Category: Innovation

Product Overview: Mobile Money Transfer

The product that will be introduced in the market is mobile money transfer. This is an intangible product, which involves the process of sending and receiving money via the mobile phone. There will be partnerships with the top eight wireless telecommunication service providers in the United States such as Verizon wireless, AT&T mobility, Sprint Nextel, T-mobile USA, TracFone Wireless, MetroPCS, U.S. cellular and Cricket wireless.

The wireless telecommunication service providers will charge for the product offered both when sending or receiving money. The range of cash that will be allowed will be between US$ 50 and a maximum of US$ 1500. This is to avoid possible conflicts with the financial institutions and the laws that govern their operation.

Mobile money transfer will target low-income earners who would wish to send and receive money from their next of kin. This group of customers should be earning between US$ 80 to US$ 2,000. Majorly, the market segment will comprise of youth aged between 18 years of age to adults aged 45 years of age.

This is the active age for employees both self-employed and those employed by other institutions. Besides, this market segment comprises of students in colleges and high schools who would like to receive some cash from their parents to sustain them in school life. The simplicity of this product vests in its convenience and ability to increase employment in the State.

As mentioned earlier, the target market or customers are majorly the low-income earners who earn between US $80 and US $2,000. They might be parents who earn very low income but have students in colleges hence, would like to send cash to their children for sustainability.

This can be done by visiting numerous agents deployed around the State by their respective wireless telecommunication service providers. The money is deposited in the mobile phone and the customer can send at any convenient time. On the other hand, those receiving will be able to withdraw the cash from any agent located within vicinity and in town centers at a fee. The customers will not require going to the banks or any other financial institutions to withdraw their cash.

Moreover, small business people will be able to transact payments and settle small debts conveniently with this kind of product. Mobile money transfer will be also benefit the customers who are connected to wireless telecommunication but do not have bank accounts or credit cards to transact money transfers.

The product has great potential benefits to the clients as far as convenience is concerned. First, it can be used to settle small debts when one does not have the liquid cash at any given time. Second, one can buy goods or products even without cash at any given time especially where there is remoteness.

For example, where the ATMs are not available or the financial institutions are not anywhere within vicinity. The agents for money transfers will be distributed everywhere in the suburbs and towns to promote faster delivery of services. Customers will also be able to transfer money to other users and non-users, settle different bills, and buy airtime for their respective networks. Lastly, the customers can deposit and withdraw money from banks using their service providers.

Pricing Strategy

The product will be priced according to the amount being transacted. The table below shows the scale that will be used in pricing the money send or received.

Source: Personal preference

Withdraw and depositing of money in and out of the banks or any other financial institution will cost the client US$ 5 on top of the service provider charges. According to Kotler and Armstrong (2010), the pricing strategy that will be used for the new product will be premium pricing and value based pricing.

With premium pricing strategy the customers will be made to believe that the cost of sending or receiving will be charged according to the volume of money being sent or received. On the other hand value based pricing the product is being priced based on the value it gives to the customers. Despite there being no close competitor, the product will not monopolize the profits to gain customer loyalty and confidence.

In using the mentioned pricing strategy, several objectives will be achieved. First, is to create a long-term relationship with customer based on value. In so doing customer loyalty to the product will be guaranteed (Cierpicki, Wright & Sharp, 2000).

Second, the pricing strategy used is meant to a locate cost to the product in a manner that is perceived by the customer to be fair at the same time obtain profit from the product offered. The third and the final objective is to create the perception in the minds of the customers the more money one transacts the more one is to pay for it. Hence, the lower level earners will not feel exploited at the expense of the middle and high-income earners.

The product is worth the price because a percentage of the charges will be retained by the wireless telecommunication providers while the other percentage will be taken by the product inventor. In fact, the service providers will obtain 45% of the revenue from the product while the inventor will obtain 55%. This is the best offer that corresponds to the costs involved in coming up with the product.

At the introduction stage

Source: Personal preference

At the growth stage

Source: Personal preference

At the maturity stage

Source: Personal preference

At the decline stage

Source: Personal preference

The tables above show the different charges that will be charged in the different stages of product life cycle. The reason for the low cost in the decline stage is that assumptions have been made that in case the product experiences a decline in market or usage, the cost will be lowered to retain the customers. The sending charges do not have a significant change because of the technicality involved. It is the wish of the product inventor that this product can beat all the odds in the market to excel.

References

Cierpicki, S., Wright, M., & Sharp, B. (2000). Manager’s Knowledge of Marketing Principles: The Case of New Product Development. Journal of Empirical generalizations in Marketing Science, Vol. 5, 771-790

Kotler, P & Armstrong, G. (2010). Principles of Marketing. Prentice-Hall Publishing. New Jersey

The Blue Ocean Strategy (BOS) is as a result of about ten years research of over 150 strategic moves that have been seen in over 30 nations in over a century of business dealings. BOS describes the situation where businesses simultaneously pursue differentiation in dealings and low cost processes.

The goal of this is usually not to outsmart competitors of the existing industry but rather to create new market space which is in this context referred to as the ‘Blue Ocean’. This way, the competing businesses are rendered irrelevant. BOS provides a number of methodologies and instruments that help in creating these new market spaces.

Whereas innovation is often looked at as a random and experimental process in which investors or managers and spin-offs are the main drivers. This BOS provides a systematic and reproducible method and process that can be used to pursue innovation by both new and existing firms.

The frameworks and tools used in this game are very simple and include developing value curves, use of the six paths, greater understanding and interpretation of buyer experience cycle, four actions framework, use of the grid known as strategy canvas, employing the buyer utility map and the blue ocean idea index.

Critical Appraisal

BOSS is a unique game and the students loved it and they worked as a team to manage a fictitious firm for a number of years. They loved the way they were presented with strategies to swim out of the red ocean that is filled with dangerous sharks to the blue ocean (Kim & Mauborgne, 2005, p. 47).

The theories behind this simulation game and the tools provided a strategy to break away from competitors and then develop new market space ‘a blue ocean’ for their own firm as a result escape competition.

The tool was fun to use and highly effective in learning, practicing and experiencing the market position. The game offers deeper under understanding of the blue ocean theory and actual connection of theory and practice. The competition that the team put up inspired excitement and enthusiasm among the students.

The members were made ready and were willing to lead the blue ocean strategies in other companies. Before embarking on the actual projects, it is proper to study BOSS since it has very good functional team in company specific strategies (Kim & Mauborgne, 2005, p. 47).

The students loved the game and their attitude was inspired mainly by the fast pace and hands on experience which lead to creation of intense energy and this is what made the students keen and eager to develop their skills and apply them freely. The game is fun to play and also inspire hard work and in real business environment, this combination is irresistible.

The ocean is teemed with opportunities as there are different species of animals and the environment there is very attractive and peaceful. There are thousands of real life species to be discovered ranging from the giant whales to the sea lion.

This game is very interesting in that the players are given that real feel of exploring the beautiful ocean with good and wide ranging opportunities. The adventure takes place in the mind as the students play and offered relaxation and enjoyment.

However at some points, the players have to escape from or resist and calm down attacking sharks which are also exploring shipwrecks or looking for treasure in the sea. The creatures are designed to fully immerse the players it to the ocean.

Nonetheless, the simulation teaches survival tactic and it has a full range of instruction material and allow players to monitor the team’s progress and control it highlighting main learning points and repeating them again and again (Niciejewska & Dimitrov, 2008, p. 75). The BOSS is very simple to administer and the indirect competiveness offers total flexibility that can apply t several team and allow BOSS to work what any number of teammates.

The strategy here is based on the symbolism in the game design. The terms red and blue have been used strategically to describe the marketplace in the business world. The read ocean described all the existing industries on the market today and the competitive rules of the game are explicit.

The red oceans round, the boundaries if the industry are identified, described and accepted. The firms that outsmart others here in the same industry are able to grab a bigger share of the market and they become dominant to meet the demand of their clients (Niciejewska & Dimitrov, 2008, p. 75).

As the existing market spaces continue getting overcrowded, they translate into reduced prospects for profits; opportunities for the business expansion also decline. Products become commodities and the competition has heightened to a cut throat level and this is symbolic as in, the competition can be described as Red Ocean for being bloody (Niciejewska & Dimitrov, 2008, p. 75). This is why the term red ocean is applied here.

As players and students, were are determined to move out of this red ocean because it’s filled with ‘sharks’. By playing in the red ocean round, we get familiarized with the simulation environment or the real industry and market condition we managed fictitious consumers for years. This helped to show that it is very difficult for the fictitious companies to obtain netter results in the environment that is filled with attacks or threats from ‘sharks’.

On the contrary to what red ocean has to offer, the blue ocean is a representation of all the industries and markets that are not in existence in the world currently. Simply put, the blue oceans represent the unknown market space that has not been exploited by competition.

In the blue oceans, the business strives to create demand rather than fight over the existing demand (Niciejewska & Dimitrov, 2008, p. 75). There is therefore ample opportunity to grow faster and more profitably. The blue ocean round is played to help students to attain the BOS learning and they did this in four rounds. We learnt that in the blue oceans, business have space to explore their capacities as there is not or less competition having been rendered irrelevant.

This is because the rules of the game are not yet set or known many businesses like in the case of the red ocean. The rule are still being developed as the business grows therefore anything that affects the business at that moment is waiting to be set.

