Professional Documents
Culture Documents
Innovative Leadership
Bukidnon State University-Alubijid Campus
F.C. Paurom
Learning Objectives:
To know what is the organization leaders’ role in order to promote a different way of doing
business
To understand the importance of inspiring innovation from the top
To identify the key skills to be an innovative leader
The objectives planned for this training module are to learn the different known practices to
develop leadership that really inspires confidence and commitment throughout the whole
organization for a so strategic task nowadays as it is innovation
The following competencies for Innovation leadership will be developed:
o To communicate the importance of innovation to the rest of the organization
o To show commitment to the natural barriers to innovation
o To challenge established conventions
o To inspire through leadership
Course Content
To have a clear understanding of what innovation leadership involves, one must first understand
the concept of innovation. Although there is some controversy over how it can be defined,
through general consensus in the literature, it can be described as novel ideas of viable products
that are put into operation (Benner, M. J., & Tushman, M. L. (2003). It includes three different
stages, which are all dynamic and iterative (constant):
1. Idea Generation
2. Evaluation
3. Implementation
The two types of innovation include exploratory innovation, which involves generating brand
new ideas, and value-added innovation, which involves modifying and improving ideas that
already exist (Benner and Tushman, 2003; Jansen et al, 2006; March, 1991; Jansen, et al, 2009).
Ideas generated must be useful to be considered innovative. Innovation should also not be
confused with creativity, which is merely the generation of a novel idea that may not necessarily
be put into operation—though these words are sometimes used interchangeably in research
literature when speaking about innovation leadership. Innovation leadership is a complex
concept, as there is no single explanation or formula for a leader to follow to increase innovation.
As a result, innovation leadership encompasses a variety of different activities, actions, and
behaviors that interact to produce an innovative outcome.
Value-added Innovation
Exploratory and value-added innovation require different leadership styles and behaviors to
succeed (Oke et al, 2009). Value-added innovation (PwC, 2010) involves refining and revising
an existing product or service and typically requires minimal risk taking (compared to
exploratory innovation, which often involves taking a large risk); in this case, it is most
appropriate for a leader for innovation to adopt a transactional form of leadership (Jansen et al.,
2006; He, and Wong, 2004). [15] This is because a transactional leadership style does not use
open leadership behaviors such as encouraging employees to experiment and take risks, but
rather uses closed leadership behaviors that do not condone or reward risk-taking. Companies
whose innovation leaders use transactional leadership for value-added innovation purposes
include Toyota Motor Co., General Motors Corp., and Ford Motor Co. examples of these
companies’ value-added innovations such as making improvements on existing cars by making
them faster, more comfortable, and getting better gas mileage.
Occasionally a value-added innovation may require a completely new way of thinking and
possibly taking new risks. An example of this scenario can be illustrated through Aspirin; this
was an existing product, traditionally used as an analgesic to alleviate aches and pains, but has
been introduced into a new and different market by extending its uses to help prevent heart attack
and reduce blood clot formation. In this example, the usage of an existing product was re-worked
and introduced into a new market. While an existing product is being changed and/or improved
upon, characterizing it as a value-added innovation, outside-the-box thinking, research, and risk-
taking are now required since it is being introduced into a new market. In this case,
a transformational leadership style is a more appropriate style to use.
The innovation leader must gauge if (and how much) risk and radical thinking are involved in the
value-added innovation to determine which leadership style to use in a situation. The leader must
be flexible—able to switch leadership behaviors when necessary.
Exploratory Innovation
Exploratory innovation refers to the generation of novel ideas, strategies, and solutions through
the use of strictly open behaviors exhibited most often by transformational leaders. The
foundation of exploratory innovation is characterized by search, discovery, experimentation, and
risk taking. It is the organization's focus on generating new ideas, products and strategies; in
contrast to exploitative innovation, which focuses on building and extending already existing
ideas. Some studies have shown that explorative and exploitative innovation require different
structures, strategies, processes, capabilities, and cultures (Oke, 2002). See Innovative
Organizational Climate/Culture. Exploratory innovation requires flexibility, opportunism,
adaptability, and for leaders to provide intellectual stimulation to their subordinates (Jansen et al,
2006). In this approach to innovation, the leadership style that is primarily used is
transformational. The behaviors exhibited are believed to achieve the desired creative outcome
from employees through the application of individualized consideration, charisma, and
inspirational motivation.
