BSBINN502 Full Learner Resource

BUSINESS
BSBINM502 Build and Sustain an

innovative work environment
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BSBINN502
Build and Sustain an
Innovative Work Environment
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Current Release 1 Current V1 Jan ‘16
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2 BSBINN502 Build and Sustain an Innovative Work Environment

Learner Resource © Precision Group (Australia) Pty Ltd
Table of Contents
3 About BSB
5 Introduction
7 BSBINN502/01 Lead Innovation by Example
1.1 Make innovation an integral part of leadership and management
activities
1.2 Demonstrate positive reception of ideas from others and provide
constructive advice
1.3 Establish and maintain relationships based on mutual respect and trust
1.4 Take considered risks to open up opportunities for innovation

1.5 Regularly evaluate own approaches for consistency with the wider
organisational or project context
30 Key Points
31 ‘True’ or ‘False’ Quiz
33 BSBINN502/02 Establish Work Practices that Support

Innovation
2.1 Consult on and establish working conditions that reflect and
encourage innovative practice
2.2 Introduce and maintain workplace procedures that foster innovation and
allow for rigorous evaluation of innovative ideas
2.3 Facilitate and participate in collaborative work arrangements to foster
innovation
2.4 Build and lead teams to work in ways that maximise opportunities for
innovation
52 Key Points
55 BSBINN502/03 Promote Innovation

3.1 Acknowledge suggestions, improvements and innovations from all
colleagues
3.2 Find appropriate ways of celebrating and promoting innovation
3.3 Promote and reinforce the value of innovation according to the vision and
objectives of the organisation or project
3.4 Promote and support the evaluation of innovative ideas within the wider
organisational or project context
62 Key Points
65 BSBINN502/04 Create a Physical Environment which

Supports Innovation
4.1 Evaluate the impact of the physical environment in relation to
innovation
1
BSBINN502 Build and Sustain an Innovative Work Environment
Table of Contents (continued)
4.2 Collaborate with colleagues about ideas for enhancing the physical work
environment before taking action
4.3 Consider potential for supporting innovation when selecting physical
resources and equipment
4.4 Design, fit out and decorate workspaces to encourage creative mindsets,
collaborative working and the development of positive workplace
relationships
72 Key Points
75 BSBINN502/05 Provide Learning Opportunities

5.1 Pro actively share relevant information, knowledge and skills with
colleagues
5.2 Provide or encourage formal and informal learning opportunities to help
develop the skills needed for innovation
5.3 Create opportunities in which individuals can learn from the
experience of others
82 Key Points
84 Summary
85 Bibliography
87 Assessment Pack
2
4
Introduction
“Knowledge
is of no value
unless you put
it into practice.”
Anton Chekhov
This unit of competency is all about being able to facilitate and capitalise on change and
innovation in the workplace. It will help you with the skills you need to demonstrate competency
for the unit BSBINN502 Build and Sustain an Innovative Work Environment.
This manual is broken up into five Elements. They are:
1. Lead innovation by example

2. Establish work practices that support innovation
3. Promote innovation
4. Create a physical environment which supports innovation
5. Provide learning opportunities.
At the conclusion of this training you will be asked to complete an assessment pack for this unit
of competency. The information contained in this resource will assist you to complete this task.
5
Introduction (continued)
On successful completion, you will have demonstrated your ability to plan and manage the
introduction and facilitation of innovation with particular emphasis on the development of
creative and flexible approaches, and on managing emerging opportunities and challenges.
6
ELEMENT 1:
Lead Innovation by
Example
Performance Criteria Element 1

1.1 Make innovation an integral part of leadership and management activities
1.2 Demonstrate positive reception of ideas from others and provide
constructive advice
1.3 Establish and maintain relationships based on mutual respect and trust
1.4 Take considered risks to open up opportunities for innovation
1.5 Regularly evaluate own approaches for consistency with the wider
organisational or project context.
7
Element 1: Lead Innovation by Example
Lead Innovation by Example
Make Innovation an Integral Part of Leadership and

Management Activities
Demonstrate Positive Reception of Ideas from Others
and Provide Constructive Advice
Establish and Maintain Relationships based on Mutual
Respect and Trust
Innovation must be included as normal within an organisation. It should be included in all people
management practices by encouraging the sharing of ideas, all planning processes, during
regular meetings and during review processes.
We wil examine the process of managing change and innovation in the workplace. We will begin
by taking a brief look at what change is, and what types of change can take place in a typical
organisation.
Nature of Change
In order to understand the nature of change – it is important to understand that businesses do

not operate in the same environment throughout their lifetime. They are subject to a range of
forces that alter how business decisions should be made – this is known as the business life
cycle. Businesses follow through four major stages in their development: introduction, growth,
maturity and decline.
Introduction Stage Growth Stage Maturity Stage Decline Stage
Total Market Sales
Time
8
The Business Life Cycle
The business life cycle is a function of total product sales and time. As time grows a business is
likely to note an increasing amount of sales as it passes through the introduction and growth
stages. At maturity sales will plateau, followed by a reduction in sales during the decline stage.
Innovation management is crucial to managing the business life cycle in that it allows you to
ensure that you are adapting your business to suit the changing needs of the market. Let’s now
look at each stage of the cycle in more detail.
Introduction
The introductory stage involves a new business entering the marketplace, or a new product or
brand. The failure rate for new products or businesses can range from 60%-90%, depending on
the industry. So it is vitally important to ensure that the business is well set up. At this stage of
business development there is a strong need to build channels of distribution/selective
distribution. This ensures that you are able to get your product out into the market place. You
may try offering dealers promotional assistance to support the product (this is sometimes known
as a push strategy). Your business should develop primary demand information, and all
communications should stress the benefits of the product to the consumer, as opposed to the
brand name of the particular product, since there will be little competition at this stage and you
need to educate consumers of the product’s benefits.
With little competition, pricing decisions can come in two forms. Price skimming involves setting
a high price in order to recover developmental costs as soon as possible. Price penetration
involves setting a low price in order to avoid encouraging competitors to enter the market and
also helps increase demand and therefore allows the company to take advantage of economies
of scale. Some of these strategies will assist the organisation to continue on in to the next stage
of development, growth.
Growth
In the growth stage a business needs to encourage strong brand loyalty as competitors are
entering the marketplace. Profits begin to decline late in the growth stage. This means that the
organisation must focus on ensuring profits remain high enough to support further growth and
investment in the organisation. Staff hiring will become more intense, and this will result in the
need for policy and procedure to be developed further to reach these goals.
You may find there is a need to perform some type of product modification to correct weak or
omitted attributes in the product. There is a strong need to build brand loyalty (selective
demand), and so all communications should stress the brand of the product. Since consumers
are more aware of the product’s benefits and there is more competition you must differentiate
your offering from your competitors.
You may begin to move toward intensive distribution as the product is more accepted; therefore
intermediaries are more inclined to risk accepting the product. Price dealing
/ cutting or meeting competition is prevalent now, especially if previously a price skimming
strategy was adopted.
9
Financial innovations will need to be made to ensure that financing levels are high enough to
support the strong growth that is expected. New technology may be introduced to ensure that
the profits are able to be attained even at vastly higher levels of production.
Maturity
At this stage, the sales curve peaks and the organisation faces severe competition, consumers
are now experienced specialists, and thus know what to expect from a product. This makes
product quality of importance. Policies for improving people and product become more
important.
You may find that the product or organisation needs to be rejuvenated through an innovation in
the packaging, new models or aesthetic innovations. This will reposition the product as being
different in the mind of the consumer. Advertising focuses on differentiating a brand, sales
promotion is aimed at the customer (PULL) and the reseller (PUSH). There are yet more moves
towards intense distribution which may have a significant effect on the business model.
The organisation may need to resort to price dealing / cutting to meet the increasing levels of
competition in the marketplace. Line extension or the introduction of new products and services
is a useful strategy at this stage, and this may require structural, technological or people (human
resources) changes to achieve.
Decline
At the final stage of the business life cycle, sales fall off rapidly caused by either new technology
or a social trend. This means the organisation must change to meet these innovations. This may
require innovations to their product line, or changes to the way they do business. You can justify
continuing with current product as long as it contributes to profits or enhances the effectiveness
of the product mix. If it does not do this there is a need to decide to eliminate or re-position to
extend its life. Staff layoffs may need to be completed if the decline continues without any sign
of improvement.
You will notice that at each stage, the business needs to change in order to meet increasing
demands on the company’s resources. Take for example the growth stage
– as sales grow, production is going to need to be increased or production methods and
processes may need to be changed in order to cope with the increases in demand.
Businesses run in cycles – at the beginning positive returns may be present, but
planning for innovations into maturity and decline are still important.
10
Types of Innovation
There are three distinct types of innovation that may occur within an organisation. Each of these
types of innovation affects the business in a multitude of ways, however one is planned, and the
others are not. The three types of innovation that we will be examining in this section are:
Planned Innovation, Proactive Innovation and Reactive Innovation.
• Planned Innovation results from a careful examination of the facts, problem solving and
decision making. Reactive change results from changes to the environment in which the
business is operating. Planned innovation could also be described as proactive
innovation.
• Proactive Innovation is where we desire to change the way we work; the latter where the
innovation is impacting on us through no intervention of our own. To be proactive, we start
by analysing the organisation’s environment and the innovations that are taking place
within it, and determine a new strategy for the organisation. Thus, we arrive at a vision by
looking at the gap between where we are now and where we want to be, and setting out
our strategy for closing this gap. This type of innovation may be attempting to boost
profitability by introducing new product lines, raising improved quality processes or
expanding the business through opening new branches overseas.
• Reactive Innovation is where we react to external changes. This is achieved most

profitably by determining the innovations we need to make to our organisation to survive
these external innovations or better still to profit from them. Interestingly, proactive
innovation is often brought about from reactive change. Either way, this leads to a
coherent set of programs of projects to achieve the required innovation. The environment
of a business is constantly changing and thus managers must be prepared for the
innovations that may need to be made. Some examples of reactive innovations include
innovations made to ensure compliance with a new piece of legislation, elimination of a
product line due to consumer tastes changing, or a severe storm destroying all a
company’s crops.
In terms of proactive, planned innovation, managers may take three distinct approaches to
ensure the organisation is best meeting the needs of the consumer and its customers. These
are: Structural Innovation, Technological Innovation and People Innovation.
Just like a hot air ballooner, you may find that there are occasions when factors
completely outside your control affect where you are heading – developing a plan for
overcoming these forces is crucial to business success.
11
Approaches to Innovation
This type of innovation is one of the most difficult

to bring about. It involves changing the very
nature of the organisation through innovations
to the way it is structured. You may alter
departments, by eliminating, merging or creating
new ones. You may make the structure flatter,
or higher. In some respects this innovation is
intimately linked to technological innovation
and people innovation, and structure depends
Structural Innovation
on having the right people and technology. One of
the key problems and implications that
organisations must consider when evaluating
structural innovation is organisational inertia. This
means that it is very difficult to alter an
organisational structure because it has been in
force for so long. Innovations may take time to be
introduced, and you should not attempt to make too
many innovations at once.
This type of innovation involves changing the