The blue ocean simulation offers an analogy of the wider and greater potential that new market space yet to be exploited intensively offers. Just like in life situation, blue oceans waters are vast, deeper and powerful therefore they are many possibilities of trying out something different and totally unique as there are many resources. This is likened to this BOS in business particularly in terms of potential for profitability of the investment, growth strategy of the business and infinite opportunities.

The four rounds have pedagogical goals that will be discussed in the preceding paragraphs. We learnt that the strategies to survive in the red and blue ocean differ tremendously. To sustain themselves, the red ocean strategic concentrate on creating advantages over competitors, normally by assessment of the competitors’ tactics and struggling to emulate them and even do better (Kim & Mauborgne, 2005, p. 48).

The main goal is to grab a bigger share of the finite market. This is described as the zero-sum game where if one company gains some space in the market, then it directly translates to another one losing the space. Companies here concentrate on sharing the red ocean and the growth is restrained. Strategic thinking in this context helps managers to divide the industry into two types of businesses, those which are very attractive and the unattractive ones. This is what can determine their decision to or not to enter the market (Kim & Mauborgne, 2005, p. 49).

The blue oceans managers realize that there are no boundaries to the industry and in there were any; they are in their minds only. The existing market structures do not restrict their thinking or creativity in the industry. For them, there is always an extra demand in the marketplace that is widely unexploited.

As Students with ambition to enter the corporate world, were highly motivated that there is possibility that there are a lot untapped market space out there. The root of the problem is simply the way the new product or new market on new bleu ocean is developed by an ambitious business.

This therefore calls for a shift of attention the supply to the demand or to shift focus from the competitors to innovativeness to develop or create new demands (Kim & Mauborgne, 2008a, p. 2). This is what the game teaches them be able to pursue low cost and differentiation.

The blue ocean offers both attractive and unattractive opportunities in the new business industry for businesses to explore. The success of a firm in any type of product that it chooses to venture in has its level of attractiveness is based in the creativity of the company in that industry and so is its failure.

The company can alter this by its own meticulous efforts. The market structure can be altered by breaking the value or cast tradeoff and this are the rules of playing in this ocean and this also renders the completion in the old red ocean irrelevant. By creating new demand, it expands and as such, the economy improves by the resultant creation of new wealth (Kim & Mauborgne, 2008a, p. 2). This tactic can therefore allow a company to basically play a non- zero sum game that has very high payoff possibilities.

Team Dynamics

We clearly understood from the beginning that the simulation game was designed to build important skills in the corporate world. Leadership, decision making, motivation and team member contribution and management of the team collective efforts are the main issues that were addressed.

The team members chose me to be the team leader and I decided that I would be that team leader would encourage member participation and collective decision making. This means that the groups work would be done with one common goal even when the members are focusing on different tasks. This would make each of them accountable and happy when we achieve the required results. Without wasting much time, we went straight to our responsibilities.

Since many of us had not had an experience of playing this game, I was forced to take a risk against my inclination that only me and a member who understood the game would lead others and give them assignments. This was a way of offering strong direction to the group at the beginning.

However, it was very easy to understand how we were supposed to go about playing the game and each member had already understood their roles. Gradually, I allowed them to be decision makers in the group. This means as a group leader I was only to play the role of a coordinator rather that director. Autonomous participation resulted in great improvements in the game and I realized that they had become very enthused by the experience. I believe my leadership style had helped to make this group work a success.

As a leader, I realized that I was supposed to be able to understand the group’s situation to enable me give direction. I was very flexible to change and welcomed suggestion and opinions from members essentially leadership is all about behavior and especially communicative behavior.

At the start I had to veto some decisions and suggestion members gave but I thought were immaterial because they still did not have that actual feel of the game. Nonetheless, later I gladly accepted their thought and decisions and even supporting them because they had grown to become very sensible with regard to the educational objective of the game.

Having a good connection with the group allowed me to be a better leader and it is this kind of bonding that also helped the group in conflict resolution. My source of power or influence was legitimate power because the members chose me to lead them and any leader needs to be influential in order to lead others.

The motivation we had for out group was instant appraisal for good contribution to the group works and the satisfaction we attained by realizing that we had achieve the intended pedagogical objectives of the task.

There is no group that lacks conflict because that would mean the group is not communicating, it’s not effective, it does not have goals and it is undermining the essence of group works. The failure to express conflict in a group is called groupthink and this is dangerous to problem solving.

However, it is important to properly manage conflict because to do that can cause even more dire consequences. We experienced substantive conflict where members disagreed greatly over the ideas, issues and principles that we had based out group on and the way we were conducting our assignment. However, we were fast to use the conflict to our benefit having learnt from previous lessons.

I allowed members to freely express their disagreement since denying them that chance would jeopardize out work and kill the genuine process of decision making which is to ensure all members are heard, consequently the problems solving ability of the group would not be tested and the group would be denied some of what could be very crucial information.

Our disagreements were based on reasoning and evidence instead of mere insinuations and emotions and the reaction of group members to disagreements were made with spirit of inquest and not attacks.

Our style of conflict management was solution-oriented. This strategy was assertive and cooperative in that the members who disagreed were put together to try and reach a compromise with me taking the mediator role. The solution tried to accommodate many of their thoughts and opinions as much as possible.

The principles of negotiation, collaboration and compromise were evident in the process. This made the approach very appropriate thought it took a little longer. The solutions obtained were long-lasting because they accommodated the strong opinion from members and also brought some compromise to a satisfactory level, what is called a win-win situation. Each member gave up something and also got something in return.

Marketing Theory

The team made numerous decision that were basically about research and development to develop new products on new demand as in the blue ocean strategy, improved marketing strategies, and pricing abs sales to fight for a space in the red ocean (Kim & Mauborgne, 2004, p. 78).

The team also suggested upgrading by reduction and/or raising competitive factor. In reality, there are no new clients but only the existing ones who can be manipulated. Just as studies show that clients are price-conscious, the strategy to swim out of the red ocean to blue ocean would mean to develop products that are cheaper and of superior quality. Market research and marketing theory have found out that customers often ‘want more for less’.

Peer Group Discussion

The red and blue oceans have always existed and they are here to stay. The true situation on the market therefore requires that companies understand the strategic logic of these two ocean types (Kim & Mauborgne, 2004, p. 78). Currently, nonetheless, the competing businesses in red oceans are numerous across industries and business both theoretically and practically.

Part of the reason could be that it has a history related to war where companies can define their territories based on the way they are able to defeat the opponents in a limited and defined area. This focus of being competitive and defeating competitors in the existing market has been infuriated by dramatic rise of the Japanese from the 1970s. after being faced with increasing competition on the international market for virtually the first time in history, clients started to desert western product for Japanese products.

This set out strategic resolution based on competition. I think this is what totally defines the red ocean and in the current world CEO across the planet have remained focused on it because they are familiar with the rules of the game and feel well prepared to compete.

The blue ocean I believe is well designed to for creativity and capturing of new markets as methodical and actionable as possible just as there are fighting strategies to capture greater market share in the red oceans. despite the fact that the blue ocean strategists have existed since along ago, they have mainly been less sensible of their potential (Kim & Mauborgne, 2004, p. 78). The blue ocean strategy hence searches for solution to this by discovering the patterns and principles of developing Blue Ocean and also set analytical frameworks and tools to enable the business managers to act once they perceive these ideas.

The blue ocean is becoming very important in today’s economy because the established markets are overcrowded yet they are shrinking again. There have been phenomenal technological success stories that have considerably improved the production of different firms allowing supplier to produce excess range of products.

The trade barriers between nations have been reduced because of the free trade policies around the world. Businesses are able to easily access important information for competition. For instance, information regarding a number of products or brand in a particular industry and their prices is readily available in research journals and the internet across the globe the diversity has seen and monopolies disappear. Simply put, the supplies are overtaking demand and the situation is even faster characterized by price wars.

We can’t rule out that the red ocean is no longer useful because it remains very important for a business to swim successfully by defeating opponents. The red ocean still matters and remains a factor to reckon in business.

However, with supply exceeding demand in a number of industries, competition for market share is restricted. Although necessary, Red Ocean will not be sufficient enough to sustain a business in the high performing environment.

Companies have to look beyond competition. To seize new market space for greater profits and growth and expansion opportunities firms need to apply moves to help them swim to blue oceans. There has to be a good balance between the red and the blue ocean.

A good example of the blue ocean strategy is the invention of the I-pod. Essentially this gadget was created out of an idea and not because of the market situation. This is one of a kind type of product that is not replicated. Applying blue ocean strategy is an ingenious idea where the creator or inventor has the right over that product and the producer has enough market for it (Kim & Mauborgne, 2004, p. 79).

Basically most firms that attempted this often failed because it is very difficult for people to understand the idea of a new concept. I think the I-pod must have been very successful because it was solely because of the fact that the CEO was very innovative in spearheading Apple to success by exploiting the digital media. He created a need and a product to satisfy that need. Steve Jacobs, the Apple CEO had a track record of great success and I feel if it were that he was just coming up with a new company from nowhere trying to sell the I-phone, it would have been very difficult to capital on the success of the new product.

Self Evaluation

The unique aspects I learnt from the Blue Ocean strategy are several. The first fact is that the strategy is based on three major conceptual ideas; value innovation good leadership and superior processes (Kim & Mauborgne, 2008b, p. 2).