For example, in one study of the innovation practices at AXA Insurance in Ireland, the CEO
John O’Neil engaged in transformational leadership behaviors and introduced the “MadHouse”
program that combined workers from different departments and levels of the organization to
work together in a creative way. The result of this experiment after six months was 150 new
business ideas for products and services`(Wolfe, 1994). Explorative and Value-added innovation
are often referenced together, but surprisingly little research shows an interaction between the
two. However, there is an understanding that in some circumstances a ‘balance’ must be attained
to achieve superior employee performance (Tushman and O’Reilly, 1996.). For example, not all
novel ideas are implemented, and may be resurrected later. The organization may need to switch
gears and adopt exploitative strategies to revise and refine the idea to match present needs.
As mentioned above, different leadership styles and behaviors may be more appropriate at
different stages of the innovation process. Current research supports the notion that in the idea
generation process, innovation leadership requires a leader to use a more transformational style
of leadership (Vise and Malseed, 2005). During this stage, a leader needs to promote a safe
environment for employees/team members to voice novel ideas and original thinking as well as
provide workers with the resources to do so effectively (Hunter and Cushenbery, 2011).
Research has also found that leaders who engage in unconventional behaviors, associated with
transformational leadership, were seen as stronger role models and, as a result, increase creative
performance in their subordinates. For example, the founders of Google have been known to
wear capes and jump-shoes around the office (Finke et al., 1992 ; Hunter, et al (2011). thus
inspiring more outside-the-box thinking in their employees. These open leadership behaviors
convey that unorthodox and unconventional ideas and behaviors are not only accepted but also
encouraged.
Idea Evaluation and Implementation
In addition to providing a climate for idea generation, innovation leadership also requires leaders
to ensure that the process of idea generation does not overshadow the evaluation and
implementation processes. During these phases of leadership, leaders must support some ideas
while discarding other ideas and put the supported ideas into production. The role of the leader
must shift away from a transformational style to a more transactional style of leadership, which
involves being more direct and critical toward the ideas generated. A leader now needs to ensure
that constructive discussions of innovative ideas are taking place among their subordinates. This
serves to evaluate the usefulness of each idea, eliminate those that do not appear viable to the
organization or goal, and push the ones that do appear viable into the production phase. The
leader must adopt what are known as closed leadership behaviors to achieve this. Instead of
stimulating idea generation, the leader must shift focus from generating new ideas toward fine-
tuning existing ideas to achieve progress toward the goal, and ultimately implement the idea.
This challenge of balancing differing leadership styles when appropriate is called the generator
evaluator paradox. It is important to consider the role of ambidextrous leadership, since a leader
must be able to switch between leadership roles and styles when necessary to successfully lead
for innovation. Paradoxes of innovation leadership are discussed below.
1. The three stages of innovation (idea generation, evaluation, and implementation) are not
independent of one another.
2. The stages in the model should not be viewed in a “lock-step fashion,” meaning that there
are both backward and forward influences and activities affecting each of the three
stages. For example, ideas are generated, discussed, and tested only to feed information
back into the system, starting the process from the beginning again. [55] The forward and
backward arrows between individual creativity and team creativity, the forward and
backward arrows between team creativity and organizational innovation, as well as the
arrow from organizational innovation to individual creativity visually represent this key
feature.
Creative Personality Cohesion Paradox is based on the research finding that creative workers
generally highly value autonomy (Fiest and Gorman, 1998; Chen et al, 2012) and, as a result,
often prefer to work alone. This paradox illustrates the difficulty leaders have in providing their
employees with the autonomy they must be creative, while fostering team cohesion (or
closeness) to facilitate idea sharing. A leader must also be careful not to encourage too much
cohesion, as it may discourage group members from disagreeing (even constructively
disagreeing) with fellow group members in an effort not to offend them or “rock the boat.”
