CHAPTER FIVE:

MANAGING INNOVATION
IE 446

Bavo Nyichomba

1
5.0 Introduction
● Innovation is a human endeavour: it can not
be automated. It requires: passion, focus,
dedication, teamwork and willingness to see
things through
● Innovation management means: accepting
accountability for establishing, maintaining and
improving innovation processes
● Innovation always requires that: you
undertake initiatives in alignment with the
strategic direction of the larger organization,
organizing the work, coordinating the people
involved and controlling the use of resources
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 2.0 Introduction (Cont..)
● Innovation Management also requires that:
⚪ Developing capacity, climate and culture to
support innovation
⚪ Taking innovation leadership within your
Area of Influence (AOI)
⚪ Connecting to the World outside your area
of influence (customers, suppliers,
competitors, researchers etc) in ways that
influence innovation
● Innovation management is not easy: there
are likely to be many obstacles along the
way.
 2.0 Introduction (Cont..)
● While it can be difficult, the role of the
manager is whether formal or informal, is
always challenging and often exciting
● Innovation manager needs to be a Positive
Role Model:
⚪ Open to opportunities
⚪ Courageous in action
⚪ Able to sustain morale when things get tough
● The Innovation manager needs to be
versatile and knows when to adopt the
mindset and skill-set that is needed to take
innovation forward.
2.0 Introduction (Cont..)
● Managing innovation is a challenging, difficult, but
ultimately a rewarding process. Some key
challenging for the manager of innovation are:
⚪ To decide where to focus innovation efforts
⚪ To develop organizational capability for
innovation
⚪ To weave innovation through your Area of
Influence
⚪ To give equal attention of all five phases of the
process taking on board appropriate mind sets
and skill sets to each phase
⚪ To win support and ignite hope among
members and stakeholders
2.0 Introduction (Cont..)

● Key attributes of a successful Innovation

manager:
⚪ Constructive Discontent: We are doing well
but I am sure we could do better
⚪ Outward Orientation: The World is full of great
ideas and things that we need to know
⚪ Strategic Orientation: We think long term and
focus our efforts on areas that will help us make
rapid and meaningful progress
 2.0 Introduction (Cont..)
● Focus on Process: We do not just hope that an
idea will become realised; we plan it. We use
conscious approach to manage innovation
● Five Phase Skill Set: I modify my management
style for each innovation phase, using skills
appropriate to that part of the process
● Commitment to capability Building: I need
my whole organization to practice value creating
innovation regularly and effectively
● Trust and Confidence of the team: I will keep
focused on Vision and Goals and support you in
achieving
●
2.0 Introduction (Cont..)
● Norms for successful Innovation: One of
the most important cultural elements for
successful innovation is a set of norms
(ground-rules or rules of the road) that
support and encourage innovation-friendly
behaviour at various phases of the process.
● Norms help to build supportive culture for
innovation
● Norms must be clear, observable and
enforced
● Norms must be explicit and agreed upon
2.1 The innovation Journey
● The Innovation Journey is a facilitative
framework for achieving Innovation results
in alignment with organization Strategic
Direction
● Innovation Journey needs to be open to a
wide range of different challenges,
learning and adaptation
● Innovation Phase Model is concerned with
skills and behaviours rather than
decision points
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2.1 The innovation Journey
● Innovation as a process is helpful, as it
enables us to identify clearly specific skills
associated with innovating successful
● The innovation phase model is used to
clarify how managers :
⚪ May think
⚪ Feel
⚪ Focus
⚪ Act as they work through the Innovation Cycle

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 2.1 The innovation Journey (Cont.)
A culture of
Analytical:
● Strength-Weakness
Entrepreneurs
without coming to
Influencing
conclusion
Creating and Stakeholders
Sustaining High
Framing Enquiry Performing Team Realizing
Investigating ideas maximum
Preparing a
Facilitating Business Case value
Managing
creativity Selecting promising
Influencing Process Improving
Identifying ideas
Stakeholders the
opportunities Managing Innovation
Testing the ideas Making decision
Political Issues Process
Hunting and
Allocating
gathering Ideas Validating ideas Driving for
resources Celebrating
timely results
Achievement
COMMITTING
SEARCHING EXPLORING Innovation REALIZING
Assess Ideas becomes
OPTIMIZING
Managerial
 2.1.1 The Searching Phase
● Mindset
⚪ Far-sighted
⚪ Outward-looking
⚪ Enquiry
Framing Curious
⚪ ardent
Facilitating
creativity
Identifying
opportunities

