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PERFORMANCE, PROFITABILITY, AND STANDARDS
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INSPIRING FOR INNOVATION
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Employees intellectual participation is critical to growth. R&D is not the job of a few employees; on the contrary, every employee must be encouraged to innovate and perform his or her task profitably and creatively. Robert Galvin, former chairman of the board at Motorola, once said that he had 10,000 managers and 100,000 employees. He wanted 110,000 brains to work for the company not just 10,000. He inspired 110,000 brains to work for innovation, not just the R&D personnel. Consequently, Motorola established a process for gathering and evaluating employee ideas. Galvin communicated his expectations that everyone at the company would try to think outside the box. Once innovation started occurring, Galvin himself recognized the innovators and shared the financial rewards from the savings that resulted. Motorola has never done better than during those years. The company was truly a vibrant, growing, and profitable company from 1987 to 1992, when Motorola was committed to applying the Six Sigma methodology rigorously throughout the corporation. To establish a process for innovation, employees must be inspired for creativity. To be creative, employees must feel comfortable in their jobs. Employees spend most of their active lives at work, and they want to be valuable and know society feels good about the work they do. Too many times, they are discouraged from being creative or innovative; instead, they are given more constraints and discouraged to do anything outside their everyday job requirements. Business growth requires personal creativity from thinking employees, channeling that creativity to innovation, and converting that innovation to economic gains. Unless there is an established process, growth through innovation cannot be achieved. Innovation can be measured in terms of ideas, recommendations, suggestions, publications, or patents. I still personally thank Motorola for rewarding $100 per published page of articles in any magazine. I personally benefitted from that incentive, as it led me to write more than 100 articles (and now a few books). From a business perspective it is a small incentive; however, it created significant results. Among
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CHAPTER TEN
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other contributions, I developed a new test for semiconductor chips as a result of such an incentive. In Straight from the CEO (1998), G. William Dauphinais and Colin Price quantified the degree of creativity required for developing innovative ideas. From a pool of 3000 ideas, about 300 are processed for their innovative potential. About 125 are converted to full-fledged projects, and about 2 products are eventually launched. It becomes obvious, then, that to launch an innovative product, R&D engineers alone cannot do it. On the contrary, launching an innovative product requires the creativity of the entire workforce. J. Morcott Southwood at Dana Corporation observed that the ratio of implemented to suggested ideas improved continually. As the leadership provides focus and structure for creativity, employee ideas become more relevant to the corporate needs instead of just being personally creative. However, employees intellectual freedom must be nurtured and nourished to extract great ideas from them. Any one of us has a potential to be a great innovator, given the right environment. Companies that facilitate employees creativity have realized tremendous financial benefits. Actually, most of the growth of businesses, when it occurs, happens through innovation. Figure 10-7 captures the innovative process in an organization. Accordingly, an organization must establish a system for managing the innovation process effectively and measuring its effectiveness for continually improving the economic value of innovation.
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New Technology or Products for Business Growth
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FIGURE 10-7.
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Creativity to innovation conversion process.
C H A P T E R E L E V E N
LEADERSHIP FOR PERFORMANCE
conomic conditions have changed during the last several decades, especially during the last 20 years. Electronics play a critical role in how we live today. Practically everything we do from work to play has some electronic component in it. The electronics industry has been growing at a phenomenal rate. Growth in electronics led to the explosion of the information age by accelerating the ease and speed with which information can be gathered and communicated. Today we have easy access to almost unimaginable amounts of information about everything in our lives. The Internet has brought the world together in a global village, making it more interdependent and more complex.
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