These frameworks and tools to be used in the game are specifically and purposefully designed to be visual. This makes them this clear so that they can be used to build the collective wisdom of the group as everyone can easily identify them. at the same time, these tools offer an efficient strategy to success to be executed via proper communication (Kim & Mauborgne, 2008a, p. 2).

I also learnt that for an integrated approach to business strategy like the one applied in Blue Ocean strategy, an organization or a company is required to develop and align the three major concepts of strategy implementation; the value of products, the profit and the people.

The BOS has also taught me that even though it’s good to compete as in Red Ocean, success would not come only by trying to outperform business rivals in the existing marketplaces. However, greater achievement could be attained by creating new markets or blue oceans and therefore rendering competition irrelevant. The BOS is postulated under the famous reconstructionist theory and under this, it is the success strategy a company applies that shapes the kind of business structure it would have.

The issue of marketing is supposed to be a continuous process and one that is full of innovation. This is what leads to development of new products. Unfortunately, this is not usually the case in reality. The idea of innovation and creativity seem to be endangered in certain industries. I learnt that the blue ocean strategy offer a way of leaping out of competition. The process on marketing should eliminate the factors that tie a business to B2B strategy (Kim & Mauborgne, 2008b, p. 2).

Learning from significant BOS moves, Guy Laliberté begun a business in circus and attained a greater success. The Cirque du Soleil did not succeed by competing for customers with other players in the circus industry who dominated children attractions.

Rather the business established uncontested new market space hence no competition. It targeted new clients who were mainly adults in this case and corporate clients who were ready to pay premium prices for unique circus entertainment. The industry was very unattractive and shrinking when Cirque du Soleil entered but it reinvented the industry created space by challenging the tradition notion of competition.

In order to improve this assignment, the cases that are related to the ideas of BOS should be accompanied with the assignment to give the students a wider understanding of what they are doing and how to do it. The video offer better visual feeling of the market space situation and helps the student to decipher shared or similar patterns across the various strategic moves. This is possible because the videos cover important ideas of the strategy especially the BOS moves which many people still miss. I am still unsure about how the BOS tools can be used for marketing in the Business-to-business marketing.

Definitely I would recommend this Blue Ocean Simulation Strategy to anyone who would like to improve his/her tactics of developing new market space. I worked well and I believe that I have learnt a lot of tactics in marketing and creating blue oceans.

I believe that the blue ocean strategy is applicable to a number of industries from all types of trades. This can range from typical businesses of consumer products, the service industry of entertainment, the technology industry like information technology, and more importantly the financial services industry.

My experience is that there are two interesting findings with regard to the business environment. Some steps are taken away from the final consumer. The tradition style of competition has been that businesses view their products as commodities hence placing on them some little room for innovation. As such the companies find themselves in the self-fulfilling environment. Finally I learnt that the more a business was removed from the final consumer the more potential or room it had for innovation for the next direct party in the chain.

Reference List

Kim, C., & Mauborgne, R., 2004. Blue Ocean Strategy, Harvard Business Review, Vol. 82, No. 10, Pp 76-84

Kim, C., & Mauborgne, R., 2005, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, Boston, MA: Harvard Business School

Kim, C., & Mauborgne, R., 2008a, Blue Ocean Strategy Solution, Introduction To Round Blue -2 STRATX

Kim, C., & Mauborgne, R., 2008b, Blue Ocean Strategy Solution, Introduction To Round Blue -3 STRATX

Kim, C., & Mauborgne, R., 2008c, Blue Ocean Strategy Solution, Introduction to Round Red STRATX

Niciejewska, K., & Dimitrov, D., 2008, Blue Ocean Strategy, Muniche, Grin Publishers

The current economic crisis is forcing companies to streamline their operations. It means high unemployment rate and the creation of a negative economic climate. The lack of commitment from investors to pour money into the economy helps explain why a financial crisis is also called a depression.

Nevertheless, it is imperative that government and business people must develop strategies to end the economic recession. It is therefore essential for companies to continually think about improvement, integration and innovation. These concepts would enable organisations to counteract the effect of recession.

Although it is important to focus on the core issues that plague a company. It is no longer enough to focus on internal problems and develop solutions that are designed to remedy only the challenges faced by the company. In the 21^st century it is essential to think globally.

A company CEO with limited vision cannot survive in a business climate that is severely affected by outsourcing and price wars as a direct result of competitive forces.

Without a doubt the supply chain management strategies have been transformed dramatically in the past few decades. The rapid interconnections brought about by radical changes in telecommunication and transportation technology has increased interconnections between continents. As a result even Third World countries can greatly impact the economic climate of highly industrialised nations.

There is now a high level of interdependence never before seen since the advent of the modern era. Companies that were established in the UK, US and Europe can play the outsourcing game. These companies can also build factories in China or. But for companies that do not have the capital required to branch out overseas there is no other course of action except to find a way to improve, integrate and innovate.

Continuous Improvement

An organisation that has aversion to change will soon find itself irrelevant and obsolete. Consider for instance the companies that sold typewriters, steam engines, beepers, and transistor radios.

There was a time when these gadgets were indispensable. There are still companies that still manufacture or sell these equipment but unless they have established a relationship with select group of customers then there is no way that they can make a profit.

In the age of computers and the Internet it is safe to say that this planet has become obsessed with technological breakthroughs on a regular basis. There is no sign that this trend can be reversed. It is a new way of doing things; an economic phenomenon that has to be understood by all. According to one commentary:

Just when managers think they have developed a strategy for future success, a new technology, process, competitor or customer behavioural pattern emerges. While a sharp focus and “sticking to the knitting” are sometimes the key to success in more stable conditions, the turbulent knowledge-driven markets of today require dynamic new strategic management approaches and tools (Leibold, Probst, & Gibbert, 2005, p. 14).

In other words it is crucial to embrace change and to seek ways on how to change the old way of doing things. If managers are afraid to take risks or unwilling to learn new things then their respective businesses will fail because these will become irrelevant in the 21^st century. Continues improvement must therefore begin with continuous learning.

An organisation must improve on the basis of Information Technology. There must be continuous improvement when it comes to storage and retrieval of information. There must be continuous improvement when it comes to communication. An upgrade must also be expected from the Human Resources Department. Continuous improvement must also focus on resource allocation. Thus, it is crucial for an organisation to learn more about integration.

Integration

Integration can be understood as combination and amalgamation. This concept is nothing new. In the Industrial Revolution entrepreneurs learned how to build factories where the layout enables workers to be in close proximity with each other.

This feature was helpful when it comes to assembling a particular product. It shortens the communication time and therefore problems can be solved much faster as compared to a layout where work units are located in different parts of the building.

One good example of integration is a concept called Group Technology or GT. A significant feature of GT is the ability to perform similar activities together and “would result to avoidance of wasteful actions because there is no need to shift from one unrelated activity to the next” (Hyer & Wemmerlov, 1984, p.1).

It can also be understood as the efficient storage and retrieval of information with regards to a recurring problem in the workplace and as a result it greatly reduces the time wasted in searching for pertinent information and solving the problem over and over again (Hyer & Wemmerlov, 1984, p.1). GT can speed up the process of work and at the same time reduce the cost of production.

An application of this principle is the creation of the flexible manufacturing system or FMS. According to business leaders who benefited from using FMS it is a system wherein “different types of raw parts enter the system at discrete points of time and are executed simultaneously, sharing a limited number of resources, such as robot, AGVs, machine tools, and buffers … it can also be computer controlled configuration where different operations can be processed” (Apolloni, 2007, p.656). Managers needed to improve on the weakness of traditional assembly-line method of manufacturing and hence the emergence of GT and FMS.

The significance of GT and FMS can be greatly appreciated in the context of complicated manufacturing processes. Managers should analyze the supply chain management aspect of the operation and determine related activities. For example a cellular type of layout can be implemented wherein similar machine-types are placed in proximity to one another and therefore reduce throughput time.

An application of FMS on the other hand is the investment in a computer system that provides central control of all the manufacturing activities of the factory. The said computer system can also provide an information database that workers can access without having to contact different personnel for different types of data. In this particular system improvement the flow of communication has been streamlined.

Importance of Innovation

Innovation is the key to sustainable growth because every product is prone to obsolescence. A sleek and much improved iPhone of this generation will be viewed as a useless piece of junk 50 years from now. Innovation can spell the difference between bankruptcy and continuous growth. Companies that are unwilling to invest in innovation cannot expect to remain relevant for long. Most of the time corporate leaders in these organisations are not aware that their company are no longer competitive.

Sony’s Walkman comes to mind when it comes to the topic of obsolescence. Sony’s amazing colour TV sets of the 1980s and 1990s have to give way to flat screen TVs with LED technology. It was easy for Sony’s previous CEOs to rest on their laurels. It is a challenge to always consider continuous improvement that would lead to innovation.

After all, the company was reaping huge dividends from these products. But sooner than expected upstart companies are able to develop new products that revolutionised the way people use music and video.

The history of business is filled with great companies that used to be influential and profitable but left no trace of their former glory. Today, it is a matter of life and death to incorporate innovation strategies into the corporate mindset and according to experts in this field, “Put very simply, innovation is a survival imperative” (Seebode & Harkin, 2009, p.1).

The present success of the company cannot be relied upon to produce future success. A breakthrough product today can easily be copied in a few months or years and soon thereafter the novelty of the product wears off.