way business is done through the technology
used. It may be new communication technology,
production technology, new buildings, plant or
materials. Resistance to technology is often
Technological Innovation seen in some organisations, especially where older
technology has been used and has been seemingly
effective in the past. However this problem can be
overcome through programs that support workers
through the innovation process, and allow for
training to be provided.
Perhaps the most difficult type of innovation that

can take place is to an organisation’s staff. Staff
within an organisation will resist innovation.
They are used to doing things one way, and
when things are done another, significant
People Innovation problems may develop. Training is a key implication
of this type of innovation. Emotional innovations
such as reductions in the size of a workforce have
further implications in that they may significantly
affect public perception of a business.
12
Leadership and Innovation
Leading an innovation initiative is one of the most difficult tasks a leader can face. It is often
seen as a double-edged sword with many risks and opportunities. For most leaders, managing
an innovation initiative is a crucial role, but the responsibilities can vary widely depending on
what type of innovation will be pursued.
Types of Innovation Leadership
The two major types of change that can occur in an organisation are:
• Planned innovation – This innovation comes from the top – it is planned in advance and
everyone knows it is going to occur.
• Emergent innovation – this refers to innovation that originates in any area of the
organisation.
It is important with either of these major types of innovation that the innovation comes about
from having a positive leader who can lead the change management processes associated with
the innovation. This leader has a critical role in ensuring that:
• There is a crystal clear plan for driving the change
• There is a clear vision about where the organisation wants to head
• There is a support structure in place for ensuring that the innovation is effective
• There needs to be readiness for innovation to actually occur
• There needs to be internal support for any change made.
In this manual, we will now look at the role of you as a leader in both these major types of
change process.
The Role of the Leader in Planned Innovation
As a leader responsible for planned innovation, your role is to examine the planned innovation
processes and ensure that you are able to:
• Communicate the innovative vision for the organisation
• Ensure that there is a level of support for the changes being made in terms of resources
being available.
The Vision for Innovation
The first aspect that we will examine covers the need for the leader in the organisation to
establish the vision for where the organisation needs to head. This involves being a leader who
is able to:
• Chart a course for the organisation to follow
• Inspire the staff members to perform to the best of their ability
• Describe what the future for the organisation should look like
13
• Communicate the vision for the change processes
• Get staff members to feel positive about the changes being implemented
• Look at and communicate how the changes made will affect the organisation as a whole.
As a leader, you have a significant amount of responsibility for speaking about change in your
organisation, but it is also important to realise that this there are others within the organisation
who have a role to play in setting the vision and communicating it to those around you. As
mentioned, innovative change must be accepted throughout the organisation in order for it to be
effective. In order to achieve this, make sure your staff are aware of:
• Exactly what innovative change is going to be made
• Why the organisation feels the change is needed
• What steps are going to be taken in order to accomplish these changes
• What timeframe it is expected to take
• What is the role of the various staff in the change?
Establishing the Support Elements
With any planned innovation – as well as communicating the vision – you need to ensure that
there is a strong foundation on which the change will be based. This should include the various
elements needed to make the change a complete success.
Companies that are known to be innovative are generally innovative because they have leaders
who understand the importance of innovation and try to bring this innovative culture through the
organisation through practices that support it. Innovative organisations encourage new ideas,
and are capable of changing quickly and without significant effort. Not all organisations are this
flexible, and it is generally leadership which is their downfall. Leaders who are inspiring and
motivate staff to be innovative generally lead to the sort of culture that will lead to innovation
within work practices.
The process of communicating the need for change in a group is quite difficult. It appears
simple, but the communication flows can be quite difficult to achieve. Good communication is
about controlling where the information flows and keeping things as simple as possible. There
are a range of problems that can arise when you are trying to communicate information between
individuals. You may find that the message is too complex and difficult to get across without
misunderstandings occurring – the message may be difficult to understand because of the
language that you are using. Improving communication is often a case of ensuring that the
message that you are delivering is as simple as possible and is communicating the points that
you wish it to communicate. The message that you are communicating must be relevant to the
issue, and it should be delivered within an appropriate time frame without interference occurring
from noise in the system.
14
Change is all about trying to get the changes accepted by those around you and in order to do
this, you will find that you need to:
• Show commitment from the top
• Have a set of resources in place that will allow you to ensure that the change can be
effectively implemented
• Continually communicate with those who will be affected by the change itself.
Emergent Innovation Management
We will now move on to the second major form of change that can occur in an organisation –
emergent innovation. The difference here is that innovative ideas come from all levels of the
organisation – not just the management. One of the major tasks of management and leaders in
this form of innovation is to look for ways in which the leadership can be open to creating a
culture that is ready for change. That is, the change and innovation factors must be present in
everything that the organisation does. We will examine this closely shortly.
This form of innovation is becoming increasingly important as managers and leaders are
understanding the importance of including all staff in the decisions being made throughout the
organisation – after all, no one knows the work of the organisation better than its staff!
Getting the right mindset in place within the organisation is what is really needed in this form of
innovation and change. If your staff are happy to know that their ideas are accepted – they are
more likely to actually push through on making suggestions for changes that may benefit the
organisation as a whole.
Necessary Conditions for a ‘Readiness for Innovation’ Culture
There are four cultural elements that must be installed in order to create a ‘readiness for
innovation’ organisation. These are:
• A workforce that is business literate
• A workforce that has permission to act
• A workforce that will challenge the status quo
• Leadership that encourages a “readiness for innovation” culture.
Next, we’ll explore each one of these elements.
1. A Workforce that is Business Literate

The first important factor to consider is that the people in your workforce need to have a
solid grounding in the organisation and the work it undertakes. They need to understand
the business in order to make effective suggestions.
15
Think about the importance of this … If your employees understand their work and how it
relates to the organisation as a whole:
• They can contribute good ideas to the organisation
• They will understand what it is the business wants to achieve
• They will understand how the competition affects the work that you are undertaking
• They will be able to contribute to discussions about the trends that are occurring in
the market and how these affect the organisation.
There is also an effect on the work that they do in terms of their own performance. Good
performance leads to a better understanding of the overall performance of the
organisation as a whole. By allowing them to understand their place in the organisation
they will be in a better position to note changes they can make to their own performance
and the performance of others, and how it relates to the organisation as a whole.
2. A Workforce that has Permission to Act

In order for employees to initiate innovation for improvement on their own, they must be
allowed to do so. Employees should feel they have permission to make the day-to-day
decisions necessary to improve the customer experience, the operational efficiency, and
the financial results. They are more likely to suggest innovation and feel responsible for
carrying out the innovation if they know they have the authority to make innovations.
Further, innovations will be more rapid if employees have the necessary autonomy, and
thus don’t have to wait for permission to act.
By setting boundaries for your staff and making sure that these boundaries are quite
broad, you can actually make your staff feel like they have some real power to act on
their own behalf. It is about letting go of the traditional reins that a leader / manager feels
they need to have, and finding ways to make your staff feel they are allowed to make
decisions for themselves and encourage them to find ways to improve their work
processes themselves.
An empowered staff is one that is much more open to change and will in fact go out of
their way to suggest ways to make change within the workforce.
3. A Workforce that Will Challenge the Status Quo

Staff members must always feel like they are being listened to. If they feel listened to,
they are more likely to make recommendations and challenge what is convention in the
organisation. However if the opposite is true, and your staff think you do not listen, they
are unlikely to be willing to suggest changes simply because they feel that they are likely
to be ignored
Always listening to ideas, even if they disagree with what the organisation holds dear can
be quite difficult for an organisation to accept, but it is critical to innovation. Breaking the
norm is not something which many managers are completely happy with, but unless you
are willing to listen to changes and accept some of those which will lead to greater
efficiencies, your staff are unlikely to want to suggest more ideas.
16
Take Considered Risks to Open Up Opportunities for

Innovation
Risk Management and Innovation
Risk is inherent in business. It is something which we would like to avoid, but in most
cases, we cannot. We simply need to find ways around the risk rather that eliminating it
completely.
Risks can come from almost anywhere within a business. Budget issues where there are
insufficient funds or income or even how to spend excesses both are risks. They both can
impact on a project. Work practices, changes in relationships and the general workplace climate
all impact on innovation again through potentially damaging confidence in the status quo.
Unforeseen impacts of innovative ideas are another risk.
Managers responsible for change and innovation, need to carefully consider the consequences
of change, and determine the risks that exist, the likelihood of them occurring and the impact
should they occur. Then, for each risk determine whether they are:
• Risks that need immediate attention – those that you can immediately do something about
because they are high probability risks.
• Those that you should develop plans for should they occur – such plans should outline
how to deal with the risk.
• Those risks that are acceptable because the likelihood is low as well as the impact should
it occur.
To manage risk:
1. Identify all risks
2. Determine their severity
3. Implement plans for their management.
Innovation in and of itself presents challenges to organisations that strategize to gain more
market share or to stimulate growth. As executives seek to produce innovative products or offer
innovative services, they often run into problems of finding an optimal means for effectively
managing innovation risk.
If managers see innovation as an opportunity that requires effective management of risks that
might unfold, they will perform better in the long-term. Managing total innovation risk involves
integrating a shared belief of risk appetite, closing the gap of an ideal balance and actual
balance of risks, and continuous communication of innovation objectives and goals.
17
Regularly Evaluate Own Approaches for

Consistency with the Wider Organisational or
Project Context
Innovation Planning
Now that we have looked at exactly what innovation is, let’s move on to examine how you can
bring about innovation in your business. Throughout your business studies you will have noted
that processes of any kind are only effective if they are based on solid planning. Change is no
different. In this section we will look at how you can set about planning innovation in your
business so that it is most effective.
The Manager’s Role in the Process
Managers who are involved in the innovation management process often have their roles
defined by the organisation or section for which they are working. This means that you may find
that you do not have the flexibility to work in whatever way you want, however you will need to
undertake planning in line with the requirements of your organisation.
Planning plays an important role in innovation management. It involves you in determining

where innovation is required, it allows you to be effective in the management of innovation, and
finally it ensures that you have a plan in place to implement any innovations that are required to
be undertaken.
So what exactly is planning? Planning is an important function performed by managers at every

level of an organisation. A plan is essentially a projected course of action aimed at
achieving objectives. It sets out exactly what you must do in order to achieve your set of goals
and objectives. Planning allows you to coordinate your actions in order to ensure that everything
that you do is aimed at achieving your goals in the most effective and efficient way possible.
Looking back to our definition of what planning is – it is all about achieving objectives. So it
holds that in order to undertake effective planning you must ensure that you determine exactly
what your organisation’s goals and objectives are – and in particular those related to where any
innovation is taking place. You must also establish and implement a set course of action that will
allow you to achieve these objectives and goals.
Planning has a number of obvious benefits, including coordinating all resources in order to meet
the common goal, and recognising limited or overlapping resources. Planning also sets
milestones to allow for careful review and examination of the progress to the goals – this will
help to reduce or eliminate risk areas that may adversely impact the process.
18
There are two major types of planning related to the process of innovation management:
1. Strategic Planning
Strategic Planning is the creation of long term goals for the organisation as a whole. It
often is directional in its focus. What this means is that it aims to set an overall direction
for the organisation – this is often referred to as a strategy.
2. Operational Planning
Operational Planning involves the development of objectives that specify how
departments and workgroups will support that overall strategic set of goals. For the most
part, innovation involves both types of planning. You must first set an overall direction for
the innovation and secondly you must implement operational plans for working in that
direction. The table below shows how the major characteristics of each planning type
works.
Strategic Planning Operational Planning
Top Managers, possibly with a Middle Managers and

