| Abstract: | The innovating organization described is one that recognizes and formalizes the roles, processes, rewards, and people practices that naturally lead to innovations. The point we have emphasized throughout this article is that the organization that purposely designs these roles and processes is more likely to generate innovations than is an organization that doesn't plan for this function. Such a purposely designed organization is needed to overcome the obstacles to innovation. Because innovation is destructive to many established groups, it will be resisted. Innovation is contrary to operations and will be ignored. These and other obstacles are more likely to be overcome if the organization is designed specifically to innovate.Managers have tried to overcome these obstacles by creating venture groups, by hiring some entrepreneurs, by creating “breakthrough funds,” or by offering special incentives. These are good policies but by themselves will not accomplish the goal. Figure 1 conveyed the message that a consistent set of policies concerning structure, process, rewards, and people are needed. The innovating organization is illustrated in Figure 7. It is the combination of idea people, reservations in which they can operate, sponsors to supervise them, funding for their ideas, and rewards for their success that increase the odds in favor of innovation. Simply implementing one or two of these practices will result in failure and will only give people the impression that such practices do not work. A consistent combination of such practices will create an innovating organization that will work. |