The present value of the company is also not a security against future challenges especially when confronted with a competitor with better products and services. Thus, managers must realise that even if there is enough assets to build structures and hire people, the true asset of the company is in the knowledge on how to deal with the future.

It is therefore unwise to play defence all the time and have the mindset of protecting the assets of the company. It is also imperative to invest in the creation of innovative products and services. However, managers must not only be armed with the motivation to succeed but also the needed skills on how to coach employees to work together to develop something significant in order to catapult the organisation to the next level.

Nevertheless, the path towards innovation is paved with great intentions but littered with poorly designed products. All business leaders would love to have the benefits of innovation but if they are not willing to pay the price then innovation is impossible. There is a steep price to pay for change. The first thing that has to be done is to develop the correct mindset that in turn would force the managers to take the road less travelled.

The next major step towards innovation is the need for a courageous and visionary leader able to enforce a culture of innovation within the company (Tidd & Bessant, 2009, p.100).

It is also important not to look the impact of an appropriate organisation design, because without it, creativity, learning, and interaction will never happen and these are key ingredients to innovation (Tidd & Bessant, 2009, p.100). In addition, corporate leaders and business managers must be able to identify key personnel that can be resource persons or delegate authorities who can rally a team to generate ideas and implement the same (Tidd & Bessant, 2009, p.100).

Furthermore, the work done towards innovation must not be sporadic, it must be continuous. This mindset can only be achieved if there is an appropriate climate that will support this kind of behaviour (Tidd & Bessant, 2009, p.100). Finally, the group must not only focus on the needs of the organisation but more importantly the needs of the customers.

If a manager will incorporate all the strategic management principles discussed earlier regarding the need for continuous improvement, integration and innovation, the end result is a system called Concurrent Engineering. In a traditional manufacturing scheme, managers adopt an assembly line approach where the designers are the first to make the first move then they pass on what they have completed to the manufacturing engineers.

Designers create a prototype and when it is approved the factory mass-produces the product. The marketing people are then tasked to sell the said product. It is a serial development process wherein “…people from different departments work one after the other on successive phases of development” (Stark, 1998).

The finished product reaches the target market and in many instances the product is returned for defects or the product is judge to be of poor design even before it comes out of the factory. In other words it takes a long time before managers and designers are aware of the problem.

Concurrent engineering enables business leaders to see a prototype at the earliest possible date and the designers are able to receive the needed feedback without delay. The customers are not the only people that can spot potential problems. Designers from other departments can provide feedback.

Members of the marketing department can inform the designers that there is a problem when it comes to the overall design. Other stakeholders can identify problematic issues when it comes to storage, packaging etc. Therefore, a full production cycle is not wasted from design, to prototype, manufacturing and marketing.

Conclusion

Companies can react in two different ways when it comes to an economic recession. Business leaders can outsource or build factories where labour is cheap. But for those who cannot afford to move their operations overseas and find it impractical to outsource, then there is no other option but to adapt continuous improvement strategies that would result in higher levels of integration.

In order to succeed in a globalised economy it is also imperative not only to seek improvement and integration, it is also crucial to produce innovative products and services. Combining all of these principles a workable model can be produced such as Concurrent Engineering.

References

Apolloni, B. (2007). Knowledge-based Intelligent Information and Engineering Systems. UK: Springer.

Hyer, N. & U. Wemmberlov. (1984). Group Technology and Productivity. Web.

Leibold, M., Probst, G. & Gibbert, M. (2005). Strategic Management in the Knowledge Economy: New Approaches and Business Applications. New York: Publicis Corporate Publishing.

Seebode, D. & G. Harkin. (2009). Radical Innovations at Philips Lighting. Web.

Stark, J. (1998). A few words about Concurrent Engineering. Web.

Tidd, J. & J. Bessant. (2009). Managing Innovation, Integrating Technological, Market & Organizational. New Jersey: John Wiley & Sons.

Introduction

The economic environment is changing constantly and competition among business organisations is becoming stiffer every day. This is a call for organisations to take major actions that will help them stay in competition. No organisation can risk losing to a competitor since that would act as a major blow on its financial performance.

Market failure or organisational failure is a catastrophic phenomenon and organisations should avoid at all costs. Organisations need to be producing quality goods and offering quality services consistently. Managers should ensure that their organisations engage in activities that give competitive advantage to the organisation (Sukhija, 2009).

Some of the factors that can give the organisation competitive advantage include quality management, innovation and change. Quality management is the form of management whereby the manager directs all his or her duties towards ensuring that the organisation produces quality goods and services.

To do this, there must be employees who are highly knowledgeable and skilled. Therefore, the human resource manager should be capable of managing a high quality human resource that would in turn be able to produce quality products and services (Bessant and Tidd, 2008). Under quality management, the organisation is expected to produce high quality goods in a consistent manner.

Innovation, on the other hand, is the art of coming up with something new and better than what was there before. It involves improving what is already there to increase consumer satisfaction (Swann, 2009). Finally, the change is simply doing things in a different and better way. This essay focuses on the importance of quality management, innovation and change in an organisation. The paper will evaluate the reasons why an organisation needs to have the above factors and how the factors would give the organisation competitive advantage.

Value of quality management in organisations

Quality management is a skill that has become highly significant among organisational leaders and managers. Quality management is a distinct skill of management and most managers are thriving to add it to their skill set (Charantimath, 2009). Quality management is guided by the quality management principles.

Quality management principles can be defined as the rules that are adopted by leaders and managers in leading an organisation. The rules are aimed at improving the long term performance of the organisation, as well as addressing the needs of customers and those of other organisational stakeholders, such as the employees and shareholders. There are eight principles of quality management that are all aimed at improving the performance of an organisation.

In discussing the benefits of quality management, it is advisable to look at each quality management principle and its associated benefit. In Australia, quality management has been there for a long time. However, it was not enforced seriously until around the year 1990. In 1991, an award for quality management was launched where best companies would be awarded each year. Today, quality management is a priority to most companies in Australia (Funk, 2004).

The first quality management principal is customer focus (ISO Central Secretariat, 2012). This is a principle that refers to organisations that rely on their customers to know the areas they need to improve. They understand what the customers need currently and what they would need in the future.

The aim is to maximise customer satisfaction and, therefore, the management adjusts their operations to attain this goal. Customer focus is beneficial to the organisation. First, it helps the manager realise the existing market opportunities and respond on a timely basis. SGS Limited is a construction company that values its customers and customer focus has been of much advantage to the company (Jolly, 2003).

If the manager realises what customers need in the future, his or her management activities get focused on producing goods that meet that requirement. It is important to note that a consumer needs to represent the future market opportunity. The other benefit of this principle is that it enables the organisation to utilise the available resources effectively to enhance consumer satisfaction.

The organisation is able to research on consumer needs and then take the necessary action depending on the findings. Finally, consumer loyalty also increases since customers get satisfaction from the organisation. This creates a strong consumer base that ensures that the organisation has a future. Today’s businesses need to be proactive to survive competition. Understanding what customers need and producing it in advance helps organisations survive in the current economy (Pfeifer, 2002).

The second principle of quality management is leadership. This is very important for the success of any organisation. Leadership gives motivation to employees and increases their productivity and the performance of the organisation in general (Northouse, 2010). Leaders establish the direction of the organisation.

They determine the goals and purpose of the organisation, as well as devise ways of achieving those goals. Good leaders are what organisations need in order to cope with transition to a sustainable economy. Good leadership also influences innovation and competitive advantage in organisations (Jolly, 2003). SGS managers are aware of the importance of good leadership and the benefits thereof (Jolly, 2003).

The third principle is the involvement of people. For quality management, the managers need to involve other people at all levels. It is important to note that people are the essence of any organisation. When people are involved in the organisation, it is easier to get the best out of them, and this is for the organisational benefit (Pun and Nurse, 2010).

Motivated employees feel motivated and give their best. This is important for the organisation since it assists the organisation deal with the challenges it faces. People have different knowledge and skills. When all these skills are combined, it becomes easier to solve problems that face the organisation (Liu et al. 2013). When people are involved in the organisational activities, they become responsible and accountable for their performance.

This compels them to perform well since they are prepared to take responsibility. Everyone aims at producing his or her best performance. All the organisational stakeholders also understand the significance of their contribution and the roles they are supposed to play in the organisation. The implication of people involvement is that the performance of the organisation improves significantly. In a transition economy, a good performing organisation does not have problems coping.

Process approach is also a very important quality management principle since it influences efficient achievement of the organisational goals. Process approach production lowers the cost incurred by the organisation and helps in effective utilisation of resources. In addition, it is easy to improve results since the manager is able to easily identify a problem and deal with it effectively.

Further, it is easy to prioritise opportunities and improve on them for the benefit of the organisation (Qin and Bei, 2002). Managers who use quality management have the ability to identify the activities that can be beneficial to the organisation. For instance, Capgemini in Australia has benefited from efficient utilization of resources, leading to efficient processes that lead to quality production as an aspect of quality management (Funk, 2004).

Process approach enables managers to carry out an analysis of major activities and take the necessary actions to execute such activities. Performing the key activities and maintaining low costs give the organisation competitive advantage. This leads to increased income for the organisation’s chances of survival in the future economy (Rönnbäck and Eriksson, 2012).

Quality managers use system approach in their management. The organisation system contributes to the organisation’s effectiveness and efficiency in goals’ achievement (Flynn and Flynn, 2005). Once the manager uses the system approach, he is able to identify, understand, as well as manage its processes.