Planners
planning department. Supervisors.
Objectives for the Objectives for a division,

Scope
organisation as a whole. department, or work group.
Long Range (more than one Short Range (One year or

Time Frame
year). less).
Characteristics of Strategic and Operational Planning
Innovation can originate with management, employees or from external sources. Organisations
innovate when management sees an opportunity or a need to do things better. As mentioned,
an organisation’s employees may bring about innovations
– forming a union could lead to innovations in the way that management reaches agreement
with employees. Other organisations actively respond to employee suggestions on how to
improve quality and cut costs. Finally, innovation can be imposed on an organisation by the
Government through legislation innovations as an example.
Sources of Innovation
Management
Employees Change External Sources
19
When looking at planning for innovation, you need to ensure that you realise just how innovation
can impact on your organisation. It may:
• Directly involve your section or team.
• Indirectly involve the section, which may be used as a comparison with other sections that
operate with or alongside your section or team.
• Result from innovation elsewhere in your organisation.
• Impact on other sections within the organisation as a result of successfully implemented

innovation within your section.
Change Models
There are a range of models of change management. In this section we will address a number
of them, looking at what they involve, and when they could be applied.
Prosci’s Change Management Model
This model of change involves the whole organisation in the process. From top management to
lowest level staff, this model requires everyone to be committed to the changes being made. In
order for change to be most effective, this change management model suggests the following
structure:
1. Begin by preparing for change to occur. Make sure that there is a solid foundation on
which the change is going to occur. Look for ways in which you can apply theory into
action and identify the characteristics of your organisation that make change more likely
or less likely to occur. By doing this, you can attempt to find solutions to these problems
before you get too far into the process.
2. Work to manage the change as it occurs. Here you need to look to use tools and
techniques in:
• Project sponsorship
• Coaching
• Training
• Overcoming resistance.
3. Reinforce the change – finally you need to build commitment to the change once it has
happened so that things don’t slip back to the way they used to be before the change
occurred.
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ADKAR Model of Change
A second model is the ADKAR model. You can use this to:
• Find resistance to change
• Work through the change process
• Develop a plan for change for your staff.
The five steps in the process are:
1. Identifying why the change needs to occur
2. Creating a desire to make the change actually happen
3. Having a knowledge about making the change happen
4. Having the ability to find the skills needed to make the change occur
5. Reinforcing the change, ensuring nothing slips back to prior behaviours.
‘Managed Change’
The next model has been identified as ‘Managed Change’. The steps in this process are:
1. Identify the Change

Make a case for the change that you are about to make. Get everyone involved in
determining why the change needs to occur and how it will provide better outcomes for
the business as a whole.
2. Planning the Change
3. Preparing the Change
Next, you get together a group of individuals to manage the process of change in the
organisation. This may involve change agents, project sponsors, staff involved in the
change and the like. Together, spend time examining the change to be made and the
ways in which you can accomplish the change in an effective manner. One particularly
important step involves looking for potential resistance to the change and establishing
ways of working around it.
4. Implementing the Change

Next, you need to develop a system to make sure that the change actually gets
implemented. This may involve developing communication techniques for getting
everyone to be aware of the changes that need to be made, as well as providing training
and mentoring as appropriate.
5. Sustain the Change

Next, develop measures that allow you to determine exactly whether the change has
occurred properly and to identify any further changes that need to occur to sustain the
change in the workplace.
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Lewin’s Model
The final model that we will consider is that of Lewin. He suggested a three step process that
helps the organisation overcome any resistance to the changes being made. This process
involves three major steps that are undertaken during the change process.
1. Unfreezing the status quo: Determining the need for change to occur
2. Movement to a new state: Try to get people to act differently
3. Refreezing the new state: Now that everyone is acting in a new way, make this the
norm in the organisation.
Lewin’s Model of Change
Unfreezing Changing Refreezing
In order for change to occur, two things must happen:
1. Your staff must understand that the current situation, as it stands, is not entirely
desirable.
2. The organisation must establish a way for the new behaviour being modelled to become
the only acceptable behaviour in the organisation.
Let’s now look at the steps in the process:
Unfreezing: Here you are literally dethawing the current procedures. You are taking what is
ingrained in your staff and then stating in no uncertain terms exactly why the change is needed,
so all staff are aware of the change about to be made.
Changing: Next the process involves actually putting in place a series of steps that allow the
change to actually occur. This may involve:
• Providing training in new procedures
• Determining what needs to be changed in detail
• Building a plan to ensure those changes are made
• Determining what level of control the staff have over the changes being made
• Building on the successes that are established in the organisation
• Creating a new set of values among staff.
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Refreezing: The final step involves staff members making the new behaviours that they are
exhibiting the norm. You need to ensure that you do not allow the processes of the past slip
back into place – the new behaviour needs to become the only behaviour. As the pressure to
change decreases, staff are more likely to slip back into their old way of behaving. A training
plan needs to be initiated to ensure this does not occur.
Monitoring: also needs to take place on a regular basis to ensure that your staff stay on track
in terms of their exhibited behaviours.
These models of change are only some ways in which the changes can be implemented. There
are, of course, many more, and your organisation may even have its own procedure. Whichever
one you decide to use, be sure that you implement it and make sure that the changes stick
through rigorous monitoring procedures.
“Sometimes when you innovate, you make

mistakes. It is best to admit them quickly,
and get on with improving your other
innovations.”
Steve Jobs
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Organisational Readiness
In order to determine whether your organisation is ready to make considerable changes, it is

important that you undertake a readiness assessment. This is a formal process of looking at the
way in which your organisation handles changes.
You can then look at the way in which your organisation is ready, and compare this to the
various styles and methods of bringing about change to determine ways that are most effective
for your organisation.
One useful means of conducting this analysis is through the use of surveys. Employees’
willingness to change determines how quickly and thoroughly an organisation can manage
those changes. The Change Readiness Assessment diagnoses willingness to accept new and
different processes, customers, equipment, ideas and more. Following the introduction of your
company’s change initiatives, repeat administration of the survey will serve as a barometer of
employees’ perceptions of the experience. This survey should include:
Survey
Are your communication processes effective at

Communications / communicating important issues?
Information Exchange
Can you minimise false expectations?
Are staff involved in their jobs and the design of

their work?
Keeping People Involved Are those who will be having changes made
to their position involved in your processes for
change?
Have you prepared for any changes being

made?
Preparation for Change
Are your staff aware of the need for the change?
Is there training in place for any new technology?
Have you had any problems with change

processes in the past?
Attitudes Towards Change
What were the problems and how can you
assure staff they will not happen again?
Are the staff aware of what needs to happen for

the changes to be considered a success?
Reaching the Goal
Do you have any measures in place to measure
success?
How have things been going?

Project Activities
What changes do you see as being necessary?
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You should assess organisational readiness by looking at the positive and negative forces that
are in play. Ideally, an organisation is ready when the positive forces towards change
overwhelm the negative forces. Although if positive forces outweigh the negative, this can be
seen as being a time of readiness.
Agents for Change
The change agent is a person or team that is put in place to act on behalf of the organisation in
the implementation of major or minor changes. The change agent is often a manager within the
organisation, or a highly experienced staff member with a vast knowledge of the organisation
and its procedures.
The ideal change agent should have all of the following attributes:
Attributes of a good change agent:
• Self-responsible and self-challenging
• Good listener
• Non-defensive
• Ability to clarify vision and concepts
• Pro-active dialogue with colleagues
• Consistent
• Pioneering spirit and long-term perspective
• Facilitates involvement with others
• Willing to take risks and make mistakes
• Continual learner
• Good model for respect and partnership
• Comfortable with discomfort
Internal change agents have the advantage of knowing the organisation well, and they can
bring with them the ability to interact with those within the organisation more easily. External
agents are more able to bring a fresh perspective. They are able to look at things differently and
not be influenced by past experience within the organisation. However without a solid
understanding of organisational dynamics, they may not be able to facilitate change as easily as
internal change agents.
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Involving Others in the Process
It is important to remember that you, as a manager, must ensure that you take into
consideration how any changes that you propose are likely to impact on everyone in the
organisation. Change doesn’t just affect you – it affects a range of people in an organisation.
The effect of change spreads to all areas of an organisation’s operations.
When you are working on a change management process, it is important that you consider the
stakeholders. Stakeholders are those people with an interest in the organisation. The table
below summarises who are likely to be stakeholders in your organisation and what impact
change may have on them.
Stakeholders and the Effect of Change
These individuals are likely to have a range of

Business owners,
interests in an organisation – and in particular
shareholders and
will look to see how any changes are likely to
investors
affect their financial interests in the organisation.
The unions are charged with representing your

employees’ rights. Often the changes that
are implemented may affect hours of work,
Unions
wages, or even employment in an organisation,
therefore unions have a significant interest in
how changes are made.
Suppliers are generally interested in your

Suppliers change processes if they are likely to have an
effect directly or indirectly on them financially.
Employees will look at change from a number of

points of view. They want to know if their job is
Employees likely to change, if their job is secure, whether
they will face financial loss or whether it will
affect the way they work.
An organisation’s customers are likely to be

