Sustaining an Innovation Culture

James Todhunter did it again. He wrote a very good post to list the following "5 pillars of sustainable innovation culture":

• Executive Leadership
• Skills Development
• Innovation Infrastructure
• Network for Innovation Mentoring & Facilitation
• Internal Promotion

The first one is indeed the most important as it is a prerequisite to the other four. I would add "Recognition & Reward for innovation". People need to be encouraged to innovate, so processes must be in place to formally and fairly recognize and reward the innovators, no matter how small or localized the innovation is (so long as it contributes positively to the organiozation's performance).

The British Airways T5 fiasco (update)

See my previous post as I have added some info (and read the interesting comments as well).
.
.
.

British Airways Heathrow Terminal 5 training fiasco

You must all have read about this project “go live” failure. It was due to a combination of problems but the central one was a lack of training!

Amazing, it was a high profile and expensive project requiring state of the art technologies and methods in all areas (architecture, logistics, ICTs, security, construction, etc...) forgot to effectively deal with a key component: the people that will have to work in this new place!
The lack of training was not just for one group of people and not just for one system or activity, it was found wanting all over! From hundreds of staff not finding the staff car park entrance to check-in staff struggling with the IT system, from security personnel being taken through new procedures in the morning in front of passengers to crews and ground staff getting lost in the huge building, it was as if everyone was expected to learn by trial and error by themselves.

The costs to BA alone are estimated at £16m! With a fraction of this money, they could have financed the most advanced training program ever conceived, with virtual reality technologies for example (maybe with a T5 sim in Second Life).

Now, why is this related to Organizational Knowledge and Knowledge Management?
Formalized training is an essential building block for leveraging organizational knowledge.
What this fiasco tells me is that British Airways is very unlikely to have a knowledge sharing and cooperative culture. It is very likely to boast a command and control (and shut-up) culture. Not only the necessary knowledge transfer was not provided but many warning bells were not given the attention they deserved. Some middle managers and staff representatives did warn of the lack of training weeks before the opening. A large simulation was also apparently attempted with staff but it didn’t go as planned, and instead of scheduling another one, it was assumed to be sufficient. I will even go further in stating that such a training-related project failure would never happen with a knowledge-driven organization with a participative culture, simply because the human element would naturally be given the importance it requires.

UPDATE: I found this article from the Telegraph that informs us that the £16m loss might mean that the BA staff will not get a annual bonus in May! If this happens, that would be another indication of a command & control culture where management can make the worse mistake and have the employees pay for it.
The article also mentions the possible strike action by the pilots and that "they are also understood to be planning to write a letter to major shareholders next week calling for a change of management. The letter to Government ministers, the CBI and City institutions will accuse Walsh of arrogance, mismanagement and bringing the British Airways brand into disrepute." Oh dear, never mind a cultural issue in BA, it seems to suffer a heated and tensed atmosphere about to blow-up!

Anyone wanting more detailed information about what happened on the opening day, I recommend Michael Krigsman's article on ZD Net.

On having a “fostering innovation” culture

As I have repeatedly written on this blog, continuous innovation requires access to knowledge. So an organizational culture conducive to knowledge sharing will foster innovation as a direct result. James Todhunter (CIO of Invention Machine Corp.) wrote an article just published in CIO.com titled: “Fostering innovation culture in an unpredictable economy”.

I am not sure what he meant by “unpredictable economy” as no economy has ever been predictable. “Knowledge economy” would be more relevant (and maybe what James had in mind) to relate to the current economy where knowledge (intellectual capital) is increasingly the most valuable asset for businesses, so the intangible taking over the tangible. 

 However, James Todhunter’s view that an innovative culture must be initiated and supported from the top of the organization is spot on: <<[..] It starts at the top. The most common reason cited for why innovation workers feel their organizations fail to have an innovation culture is a perceived lack of management commitment. Organizational culture is created from the top down. In order to create a culture that supports repeatable innovation success, management has to make its commitment to innovation clear and unambiguous. [..] It starts at the top. It really is that simple. Management has the power to set the tone and drive the culture. Managers who avoid taking responsibility for driving the innovation culture by using the “adoption must be a grass-roots thing” crutch, will always be met with failure and left wondering why they can’t achieve their repeatable innovation goals. Culture begins and ends at the top. To create a value-driving, sustainable innovation culture, you need only make it so.>> 

I have constantly in this blog supported the idea that a sustainable fostering innovation culture (or knowledge sharing culture) can only be built with a honest top-down approach. In other words, it needs to be a strategic initiative. I know that many supporters of the social Enterprise 2.0 gaining momentum see it as an alternative to the top-down approach. They believe that if a large part of the people at the base of the organization start collaborating and sharing knowledge and adopting new (cheap or free) tools to do so, and if they increase productivity as a result; it will force the whole organization and its management to embrace these methods of working, this in turn forcing a culture change. 