This assists in the integration of processes that can be beneficial in achieving the set goals. The manager understands how the organisational system relates to the major processes and enhances their integration. Managing by system approach enables the organisational leaders to structure the system and increase its efficiency and effectiveness to achieve organisational goals and objectives. The success of an organisation is proportional to its achievement of objectives.

This improves it survival chances (Li, Anderson and Harrison, 2003). A clear understanding of the system is vital for the organisational survival in a transition economy. Managers of Capgemini, for instance, have a good understanding of the organization system. The company’s resources are well utilized to maximize its earnings (Funk, 2004).

Continual improvement is a quality management principle that calls for the organisation to ensure that its performance is consistent for a long time. The organisation, therefore, engages in activities that would enable it to be competitive for a long time. It is important to note that an organisation that is committed to continued improvement is in a better position to take the necessary action towards a perceived opportunity (Zu, 2009).

In addition, such an organisation can take actions in advance and be at an advantage over other organisations. For an organisation to secure continued improvement, it needs to have workers who are constantly and consistently improving in terms of their knowledge and skills. Therefore, the organisation should offer the employees training opportunities so that they can grow.

This is a form of motivation to employees and they in turn perform better and improve on the organisational performance (Judge and Douglas, 2009). The implication of this is that the organisation is steadily positioned to solve any problems that it may face since it has knowledgeable and skilled human resource. The firm is also comfortably able to cope with a transition economy.

Decision making is another major factor for the organisation’s success. Quality management influences decision making based on facts (Kuei & Lu, 2013). Data have to be analysed and sufficient information gathered before making a decision. An organisation that has managers and leaders who have the ability to make major decisions and make them correctly always have a higher potential of performing better.

SGS decision making is a process that is taken seriously since the company is in the construction industry where right decisions have to be made (Jolly, 2003). Major decisions involve taking the perceived opportunities and deciding whether to pursue them or not. In addition, good decision making is important for the purposes of problem solving.

Managers need to have sufficient relevant data to solve problems effectively. Good problem solving ability and good decision making see the organisation through the transitional economy (Vanichchinchai and Igel, 2011).

Finally, an organisation is able to develop mutual benefits with the supplier through quality management (Rahman, 2001). Both the supplier and the organisation are able to create value and optimise costs and resources for their own benefits. In addition, the two parties can act jointly in order to speedily respond to consumer needs.

Consumers are always seeking satisfaction and they are likely to go to an organisation that responds to their needs more efficiently. An organisation can take this advantage by creating a mutual relationship with the supplier. Both benefit in that the supplier gets the sales revenue, while the organisation creates a stronger customer relation that is advantageous in the future. The two parties can also share information about future business and future opportunities (Denison, Farrell and Jackson, 2012).

They can, therefore, come up with ways through which they can take advantage of the future opportunities. When an organisation is in good relations with the supplier, it is able to get credit sales more easily. This relationship can only be created under quality management. It is a relationship that sees the organisation through the transition economy and enhances its survival opportunities.

Conclusion

Quality management is a factor that is important for organisational leaders and managers. The topic has become increasingly important as many organisations are seeking ways of attaining competitive advantage. The current economic environment is highly competitive; therefore, organisations should try to be the best to achieve success.

It is for this reason that organisations emphasize on quality services and quality products. There are a number of benefits for organisations that embrace quality management. Such organisations are able to cope with the transitional economy. They are also better positioned to deal with any problems that may arise in the course of their operations.

References

Bessant, J. R., & Tidd, J. (2008). Innovation and entrepreneurship. Chichester: John Wiley.

Charantimath, P. M. (2006). Total quality management. New Delhi: Pearson Education.

Denison, C. A., Farrell, A. M., & Jackson, K. E. (2012). Managers’ incorporation of the value of real options into their long-term investment decisions: An experimental investigation. Contemporary Accounting Research, 29(2), 590-620.

Flynn, B. B., & Flynn, E. J. (2005). Synergies between supply chain management and quality management: emerging implications. International Journal of Production Research, 43(16), 3421-3436.

Funk, V. (2004). Quality awards listing. Quality Progress, 37(8), 54–58.

ISO Central Secretariat. (2012). Quality management principles. Web.

Jolly, A. (2003). Innovation: Harnessing creativity for business growth. London: Kogan Page.

Judge, J., & Douglas, T. (2009). Organizational change capacity: the systematic development of a scale. Journal of Organizational Change Management, 22(6), 635-649.

Kuei, C., & Lu, M. H. (2013). Integrating quality management principles into sustainability management.Total Quality Management & Business Excellence, 24(1/2), 62-78.

Li, J., Anderson, A. R., & Harrison, R. T. (2003). Total quality management principles and practices in China. International Journal of Quality & Reliability Management, 20(9), 1026-1050.

Liu, S., Leat, M., Moizer, J., Megicks, P., & Kasturiratne, D. (2013). A decision-focused knowledge management framework to support collaborative decision making for lean supply chain management. International Journal of Production Research, 51(7), 2123-2137.

Northouse, P. G. (2010). Leadership: Theory and practice. Thousand Oaks, CA: Sage Publications.

Pfeifer, T. (2002). Quality management: Strategies, methods, techniques. München: Hanser.

Pun, K. F., & Nurse, A. H. (2010). Adopting quality management principles to revitalise the facilities maintenance practices at a port: A study in Trinidad and Tobago, Asian Journal on Quality, 11(3), 197-209.

Qin, S., & Bei, X. (2002). The study for principles and conceptual models of quality management in virtual enterprise. Asian Journal on Quality, 3(1), 129-144.

Rahman, S. (2001). Total quality management practices and business outcome: evidence from small and medium enterprises in Western Australia. Total Quality Management, 12(2), 201-210.

Rönnbäck, A., & Eriksson, H. (2012). A case study on quality management and digital innovation: Relationship and learning aspects. International Journal of Quality and Service Sciences, 4(4), 408-422.

Sukhija, R. (2009). Quality management: An excellent model. New Delhi: Global India Publications.

Swann, G. M. P. (2009). The economics of innovation: An introduction. Cheltenham: Edward Elgar.

Vanichchinchai, A., & Igel, B. (2011). The impact of total quality management on supply chain management and firm’s supply performance. International Journal of Production Research, 49(11), 3405-3424.

Zu, X. (2009). Infrastructure and core quality management practices: How do they affect quality? International Journal of Quality & Reliability Management, 26(2), 129 – 149

Introduction

The need for innovation has become critical for many IT companies that have to offer new products to their customers in order to remain sustainable. Therefore, organizations should foster the creative work of employees and avoid excessive supervision. However, managers should also make sure that employees follow certain rules that are necessary for quality improvement and time-efficiency^[1] of the organization.

The case, which is going to be discussed, exemplifies a problem faced by many businesses. The manager has to interact with employees who dislike any constraints or regulations that can be imposed on them. In turn, it is necessary to make sure that they follow quality improvements programs and methodologies which have already been tested by other businesses.

However, these rules should not impair the creative capacity of these people. Under such circumstance, the manager should change employees’ attitudes toward programs and procedures; in particular, they should see that these rules are necessary for the improvement of their performance. This is the main thesis that can be illustrated in greater detail.

Introducing new models and methodologies

Under these circumstances, the project manager should demonstrate the rationale for changing the way in which the work of employees is organized.

Employees should clearly understand that the lack of quality improvement programs and project methodologies only prevents them from doing their work properly. Moreover, they should see that the current state of affairs will eventually lead to stagnation. This step is based on the principles of change management according to which people can alter their behavior if they see a distinct need for this change^[2].

If this issue is not addressed, the policies of the management will not be easily accepted. This is one of the issues that should be considered by the leaders of this organization. This goal can be achieved in several ways. For instance, the manager should prompt people to work on a task that requires excellent coordination, information-sharing, time-management, and so forth.

In most cases, employees can cope with such assignment only if they can properly organize their labor according to some principle that has already been tested. In this way, leaders can place employees in a more challenging environment. These people should see that by overlooking rules and procedures, the department may not function properly. Furthermore, the manager should not blame the workers for poor results since in this way, one only undermine their motivation.

Instead, he/she should emphasize that this outcome can be explained by the absence of rules and procedures that can improve people’s work. This is the main idea that one should communicate while interacting with these IT professionals. To a great extent, this moment can be viewed as a turning point when employees are prompted to re-evaluate their views or attitudes toward quality improvement programs or workplace procedures advocated by the management. So, this is the first step should be taken in order to carry out policies.

In turn, the manager should demonstrate that a certain project methodology can improve the work of software designers. For example, it is possible to choose the waterfall model that is often adopted by IT professionals. This approach includes the following stages: 1) the specification of requirements; 2) design; 3) construction; 4) integration; 5) integration; 6) testing, and 7) installation^[3].

Moreover, this model is premised on the assumption that the work of designers should resemble a feedback loop. For instance, the results of program tests may indicate that some changes in design should be made. Therefore, this model is useful for identifying possible flaws as quickly as possible. Certainly, this is not the only option that is available to the manager.

In particular, one can decide in favor of the so-called agile model that places emphasis on the interactions between clients and developers. The main task is to demonstrate the use of some methodology can increase the productivity of software designers. Provided that this goal is achieved, employees will be more willing to use this approach on a regular basis. They will believe that that this project methodology is a valid tool that that can help them avoid many pitfalls in the future.