Customers most interested in how changes will affect
service, product quality and price.
Ensuring that you keep everyone fully aware of the changes and involving them in the change
process is crucial, as it allows you to ensure that their interests are being examined and that you
are trying to take them into account as you develop your change processes. It is important that
while consulting with them that you are able to measure the effect or impact of change
constantly, and part of that measuring and assessing process should take into account the
reaction of stakeholders.
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Ensure that you work to create a positive environment for all the stakeholders in your
organisation. In order for change to be most effective, those involved in it must be able to see
how the change is positive for them. When there is a positive reward, your employees and all
other stakeholders are more likely to be conducive to change
– whereas if the change can only be seen in a negative light, then stakeholders will resist the
change.
An excellent way of attempting to build positive views of the whole change management
process is to include your stakeholders in the process itself. Meet with stakeholders; ask their
opinions about your change processes or any suggestions that they may have themselves. If
you are to achieve the objectives of the change process, then you need to ensure that the
processes that you implement will allow your stakeholders to be happy and positive as much as
possible. The support of your stakeholders is critical in turning plans and ideas into planned
outcomes.
Ensuring Everyone Knows What You’re Doing
Change management is all about meeting objectives – and in order for your organisation to
meet all its objectives it is critical to ensure that your stakeholders understand what your
objectives actually are. Such programs must be proposed, promoted and discussed with your
stakeholders in order to ensure that everyone is kept fully aware of what is happening in the
workplace.
This involves a program of communication strategies to ensure that there is commitment to

change. This communication should start at the top – with your CEO or general manager. It is at
this level of the organisation that strategy is developed. Strategy sets the direction and so
change must come from the very top. There should be commitment from senior management to
any type of change.
Change can bring about a multitude of feelings among your staff. This may range from
happiness to anger, fear and confusion. Staff will always look at changes and wonder how will
this affect me? Will this affect my job? What I do? The money I get? My family? My livelihood?
As you can imagine these fears will affect perceptions of any change – if there is a perception
that there may be job losses or any detrimental change, there will be strong negative opinions
of the change! This will cause significant problems in terms of resistance to change, and the
longer this is left, the more difficult it will be to overcome. This resistance is much more likely to
occur when change is not communicated to the staff and other stakeholders in an effective
manner.
Communication between senior management and stakeholders must begin as soon as possible
during the change management process. All communication must be completely honest and
open – there is very little point to keeping facts back as this will simply serve to increase the
level of resistance when they are announced.
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Communicating with Those Inside the Organisation
Change that will affect those within your organisation needs to be dealt with as efficiently,
honestly and openly as possible. You will be dealing with issues that will have a significant
effect on your staff, and this means that there will be fear over change because staff will be
concerned with their jobs and how secure they are.
In order to deal with this most effectively, work to get the support of your staff for any change
programs. Openly explain what will be occurring – include all positive and negative details so
that your staff can be fully informed from the beginning. Fear comes from the unknown. If all
details are known from the beginning fear is unlikely to develop and staff will be more at ease
and less likely to resist the changes being made.
Communicating with Those Outside the Organisation
External stakeholders may react to change in a similar manner to those inside the organisation.
Fear, apprehension and the unknown is once again a significant factor here. Your strategic
direction is of more concern to many of your external stakeholders. The day-to-day details will
be less important than where your organisation is likely to be heading in the future – so
communication should be aimed at showing how committed the organisation is to change and in
particular showing commitment to improving the organisation.
What Should Be Said?
Communicating with your staff and stakeholders involves you being as open and honest as
possible. All communication should be based on your examination of the issues and there are
certain aspects of any change management program that need to be examined in detail in order
to ensure that your stakeholders will understand your message. Be sure that you consider the
following when communicating change processes:
• What is the goal of the communication? What is it you need to communicate?
• Who will you communicate with? Who will produce the communication? Where will it come
from and where will it go to?
• What potential issues are there that need to be overcome? Where are the likely areas of
resistance and what can be said to help in overcoming these?
• What communication channels will you use? Will communication come from above? Will it
originate from senior management or from supervisors? What methods will be used?
These questions should allow you to get started with your communication – they allow you to
determine what the issues are, where they arise, and how you are going to deal with them. It is
important that this strategy is developed as early as possible, preferably during the development
of the change process – so that it can be issued as quickly as possible.
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Activity One
Examine your workplace, team or section, and select one change you believe is needed, and
explain why you believe it is needed.
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Key Points Element 1

• Planning is critical to any business process, change is no exception.
• Innovation within an organisation should be seen as an essential part of your

leadership and management activities.
• As a manager it is your role to contribute effectively to your organisation’s
planning processes for bringing about change.
• In order to develop trust and mutual respect of your staff, as a leader ensure
that you are receptive to new ideas and provide constructive advice on their
suggestions.
• These plans should introduce change in consultation with your organisation’s
primary stakeholders.
• Taking calculated risks can help open up opportunities for change.
• The objectives and plans of your organisation must be communicated

effectively to those stakeholders. If they are not, you will find there is confusion
about what is being done, which can bring on fear of the unknown.
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Element 1 – ‘True’ or ‘False’ Quiz

True False
Q Businesses follow through four major stages in their development.
Q The business life cycle is a function of expenses and time.
Q At the introductory stage there is generally very little competition.
At the third stage of the business life cycle, sales fall off rapidly caused by
Q either new technology or a social trend.
Planned innovation results from a careful examination of the facts, problem

Q solving and decision making.
Q Structural innovation is not easy to bring about.
Managers who are involved in the innovation management process usually

Q define their own roles.
Q A plan is a projected course of action aimed at achieving objectives.
Q Change is only concerned with decisions at the operational level.
Q Change can only originate internally.
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ELEMENT 2:
Establish Work Practices
that Support Innovation

2.1 Consult on and establish working conditions that reflect and encourage
innovative practice
2.2 Introduce and maintain workplace procedures that foster innovation and allow for
rigorous evaluation of innovative ideas
2.3 Facilitate and participate in collaborative work arrangements to foster
innovation
2.4 Build and lead teams to work in ways that maximise opportunities for
innovation.
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Element 2: Establish Work Practices that Support Innovation
Establish Work Practices that Support

Innovation
Consult On and Establish Working Conditions that
Reflect and Encourage Innovative Practice
In this section, we will examine some of the key problems that can emerge during the
implementation of innovation and look at creative and flexible approaches to their solution.
One of the starting points for building an innovative workplace lies in the conditions that are
provided for staff. Many of these simply reduce stress, others can be perceived as advantages
in the employment world and make the business a more desirable place to work.
Some of the more desirable conditions include:
• Family-friendly leave entitlements
• Flexible working hours
• Social leave
• Study leave
• Time provided for coming up with ideas.
But there are other reasons for resisting innovation.
Resisting Innovation
Some people deal very well with innovation and thus adapt quickly to any new situation. Others
that fear the unknown, or fear that they do not have the skills they will need if innovations are
implemented, do not find this easy at all, and therefore resist any changing situation that might
occur. In this section we will identify the reasons for resistance to innovation, and look at how to
overcome the resistance. The more one understands about innovation, the easier it is to adapt.
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Reasons for Resistance to Innovation
Uncertainty about the causes and effects of innovation: People may worry that their
work and lives may be affected, and feel threatened and manipulated, or that they are
losing some of their power. They may take action to prevent the innovation happening.
Unwillingness to give up existing benefits or self-interest: Although the innovation

may benefit the organisation as a whole, some individuals may lose power, status or
benefits in some way. The amount of resistance generated will depend on the amount that
the group or the individual feel the innovation will affect their self-interest.
Awareness of weaknesses in the innovations proposed: People may resist innovation

if they are aware of potential problems that may have been overlooked by the innovation
initiators.
Lack of trust and understanding: If one does not understand the innovation or reason
thereof, how can one accept it? Lack of trust between employees and managers will also
create a barrier to the innovation.
Low tolerance for innovation: Some individuals have greater intolerance to adapt to
new situations. Some are likely to resist innovation just because it is innovation,
regardless of their personal situation. Individuals, who are tolerant to innovation but are
continuously subjected to it, may reach the limit of their tolerance.
Peer pressure: Normally occurs within groups. If the group is highly cohesive, even
reasonable innovations will be met by resistance. A good example of this may be through
unions.
Different assessments: People have different perceptions. A good idea for one might be
a bad idea for another. Different people in different jobs will have different perceptions of a
situation.
Conservatism: Sometimes there is simply a dislike of change – particularly in
organisations that have not changed in any way for many years. This conservatism makes
people feel comfortable with what they are doing and consequently unwilling to make
major changes in the organisation.
Organisational resistance: Resistance to innovation is usually by individuals, but the
nature of the organisation can also cause resistance. Organisations with a tall rigid
hierarchical structure with well-defined specification of roles will find it harder to
accommodate innovation than a more flexible structure.
Complexity: Can also be a problem. Complex innovations are more difficult to implement.
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Introduce and Maintain Workplace Procedures that

Foster Innovation and Allow for Rigorous Evaluation of
Innovative Ideas
Overcoming Resistance
Organisations that survive in a period of rapid structural innovation are the innovation leaders
and are considered to be strong organisations. An organisation may need various strategies
and approaches to overcome resistance to innovation. Innovation creates uncertainty. To make
change work effectively, the CEOs and managers must be sensitive to the impact of innovation
on people. There are a few methods of overcoming resistance to innovation:
• Education and Communication
If the leaders develop and communicate a clear image of the future state it can help
individuals, groups and even entire organisations to accept the innovation. It is almost
impossible to manage the change if people have no idea where innovations are headed.
The fact is that many organisations go into the process of innovation with some basic
things that they hope to achieve and cherished values to guide them on their journey. It
allows leaders to be flexible creative and open-minded in deciding a future path; but for the
individuals it can be frightening. So it is important to explain the future state as fully as you
can.
Successful leaders have to spend a large amount of time to meet people one-on-one or in
small sessions. They can even use video taped messages to pass on to individuals or
groups. To communicate directly to the change leader you might encourage emails about
change management which will allow you to understand how the workers feel. You may
put information on the company’s web sites and employees can use this to gather
information.
Having an intensive discovery session, with an environment of open communication,

creativity, and freedom from distractions, will enable a clear outline of where the
organisation is now, what its objectives are and where the gaps are. This initial session will
then help to make a better understanding position for both parties.
• Participation and Involvement
By getting more people involved in the planning stage, the more successful the innovation
will be. As people participate they develop a sense of ownership. For example, if an
organisation is facing decentralisation problems and uncoordinated processes, you may
find it important to deliver its ‘One Company’ vision by focusing on technology, people and
processes. This may lead to more responsibility devolving to the employees over time.
They will feel responsible for getting the strategies to work rather than to opposing them.
Furthermore, participants may have some good ideas to contribute. They may build
understanding and are much more likely to truly hear important messages, especially if the
leaders can get the potential resistor to help in implementing the innovation. They will have
a sense of accomplishment from making it work, as people who participate will commit to
the innovation and put any relevant information they know into the innovation plan.
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However, it can also be very time consuming if participants design an irrelevant

innovation, and the innovation leaders have to figure out which information is relevant to
the innovation.
• The Creation of a Positive Environment
To get to a more desirable work situation, the innovation leaders have to know the
importance of the environment. By allowing the employees enough time to adjust to new
procedures, this may assist in building understanding of the importance of the innovation
and how they will benefit from it, leading to more co-operation in accepting innovation. The
innovation leaders have to encourage the individuals or groups to try new ideas or be
innovative. Obviously, mistakes will be made by going through new ideas; therefore the
innovation leaders should practice tolerance with the individuals or groups. An
atmosphere in which employees feel safe expressing their negative emotional responses
openly will significantly improve responses to innovation.
Simply upgrading workplace procedures such as how briefing is conducted and with what
frequency, regular and constructive performance management systems, project
management that encourages input from stakeholders, staff meetings and training can all
be beneficial to the development of innovation.
• Facilitation and Support
The innovation leaders can show support to deal with resistance to innovation by providing
training in new skills or simply listening to the individuals or groups and giving emotional
support. A recent study into this area found that when high levels of anger and distrust
were identified as significant barriers to communication and collaboration, organisations
that provided Emotional Intelligence training and facilitation for everyone on the team,
gained a much higher rate of acceptance. The employees’ old skills will be obsolete if no
training and education are provided. By implementing programs to retrain the employees
for new jobs and help them to develop new skills, they will more likely support the
innovations when the fear and anxiety that lie at the heart have been removed. In addition,
by making the innovations non-threatening and consistent with the employees’ self-image,
the possibilities to overcome resistance are increased.
• Creation of Credibility
When implementing innovation, it is wise to use a little persuasion to get people to change
their beliefs. Using credible spokespersons and letting the new message spread on
positive and logical appeals through multiple channels can help build this credibility.
However, any negative features of the innovation also need to be highlighted.
Credibility can also be increased by establishing a transparent evaluation system for

