Innovation: Are you still living in the past?

>> Monday, September 14, 2009

Worth reading. An intelligent analysis on why sow many companies remain stick in the past and block innovation.

"Recently there's been a debate about why larger firms can't innovate. Perhaps they are too comfortable. Perhaps they are too afraid to cannibalize their markets. Perhaps they are afraid of risk and uncertainty. Perhaps, Perhaps.
Think about it. Most of the management practices we follow are based on management models put in place by Taylor or others modelled after GM in the 30s and 40s. Many of the employees at that time were uneducated or undereducated and their value proposition was in labor. The goal of the organization was to send down management's goals and break them down into work units for simple tasks.
Now, most of the work we do is knowledge work. (...) What differentiates a firm in this environment is not compliance and control, but creativity and engagement.
Many firms can't innovate because their structures, processes and compensation models are rigidly organized for the work world of the 1950s and 1960s and haven't shifted the organizational structures, processes and compensation models to reflect what's necessary today."

Why can't your firm innovate?
By Jeffrey Phillips, Blogging Innovation

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