At this stage, the manager must show that the adoption of quality improvement programs can facilitate their work. For instance, it is possible such an approach as Software Metrics Programs which incorporates various techniques that can be used by software designers.

This method implies that software designers should collect data about various defects and single out the most widespread ones^[4]. Furthermore, they should identify the most probable causes of these failures. Much attention should be paid to process factors that increase the risk of failures.

This is just an example of the quality improvement program that can be adopted. As it has been said before, the manager can choose a different approach. However, he/she should show that a certain model can increase the overall efficiency of these IT professionals. They should not perceive this program only as a set of unnecessary rules that are imposed on them. Instead, they need to see that this method can create value for them. This is the main principle that should be followed by business administrators.

Later the manager can use these models as a part of the regular routine. At this point, employees will comply with the rules that they deem necessary and rational. It is quite possible that these people will suggest ways of modifying or improving these methods.

Their suggestions and recommendations can be quite valuable because these people can adjust a certain model to the needs of the organization. So, these examples illustrate the way in which new methods of labor organization can be introduced in the workplace. The steps that have been identified are based on the premise that the manager will work with people who value critical thinking and tend to be very autonomous or even restrained.

As a rule, such individuals can accept new rules if these changes can bring tangible improvements. Furthermore, these people do not accept the autocratic style of leadership which implies that employees should follow the instructions of the management without any questions. This is one of the main details that should be identified since it is important for introducing new policies.

Promoting innovation and creativity

Yet, the manager should make sure that these approaches are compatible with innovation. It is possible to take several precautions in order to achieve this result. For example, one should avoid excessive monitoring of employees. These people should feel the confidence of the management.

Certainly, these people should meet the requirements that are set by the management, but they must not be forced to follow only one pattern that has already been used before. In other words, it is necessary to create an environment in which people are afraid of taking risks.

Thus, one can say that empowerment is critical for the successful work of this company and its long-term sustainability. Moreover, the organization should reward individuals who suggest innovative ideas or unconventional solutions to existing problems. Under such circumstances, software designers will have stronger incentives to work more productively because they will see that innovation and creativity are valued by the managers. This is one of the points that can be made.

Apart from that, the manager should clearly state that he/she will not stifle the creative work of employees. One of the possible strategies is to let software designers spend a certain amount of time on the projects that they like most^[5]. This policy is adopted in many IT companies where employees can spend approximately 10 percent of their work-time on the tasks that seem most interesting to them.

Very often, this work can lead to the development of new products that were not even expected by the management. In this way, an organization can also foster innovation. It is vital to remember that a person is more likely to work more productively when he/she can focus on projects that seem to be more challenging and promising. Thus, this individual will be more willing to do one’s best. This is one of the arguments that can be put forward.

Additionally, one should bear in mind that the innovation process in any organizations involves information gathering and sharing. Therefore, a manager should promote a learning culture within a department.

This goal can be achieved by holding weekly or monthly meetings during which people can offer their recommendations and solutions. The task of a leader is to make sure that every person has an opportunity to share his/her ideas with others. It is quite possible that several people can express ideas which complement one another.

Furthermore, the management should be able to appreciate new ideas and put them into practice. One should mention that various project methodologies can be used for the development of learning culture within an organization. Thus, one should not suppose that by regulating the work of IT professionals, the manager will inevitably stifle their creativity or initiatives. Such an assumption is not quite accurate because there are tools that enable business executives to make innovation and control consistent with one another.

Conclusion

Overall, this discussion indicates that quality improvement programs can be implemented without impairing the creativity of employees. There are several principles that should be followed by the manager when introducing these changes. First, the rules and procedures should not be viewed as some restrictions that are simply imposed on them without any explanation. This is the main pitfall that should be avoided. Secondly, employees should understand that without these changes the performance will be significantly impaired.

The strategies that have been described in this paper can help a leader attain several goals. First, he/she can make sure that workers accept the validity of quality improvement programs. This is the critical goal that that should be attained. Secondly, the manager should create opportunities for innovation. One can do it by stressing the empowerment of workers and their autonomy. Secondly, it is essential to reward IT professionals for their independent decisions and initiatives.

Notes

1. William Fox and Gerrit van der Waldt, A Guide to Project Management (New York: Juta and Company Ltd, 2008) 74.
2. Dean Anderson, Beyond Change Management: How to Achieve Breakthrough Results Through Conscious Change Leadership (New York: John Wiley & Sons, 2010) 32.
3. Dean Leffingwell and Don Wildrig, Managing Software Requirements: A Use Case Approach (New York: Addison-Wesley Professional, 2003) 24.
4. Paul Goodman. Software Metrics: Best Practices for Successful IT Management (Boston: Rothstein Associates, 2004) 137

Thomas Limberg. Examining Innovation Management from a Fair Process Perspective (New York: Springer, 2008) 180.

Works Cited

Anderson, Dean. Beyond Change Management: How to Achieve Breakthrough Results Through Conscious Change Leadership. New York: John Wiley & Sons, 2010. Print.

Fox, William, and Gerrit van der Waldt. A Guide to Project Management. New York: Juta and Company Ltd, 2008. Print.

Goodman, Paul. Software Metrics: Best Practices for Successful IT Management. Boston: Rothstein Associates, 2004. Print.

Leffingwell, Dean, and Don Wildrig. Managing Software Requirements: A Use Case Approach. New York: Addison-Wesley Professional, 2003. Print.

Limberg, Thomas. Examining Innovation Management from a Fair Process Perspective. New York: Springer, 2008. Print.

An article published in January 2012 by Canadian Business Network, discussed the role innovation, creativity, and invention plays in business growth and development. The article is named “Growth and Innovation”.

According to the article, the business environment has changed with globalization and growth in communication and transport network; with the growth, Canadian organizations needs to develop strategic management policies that can enhance their competitiveness in the global markets, the article recommends continuous innovation and inventions for growth.

According to the article, business development and growth are elements of successful business, in the event an organization fails to grow with time, the management should count the same as a warning sign of chances of future failure.

When working in the international markets, Canadian entrepreneurs and business executives need to be sensitive of what other players in the industry are doing, with the knowledge, they should then embark on coming up with business policies that outsmart what is happening in the markets; this is the art of innovation and invention.

The article suggests that growth in when dealing in international markets is fuelled by particular organisation innovative ideas and your attention to cutting-edge technology and resources; this is the catch and the dimension that Canadian businesses should take. They should ensure that they have frameworks of innovation and effective business management practises.

Organizations need quality management to optimally utilize their resources; management is the art of organizing and coordinating activities in accordance to certain principles or policies to attain forethought objectives.

According to the article, to understand the implications of expanding operations and linkage to activities that can help organisations grow, managers have the role of utilizing physical, human, financial, and environmental resources effectively for the good of their firms; it includes formulation of corporate functions, organizing, planning, controlling, monitoring, and directing activities to achieve corporate goals and objectives.

In contemporary organizational management, there is emphasis to leaders-management approach than managers-management approach, thought the difference is minimal the net effect is improved competitiveness and efficiency.

In contemporary business environment, there is need to consider the international community when making decisions; there are some elements of doing business that can work well in a particular country but fail to take effect in another. With the cultural differences, business leaders have to consider international business environment and its effects on the business.

Human resources management has the role of managing the diversity in an organisation; when managing human resources the Canadian companies have to consider human resources diversity issues like multicultural, international human resources legal administration, and employees’ relations. Diversity can work for the good of the firms only if the powers of diversity have been managed effectively.

Globalisation has led to improvement of trade among countries, when trade is enhanced; customers are diverse and have varying needs; the management must understand the needs of the diverse customers and make policies that not only address local customer issues but the entire international community.

When making products and choosing the marketing strategy to adopt, the strategy should be internationally accepted; different countries need different policies for effective business. Policies that seem to address or sell the products to certain region should not be used in other areas as they might fail to deliver similar results; this is what Canadian businesses need to understand (James & Lindsay, 2011).

Reference

James, R., & Lindsay, M. (2011). The Management and Control of Quality, 8th edition, International Edition. South-Western: Cengage Learning.

The key to enter and dominate a market place is to introduce new innovative products. Wolcott, Robert and Michael aver that companies that are planning to penetrate a new market should come up with innovative products that make the consumers wonder how they survive without the product. A good example is Apple Company that revolutionized the buying and listening of music through iTunes.

Failure to innovate leads to loss of customers especially with entrance of new competitors. This paper will focus on Google Company and Nike and how they have introduced innovative products into the market place.

The paper will demonstrate that the key to success in the current business environment is not keeping in tandem with customers’ needs. Rather, success comes from anticipating needs of customers and creating innovative products that exceed customers’ expectations.

In the world of sports wear, Nike Company leads in production of innovative products. In 2010, the company created the Digital Sports Division to come up with innovative products that employ sophisticated technology to manufacture products. In 2012, the digital division created two innovative products, the FuelBand and FlyKnit Racer.

The products have given Nike Company a head start in production of digital products for sportsmen. FuelBand allows users to measure various aspects of the body of an athlete in the course of playing. It uses color cues to show movements and changes within the body. FlyKnit Racer heralds a revolution in shoe making by producing very light shoes.

Google Company’s search engine dominates over 65% of the market in spite of the many search engine companies (Wolcott, Robert & Michael 32). This success emanates from the company’s innovative products. Before the launch of Google search engine, there were more than fifty companies offering the same services.