innovative ideas. The steps could include:
○○ Analysing consistency with overall goals, values or vision ○○
Assessing resource requirements and practicalities
○○ Assessing the potential to find ‘champions’ or supporters
○○ Evaluating the external factors that may impact on the idea
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○○ Exploring the implications of ideas that may stretch or change existing ways of doing
things.
• Negotiation and Agreement
By having discussions with the staff, the innovation leaders are able to discover the
potential resistors. They are the people or groups with considerable power to resist and
will clearly disrupt the whole process of innovation. Therefore, the innovation leaders
should take the initiative to negotiate with them. Once people are convinced, the level of
resistance will be reduced. This will help to smooth the process of innovation.
• Timing
The importance of picking the right time to engage strategies for overcoming resistance as
well as dealing with each person individually can not be overemphasised. People need
information quickly so that they are unlikely to be surprised by events. Therefore, the right
timing is crucial as well as keeping the element of surprise to a minimum. Due to the many
factors required to ensure the organisation is ready for an innovation, the innovation
leaders need to be aware of the importance of considering their readiness when
embarking on an innovation initiative. The innovation leaders should, for instance, make
the effort to innovate elements of the company which are causing issues, before they
become a problem. They should also consider in what ways the organisation could be
modified, in order to prevent a reoccurrence of problems that have been thrown up during
the innovation.
• Create Dissatisfaction with the Current State
In order to get to a desired future state, we have to create dissatisfaction with the current
state. Most people tend to assume their performance is pretty good until they are hit with
comparable numbers from elsewhere. This information may include the cycle time for new
products, consumer satisfaction percentage, total sales per employee, comparison with
their competitors. This type of information may make staff realise that it is time for them to
change.
Involving others in your change processes allows them to feel like they are a part of the
process and thus are less likely to resist it.
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Bridges Method
Another method for overcoming resistance to innovation in the workplace is the Bridges
Method. This method was developed by William Bridges and aims to ease the transition from
one state to another. The steps in the process are:
Bridges Method
Begin the process by:
• Describing the innovation that you want to occur

Step 1 • Describe why the change needs to happen
• Assign this responsibility to the change manager or
change agent.
• Define the steps that need to be taken, in detail, to make

the change happen
Step 2 • Ensure that you assign someone as being responsible

for each step in the process
• Define timelines for the achievement of each process.
• Define what is going to be leaving the organisation in

terms of people, technology or tasks
Step 3
• Define ways in which people will be negatively impacted
by the change.
• Put in place processes for people to let go of their past

behaviours and tasks
Step 4
• This may differ from person to person depending on their
specific needs and desires.
• People may now feel confused, they have let go of the

past but the change has not yet come into play
Step 5 • Provide support for these individuals such as training,
coaching and mentoring, so that they continue to feel
valued by the organisation as a whole.
• As you notice any problems with the new systems,

Step 6 develop solutions quickly so that nothing gets out of
hand.
• Encourage your staff to embrace the new changes

Step 7
• Find ways to reward staff who are embracing the changes.
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Facilitate and Participate in Collaborative Work

Arrangements to Foster Innovation
The Tools for Innovation
There are a wide range of methodological tools that can be adopted during the innovation
management process. In this section we will address some of the major ones: mentoring and
coaching, nominal group technique, process consultation, team building and the cross-impact
matrix.
Mentoring and Coaching
Innovation can be difficult for staff in any organisation. It is a stressful time; there can be much
worry and fear among staff. This can be eased to some extent through the use of coaching and
mentoring to aid the positive implementation of the innovation strategy.
One of the most effective ways of providing training to your staff in times of change is to include
facets of coaching and mentoring. They are an extremely effective way of raising overall
performance levels among your staff. There are a range of different solutions that you may
include, but the most common include:
• Coaching on a one-to-one basis with external or internal coaches
• One-on-one mentoring
• Buddy schemes.
It is particularly useful for training a new employee or retraining employees who will be
implementing a new operational plan. Getting an experienced employee to coach a new
employee is an effective means for a new employee to learn the actual work they will be
required to do, and the work routines that are present in a workplace.
Nominal Group Technique
A possible alternative to brainstorming is Nominal Group Technique. This technique is a

structured variation of small group discussion methods. The process prevents the domination of
discussion by a single person, encourages the more passive group members to participate, and
results in a set of prioritised solutions or recommendations.
The steps to follow in NGT are:
1. Divide the large group into smaller groups – one for each issue that needs to be
addressed.
2. Each group should then select an individual to be the recorder for that group. This
individual will then lead the discussion and record the ideas that are generated by each
individual group undertaking the task.
3. Ensure that each of the groups has a time frame to undertake their discussion. Keep it
short (5-8 minutes is a good time frame) to keep everyone’s interest levels high. (one
response per person each time), while all are recorded in key
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terms, on a flipchart. No criticism is allowed, but clarification in response to questions is

encouraged.
4. The individual leading the process will then give a warning as you are approaching the
end time and calls out when the time limit is up. The scribe will then pass the piece of
paper with their ideas onto the next group.
Group 2
Group 1 Group 3
Group 4
5. Once each group has a new issue to work on they begin by reviewing the information
and ideas given by the last group and adding any additional ideas they may have.
6. Repeat steps 3 – 5 until you reach a point where each group has had an opportunity to
work on every issue in your issues list. At this point, the paper should be with its original
group and that group is tasked with prioritising the ideas provided.
7. The whole group then gets back together and the scribes from each group are asked to
summarise the ideas that were generated.
This technique allows improved participation by group members in the innovation management
process. And as we mentioned previously, participation is a means to improved acceptance. It
also allows participants to be able to give their ideas on how innovation should come about.
Process Consultation
Put simply, process consultation is the building of a helping relationship. Process consultation is
the series of steps taken by an innovation agent to involve the organisation and individuals
within it in:
• The definition of the problem
• The development of possible solutions
• The proposal for a final recommendation.
So, you are involving the staff within your organisation in a systematic process of attempting to
resolve their own problems as well as those problems that affect the wider organisation.
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Team Building
This is the process of turning individuals within a group into a team. Essentially it involves the
establishment of a team. A team is people working together towards a common goal. In
innovation management if you can get individuals to work together, you are able to facilitate
innovation at a faster pace than trying to get separate individuals working towards the goal.
Collaborative Work Arrangements
Collaborative work arrangements are a useful way to innovate. There are several ways to
consider:
• Vertical Teams
A Vertical Team is one where the leader of the team (usually the manager) is responsible
for setting the direction, priorities and the goals for the team. The team may create a
Vision and set of objectives based on the primary goals for the team, but once the team
has to operationalise those goals, it is up to the leader to establish priorities and to resolve
conflicting agendas between the team players and their functions. The team, in turn, is
responsible for sharing information, coordinating their activities, and supporting the other
team members and their functions. This is what sets them apart from an autonomous
group that doesn’t share information or actively support one another.
• Working with Supplier Organisations or Partner Organisations
Chief Procurement Officers (CPOs) should identify strategic suppliers and value by
segmenting business units and product or service offerings. The first step is to prioritise
business units or offerings based on their strategic importance, then analyse the value
chains in each to determine where value could be created or improved. That will generally
point a great big arrow at your strategic suppliers.
Collaborating on innovation can lead to an easier path to transformative growth, while

collaborating on risk management plans based on mutual trust will put you at the front of
the line in a crisis. When you enter a long-term relationship with a supplier whose
philosophies and capabilities you trust, you can work together on initiatives that add up to
more than the sum of their parts.
• Horizontal Teams
On a Horizontal Team, the team leader is still responsible for setting the direction of the
team; however, the entire team is involved in translating the direction into an agreed-upon
set of priorities. The team identifies the most important priorities that it is accountable for,
based on the direction of the organisation, the specific needs of their primary customers,
and the specific goals directed by upper levels of management. The team, as a group, is
also involved in strategizing a process for accomplishing those priorities, and in evaluating
the specific roles, relationships and functions needed to achieve their goals. This ensures
alignment between the different functions represented on the team and an agreement on
the priorities which override individual (functional) priorities.
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Based on these individual priorities, each team member identifies the degree of impact on,
or involvement for, their teammates and their functions. This enables team members to
plan their involvement with each other, and to provide each other with an under-standing
of their roles and responsibilities, in order to support each other’s priorities. Then, when it
is time to coordinate their activities, each person has a complete picture of the various
changes that are going to take place, who is the specific lead for managing those changes
and which team member is specifically involved in the changes. This process provides the
context necessary for adapting to change and quickly clarifies changing expectations
without dependence on the manager. Thus, each member of a Horizontal Team has
greater accountability for setting their priorities, supporting other team members and
responding appropriately to change.
Significant innovations to a business are likely to lead to resistance if they are not dealt
with appropriately.
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Build and Lead Teams to Work in Ways that Maximise

Opportunities for Innovation
Making Adjustments to the Process
In order to ensure that the systems for innovation in your organisation are most effective, it is
important that you continually monitor the process and look for ways in which to improve them.
Making adjustments to the process is critical to ensuring that the innovation is most effective in
reaching the goals that you set for it. In this section we will examine the monitoring process as
well as looking at how feedback should be used to ensure that your innovations are effective.
Monitoring
Monitoring is the process of measuring performance. In the case of innovation – you will be
measuring attributes that allow you to ensure that your innovations are effective in reaching the
goals and objectives set. Some of the types of monitoring tool that you may use include:
Monitoring Tools
One-on-one meetings with your staff: At these meetings your staff, change agents and
managers can provide you with immediate information on where resistance is occurring,
where changes are being effective and any problems that may be developing.
Customer surveys: These can be used to look at the reactions of your customers
– some changes may have significant effects on the customer, and since they provide an
organisation with their income, monitoring reactions (particularly those which are negative)
is crucial.
Supplier Surveys: In many ways this will provide you with similar information to the
customer surveys, only from a different point of view.
Existing record keeping systems: may be useful in collecting and storing appropriate
data – although you may find that it needs to be adapted to cope with the innovations.
Staff turnover figures: can measure reaction to innovation; monitoring sick leave or
workers compensation claims may help you to assess the more cultural and confronting
innovation programs.
Focus groups can provide feedback on a number of innovation processes and are
particularly useful where the innovation affects stakeholders. Where the innovation is to
the product itself then focus groups made up of customers and users provides first hand
knowledge of the effects of the innovation.
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Feedback
Feedback is information being disseminated by the organisation to the stakeholders, providing