Hunting and
gathering Ideas

COMMITTING
SEARCHING EXPLORING Innovation REALIZING
Assess Ideas becomes
OPTIMIZING
Managerial
 2.1.1 Searching Phase (Cont..)
● In this phase, ideas that meet needs,
respond to opportunities, or advance the
organization’s goals are deliberately hunted
gathered and opportunities defined
● The will be many ideas and those beginning the
innovation journey will be challenged and inspired
● Activities of searching
⚪ Trends and analyses
⚪ Technology forecasting
⚪ Deep observations of customer and user
behaviour
2.1.1 Searching Phase (Cont…)
⚪ Getting ideas from multiple sources (Open
innovation
⚪ Lead user studies – working with those with clear
views of the future
● Characteristics of the Mindset
⚪ Far sightedness
⚪ Outward-looking orientation
⚪ Curiosity
⚪ Ardent
● Skills needed
⚪ to Understand of the organization’s vision,
mission, and initiatives to define purposes of the
search
2.1.1 Searching Phase (Cont…)
⚪ To facilitate the creativity: prepare the teams to
be creative, curios and open minded
⚪ Identify opportunities – potential areas for
innovation (unmet needs)
⚪ Gather ideas – Search internally and externally
for ideas that may grow to become innovation
initiatives
● Barriers
⚪ Silo or expert mentality
⚪ Short term thinking
 2.1.2 Exploring Phase
⚪
Analytical:
Mindset
Strength-Weakness
⚪ without coming to
Tireless
conclusion
⚪ Discovery Oriented
⚪ Sceptical
Investigating ideas
⚪ Logical
Selecting promising
ideas

Testing the ideas

Validating ideas

COMMITTING
SEARCHING EXPLORING Innovation REALIZING
Assess Ideas becomes
OPTIMIZING
Managerial
2.1.2 Exploring (Cont..)
● In this phase ideas and opportunities are
organized, debated and analysed to
understand them in depth.
● These ideas needed to be tested to
demonstrate that they are practical and
they are needed by potential customers
(internally and externally)
● Experimentation and filtering to help to
narrow own the ideas that are likely to
deliver an attractive return on investment
2.1.2 Exploring (Cont..)
● Activities for Exploring include
⚪ Comparative analysis
⚪ Constructive debates
⚪ Proof of concept experiments and multiple
prototyping
⚪ Focus groups
⚪ SWOT Analysis
● Elements of Analytical Mindset include:
⚪ Tirelessness
⚪ Discovery orientation
⚪ Scepticism and logic
2.1.2 Exploring (Cont..)
● Mindset
⚪ Tireless
⚪ Discovery oriented
⚪ Sceptical
⚪ Logical
● Barriers
⚪ Un examined assumptions
⚪ Conflict avoidance
⚪ Unresponsiveness to customer’s input
 2.1.3 Committing Phase
● Mindset
⚪ Wisdom
⚪ Prudence
⚪ Decisiveness Preparing a
⚪ Boldness Business Case
Influencing
Stakeholders
Making decision

Allocating
resources

COMMITTING
SEARCHING EXPLORING Innovation REALIZING
Assess Ideas becomes
OPTIMIZING
Managerial
2.1.3 Committing Phase (Cont..)
● In this phase the emphasis moves to “What could
we do” to “What should we do” The focus is what
to do, what not to do, and getting the right people
committed to support you (Judging)
● Activities for this phase
⚪ Preparation and presentation of a business
case
⚪ Risk assessment and adjustment
⚪ Clear decision processes
⚪ Getting buy-in from stakeholders
⚪ Influencing key people to provide resources or
join the team
2.1.3 Committing Phase (Cont..)
● Skills required
⚪ Ability to communicate the potential costs,
value and risks of the proposed Innovation
Initiative in a clear, fair and powerful way
⚪ Ability to influence stakeholders: building up of
a political will
⚪ Ability to influence appropriate people in
making a wise choice
⚪ Scheduling and ensuring that activities are
carried as planned
⚪ Ability to allocate resources needed
2.1.3 Committing Phase (Cont..)
● This is the phase where ”organizational
politics” particularly comes to bear: you
need to be thoughtful and assiduos in
developing your support system so that you
win buy-in to ensure that there is sufficient
commitment to move ideas forward
● The focused mindset
⚪ Wisdom
⚪ Prudence
⚪ Decisiveness
⚪ Boldness
2.1.3 Committing Phase (Cont..)