Those companies had been in the market for as long as thirty years. Google came up with products that allow consumers to interact with each other conveniently. Through Google, it is possible for consumers to buy products through the internet. Google allows advertisers to analyze consumer behavior and come up with products that people desire most.

Nike Company’s products are unique and hard to imitate. FuelBand is affordable as it retails for only $150. It is a bracelet hence easy to wear and carry around for the whole day without tiring. One can wear it as he or she plays soccer, tennis, or even jogging around.

The bracelet is electronic and elegant allowing users to wear it to work. FuelBand uses color cues to track various activities within the body. Szirmai explains that “red stands for inactive and green indicates whether the user has achieved daily goals” (43). Additionally, the bracelet has stock ticker that indicates to the user the amount of calorie he or she has burned.

The ticker has a metric that measures and shows the number of steps that the user has taken throughout the day. FuelBand allows the user to share proprietary metrics through social media and other online platforms. FlyKnit Racer is a feather light shoe that allows the wearer experience high comfort.

Nike created the shoe “from knit threading rather than multiple layers of fabric” (43). The most unique and hard to imitate quality amount this product is the ability to make the wearer feel like he or she is wearing a sock.

Google Company’s products have unique qualities that are hard for other companies to imitate. Szirmai states that Google’s innovation springs from “deep learning and understanding what users want so searchers do not have to use simple keyword phrases to search Google” (34). Through research, the company has realized that the future of internet lies in mobile phones.

Many people are now using smartphones and tablets to access internet. Google Company therefore launched Google Play, a product that allows users access applications, games, devices, books, and music from smartphones and tablets.

Other search engines such as Yahoo have not fully prepared for mobile internet. Google has therefore cemented its leadership in internet search engines and it is unlikely that any other company will dislodge it soon.

Nike Company possessed first mover advantage in creating digital powered products. Addidas Company, a competitor in manufacturing sportswear, has lagged behind in embracing technology. Nike Company’s launch of a digital sports division marked the first step to consolidating its leadership in the industry.

The sportswear manufacturer has managed to sustain the first mover advantage in spite of the current progress from Puma. It is highly unlikely that Nike will relinquish its position.

This is because of the various endorsements by sports teams and personalities (Santarelli 23). The digital division from Nike Company is the first of its kind and three years later, there is no sign that any other company in the sportswear industry will catch up.

Google Company also possesses some first mover advantages that put it ahead of other competitors. The company recognized that mobile internet will drive the next phase of growth in search engine. The launch of Google play from where customers can access application, games, and other devices put Google ahead of Bing and Yahoo. However, Google must remain cognizant of competition in this area.

EBay for instance has a store from where customers can buy books through mobile. Bing has launched its own application store that customers can also access through mobile phones. Google Company advantage lies in being the first one to give mobile internet the seriousness it deserves. It has sustained the first mover advantage but any slackening will give competitors an opportunity to catch up.

The business environment is becoming increasingly competitive. Companies must therefore innovate continuously or risk losing customers to competitions. Nike and Google Company enjoy dominance in their respective fields. Google Company, by virtue of being the first mover in mobile internet, has managed to curve a niche for itself and competitors can only play catch up.

However, the technology industry is very dynamic. The current tribulations of black berry manufacturer shows that no technological company can afford to slacken (Morris et. al 34). The growth of Bing search engine should particularly be a wakeup call for Google Company.

Sportswear manufacturing is also becoming competitive. Customers are always in the lookout for products that make training and playing much easier and fun. Nike Company has had a comparative advantage over its competitors. The launch of a digital division in 2010 heralded leadership in use of technology to dominate the market place.

The company should however be cognizant that other companies can innovate and come up with better products within a very short time. It should therefore make innovation a continuous process rather than an occasion. In conclusion, innovation remains the greatest source of growth in all industries. Market research drives innovation as companies can know what their customers need.

Works Cited

Morris, Michael H, Donald F. Kuratko, and Jeffrey G. Covin. Corporate Entrepreneurship and Innovation: Entrepreneurial Development Within Organizations. Mason, OH: South-Western Cengage Learning, 2011. Print.

Santarelli, Enrico. Entrepreneurship, Growth, and Innovation: The Dynamics of Firms and Industries. New York: Springer, 2006. Print.

Szirmai, Adam. Entrepreneurship, Innovation, and Economic Development. Oxford: Oxford University Press, 2011. Print.

Wolcott, Robert C, and Michael J. Lippitz. Grow from Within: Mastering Corporate Entrepreneurship and Innovation. New York: McGraw-Hill, 2010. Print.

Introduction

Current theories of organizational leadership tend to argue that bureaucracy is no longer tenable or applicable in the modern context. They base their argument on the disadvantages of bureaucracy as suggested by Max Weber in the 20^th century, which focuses on dividing organizations into subjective hierarchies and establishment of control and authority (Josserand, Teo & Clegg 2006).

They also base their argument on the negative aspects of ‘appointing’ rather than ‘electing’ organizational leaders. However, modern theories of organizational leadership fail to recognize the impact of bureaucracy on innovation and change management. In fact, modern leadership styles are products of 20^th century bureaucracy, which emphasized technocracy in organizational leadership (Browning 2007).

The systematic nature of bureaucracy contributed to the development of large business organizations in the 20^th century because of its effects on change and innovation. It ensured that innovative, visionary, skilled and experienced technocrats led organizations and were appointed to the right positions based on the outcomes of their past work (Josserand, Teo & Clegg 2006).

In this way, bureaucracy ensures that organizations choose the right leader through appointment, rather than risking a poor leader candidate being elected due to majority voting power. In this context, it is evident that the systematic nature of bureaucracy makes it applicable in delivering change and innovation in modern organizations. However, some changes are needed to make bureaucracy fit for the contemporary context.

The purpose of this paper is to develop a critical analysis of bureaucracy to determine its applicability in the modern context. The paper argues that bureaucracy is systematic in nature. Therefore, it is good for delivering change and innovation even in the modern context.

The paper will present a brief analysis of the nature and applicability of bureaucracy, its strengths and weaknesses. It will provide a review of the scholarly work supportive of bureaucracy in organizational leadership, using examples from literature. Finally, it will develop a conclusion in support of bureaucracy in the modern context.

What is bureaucracy and why is it an important topic in organizational management?

First introduced by Max Weber in the 20^th century, the term ‘Bureaucracy’ has been an important topic of debate in organizational and public leadership. In simple terms, it describes an organization as a large structure with dividing hierarchies and establishment of authority and control. In essence, Weber’s bureaucracy has a number of characteristics that make it unique.

For instance, it emphasizes hierarchy of structure and authority. Organizations have a hierarchical chain of command – t he top bureaucrats have absolute control and power (Josserand, Teo & Clegg 2006). Secondly, it emphasizes the specialization and division of labor.

Bureaucracy is based on the premise that an individual is best at a given field or area of specialization and must work in that position for the best performance of the organization (Josserand, Villeseche & Bardon 2012). Thirdly, rules are extensive, written clearly and established in a clear and direct manner that provides a complete guide to individuals in the organization.

Clarity of organizational goals and mission is another important feature of bureaucracy. In this context, goals are set and made known to all the individuals in an organization. This enables every person to strive to achieve these common goals and fulfill the mission of the organization. In addition, it is worth noting that bureaucracy emphasizes merit as the main principle in hiring and promoting individuals (Josserand, Teo & Clegg 2006).

Due to the hierarchical nature of bureaucratic organizations, promotion requires employees to be good performers. Appointment is purely based on merit, which means that jobs are not granted to friends, families or other individuals who do not meet the merit principle.

The aspect of impersonality ensures that job performance is measured or judged based on an individual’s productivity and the amount of work completed within a specified time and with accuracy and efficiency (Josserand, Teo & Clegg 2006).

Organizations in bureaucracy have structures with numerous management layers that cascade upwards from junior employees through supervisors, regional and departmental managers to top executives. The numerous layers of an organization in this model imply that decision-making process must pass through all layers.

Power is created and concentrated at the top layers of a bureaucratic organization, giving the executives the right and power to control the organization. Information and directions must flow from the top downwards, which encourages an organizational culture focused on standards and rules.

In this context, bureaucracy allows operational processes within an organization to focus on methodologies and supervision that introduce and maintain best practices (Rosen 1988).

In this context, standardization and best practice approaches to organizational leadership provide some evidence of the applicability of bureaucracy in instilling a culture that focuses on innovation and change in an organization. Organizations with tall and short structures need change and innovation. However, they must ensure that work is completed with consistency, efficiency and effectiveness.

Non-bureaucratic organizations may find it difficult to establish the changes and innovations they make due to lack of systematic control of the institution, and this may lead to poor organizational performance (Josserand, Teo & Clegg 2006).

Modern Bureaucracy and the management of change and innovation

According to Josserand, Teo and Clegg (2006), modern theories of organizational leadership are mere refurbishments of bureaucracy, configured in a manner that interpolates the ideas of Max Weber. The authors argue that the refurbishment of Weber’s bureaucracy has involved few changes to make it fit the modern forces affecting organizations.

For example, democratic principles have been adopted in many organizations, in order to ensure that they fit modern systems and cultural norms. However, as the article by Josserand et al article shows, the implementation of post-bureaucratic forms is frequently ineffective, as managers are ensnared ‘in the nets of their extant social ties’ (2006: 61).

