idea Support 149 131 120

Debates 163 176 167

Risk-Taking 118 123 120

Number of Individuals: 116 7

© The Creative Problem Solving Group, Inc. 2005

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

What can you do?What can you do?

•Up to 65% of the perception of climate isaffected by Leadership Behaviour.

•Climate is local so you can create a microclimate that is different to the corporate climate… if you want to!!!

•You can change the climate at a low financialcost … but the real cost is in the energy anddesire to personally learn, grow, andchange - to innovate yourself.

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Innovation and growthInnovation and growth: 3 clusters of: 3 clusters ofcapabilitycapability

Product: % of the Survey Sample–most & least innovative

Adapted from: Davis, T., Arnett, A., Gibbons, P., Milton, F. (1997)Innovation Survey. London, UK: PricewaterhouseCoopers.

Process:Deliberate Method

Environment:Creative Climate

People: Inclusive Leadership

Top 5%

Top 20%

Bottom 20%

Fostering a healthy climate is one of three core capabilities that separates the top 20%from the bottom 20% that succeed in meeting the innovation and growth challenge

In the last 5 years,those companies in thetop 20% have higherturnover and ROCEfrom new products

and services.

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

More informationMore information

Books•Meeting the Innovation Challenge•An Introduction to ClimateNet•www.city.ac.uk•www.perspectiv.co.uk•www.soqonline.net

© 2012, Perspectiv LLP. All rights reserved. Working out ways to high performance.

Creative Climate:Creative Climate:A Leadership Lever for InnovationA Leadership Lever for Innovation

Developed and presented by:Developed and presented by:

Andy WilkinsAndy WilkinsSenior Honorary Visiting Fellow, Cass Business SchoolSenior Honorary Visiting Fellow, Cass Business School

Partner, Perspectiv LLPPartner, Perspectiv LLP