Of course, people at the fringe of organizations will find benefits in adopting new collaborative technologies at a personal level first then within their team or department, as long as these technologies are answers to needs identified by them to do their work more efficiently and/or effectively. However, for these adoptions to force a company-wide culture change by themselves is not at all a given outcome. This might happen in some contexts but probably only in organizations where the current culture only needed a spark to turn into a knowledge sharing culture. In the majority of organizations where the culture is predominantly of a command and control type, matching my list of 20 syndromes I challenge the bottom-up approach to succeed on its own! Anyone aware of such a successful cultural change, please speak up. 

What has happened in numerous occasions and will continue to happen, is for organizational cultures to be transformed with the impulse and leadership from the top (Buckman Labs, IBM and BP are only 3 of the most famous ex. of such cultural transformation). If we consider Google, surely one of the most innovative companies these past few years, its ground-breaking open culture was initiated by its founders, so therefore a top-down leadership. 

Enterprise 2.0 will not drastically change the balance of power and responsibility: Especially since the Enron scandal! The boss remains the boss and if he/she wants employees to stick to their job descriptions and wants remuneration and recognition processes to reflect this fact, no clever technology will fundamentally change this and Enterprise 2.0 initiatives will remain localized and accessory to standard business processes. Now, is wanting to change the culture sufficient for a leader to succeed in this endeavour? Probably not. No matter how good a leader you are, you cannot simply tell people to start sharing knowledge and be innovative for everyone to do so overnight!

James Todhunter gives a list of 6 methods for effectively fostering an innovation culture: 

 · Invest in your people. 

· Reward the behaviour you want. 

· Invest in infrastructure to support sustainable innovation. 

· An important part of the innovation infrastructure is the framework to leverage knowledge – both the knowledge within your organization and that which is external to the enterprise. 

· Promote the value of innovation. 

· Practice innovation in everything. 

This is a good list and with a very good chance of success if followed. I would however like to add one method that should actually be the one to start with: Lead by example! Don’t count on people to do what you say, even if you reward them for it. It will surely be more effective if you start by doing it yourself: be open, share you knowledge, show off your own creative or innovative ideas (and you might then realize that special rewards are not as necessary as expected).

Knowledge Management in IT Service Management

ITIL (IT Infrastructure Library) v2, the now internationally recognized framework for IT Service Management, was published in 2000 and at the time only implied knowledge management in IT service delivery. Obviously, managers involved in implementing ITIL based services (like myself btw 2003 and 2007) would consider and attempt to cater for the required knowledge capture/retrieval/sharing/reuse. Here is a very good article written in 2003 about such a Manager (Michael McGaughey, Service Management Framework Architect at TXU, the leading energy retailer in Texas) who was concerned with incorporating KM in the IT service framework he was designing. I will reproduce here only these 2 key sections: << [..] knowledge management goes back as far as human memory. It evolved onto stone tablets, books, file cabinets and sticky notes. But knowledge management in the IT world has always suffered from a lack of context, a lack of a problem that KM is clearly designed to fix. Service management may be the answer. IT service management demands a customer-centric view of IT. It helps the company's IT department achieve three fundamental goals: Achieve customer satisfaction, exceed customer expectations and manage customer perceptions. "The service management framework lives and and breathes with knowledge," said Michael McGaughey, Service Management Framework Architect at TXU, the leading energy retailer in Texas, which serves five million customers in North America and Australia. "There's a lot of knowledge used across the process silos." >> And: << Knowledge management as an IT concept has a lot to gain from working within an IT service management framework. One of the factors that led to the development of its identity crisis is that knowledge management offers very little in the way of a value proposition by itself. The value it offers is in making other processes better. >> I really like this last paragraph. It has indeed been KM’s main issue in particular with organizations top-management, even though I would say that today with the help of Enterprise 2.0 technologies, KM can deliver value by itself. Last year, ITIL v3 was published and I was very pleased to find out that in this edition, KM was formally taken care of as a Service Transition concept. I was even more pleased to see that it also included cultural change management! So now, IT departments are expected to formally assess and deal with the cultural change that a new service management implementation can initiate or even require! This was long overdue I would say.