The Why, What, and How of

Management Innovation
Group Members :
Ahmad Mashudi (091714253022)
Yulia R. Kurniawati (091714253009)
Tiara Nurul H. (091724253004)
Bayu Aditya C. (091724253017)
Deanty C. Pertiwi (091724253023)
Innovation in management principles and prosesses can create long-
lasting advantage and produce dramatic shifts in competitive position.
Over the past 100 years, management innovation has allowed
companies to cross new performance thresholds
Why Management Innovation Matter
• Because it creates long-lasting advanted when it
meets one or more of three conditions:
1. based on a novel principle that challenges
management orthodoxy
2. Systemic, encompassing a range of prosesses and
menthods
3. It is part of an ongoing program of invention,
where progress compounds over time
• Three brief cases illustrate the ways in which
management innovation can creat enduring success.
What Is Management Innovation
• “… a marked departure from traditional
management principles, processes, and
practices or a departure from customary
organizational forms that significantly alters the
way the work of management is performed.”

• “… changes how managers do what they do…”

Key of Changes
• Making innovation a central topic in leadership development programs
• Setting a substantial share of capital spending for projects that meet a
certain tough standard of innovativeness
• Requiring every product development plan to contain a sizable component
of new-to-market innovation
• Training more innovation mentors charged with encouraging innovation
throughout the company
• Enrolling every salaried employee in an online course on business
innovation
• Establishing innovation as a large part of top management’s long-term
bonus plan
• Setting aside time in quarterly business review meetings
• Building an innovation portal that grants employees access to a
compendium of innovation tools and data on the innovation pipeline
• Developing a set of metrics to track innovation inputs, throughputs and
outputs
How to Become a Management
Innovation

• Commit to a big problem

• Search for new principles
• Deconstruct your management orthodoxies
• Exploit the power of analogy
Commit to a Big Problem
“… the bigger the problem, the bigger the
opportunity for innovation.”
To get maximum result  start with a problem that
is BOTH consequential and soul stirring.

Questions to stimulate ideas:

1. What are the tough trade-offs that your company
never seems to get right?
2. What are big organizations bad at?
3. What are the emerging challenges the future has
in store for your company?
Search for New Principles
• Guidance of Radical Principles:
 Power and function in the system must be
distributed to the maximum degree possible
 The system must be self-organizing
 Governance must be distributed
 The system must seamlessly blend both
collaboration and competition
 The system must be infinitely malleable, yet
extremely durable
 The system must be owned cooperatively and
equitably
Deconstruct your management
Orthodoxies
Issue  Strategic Change
Some beliefs to distinguish:
1. Change must start at the top
2. It takes a crisis to provoke change
3. It takes a strong leader to change a big company
4. To lead change, you need a very clear agenda
5. People are mostly against change
6. With any change, there will always be winners and losers
7. You have to make change safe for people
8. Organizations can cope with only so much change
Exploit The Power of Analogy
There are several important management ideas, they
are:
1. The most essential work of the leader is to create
more leaders
2. Contentious problems are best solved by striving for
a higher-order solution that integrates the diverse
perspectives of all relevant constituents
3. A large organization is a collection of local
communities. Individual and institutional growth are
maximized when those communities are self-
governing