{"id":892,"date":"2020-05-24T12:50:42","date_gmt":"2020-05-24T11:50:42","guid":{"rendered":"https:\/\/codify.in\/?post_type=encyclopedia&#038;p=892"},"modified":"2021-05-25T20:29:36","modified_gmt":"2021-05-25T19:29:36","slug":"management-innovation","status":"publish","type":"encyclopedia","link":"https:\/\/codify.in\/de\/glossary\/management-innovation\/","title":{"rendered":"Management Innovation"},"content":{"rendered":"<p>Management <a href=\"https:\/\/codify.in\/de\/glossary\/innovation\/\" target=\"_blank\" title=\"We follow a very basic formula here: creativity + implementation = innovation. In non-commercial environments, this would be an idea that creates value because it got implemented. In commercial environments, it would be the introduction of something new to the market, or if you will, an invention that is commercialized.\" class=\"encyclopedia\">innovation<\/a> is a type of innovation which we deem to be one of the most important strands but which receives less attention than product-service, business-model and regular process innovation. However, it is the basic prerequisite in order for all the other <a href=\"https:\/\/codify.in\/de\/glossary\/types-of-innovation\/\" target=\"_blank\" title=\"In simple terms, there are different areas or subjects one can &lsquo;innovate upon&rsquo;: 1) on operations and internal processes; 2) on products and services; 3) on business model and strategy; and 4) on the organizational design and its management systems.\" class=\"encyclopedia\">types of innovation<\/a> to work. At the end of the day, if an organization&rsquo;s operating system still runs like it did in the 70s you can hardly outcompete your new digital disruptors, can you?<\/p>\n<p>Birkinshaw and Mol define &lsquo;management innovation&rsquo; as <i>&ldquo;the <a href=\"https:\/\/codify.in\/de\/glossary\/invention\/\" target=\"_blank\" title=\"According to U.S. Patent Law an invention is &ldquo;a new, useful process, machine, improvement, etc., that did not exist previously and that is recognized as the product of some unique intuition or genius, as distinguished from ordinary mechanical skill or craftsmanship.&rdquo;\" class=\"encyclopedia\">invention<\/a> and implementation of a management practice, process, structure, or <a href=\"https:\/\/codify.in\/de\/glossary\/technique\/\" target=\"_blank\" title=\"A way of carrying out a particular task. Often comes as a detailed set of step-by-step instructions on what to do. Often used as a synonym for &lsquo;method&rsquo;.\" class=\"encyclopedia\">technique<\/a> that is new to the state of the art and is intended to further organizational goals&rdquo;<\/i> <span class=\"zp-InText-zp-ID--2420821-YS2DJ7RJ--wp892 zp-InText-Citation loading\" rel=\"{ 'pages': '825', 'items': '{2420821:YS2DJ7RJ}', 'format': '(%d%, %p%)', 'brackets': '', 'etal': '', 'separator': '', 'and': '' }\"><\/span>. In that sense, agile approaches like <a href=\"https:\/\/codify.in\/de\/glossary\/design-thinking\/\" target=\"_blank\" title=\"Generally speaking, design thinking is a set of procedures and problem-solving behaviors of (industrial) designers and the mindset they bring along with. In today&rsquo;s business context it often describes a team-based methodology to the creation of user-centric innovation concepts.\" class=\"encyclopedia\">Design Thinking<\/a>, <a href=\"https:\/\/codify.in\/de\/glossary\/lean-startup\/\" target=\"_blank\" title=\"A methodology that supports startups in their search for a product or service that customers value, and a viable business model to go with it. Lean Startup emphasizes validated learning through the performance of hypothesis-driven experimentation with customers in short development cycles.\" class=\"encyclopedia\">Lean Startup<\/a>, or Scrum and their respective <a href=\"https:\/\/codify.in\/de\/glossary\/method\/\" target=\"_blank\" title=\"We say: it&rsquo;s a way of carrying out a particular task, which often comes as a detailed set of step-by-step instructions on what to do. The Oxford Dictionary says: it&rsquo;s &ldquo;a particular procedure for accomplishing or approaching something, especially a systematic or established one.&rdquo;\" class=\"encyclopedia\">method<\/a> pools are the basis for management innovation. In order for them to function and not become <a href=\"https:\/\/steveblank.com\/2019\/09\/17\/agilefall-when-waterfall-sneaks-back-into-agile\/\">&lsquo;agile-fall&rsquo;<\/a> or <a href=\"https:\/\/www.forbes.com\/sites\/stevedenning\/2019\/09\/22\/how-fake-agile-at-dod-risks-national-security\/#28441c0f8fa8\">&lsquo;fake agile&rsquo;<\/a>, new leadership practices, governance structures, and eventually also organisational design changes are required. If they are implemented sustainably &ndash; e.g. by establishing a <a href=\"https:\/\/codify.in\/de\/glossary\/lean-innovation\/\" target=\"_blank\" title=\"A combination of discovery, creation, and value delivery approaches in an organization&rsquo;s innovation process. The goal is to reduce &lsquo;waste&rsquo; in the pipeline of new business exploration projects. To name but a few examples of waste in this context: untested customer\/problem\/value proposition or business model assumptions, insufficient validation of prototypes\/experiments with customers, or, even carrying forward political and zombie projects. Usually, three main methodologies are used in lean innovation: design thinking, Lean Startup, and &lsquo;Lean processes&rsquo;.