Week 10
Citation:
Transitioning towards creativity and innovation measurement in SMEs
McAdam, R & Keogh, W 2004,
Creativity and Innovation Management, vol. 13, no. 2, pp. 126–139
Synopsis:
This paper explores the transition from traditional measures to creativity and innovation measures within a number of small to medium-sized enterprises (SMEs). It indicates that the measures associated with the process of creativity and innovation in organisations sometimes does not follow cause-and-effect rationale, reflecting non-linear behaviour. It explores the transitioning effects from traditional to more creativity and innovation based measures using a multiple SME-based case research methodology. The findings reveal that the transition dynamics include a complex mix of cause and effect rationale, phenomenology, incremental change, radical change, quantitative, qualitative and linear and complex contrasts and comparisons. Thus, managers must facilitate an eclectic approach to creativity and innovation measures.
The Blog:
Now more than ever, competition in any industry is fierce. This has led to a need for companies to increase their creativity and innovation efforts, resulting also in an increase in programmes of creativity and innovation (Choueke & Armstrong, 1998). We still find however, that quite often companies wait till the ‘eleventh hour’ to introduce or incorporate creativity and innovation as part of company mainstream activity. They wait till the competition (and/or several other factors) is knocking on their door, which more often than not results in ‘innovation under the gun’ (Amabile, Hadley & Kramer, 2002). Companies also rely largely on natural progression to take them forward. This article stresses the importance of incorporating effective creativity and innovation, coupled with intervention programmes with supporting measures, which can result in increased competitiveness, as opposed to relying solely on the natural progression of the company.
This weeks’ lecture discusses in detail the different types of measurement that can be used during an innovation process, and its relative importance. The following are some measuring platforms discussed:
- Conventional Financial Measures (Share Price Performance, Cash flow)
- Strategic Targets (Critical Success Factors and Key Performance Indicators)
- Benchmarking (comparison to leaders, competition and/or industry)
The above platforms further subdivide to enable fine tuning and customisation according to status quo of the company and its’ relevant strategies. While using the above tools to measure change and facilitate the process, it is important for a company to be able to distinguish between measuring change (i.e. progress) and the effects of change (i.e. insecurity, ambiguity etc). This is critical because the effects of change generally materialise in the form of ‘softer issues’, which can be a pivotal factor in any change and innovation process.
