Creating
the culture where knowledge is valued and shared effectively is one of the
most difficult challenges faced by managers. Once global competition became a
reality, available resources shrank rapidly overnight. However, the knowledge
economy promises an abundance of resources if the metrics and measurement
systems can be properly defined.
Of
primary importance is the innovation language – a language that transcends
the paradigm and biases of one function or another. Ideally, such a language
would also encompass industries, sectors and regions of the world, and
therefore be universal in scope. There are several attempts to define the
language with a glossary of terms. Of course, the language must be adapted to
the heritage, purpose, mission and strategy of a particular entity. It is
important that the language be established and pervade all operations and
planning efforts. The intent of this paper is to suggest that the language can
best be created under the rubric of innovation strategy – redefined, of
course, according to the flow of ideas.
Culture
extends beyond the enterprise. When the stakeholders in the process are
considered (e.g. suppliers, alliance partners, distributors, customers,
competitors and even the customer’s customer), the view of the knowledge
base from which organizations might learn is expansive. The Strategic Business
Network (SBN) as model is in direct contrast to Alfred Sloan’s
multi-divisional structure for organizations, which was well suited to the
Tayloristic industrial paradigm. Dividing the large enterprise into
independent strategic business units was considered the optimal way to measure
performance.
However,
the dynamic economic climate demands a networked, fluid organizational
structure that balances accountability with responsible risk taking. It is not
the parts themselves that add value, but the synergistic nature of the whole,
the value of which is greater than the sum of the parts. This is the nature of
fusion and the result of symbiotic learning networks, both human and
technical. Demonstrated value resides in the interfaces between the boxes,
sometimes described as the white space, which must be the object of our
performance management systems.
Shared
purpose is essential for an enterprise to thrive in the dynamic global
economy. Amidst the turmoil and chaos of the past decade, throughout
downsizing and re-engineering processes, many organizations have lost their
sense of direction. Initiatives have become fragmented and, worse still,
internally competitive. Interestingly enough, it may not be the financial
resources that are scarce today as much as the mind-set and available
commitment time of the enterprise leaders. Too often managers operating in the
traditional, competitive work climate are managing initiatives with
unnecessary duplication of effort and sub-optimal allocation of resources. In
many instances organizations must find a way to coalesce, rededicate
themselves to a common agenda, and respect the complementary competencies that
can be brought to bear. Creating the community of innovation practice may be
one way to begin the process.
This
does not mean the answers are known, but there exists a better understanding
of the elements of the infrastructure and the right questions to be addressed.
This is a very different paradigm from previous agricultural, industrial or
service economies. It is one that truly rests on the value of human potential
and how it might be systematically leveraged for the benefit of mankind. The
challenge is to determine the integral linkage between human potential and
economic performance.
The
knowledge economy only affords an unprecedented opportunity for creating the
future. This is a climate in which ideas will be valued, but only as they are
applied to advance society, however that may be defined. The answers lie in an
effective innovation strategy, redefined according to the flow of knowledge:
ideas to prosperity.
Increasingly
management responsibilities will be viewed as facilitating the learning
process, which includes external stakeholders (e.g., suppliers, distributors,
alliance partners, customers, and even competitors). How these relationships
are managed is far more a matter of collaborative expertise than the
competitive skill with which most are familiar.
Values,
valuation and valuing will gain prominence as executives search for what to
measure, and how and when to evaluate performance. Only when we have a common
language across borders – functions, industries and countries alike – can
we begin to explore the prospects for collective prosperity.
The
identified trends (established, emerging and over the horizon) provide a
glimpse of the fundamentals of the future. Implementation will vary (company
to company, industry to industry, nation to nation), but coming to a common
understanding of a mutual mission could enable better utilization of
financial, technical and human resources.
With
the emerging community of innovation practice, it is understood that various
practitioners throughout the value system can contribute. How they are engaged
in a common mission determines how they are able to leverage their
complementary competencies. Rather than competing for resources and spheres of
influence, individuals, groups, organizations and nations can realize what
they have to gain through collaborative versus competitive strategy.
The
core premise of the future is collaboration. This does not mean that
organizations do not compete; competition is inevitable. It does mean that
that their orientation shifts to one of sharing and leveraging one another for
mutual success. In national and global terms, this is described as creating
the common good from which all benefit. Previous eras have experienced
reliance upon resources that are depleted. Perhaps the era based upon the
bountiful resource of knowledge provides an opportunity for true global
symbiosis.
Organizations
must create the integral connection between the value of human capital and
economic prosperity. What is obvious is that this cannot be done in a vacuum.
Creating the knowledge innovation language, culture and shared vision is by
definition a collaborative process. History will document how well this
transition toward an ‘Innovation SuperHighway’ is led.