● Barriers that affect the above mindset

⚪ Fear for failure
⚪ Indecisiveness
⚪ Political naiveness
 2.1.4 Realizing Phase
Mindset
⚪ Team focus
Creating and
⚪ Result orientation Sustaining High
⚪ Discipline Performing Team

⚪ Political savvy – to allow things Managing

Process
to happen
Managing
Political Issues

Driving for
timely results
COMMITTING
SEARCHING EXPLORING Innovation REALIZING
Assess Ideas becomes
OPTIMIZING
Managerial
2.2.4 Realizing Phase (Cont..)
● In this phase, the emphasis is moved to
execution: from “What” to “How” It is all
about achieving the goals
● Activitiesfor realizing include:
⚪ Building high performing teams
⚪ Frequent project reviews
⚪ Boundary management, dealing with
outside forces that can distract or block
progress
⚪ Customer Communication
⚪ Coordinating workflow
⚪ Establish roles and responsibilities of the team
2.1.4 Realizing Phase (Cont..)

● Skills Needed:
⚪ Ability to create and sustain a high performing
team – build “can do team”
⚪ Ability to manage the process: organize support
and coordinate people and activities
⚪ Manage political issues: handle pressure from
multiple interests involved in implementing the
idea or going to market
⚪ Ability to drive timely results
2.1.4 Realizing Phase (Cont..)
● The pragmatic, agile and adaptive Mindset
is characterised by
⚪ Team focus
⚪ Result orientation
⚪ Discipline
⚪ Political savvy – to allow things to happen
● Barriers: that affects the mindset
⚪ Distractions
⚪ Inattention to details
⚪ Lack of progress information
 2.1.5 Optimizing Phase A culture of
● Mindset Entrepreneurs

⚪ Optimism Influencing
Stakeholders
⚪ Creativity
Realizing
⚪ Entrepreneurship maximum
value
⚪ Generosity of spirit
Improving
● the
Innovation
Process

Celebrating
Achievement
COMMITTING
SEARCHING EXPLORING Innovation REALIZING
Assess Ideas becomes
OPTIMIZING
Managerial
 2.1.5 Optimizing Phase (Cont..)
● In this phase the emphasis is on maximizing the
benefits: increasing the degree to which the idea
has been exploited fully. Optimization or
Exploitation is central to the concept of innovation
– otherwise a in firm will be engaging to invention
or adoption, and not innovation.
● Activities for optimizing include:
⚪ Conducting structured cost/benefit assessments
⚪ Selling the benefits of innovation; being creative
about how innovation can be exploited
⚪ Identifying completely new applications for
innovation
2.1.5 Optimizing Phase (Cont..)
⚪ Holding “lessons learnt” sessions and
communicating key learning to other who need to
know
⚪ Ensuring that those who participated are
recognised
● Skills required
⚪ Ability to asses the cost: has innovation added
more value than the cost ? Benefits?
⚪ Ability to find and exploit additional ways to gain
benefits from innovation- any scalability?
⚪ Improve innovation process
⚪ Ability to encourage contributors and build energy
and enthusiasm for future innovation
2.1.5 Optimizing Phase (Cont..)
● Mindset
⚪ Optimism
⚪ Creativity
⚪ Entrepreneurship
⚪ Generosity of spirit
● Barriers for this mindset
⚪ Loss of interest; failure to identify lessons learnt
⚪ Moving on prematurely
⚪ Egotism
2.1.5 Optimizing (Cont..)
● To note
● It does not matter how the brilliant the idea
is – if customers or stakeholders do not
buy it, it is not an innovation
● It is important to work hard to sell the idea
– to show the value added and to find
ways to apply what you have lean’t from
the process to other projecrs
● Give credits for those who have worked
hard 33
2.2 Managing Boundaries
● Managing the overall process requires the
manager to know when to shift from one
phase with appropriate mindset and skill
set to the next ( and from time to time to
shift back as necessary)
● There are always observable signs that an
Innovation Process is ready to progress to
the next phase.
● It is likely, however, that the number of
your team will not all be ready to cross to
the next phase 34
2.2 Managing Boundaries (Cont..)
● It is the responsibility of the manager in
making the right decision to move ahead
at the right time