information on how they are doing, and where any innovations may need to be made by them.
Feedback to staff is critical in keeping them in the loop, and ensuring that they are kept fully
aware of what is occurring. There are a range of factors that you need to consider when looking
at the feedback you provide.
You may decide to use self evaluation as a feedback tool. Staff should be encouraged to
evaluate their own performance as much as possible. You can ask your staff to self-assess
using specially developed forms – based on this information you can then provide appropriate
feedback to the staff.
While innovation processes are underway, you must ensure that feedback between
management and stakeholders is a continual process. Management must know how the
innovation process is affecting the stakeholders. Alternatively, stakeholders must be aware of
how the innovation process is influencing other stakeholders in the business.
It is really about finding ways that maximise opportunities for innovation and keeping people
interested and the processes flowing. Here are a few:
• Collaborating
Collaborating with people who think in the same way is never going to produce anything
radical. Companies need work with the unusual suspects. Continuing to collaborate with
the same people, from the same context, in the same way is not going to achieve that.
Hence, if we want to innovate there is nothing better than collaboration across
communities. If you focus on pursuing an inspiring and worthwhile ambition, you will find
that you attract unusual suspects who will collaborate, innovate and help you to gain a
competitive advantage.
• Future Scanning
For the collection of strong signals or mega trends (such as the aging society, the
importance of individualism, health developments, the knowledge driven society, the rise
of the digital age etc.), traditional methods such as brainstorming activities and external
scanning using PEST and SWOT are regarded as sufficient and are recommended.
Generally, research and evidence from practical successes suggest applying the following
methods (evident through case study research and foresight experts, supported by the
literature) to identify and collect signals:
○○ General market and trend analysis, via environmental and media/literature scanning
○○ Expert interviews and panels (external) and future agent networks (internal)
○○ Networking with partners and exchange of best practice research with other
organisations
○○ Observation of consumer behaviour
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○○ Innovation laboratories or innovation “spaces” in organisations, utilising creativity

methods.
• Making Suggestions
The data reinforces the value of experience. Identify the employees who were more likely
to submit better ideas, and analyse how that likelihood related to tenure, age, salary and
position. Employees who have been with the organisation the longest often submit the
best ideas. Younger employees presented slightly more ideas, but those tended to be of
lower quality. When it comes to the most viable ideas, tenure—not age—matters most.
Some people may find doing the same work on a day-to-day basis boring, but it also gives
them a deeper understanding of the client’s goals, products and methods. Rank also
matters: more senior, higher-paid employees submitted ideas of slightly better quality than
workers paid less.
• Networking
Innovation is increasingly about having groups of people come together to leverage their
diverse talents and expertise to solve multifaceted challenges that cross multiple
disciplines. To make this happen within an organisation – and beyond as it moves toward
open innovation – requires a networking culture that is designed, supported, and modelled
by the organisation’s leaders.
• Getting Feedback
Your customer base undoubtedly includes all four types of customer innovators. In order to
capture their insights to advance your business, it’s critical to establish proactive methods
of gathering their feedback about your products or services. Emergent customers, lead
users and creative customers are all highly engaged with innovation and are happy to
share their ideas with friends, family and, via social media, the world-at large. Be sure that
your customers know that you are interested in their insights and appreciate them so that
your business, and not a competitor, is first-to-market with product enhancements as well
as new products.
• Collecting Data
Opening up data will drive more collective business behaviours and, in particular, help
organisations to optimise supply chains by making all elements of service or product
provision more open and efficient. The increasing availability of open data from
governments as well as businesses will give rise to more collective behaviour as
unexpected links and opportunities emerge between different data sets.
• Creative thinking
The main difference between creativity and innovation is the focus. Creativity is about
unleashing the potential of the mind to conceive new ideas. Creativity is subjective,
making it hard to measure, as our creative friends assert.
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Innovation, on the other hand, is completely measurable. Innovation is about introducing

change into relatively stable systems. It’s also concerned with the work required to make
an idea viable. By identifying an unrecognised and unmet need, an organisation can use
innovation to apply its creative resources to design an appropriate solution and reap a
return on its investment.
Managing Other Issues
There are a wide range of other issues that may make change difficult – in this section we will
examine some generic methods that can be adopted for dealing with the implementation of
change in the workplace. The major approaches that we will discuss include: implementing
teams, project management, and using a learning organisation approach.
Teamwork and Change
An increasing trend in all types of organisation is the use of teams in workgroups. Teams are
generally more responsive to change and any problems that may develop in the workplace.
This is because they draw on the knowledge and skills of a range of people – rather than on
individuals. This means that a wider number of points of view can be taken into account.
Team Formation
At this stage of the process, the emphasis is on the team leader.
• The leader brings people together

• The leader provides the vision
Forming
• The team needs direction in terms of their roles and
responsibilities
• The leader directs the team’s operation.
The storming stage is a time of conflict. The team may:
• Have many diagreements

• Form small factions
Storming
• Push the boundaries.
The team leader’s tole is to keep the team together during this
time and try to steer them through the stormy waters.
At this stage the group of people has begun to become a team.

Norming Norms for the group – acceptable practices and the like – are
agreed on and the team begins making effective decisions.
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Team Formation
At this stage your team:
• Is aware of what it needs to do

• Is aware of how it needs to get where it needs to be
• Is aware of its shared vision
• Can act with little interference from management.
So, from this stage on, the team needs to concentrate on:
Performing • Achiving its goals and objectives

• Making sure it meets the criteria set of it
• Making decisions that lead to goal achievement.
You will find that at this stage:
• The team can manage its own problems

• The team can make its own decisions
• The work style of the team reflects positive practices.
This is after the team has concluded its work. The team members
Adjourning will break apart and it is often useful to debrief and have a way for
team members to say goodbye.
The principles of team formation are defined by the five stages of Bruce Tuckman’s model of
team dynamics. These five stages are: Forming, Storming, Norming, Performing and Adjourning
(some people call this stage Mourning). Let’s look at what is involved at all five stages of the
process:
The second major risk factor that must be considered is the consequences of a certain change
should it occur. You need to balance the chance of something occurring with the consequences
should it actually occur. Those changes that will cause serious harm to your business should be
dealt with ahead of any matters that will only cause minor harm.
After your analysis you should have ranked changes and they should be dealt with in
approximately this order:
• Changes that may occur regularly and cause serious harm to your business.
• Changes that may occur rarely and cause harm to your business, and changes that will
occur rarely and cause serious harm to your business.
• Changes that may occur rarely that will cause harm to your business.
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Managing Change Issues
It can be helpful to take four steps to ensure that you manage change effectively:
1. Ensure that everyone understands why change is necessary. If people are dissatisfied
with the way that things are, they will be more likely to welcome change.
2. Show people how things will be better in the future.

3. Ensure that people understand the plan.
4. Try to ensure that there can be no way of going back to previous ways of doing things:
ensure that only new forms are available, that computer systems reflect the new way of
working, and that procedures work smoother under the new system than the old.
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Notes
50
Activity Two
How does your organisation deal with change resistance? List one area where resistance
occurred and describe how this was overcome.
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• Change requires that you take a variety of approaches to the resolution of
issues – in order to do this you need to identify where problems exist,
determine what is causing them and look for useful solutions to those
problems.
• Risk is inherent in all business, when dealing with change you must look at
what risk factors are involved and attempt to identify and assess how much of a
risk they pose to your business.
• Change is affected by working conditions in the organisation.
• Workplace procedures that foster innovation should be introduced into

workplaces.
• Participation by everyone is needed for true innovation to happen.
• Initiative and innovation is crucial in modern business – if you can encourage

this you will find your business is better able to respond to change.
• Using creative and responsive approaches to problems means that you put
yourself in a better position to improve overall productivity and reduce costs to
your business.
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True False
Q Everone deals with change the same way.
Q Trust is needed for change to be effective.
Q Complex changes are more easily implemented.
Q Change should be committed to by senior management.
Successful leaders have to spend a large amount of time to meet people

Q one-on-one or in small sessions.
Q As people participate they develop a sense of ownership.
Q In business, people like surprises.
The first stage of the Bridges Method involves attempting to describe the
Q change.
Q All forms of change can bring about stress and ambiguity.
There is much agreement among members at the storming stage of team

Q formation.
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Element 2: TITLE
54
Element 2: TITLE
ELEMENT 3:
Promote Innovation

3.1 Acknowledge suggestions, improvements and innovations from all
colleagues
3.2 Find appropriate ways of celebrating and promoting innovation
3.3 Promote and reinforce the value of innovation according to the vision and
objectives of the organisation or project
3.4 Promote and support the evaluation of innovative ideas within the wider
organisational or project context.
55
Element 3: Promote Innovation
Promote Innovation
Acknowledge Suggestions, Improvements and

Innovations from All Colleagues
Find Appropriate Ways of Celebrating and
Promoting Innovation
Promote and Reinforce the Value of Innovation
according to the Vision and Objectives of the
Organisation or Project
Promote and Support the Evaluation of Innovative
Ideas within the Wider Organisational or Project
Context
Promoting the Aims and Goals
It’s great to have aims and goals, but if you’re the only one that knows what they are and you
need more than yourself to carry out the aims and goals, you’re in some bother. The aims and
goals need to be communicated. We’ve discussed communication generally earlier in this
manual and the same types of issues are relevant whether you’re talking about a visit to the
doctor or the aims and aspirations of an organisation
… only the topic changes. Consider the following in relation to the aims and goals of a
company:
Communication is important to getting results so that everyone is headed in the same

direction. The simple way to communicate is on a personal, face-to-face basis, so that
ideas can be clarified, motivation improved and listening skills developed. This, of course,
pre-supposes that any message being communicated is relevant, structured, jargon-free
and understood.
The aims and goals need to be known, they need to be communicated, clarified, and questioned
to help with understanding (preferably face-to-face), relevant, structured, jargon-free and
understood. This also allows them to be robust and able to survive the stiffest of scrutiny.
Also earlier when talking about organisational goal setting we said:
These are tested, evaluated and refined by departmental managers and all other
members of staff working together throughout the business. If the aims and goals are not
robust enough to go through this process then ‘buy in’ will not happen.
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Involving Others in the Process
It is important to remember that you, as a manager, must ensure that you take into
consideration how any changes that you propose are likely to impact on everyone in the
organisation. Change doesn’t just affect you – it affects a range of people in an organisation.
The effect of change spreads to all areas of an organisation’s operations.
An important part of promoting innovation is to celebrate the successes, however small.