Vision Autonomy Paradox
The Vision Autonomy Paradox highlights the dilemma a leader faces between providing
structure and guidance to a team with respect to the vision of the goal, while at the same time
stepping back and providing the team with enough autonomy, especially considering the fact that
creative workers highly value autonomy. When leading for innovation, providing an
overabundance of structure may result in a backlash from employees who feel their autonomy is
being taken away from them.
Restriction Freedom Paradox
The Restriction Freedom Paradox underscores that innovation leaders need to allow employees
enough time to develop creative endeavors and provide the resources to do so. At the same time
the leader must take care to provide enough pressure that they are still motivated to complete the
task (Csikszentmihalyi, 1997; Amabile, 2005; Mumford and Hunter, 1997) and not provide too
many resources that it has a “deadening effect” on creativity (Shalley and Oldham, 1997).
Situational Paradox
Situational Paradoxes entail conflicting interests between leaders and the situations they face.
Intrinsic Extrinsic Paradox
The Intrinsic Extrinsic Paradox holds that instead of providing more readily available extrinsic
motivation tools such as bonuses and salary increases, leaders must provide intrinsic motivation,
which generally comes from within the employee, to their employees. This paradox is based on
findings that intrinsic motivation is a key factor in facilitating creativity (Amabile, 1985);
Kruglanski et al, 1971) and extrinsic motivators may either hinder creativity (Baer et al.,2003;
Mumford and Hunter, 2005) or have an unclear relationship with creativity (Kanter et al, 1997;
Thorton, 2010).).
Local Long-Term Paradox
The Local Long-Term Paradox posits that leaders of innovation must maintain their innovative
edge by keeping an eye out for and capitalizing on potential opportunities, even at the risk of
placing those ideas above or even eliminating ideas that he or she had previously inspired in their
teams. The leader must also be capable of developing teams that are flexible enough to be
passionate about ideas that may have replaced their own idea that was facilitated, inspired, and
supported by their leader. This is where the paradox is most clearly visible (Csikszentmihalyi,
1997).
Competition Collaboration Paradox
The competition collaboration paradox involves a leader developing open external relationships
with other organizations to discover potential innovation opportunities, while ensuring the
organization's emerging ideas are protected in a competitive environment.
Feedback Rigidity Paradox
The feedback rigidity paradox involves leaders seeking out and using customer and client advice
and feedback towards innovative endeavors to a certain extent, while maintaining control of the
vision and not letting the feedback dictate to them—as clients and customers often criticize
innovations early on.
Failure Success Paradox
The Failure Success Paradox is the idea that innovation leaders must ensure a safe organizational
culture that is willing to embrace risk and failure, while at the same time making sure that the
organization is also producing successful products and services despite embracing risk and
errors.
Additional Paradoxes
Additional paradoxes identified by Hunter et al. (2011) that do not directly involve the leader but
are worth mentioning are the paradoxes that occur between teams and the organization. These
include the Insularity Cohesion paradox, the Champion Evaluator paradox, and the Creativity
Cost paradox (Hunter and Cushenbery, 2011).
Outcomes
Outcomes of innovation leadership include inspiring employees to the create and implement
novel ideas for products, services, and technologies. In addition, these novel ideas can also be
used to solve problems within an organization. What this illustrates is that innovation spurred by
innovation leadership can be translated across various industries and can be used for a multitude
of purposes (Ford, 2000; Mumford and Gustafson, 1988; Ward et al., 1999; Collins and Amabile,
1999). Ultimately, inspiring and initiating organizational innovation through innovation
leadership can serve to advance the organization it to the next level (McEntire and Greene-
Shortridge, 2011).
Companies that use innovative leadership include 3M, which lets employees work on a project of
their choosing for 15% of their time (www.nepad.org). Similarly, Google allows employees one
day a week to work on their own project (Hunter, et al, 2011). Zappos employees are allowed to
“radically” decorate their cubicle and are encouraged to laugh and have fun at work impromptu
in-office parades. The Young Innovation Leaders Fellowship is a program now dedicated to
training young professionals from organizations on how to become innovation leaders.[67]
Innovation
Leadership
Leadership studies
Organization development