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 2.2 Managing Boundaries (Cont..
● Between Searching and Exploring: you are
ready to move to the next phase if you have:
⚪ Clarified your innovation intention
⚪ Searched hitherto unexplored areas
⚪ Identified a large number of high quality ideas
● Between Exploring and Committing you are
ready to move to the next phase if you have:
⚪ Explored fully and insightfully the potential value
that may be created from the ideas
⚪ Narrowed to the most promising ideas
⚪ Gathered enough information to be convinced
that the value added will be much greater than
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costs incurred
2.2 Managing Boundaries (Cont..)
● Between Committing and Realizing: you are
ready to move to the next phase if you have:
⚪ A clear decision of how to proceed
⚪ The support of key decision-makers and
stakeholders
⚪ Appropriate resources to achieve the success
● Between realizing and Optimizing: you are
ready to move to the next phase if you have:
⚪ Overcome barriers to success
⚪ Produced, implemented or delivered the
innovation
⚪ Achieved your innovation intention 37
 2.2 Managing Boundaries (Cont..)
● There are no guarantee that you will cross all the
boundaries in any innovation process since
significant innovation involves a degree of risk i.e
events which you have to control
● Learning before Exit: you are ready to exit from
an innovation process if you have:
⚪ Evaluated your innovation performance
⚪ Made a recommendation as to how to use
the knowledge gained in a way that will
benefit your team and others
⚪ Celebrated your successes on the innovation
journey
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2.3 Innovation capability
● Innovation organizations must undertake
multiple journeys successfully
● An organization manager must develop
her/his organization to support the
required quantity, quality and alignment of
multiple innovation initiatives
● The role of the Manager is to influence
them

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 2.3 Innovation capability (Cont..)
● Six core organizational capabilities for
innovation that are shared by successful
innovative organizations include:
⚪ Leadership that focuses innovation energy
⚪ Competence that enables high-quality, high
quantity and relevant innovation
⚪ Culture that facilitates full participation in
innovation
⚪ Learning that drives innovation forward
⚪ Structures and processes that find and move the
right ideas to action
⚪ Decision making for building commitment to
select value creating ideas 40
2.3 Innovation capability (Cont..)
● Focusing Leadership - leaders support
and encourage innovation by:
⚪ Specifying where innovation is needed
⚪ Participating visibly in innovation
⚪ Encourage others to participate in innovation
⚪ Building time for innovation into resource
plans
⚪ Making space for innovation by destroying the
old assets

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2.3 Innovation capability (Cont..)
● Deep Competency - the organization
attracts and retains talented people with
the right expertise by:
⚪ Specifying what competencies will be needed
⚪ Finding and involving highly able people
⚪ Acquiring or building needed technical and
other competencies
⚪ Developing five-phase innovation management
competencies
⚪ Ensuring that ideas are driven forward actively

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 2.3 Innovation capability (Cont..)
● Facilitative Culture - An innovation-supportive
culture is evidenced by its values, norms,
taboos, rituals and mythology and reinforced
by:
⚪ Empowering able people
⚪ Expecting people to contribute actively to innovation
⚪ Having “cultural flexibility” appropriate to the five
phases of innovation
⚪ Rewarding engagement, not just achievement
⚪ Expressing confidence and ‘can do’ attitude