Celebration of achievements is important in changing workplace culture. By promoting and
communicating successes or new ways of working, a manager can reinforce sustainable
change in behaviours in the workplace.
You have completed a difficult project that ran a bit over schedule and didn’t quite come in on
budget. But senior management is pleased, and the users are thrilled. Your project team did an
outstanding job.
Now is the time to thank the people who made it happen. Congratulating the team for a job well
done should be more than an obligatory two-minute speech during a pizza party. Here’s a
strategy for planning a celebration that goes beyond a pat on the back.
Celebrations could include:
• Simple congratulations to the project team
• Ensuring that management acknowledges the achievement publically
• Providing a newsletter story about the idea
• Using the idea as an example to help foster other ideas
• Using well-planned group incentive schemes.
Innovation, Change, Consultation and Communications
It is not enough that we communicate and consult during the investigation of new products and
processes, it’s not enough that we communicate during the decision making process; we also
need to communicate and consult during the change itself, and once the change is made to
cement it in place. Too often during a period of change, communication becomes a one-way
process and it often ceases once the change is made.
Effective consultation, particularly during change, can have many advantages including building
trust, commitment and, in turn, maximising performance.
Change and teething problems will always be a factor and a decision made earlier may need
massaging to make it work or fit in with other changes that are happening. The people that have
made the recommendations, the people that have authorised the changes and the people that
have to live with the changes (employees, shareholders, customers and other stakeholders)
need to be communicated with, and their thoughts in regard to the change (consultation) need
to be considered.
Similarly, once a product or process has been completed, it needs to be made part of the
normal operating structure.
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If we look at the whole process in light of a product, it may look like this:
A baker looks at baking a new type of cake as his current range is becoming less popular. He
gets his team together and they come up with a dozen ideas. They try them on the customers
and one in particular becomes very popular. They decide that this will become the signature
item and the baker starts baking dozens a day … a huge success. If he fails to make it part of
the normal operating structure, for example keeps the recipe in his head and exclusively bakes
the cake himself … what happens when he falls ill for a fortnight … no cakes.
Cementing change into place is normally a combination of technology (a machine is set up in a

certain way), training and ‘how to do’ manuals (operating procedures, recipes or the like) again
a requirement for consultation and communication is essential.
Communication is important in overcoming the fears and concerns aroused by innovation and
change. People may wonder what effect it will have on them - will they still have a job after the
innovation is implemented, will they maintain their rank, will they have an interesting role, what
will their future be? These questions will always be asked, and uncertainty in a working
environment reduces productivity, you will find that it is important to communicate what is
changing and why.
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Consider three important questions – “When do you communicate?”, “What do you

communicate?”, and “How do you communicate?”.
Communication is an ongoing process. It’s clearly necessary to communicate to people at the

beginning of a change project - to answer their initial fears and concerns, but it’s also necessary
to communicate throughout the intermediate states of the change process. As the change
process advances, two things happen. People will have new questions to be answered, and
new ideas and understandings of the intermediate and final states will be developed. In
response, people have to be kept up-to-date with actual and future states, and answers given to
their questions.
There are four key subjects of communication - the present state, the intermediate state, the
future state, and the activities of the change process. People need to be informed of the
reasons why the organisation has to move away from the current ‘as-is’ state, and of the
dangers of staying there. They need to understand the pressures that make it necessary to
change. Explain to them why the current state used to make sense, but the organisation must
also change because the environment in which it exists is changing. And explain what will
happen if the organisation doesn’t change - and what this will mean for them as individuals.
It’s also important to communicate the future state. Explain what it will look like, why it will look
like this, the advantages of being in this state, which parts of it are clear and which are still
hazy, and what this future state will imply for the roles of people in the company.
Communication can be carried out in a variety of ways such as a Newsletter, e-mail, Intranet,
video, person-to-person, or in small groups. Person-to-person communication takes a lot of time
and doesn’t provide the synergistic benefits of presenting the message to a group of people. A
Newsletter can be a good communication tool but there is always the danger that some people
will be ‘too busy’ to read it. Videos tend to over-formalise communication, and don’t provide a
direct way for people to ask questions. E-mail suffers from being a generally inaccurate medium
and being easy to ignore and delete.
The best method of communication is for each manager to communicate a well-prepared

change message and accompanying support material to their direct reports. This process
should start at the top of the organisation and be followed at each level. As a result, most
people will first hear the change message from their boss and be able to ask questions, and
then be forced to understand the message well enough so they can communicate it to their
team members - and answer their questions. In this way, a single message and accompanying
support material can be communicated throughout the organisation.
Most people in the organisation will have a lot of questions about the innovation process. For
any one of a variety of reasons they may not like to ask these questions directly to their boss or
colleagues, so it’s always best to include some mechanism in the communication process by
which people can ask questions anonymously or off the record. And finally, don’t forget to put a
feedback process in place to make sure that the communication process is meeting its
objectives.
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Notes
60
Activity Three
Work in groups to design an innovative method of promoting or celebrating innovation in your
workplace. Describe your ideas below:
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• Suggestions, improvements and innovations suggested by all staff members
should be encouraged and actively discussed.
• Innovation should be celebrated and promoted.
• The value of innovation to your organisation must be recognised and promoted.
62

True False
The aims and goals of the organisation, once known, help assist the
Q organisation promote innovation.
“What do you communicate?” Is the only question you need to ask yourself
Q when promoting innovation and change.
Innovative work practices need to be a part of the standard operative practices

Q of the workplace.
Q Newsletters are the most effective communication and promotion method.
When making changes, it is important to understand what is changing and

Q why.
A positive working environment provides the most effective environment for

Q innovation to occur.
There are four key subjects of communication in regards to innovation and

Q change.
Q Stakeholders are not affected by innovation and change.
Q Promoting innovation ensures everyone knows what is happening.
Q Innovative practices can be extended to the promotion process.
63
Element 2: TITLE
64
ELEMENT 4: Element 2: TITLE

Create a Physical
Environment Which
Supports Innovation

4.1 Evaluate the impact of the physical environment in relation to innovation
4.2 Collaborate with colleagues about ideas for enhancing the physical work
environment before taking action
4.3 Consider potential for supporting innovation when selecting physical
resources and equipment
4.4 Design, fit out and decorate workspaces to encourage creative mindsets,
collaborative working and the development of positive workplace relationships.
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Element 4: Create a Physical Environment Which Supports Innovation
Create a Physical Environment Which

Supports Innovation
Evaluate the Impact of the Physical Environment in
Relation to Innovation
Collaborate with Colleagues about Ideas for
Enhancing the Physical Work Environment Before
Taking Action
Consider Potential for Supporting Innovation when
Selecting Physical Resources and Equipment
Design, Fit Out and Decorate Workspaces to
Encourage Creative Mindsets, Collaborative
Working and the Development of Positive
Workplace Relationships
What is an Innovative Workplace?
Innovative workplaces are cost-effective, flexible, and sustainable work environments that
support organisational change and collaborative workstyles. The end goal of an innovative
workplace is to provide high-performance work environments that maximise employee
productivity and reduce long-term operating expenses.
The impact of the physical environment may relate to:
• Eating areas
• Extent to which design or style links with declared philosophies or objectives
• External areas
• General ambience of the work environment
• Location of different people
• Presence and ambience of relaxation areas
• Style of decor
• Use of creative messages or images in the workplace
• Workspace design and décor
• Workstation arrangements and opportunities for interaction.
Designing an innovative workplace: Workspaces require new ways of thinking about the
physical and virtual aspects of the space – tying together people, space, and technology to
support changing (and more progressive) business practices. This approach requires an
integrated development process, balancing business
66
strategies, short-and long-term costs, and occupant performance. During this process,
organisations must collaborate closely with all parties affected by workplace decisions –
including building owners, designers, facility managers, leasing experts, and occupants. By
using this integrated approach, workplaces are more effective and offer the best value to all
stakeholders.
Benefits of an Innovative Workplace
The three main benefits derived from the application of innovative workplaces are their ability to:
1. Leverage investments in human capital by increasing employee comfort and

satisfaction – leading to improved productivity, performance, recruitment, and retention,
and reduced absenteeism.
2. Improve portfolio value through greater flexibility of building services, more effective
space utilisation, improved operations and maintenance, and greater customer
satisfaction – increasing overall organisational effectiveness.
3. Support strategic mission / business objectives by clarifying goals and strategies,

identifying performance measures to track continuous improvement, facilitating business
process evolution, improving customer service, and supporting corporate stewardship.
How to Create an Innovative Working Environment
To be an effective strategic tool for the organisation and serve varying occupant needs,
workplaces must incorporate the hallmarks of the innovative workplace. These characteristics
are described in detail below:
Spatial Equity
A well-designed workspace that meets the user’s functional needs and provides individual
access to privacy, daylight, outside views, and aesthetics provides what is known as spatial
equity.
This concept ensures that all workers have the space, equipment and support they need to
excel at their job, with equal access to important workplace elements, such as natural light,
outside views, and space to talk privately. Organisations can no longer ring the outside of a
building with private offices, cutting off natural light and views to people sitting inside, and
expect them to perform at their best. People work best in natural light, with windows to look out
of. By neglecting these points, you are doing your staff and the organisation as a whole a major
disservice.
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The cube farm environment, with its lack of windows and natural light stifles
organisational innovation.
Healthfulness
Innovative workplaces are clean and healthy work environments with access to air, light, and
water – and free of contaminants and excessive noise.
Construction materials, furniture, office equipment, and cleaning products / processes can add
harmful contaminates that pollute the indoor air. Liberal amounts of fresh air must be provided
to the space when occupied, and ventilation systems must be designed, tested, and maintained
to ensure good air quality.
Flexibility
Innovative workplaces are easily adaptable workplaces that support varied work strategies and
help balance an individual’s work and home life – Including systems and furnishings that
accommodate organisational change with minimal time, effort, and waste.
Easily reconfigured infrastructure and furniture, including freestanding work surfaces, mobile
storage units, modular walls, and access floor systems – to distribute power, data, and air – are
leading examples of flexible systems.
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Flexible work strategies, such as flexi-time, job sharing, and telework programs, allow
employees to work how, when, and where they are most productive – contributing significantly
to employee satisfaction and work-life balance.
Comfort
An innovative workplace allows for occupant-adjustable temperature, ventilation, lighting,

acoustics, and furniture systems providing personal and group comfort.
Allowing people to control their workspace goes a long way toward satisfying their needs and
reducing complaints. Providing furniture and task lighting that occupants can reconfigure to suit
their work needs, and giving them the ability to adjust lighting levels, temperature, and
ventilation within the personal workspace, will result in more satisfied and productive
employees.
Creative workplaces encourage communication and are light and airy.
Connectivity
An innovative workplace incorporates a robust communications system providing access to

people and / or data from any place, at any time.
‘Follow-me / Find-me’ technology (enables callers to find you wherever you are by dialling just
one number), wireless voice and data technology, and virtual networking (logging into your
company’s network from any location) are examples of advanced communications systems that
improve employee productivity.
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Reliability
Innovative workplaces provide efficient and state-of-the-art building, security, computer, and
telecommunication systems that are easy to maintain.
Providing heating, ventilation, air-conditioning, lighting, power, security, telecommunication

systems, and technology equipment that provide reliable service with minimal disruption and
makes the workplace more productive.
Sense of Place
A workplace that has a unique character, with an appropriate image and identity, instils a sense
of pride, purpose, and dedication for the individual and the workplace community. One test of
workplace success is whether the space would pass the ‘relative test.’ Would most of the
occupants be proud to bring in family and friends and show them where they work? If not, the
workplace has not yet achieved an appropriate sense of place for the people using it.
It is good to add some recreational amenities in the workplace, such as a television lounge (that
doubles as an informal meeting area), informal seating or lunch areas, or a small area with a
pool or ping-pong table. Consider providing some areas that incorporate colour and direct
sunlight to warm up neutral tones typically used in office furniture – such as the workplace on
the previous page.
Precision Group (Australia) Pty Ltd prides itself on the quality of this product. If you believe
that you have received an inferior quality or photocopied book, please contact our office
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will despatch a new copy the next working day.
70
Activity Four
Look at the training room you are now in, what changes would you make to make it more
creative and innovative.
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71

