9.4 The need for speed
Before we depart the topic of innovation we need to confirm one factor that seems to be shaping current writings on innovation and organisational change; speed.
In the New Economy speed is touted as one of the most critical sustainable competitive advantages a business can acquire. It has also been presented as a value proposition that online customers seek over price (Meyer & Davis, 1998; Lemberg, 2000; Fred, 2002). It is against this backdrop that learning becomes an enabler of not just performance improvement but also the speed with which organisations can develop staff capabilities to deliver their core value proposition. This emphasis has placed people at the heart of modern service organisations. As stated by Charles Fred (2002:36), a new metric has emerged; this centres on the cycle time to achieve performance proficiency, which:
. . . helps redefine the development of people in the context of the delivery of value and of time - in this case the time it takes for individuals to prepare themselves to perform.
Figure 2 S-curve of innovation in a service context
(Bowles, 2004: 153, with permission)
As depicted above, speed and competitiveness are realised by advancing individuals rapidly along the learning curve to the point of proficiency (Fred, 2002:95). The figure above also emphasises how the learning curve extends beyond the point where proficiency is achieved to build the mental models that promote continuous learning and the acquisition of skills and knowledge necessary to assimilate new information, to transfer knowledge or to accumulate the experience necessary to deal with unexpected contingencies (Fred, 2002:67).
To accelerate the cycle time to proficiency, businesses have to:
- Establish the proficiency threshold;
- Accelerate the accumulation of experience; and
- Measure the cycle time to threshold proficiency (Fred, 2002:34).
According to Fred, these activities present a very good indicator of the performance capacity of an organisation and set apart agile, responsive and competitive organisations. The concept of a cycle time to proficiency also reinforces the importance of moving developing capabilities in the workforce for not only acquiring the skills to perform, but also the capacity to learn and respond to new challenges.
The acceleration of learning is also a 'speed'-based issue. As illustrated in the figure below real value to the organisation and its direct capacity to achieve service proficiency can occur by reducing learning and performance cycle times.
Figure 3 Reducing cycle time in traditional training and development
(Fred, 2002:81)
Fred also reinforces that the changing nature of staff capabilities and expectations in relation to learning. This is also consistent with changing customer expectations. Younger staff and those now familiar with electronic service and work expect technology to be deployed to enhance how they access content, information and knowledge to fit their needs, when and where they want (Fred, 2002:125).
Hints
In the context of speed and organisational competitiveness, managers need to be aware of any techniques, processes or tools that will permit them to:
- Shorten the time taken to raise an individual's performance to the point of proficiency;
- Transfer the mental models and sense of identity that facilitate assimilation of new information, transfer of knowledge or accumulation of experience;
- Enhance the capabilities of the organisation to support how people learn and respond to new challenges;
- Recognise and reward responsiveness;
- Provide real-time capability for individuals to control when, where and how they can rapidly acquire knowledge and learning relevant to immediate work performance (codified knowledge transfer);
- Enable collaboration, interaction and knowledge transfer with others (uncodified knowledge transfer); and
- Support change processes that enhance the communication of timely and accurate knowledge.
Activity 4
- Use the Scorecard to Assess Enterprise Innovation Capabilities (Colleen Young, © Gartner 2002) to assess an organisation with which you are familiar.
- http://www.tarrani.net/kate/docs/Scorecard2AssessEntInnovCapabilities.pdf
- http://www4.gartner.com/DisplayDocument?doc_cd=103991
- Now complete the following:
- What are the priority areas to change?
- Are they so critical the type of change must be rapid, or can it be incremental?
- What strategies will best achieve the change?
- What would be the role of the team leaders/ line managers in the change process?
- Is innovation to existing practices guiding change, or is innovation outside the control of the organisation and driving how mangers manage?
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