Delivering on a value proposition demands constant improvement and innovation as

Question

Delivering on a value proposition demands constant improvement and innovation as competition changes over time along with evolving customers’ needs and wants. How an organization delivers is not only dependent on its ability to serve the market but also on how well it adapts and overcomes the challenges of its own structure, culture, incentives, and design. However, an organization may face many barriers that hinder its ability to overcome these challenges. Using the module readings, Argosy University online library resources, and the Internet, research operational barriers. Based on your research, address the following: What tools might an organization use to help identify barriers? Identify at least three barriers that impede an organization’s ability to adopt innovative practices and processes. Identify at least one organization that faced these barriers, describe the approach used to address these barriers, and explain whether it was successful or unsuccessful. Explain what you would you have done differently to overcome these barriers.

Explanation / Answer

1. Tools that an organization can use to help identify barriers - The first tool that can be used is the process of understanding the hierarchy of leadership culture. Anallysis has to be done of the fact that leadership is creating shared direction, alignment and commitment throughout the organization.

Secondly, organization capabilities will have to be gauged by doing an inside out change leadership analysis tool and an outside in change management analysis tool.

2. Three barriers that impede an organization’s ability to adopt innovative practices and processes are: (i) structural barriers like stratification or centralization or specialization. Stratification creates a preoccupation with status differences and this in turn diverts the attention from idea proposals. There is also a decrease in upward communication. Centralization is the concentration of power and authority. Centralization is, usually, negatively related to idea proposals. Specialization may inhibit implementations due to potential conflicts.

(ii) social and political barriers within the organization - these barriers are related to the prevelant norms within an organization and also the power related influences. Organizations having conservative norms that are meant not to disturb the status quo and minimize the level of conflict will not be able to develop innovative practices. Overemphasis on power relationships negatively affects innovation.

(iii) Procedural barriers - these barriers are in the form of the policies, procedures and regulations that curbs innovation. For instance, if an organization has the policy of promoting employees purely on the basis of their analytical skills and their ability to start or build a creative ambience is ignored, then this policy will become a procedural barrier.

3. GE was one organization that faced these barriers. This was before Jack Welch took helm as the CEO of the organization. The approach used by GE under Welch's leadership was to overcome the barriers by encouraging the employees to think outside the box. The company started by killing bureaucracy in the organization. Focus was put on the end results and employees were told not to waste time in preparing lengthy memos and planning books. Their energy should be put towards making concrete plans and not memos and planning books. Employees were encouraged to engage in boundryless thinking. Employees were encouraged to take calculated risks.

The company was successful in removing the barriers and it accelerated on the innovation path. The market capitalization was $13 billion (in the year 1981) before the barriers were addressed and after tackling the barriers, the market capitalization shot upto $525 billion in the year 1999.

I would have not done much differently from GE to tackle the barriers. Additionally, i would have created a vision that was reality based and customer focused. This would have allowed the organization to focus on the evolving customers’ needs and wants.

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