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 2.3 Innovation capability (Cont..)
● Active learning: - Organizational learning is
pursued actively and is demonstrated by:
⚪ Requiring that people learn about what could be
(not just improve what is)
⚪ Helping people to be comfortable with a
reasonable level of risk and uncertainty
⚪ Engaging and listening to diverse voices
⚪ Active facilitation of learning from both failure and
success
⚪ Building learning links across and outside of
organizational units
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2.3 Innovation capability (Cont..)
● Enabling Structure - Organization agility
and flexibility support innovation by:
⚪ Providing flexible but formal process for
progressing ideas through the five phases
⚪ Supporting idea champions
⚪ Organizing to support multiple journeys through
the five phases
⚪ Reo-organizing as needed
⚪ According to the logic of the situation
⚪ Ensuring that everyone involved is kept
appropriately engaged and informed across
boundaries 45
2.3 Innovation capability (Cont..)
● Intelligent decision making – Sound
decisions are made about innovation
through:
⚪ Devising and sharing road maps for future
⚪ Balancing “technology push” with “needs pull”
⚪ Ensuring that decision options are fully
considered
⚪ Balancing risk and reward; choosing ‘intelligent
risks”
⚪ Gaining and maintaining commitment from key
stakeholders
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2.3 Innovation capability (Cont..)
● These actions, behaviousr and practices
on the part of innovation leaders and
managers are a natural result of mindsets
and skill-sets one has to practice.
● “Whatever you can do, or dream you can
do, begin it”
● “Boldness has genius, power and magic in
it: begin it now”

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 2.4 Characteristics of Innovative
Leadership and Management
● Successful innovation management means
finding more and better ideas than rivals and
exploiting them for greater advantage,
● This advantage may accrue to the organization
itself, its various stakeholders, to society, or to the
natural environment.
● Regardless of the creative talent that exist in any
organization, no entity can be innovative without
managers and leaders who are committed to
innovation
2.4 Characteristics of Innovative
Leadership and Management (Cont..)
● An innovative leader is the one who:
⚪ Is explicit about requirement for innovation
⚪ Is strategic about where innovation is to be
encouraged
⚪ Keeps innovation high on corporate priority list
⚪ Engages personally in innovation initiatives
● Leading and organization in a way that
promotes and supports creativity and
innovation requires:
⚪ Willingness to take risks
⚪ Courage to let go the status quo
2.4 Characteristics of Innovative
Leadership and Management (Cont..)
⚪ Ability to re-invent even the most successful
products, processes, services market
positioning and cultural or organizational
paradigms
● An innovative manager is the one who:
⚪ Institutionalizes innovation through attention to
structure, culture, skills and processes
⚪ Actively drives that moves thinking forward
⚪ Commits resources to selected innovative
projects
⚪ Uses innovative management practices
according to phases in the innovation process
2.4 Characteristics of Innovative
Leadership and Management (Cont..)
● The Innovation manager recognises that
great ideas are often generated through
conscious and interactive processes.
● The job of the manager is to make sure that
creative ideas are stimulated, expressed, listened
to, selected in a thoughtful and strategic way,
developed and implemented
● Leaders and managers who take hard look at their
organization’s culture and systems, listen to
talented and creative contributors, create an
environment for learning, and invite feedback on
their own approach can inspire true innovation
2.4 Characteristics of Innovative
Leadership and Management (Cont..)
● Innovation management Roles
● Leader: By establishing vision, goals and strategy
with the team
● Manager: By making sure that processes and
resources are utilize efficiently
● Contributor: By using her/his own talents in the
services of innovative project
● Facilitator : By assisting others in fulfilling their
innovation roles and responsibilities effectively
● Champion: By bringing a creative idea to the
attention of the leadership and marshalling it
towards implementation
2.4 Characteristics of Innovative
Leadership and Management (Cont..)

● Sponsor: By stepping forward to declare

the value of and provide resources for an
idea
● Customer: By expressing a need that you
wish to be fulfilled in exchange for some
currency of equivalent value
Skill set project-1
● Develop a product or service to significantly
improve the experience of the:
⚪ Airline business traveller
⚪ Garage mechanic
⚪ Fitter and turner in the machining
workshop at the Production Workshop
⚪ A manual cleaner of toilets at UDSM
⚪ Iron melting worker at the CoET Foundry