• A creative and innovative workplace is one that looks at the impact of the
physical environment on the innovative nature of its staff.
• You should work with your colleagues to look for ideas on enhancing the
physical work environment before taking action.
• Physical resources and equipment should be evaluated for how well they
support innovation.
• Creative mind-sets are affected by the way a workplace is designed, fitted out
and decorated.
72

True False
Q Designing an innovative workplace requires thinking outside the box.
Q Innovative workplaces are too expensive to be effective.
Q An innovative workplace should make staff proud to work there.
Q Spatial equity is about creating a happy workplace.
Q An innovative workplace encourages communication.
Q An innovative workplace should be able to be changed quickly.
Q Cubes stifle creativity.
Q Physical well-being has no effect on innovation.
Q An innovative workplace encourages comfort and satisfaction.
Q An innovative workplace should be flexible.
73
Element 2: TITLE
74
Element 2: TITLE
ELEMENT 5:
Provide Learning
Opportunities

5.1 Pro actively share relevant information, knowledge and skills with
colleagues.
5.2 Provide or encourage formal and informal learning opportunities to help develop
the skills needed for innovation.
5.3 Create opportunities in which individuals can learn from the experience of others
75
Element 5: Provide Learning Opportunities
Provide Learning Opportunities
Pro actively Share Relevant Information, Knowledge and

Skills with Colleagues
Learning Organisation
Another approach to the challenges of change and innovation is to promote ‘learning’ as an

underpinning value in the organisation. In other words, to support your organisation to become a
‘learning organisation’.
Before a Learning Organisation can be implemented, a solid foundation can be made by taking
into account the points on the table below.
What is Needed to Create a Learning Organisation
Organisations must be aware that learning is necessary

before they can develop into a Learning Organisation.
This may seem to be a strange statement but this
Awareness learning must take place at all levels; not just the
Management level. Once the company has accepted the
need for change, it is then responsible for creating the
appropriate environment for this change to occur in.
Centralised, mechanistic structures do not create a good

environment. Individuals do not have a comprehensive
picture of the whole organisation and its goals. This
causes political and parochial systems to be set up which
stifle the learning process. Therefore a more flexible,
Environment
organic structure must be formed. By organic, we mean
a flatter structure which encourages innovations. The
flatter structure also promotes passing of information
between workers and so creating a more informed
workforce.
Leaders should foster the Systems Thinking concept

and encourage learning to help both the individual and
organisation. It is the leader’s responsibility to help
restructure the individual views of team members. For
example, they need to help the teams understand that
Leadership competition is a form of learning; not a hostile act.
Management must provide commitment for long-term

learning in the form of resources. The amount of resources
available (money, personnel and time) determines the
quantity and quality of learning. This means that the
organisation must be prepared to support this.
76
What is Needed to Create a Learning Organisation
The focus of control shifts from managers to workers. This is

where the term Empowerment is introduced. The workers
become responsible for their actions; but the managers do
not lose their involvement. They still need to encourage,
enthuse and co-ordinate the workers.
Empowerment
Equal participation must be allowed at all levels so that
members can learn from each other simultaneously. This is
unlike traditional learning that involves a top-down structure
(classroom-type example) which is time consuming.
We’ve already discussed the importance of participation but we now need to become more
focussed on the areas where it can be of most help, participation can be of great benefit when
looking at what our staff know best … their work practices. As we’ve already emphasised
people are our most important resource and the way they and their work groups are linked can
have a significant effect on how successfully a business operates.
Provide or Encourage Formal and Informal Learning

Opportunities to Help Develop the Skills Needed for
Innovation
Create Opportunities in which Individuals can Learn from
the Experience of Others
Let’s look at some of the ways people and organisations can work together to clarify ideas and
improve work practices:
Training
Managers and supervisors have their own styles, but they can always learn from formal training
and from others such skills as team development, group problem solving techniques and
communications. Generally managers would regularly attend training sessions and other
members of staff receive the necessary training from training bodies, supervisors, mentors and
training literature. The whole aim is to up-skill and ensures participation is not held back
because of lack of a training resource.
Mentoring / Coaching
Mentoring and coaching are really an extension of training. Mentoring is where a more
experienced and more senior member of the organisation acts as a sounding board, providing
vital insights and suggestions and feedback on how to survive in an organisation. Rather like
taking someone ‘under their wing’. A mentor often has many
77
more years of experience than the person being supported. Mentoring is akin to role-modelling
where the staff member see attributes, qualities or abilities in the mentor that they wish to learn
or emulate.
Coaching on the other hand is a partnering of two equals who focus on the unique and intrinsic
qualities already within the staff member that may not be recognised or appreciated. The coach
helps the staff member affirm and embrace their own true self (for example making a good
tennis player better).
Group Development
The trained managers, supervisors and other staff need to then place an emphasis on
improving interpersonal relationships, with particular emphasis on identifying, and where
practicable, meeting people’s needs. This will lead to better relationships, reduce conflict and
lead to increased group and team effectiveness in creating new ideas and improving work
practices.
“Innovation
distinguishes
between a leader
and a follower.”
Steve Jobs
78
Inter-Group Development
As conflict happens within a group, it also happens between groups. Just as we all require the
relationship between groups to be harmonious, so cooperation with and coordination of,
activities can be successfully achieved, we also need to develop open and joint problem solving
procedures.
Organisational Goal-Setting
You can have a ship with the best equipment, most dedicated staff and superb interpersonal
relationships but without a goal or a ‘place to go’ failure is imminent. Top management sets the
aims and goals. These are tested, evaluated and refined by departmental managers and all
other members of staff working together throughout the business. If the aims and goals are not
robust enough to go through this process then ‘buy in’ will not happen.
Goal Attainment
Ideally all members of the organisation should be working together to attain the level of
excellence required to achieve the goal and willingly taking the necessary changes in course to
reach their (the organisation’s, the managers’ and all the staff’s) goals.
Stabilisation
The results of all these strategies need to be evaluated to determine where the business needs.
to improve or alter. Effort must be made to stabilise positive innovations (see change process
model – ‘freeze new state’) and then to identify new areas of opportunity that are consistent with
the businesses aims and goals.
79
Notes
80
Activity Five
Do you believe that coaching and mentoring are positive additions to the innovation process?
Give examples from your workplace if possible.
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81

• A learning organisation proactively shares relevant information, knowledge and
skills with other staff members
• Learning opportunities may be formal or informal
• Opportunities for individuals may be learnt from others or through experience.
82

True False
A learning organisation promotes learning as a means of improving innovation

Q and creativity.
Q Group development costs more than coaching.
Q Goal attainment is achieved by working together.
Q Mentoring provides up-skilling.
Q Awareness is a key aspect of creating a learning organisation.
Q Organisationalorganisation. goal setting is an effective means of directing your learning
Q Training is aimed at up-skilling staff.
Q Theorganisation.physical environment affects an organisation’s ability to be a learning
Q Staff in a learning organisation feel more empowered.
Q A learning organisation is led from within, not by a single leader.
83
Summary
“Though no one“Thecanworldgo
back and makerewardsanewthose
start, anyone canwhostarttake
from now andresponsibilitymakea
new ending.”forCarltheirBard own
success.”
Curt Gerrish
Innovation management should be seen as a learning opportunity for any organisation.

Innovation management involves assessing what needs to change, and how you are going to
get there. Most organisations will not get this right all of the time. There will be times when
innovation management fails, or parts of the process fail. These should be seen as learning
opportunities. What can you do better next time?
The management of innovation is not easy. An organisation has inertia, and just like a speeding
train, slowing the movement down and changing direction takes power, and a lot of work. Think
about all the tools and methods that we have looked at in this unit, these will assist you in
developing the most effective means of facilitating innovation within your organisation.
84
Bibliography
These are some books that we feel may be of assistance to you in completing the Assessment
for this unit of competency. Your local library may hold these publications.
Bridges, W. (2003) Managing Transitions: Making the Most of Change
Cameron, E. & Green, M. (2004) Making Sense of Change Management: A Complete Guide to the Models, Tools &
Techniques of Organisational Change
Carnell, C. (2002) The Change Management Toolkit
Carr, D.K. & Hard, K.J. (1995) Managing the Change Process: A Field Book for Change Agents, Team Leaders, and
Reengineering Managers
Davidson, J. (2001) The Complete Idiot’s Guide to Change Management
Goldberg, B. (2002) Change Management Basics - How To Build Acceptance Of Change Through Communications
Havard Business School (2003) Managing Change and Transition Hiatt, J.M. & Creasey, T.J. (2003) Change
Management
Kotter, J. & Cohen, D. (2002) The Heart of Change: Real-Life Stories of How People Change Their Organisations
Kotter, J.P. (1996) Leading Change
Nelson, K. & Aaron, S. (2005) The Change Management Pocket Guide
85
86

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2 BSBINN502 Build and Sustain an Innovative Work Environment

1.4 Take considered risks to open up opportunities for innovation

33 BSBINN502/02 Establish Work Practices that Support

55 BSBINN502/03 Promote Innovation

65 BSBINN502/04 Create a Physical Environment which

75 BSBINN502/05 Provide Learning Opportunities

This manual is broken up into five Elements. They are:

1. Lead innovation by example

Performance Criteria Element 1

Lead Innovation by Example

Make Innovation an Integral Part of Leadership and

In order to understand the nature of change – it is important to understand that businesses do

Introduction Stage Growth Stage Maturity Stage Decline Stage

Total Market Sales

The Business Life Cycle

• Reactive Innovation is where we react to external changes. This is achieved most

This type of innovation is one of the most difficult

This type of innovation involves changing the

Perhaps the most difficult type of innovation that

Leadership and Innovation

Types of Innovation Leadership

• There is a crystal clear plan for driving the change

• There is a clear vision about where the organisation wants to head

• There needs to be readiness for innovation to actually occur

• There needs to be internal support for any change made.

The Role of the Leader in Planned Innovation

• Communicate the innovative vision for the organisation

The Vision for Innovation

• Chart a course for the organisation to follow

• Inspire the staff members to perform to the best of their ability

• Communicate the vision for the change processes

• Exactly what innovative change is going to be made

• Why the organisation feels the change is needed

• What steps are going to be taken in order to accomplish these changes

• What timeframe it is expected to take

• What is the role of the various staff in the change?

Establishing the Support Elements

• Show commitment from the top

Emergent Innovation Management

Necessary Conditions for a ‘Readiness for Innovation’ Culture

• A workforce that is business literate

• A workforce that has permission to act

• A workforce that will challenge the status quo

• Leadership that encourages a “readiness for innovation” culture.

Next, we’ll explore each one of these elements.

1. A Workforce that is Business Literate

• They can contribute good ideas to the organisation

• They will understand what it is the business wants to achieve

2. A Workforce that has Permission to Act

3. A Workforce that Will Challenge the Status Quo

Take Considered Risks to Open Up Opportunities for

1. Identify all risks

2. Determine their severity

3. Implement plans for their management.