&nbsp;\" class=\"encyclopedia\">lean innovation<\/a> (eco)system, or by practicing Lean UX <span class=\"zp-InText-zp-ID--2420821-SB2B9GG4--wp892 zp-InText-Citation loading\" rel=\"{ 'pages': 'np', 'items': '{2420821:SB2B9GG4}', 'format': '(%a%, %d%, %p%)', 'brackets': '', 'etal': '', 'separator': '', 'and': '' }\"><\/span> &ndash;&nbsp;this may result in management innovation.<\/p>\n<p>The notion is also closely linked to Management Ideas or Concepts <span class=\"zp-InText-zp-ID--2420821-LLYTEMA4--wp892 zp-InText-Citation loading\" rel=\"{ 'pages': 'np', 'items': '{2420821:LLYTEMA4}', 'format': '(%a%, %d%, %p%)', 'brackets': '', 'etal': '', 'separator': '', 'and': '' }\"><\/span>, which are <i>&ldquo;fairly stable bodies of knowledge about what managers ought to do&rsquo; and consist of &lsquo;a system of assumptions, accepted principles and rules of procedure&rdquo;<\/i> (Kramer and Kramer, 1975, p. 47). In an extreme form the former might also come as a Management Fashion or Fad, a <i>&ldquo;[t]ransitory collective beliefs that certain management techniques are at the forefront of management progress&rdquo;&nbsp;<\/i> <span class=\"zp-InText-zp-ID--2420821-VN5W3PRA--wp892 zp-InText-Citation loading\" rel=\"{ 'pages': '254', 'items': '{2420821:VN5W3PRA}', 'format': '(%a%, %d%, %p%)', 'brackets': '', 'etal': '', 'separator': '', 'and': '' }\"><\/span>. Many very useful innovation approaches of their times (hello Six Sigma!, hello design thinking!, hello Lean <a href=\"https:\/\/codify.in\/de\/glossary\/startup\/\" target=\"_blank\" title=\"A startup is a temporary organization used to search &#8232;for a repeatable and scalable business model. &mdash; Steve Blank\" class=\"encyclopedia\">Startup<\/a>!) run the danger of simply becoming a management &lsquo;flavour of the month&rsquo;. This rarely is the fault of the approach itself. The problem lies more with their opportunistic exploitation and misappropriation by people who look for quick wins and superficial shortcuts to either the hard (change) work in front of them <span class=\"zp-InText-zp-ID--2420821-52CH7KKS--wp892 zp-InText-Citation loading\" rel=\"{ 'pages': 'np', 'items': '{2420821:52CH7KKS}', 'format': '(%a%, %d%, %p%)', 'brackets': '', 'etal': '', 'separator': '', 'and': '' }\"><\/span> or by applying the approaches mechanistically in contexts where they do not fit (see <a href=\"https:\/\/codify.in\/de\/glossary\/methodology\/\" target=\"_blank\" title=\"A largely codified set of processes and methods with an underpinning paradigm and theory which guides action. Often used in a particular area of study or activity.\" class=\"encyclopedia\">Methodology<\/a>-Misfit).<\/p>","protected":false},"excerpt":{"rendered":"<p>When management subscribes to a new way of thinking and (radically) alters its own decision-making, organizational structures and processes to pave the way for wider organizational change.<\/p>\n","protected":false},"author":2,"featured_media":0,"template":"","encyclopedia-category":[131,132,134,135,136,152,167],"encyclopedia-tag":[238,239,240,193],"coauthors":[142],"class_list":["post-892","encyclopedia","type-encyclopedia","status-publish","hentry","encyclopedia-category-design-thinking","encyclopedia-category-digitalization","encyclopedia-category-innovation","encyclopedia-category-lean-startup","encyclopedia-category-new-work","encyclopedia-category-sd-logic","encyclopedia-category-sustainability","encyclopedia-tag-adaptation","encyclopedia-tag-adoption","encyclopedia-tag-management-fad","encyclopedia-tag-management-fashion"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia\/892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia"}],"about":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/types\/encyclopedia"}],"author":[{"embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/users\/2"}],"wp:attachment":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/media?parent=892"}],"wp:term":[{"taxonomy":"encyclopedia-category","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia-category?post=892"},{"taxonomy":"encyclopedia-tag","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia-tag?post=892"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/coauthors?post=892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}