Chapter 10: Cultivating the Innovative Spirit

Summary
This chapter discusses the process of innovation and suggests ways in which organizations can foster the innovative spirit.

The process of innovation is one of "winnowing down" the possibilities to select several that can be useful to the organization. The process begins with idea generation, where the emphasis is on generating a multitude of novel ideas in a non-evaluative setting. The process continues with feasibility analysis which, through experiments or test runs, addresses the possibility of the ideas. Reality testing addresses how practical the ideas are. Do they provide a reasonable return? Are they consistent with organizational objectives? Finally, those that survive may pass to the implementation stage where the idea is acted on. Organizational barriers, such as too many rules and regulations, lack of resources, lack of commitment to research, and a short-term focus, can occur at any point during this process and hinder its progress.

To develop an environment that fosters innovation, the organization needs to design a system that encourages the flow of innovative ideas and increases the probability that useful ideas are provided speedy passage through the process. The chapter discusses guidelines that will accomplish this, such as requiring innovation as part of the job and eliminating lengthy proposal procedures.

Outline

1. Misconceptions
   1. Innovation is risky
   2. Innovations spring from revolutionary "big" ideas or grand schemes
   3. Innovation is product-focused
      
      
2. What is Innovation?
   1. Idea generation
   2. Feasibility analysis
   3. Reality testing
   4. Implementation
   5. Implications
      1. Different evaluation criteria are used at each stage of the innovation process
      2. Different organizational barriers crop up at each stage of the innovative process
      3. The timeline for the innovative process is elastic
         
         
3. A Perspective on Success and Failure
   1. Potential success
   2. Failure
   3. Temporary success
   4. Enduring success
   5. Implications
      1. Present success does not guarantee future success
      2. The actual innovation is but the tip of the iceberg
      3. Fostering meaningful dialogue sparks learning and knowledge creation
         
         
4. Stop and Go Signs
   1. Educate employees about the organization's innovation philosophy and policy
      1. Every employee can become an innovator
      2. Innovation is a process
      3. "Failures" are expected and provide important learning opportunities
   2. Develop company programs and policies that encourage innovation
   3. Eliminate lengthy proposal procedures and foster informal communication
   4. Require and reward innovation
   5. Learn how to properly reject novel ideas
      
      
5. Conclusion: The Challenge of Innovation