Accordingly, the authors assert that the conceptions of post-bureaucracy are mere re-combinations of the organizational structure suggested by Weber, and changed modalities that show evidence of indirect and internalized control and power concentration (Josserand, Teo & Clegg 2006).

This means that the modern management and leadership styles have identities that were formed with Weber’s ideas of bureaucracy. In the modern context, change and innovation must be implemented within refurbished bureaucracies in a manner that allows democratization (Dimitroff, Schmidt & Bond 2008).

From this perspective, it is clear that even the modern theories and styles of organizational leadership are principally grounded on the ideas of bureaucracy. In other words, they are mere refurbishments of bureaucracy, which can be best described as modernized and democratized bureaucracy.

However, they still emphasize the systematic nature of organizational structure as suggested by Weber’s ideas of bureaucracy. Therefore, the next step is to determine how the systematic nature of bureaucracy, whether in the old style or in modern bureaucracies, affects the implementation of change and innovation.

Defining Organizational change and innovation

Organizational change management

The ability to manage change is important in any organization. While the effects of change can be positive or negative, it is worth noting that the management of change is the main factor that determines the outcomes.

In the modern context, managing change has become more related to innovation than before, especially due to the incorporation of technology as one of the main methods of managing and driving business processes. In fact, modern aspects of innovation require technology and technological development to improve business and its outcomes.

As such, organizational leadership requires individuals who are ready to accept the inevitability of change and ensure that they communicate this to their subjects within the organization they are leading. Innovative leaders should not raise some expectations that change will slow down, but rather, they should ensure that the employees acknowledge that change is manageable and constant.

Secondly, innovative leaders must ensure that change takes place within an environment defined by openness. There must be trust, which is achieved through open-door policies that allow a two-way feedback and the willingness to address the issues raised in the feedback. In this way, the organizational leader is able to develop change in an effective way.

Thirdly, it is worth noting that employees do not reject or oppose change for the sake of it, but they tend to oppose that change that does not allow them to contribute. If organizational leaders welcome and encourage employee input, they are likely to achieve their appreciation and ensure that employees develop a positive attitude towards change and innovation.

In addition, it is likely that employee contributions and insight will benefit the organization because there will be diversity of ideas in decision-making process. In fact, employees are always in close contact with clients, suppliers or other parties, which means that they are able to have first-hand knowledge of their needs and preferences.

From a bureaucratic view of organizational leadership, it is worth noting that leaders may have advantages or disadvantages when seeking to implement change and innovation. From a positive view of the method, it is clear that the centralization of power plays a significant role in ensuring that organizational change and innovation are achieved within the shortest time possible.

For instance, bureaucracy allows fast decision making because leaders are able to solicit employee suggestions and make immediate decisions on whether to accept technology or not. In addition, it allows leaders to ensure that employees obtain training within a short period before technological innovations are implemented.

They are also able to make and force new guidelines that will ensure a practice of openness is implemented and understood by all employees within a short time, which ensures that technology and innovation are used in business processes.

Delivery of innovation requires innovation management in an organization. Employees at all levels of an organizational structure are involved in order to create new and improved qualities of the workforce that steer organizational growth and development.

How does the systematic nature of bureaucracy help in delivering change and innovation?

The systematic nature of bureaucracy plays an important role even in modern leadership systems perceived to be post-bureaucratic in nature. Several systematic aspects of organizations are of interest in this regard. In answering this question, it is imperative to look at each of these aspects in order to show how bureaucracy can influence the delivery of change and innovation due to its systematic nature.

In essence, change and innovation delivery in an organization relies on the ability of leaders and their subjects to ensure that they implement personal and role development. They are required to ensure that they develop effective approaches to their work. This helps them find and apply ideas that make it possible to deal with internal and external challenges and opportunities.

Therefore, appointment of such individuals based on merit seems to be the best way to ensure that an organization experiences change and innovation (Almeida, Fernando & Sheridan 2012). It would be difficult to appoint such individuals if their qualities and fitness are not judged or measured based on their performance.

Thus, this implies that the systematic nature of bureaucracy provides evidence of a good method of appointing leaders and employees who are change oriented and innovative.

Secondly, the development and establishment of rules and regulations that govern the organization and its people characterize the systematic nature of bureaucracy. An organization that requires change and innovation must have guidelines, which members should follow in their quest to enhance individual and organizational performance (Czarniawska 2008).

Clarity of goals and mission is a major characteristic of bureaucracy, which makes it systematic. For effective delivery of innovation and change, it is imperative to ensure that organizations have a set of clear and well-defined goals and missions that all members must strive to achieve.

In addition, innovative and change oriented leaders can develop effective and achievable goals and organization mission (Josserand, Teo & Clegg 2006). Despite the fact that contemporary theories attempt to describe bureaucracy as an old and anti-democratic model, it is evident that they must also have clear and well-defined goals in order to implement change and innovation.

It would be difficult for leaders to employ change if there were no goals or missions in the organization. Furthermore, the research by Josserand et al shows that, even change aimed at overthrowing bureaucracy relies upon (and, in their case, was constrained by) bureaucratic structures themselves.

References

Almeida, S, Fernando, M & Sheridan, A, 2012, “Revealing the screening: Organizational factors influencing the recruitment of immigrant professionals”, The international journal of human resource management, vol. 23, no. 9, pp. 1950-1965.

Browning, BW, 2007, “Leadership in desperate times: An analysis of endurance: Shacleton incredible voyage through the lens leadership theory”, Advancement in developing human resources, vol. 9, no 2, pp. 183-184.

Dimitroff, R, Schmidt, LA & Bond, TD, 2008, “Organization behavior and disaster: A study of conflict at NASA”, Project management institute vol.36, no. 1, pp. 28-38.

Josserand, E, Teo, S & Clegg, S, 2006, “From bureaucratic to post-bureaucratic: The difficulties of transition”, Journal of organizational change management, vol. 19, no. 1, pp. 54-64

Josserand, E, Villeseche, F & Bardon, T, 2012, being a active member of a corporate alumni network: A critical appraisal, Academy of management, Boston, MA.

Rosen, M, 1988, “You asked for it: Christmas at the bosses’ expense,” Journal of management studies, vol. 25, no. 5, pp. 22-23

Czarniawska B, 2008, A Narrative Approach to Organization Studies, Sage, London, UK.

Team Involvement

Innovation is a dynamic process that can be sustained through group involvement by adding value to service provisions which leads to sustained customer benefits, service quality, and product quality as organizations continue to evolve (Innovation Zone 2006). In addition, sustained innovation is an integral element in sustained and disruptive innovations.

Team Leader and Contributions

The researcher participated in disruptive and sustained product innovation as a team leader. The team leader’s skills included pursuit for high achievements, good time management skills, personal integrity and effectiveness, good problem solving skills and effective decision making abilities, and good and effective communication skills (Innovation Zone 2006).

These characteristics were identified in an individual who was selected by the whole team to provide leadership, guidance, and direction. Other team leader contributions included planning for a SWOT analysis on the product and organization in question while identifying values and norms for the team.

Team Members

The team leader selected members who were well versed in their area of participation. They were endowed with experience and appropriate skills. In addition, team members were proactive and had excellent communication skills and had a collaborative approach to problem solving.

Characteristics of the Team Members

Team members were characterized by specialized skills in their field of operation and had a great deal of respect for the customer. In addition, the members upheld customer needs and satisfaction as the driving force in the innovation process. Excellent outputs formed the basis of performance tests (Lovelock, Patterson, Walker, & 2007).

Team and Innovation

A virtuous team has those characteristics vital for the improvement of the above situation in various ways. These include the importance of teams in the innovation process. According to Baumgartner (2009) teams play a vital role in product innovation in a dynamic business environment due to the contributions that come with them. A virtuous team is composed of members with diverse technical skills, knowledge, and experience coming from diverse cultural backgrounds.

Conflict Resolution

The team leader and team members were well versed in conflict resolution as their views on conflict resolution were important for team cohesion. Allowing conflicts and personal differences dominate in the group could put their profession in danger. Thus confrontation was regarded as a tool to enhance team collaborations.

Suggested Changes

The team leader identified various weaknesses in team management. These included poor communication within the team and lack of vertical and horizontal communication within the organization. The organization did not factor contributions from all team members in the innovation process. Each member should have contributed in the planning process.

Situation for Improvement

Proactive team involvement in setting organizational goals in the planning process for product innovation could be a situation that could benefit from team involvement. Available data coupled with existing knowledge could be examined and each expertise from the team contributed positively in the innovation process.

Business Situation

The business position of the organization involved in product innovation was the key determining factor for the type of team involved in the innovation process. The team involved was a virtuous team. This was selected from a number of teams involved in the innovation process. The change team, identified as Virtuous, a variant of a face-to-face team, was uniquely identified and characterized by a critical attachment to their work, thriving on risk, and goal setting to achieve set targets.

Problems Anticipated

A number of problems anticipated included lack of team coherence where some team members may fail to adhere to team rules. Cultural issues are also a problem if team members are from different cultural backgrounds. In addition, decision making norms and diversity in communication styles such as trouble with accent and fluency and different attitudes about authority.

References

Baumgartner (2009) Innovation Process Management (IPM). Web.

Innovation Zen (2006). The Abernathy-Utterback Model. Web.

Lovelock, C.H., Patterson, P.G., Walker, R.H. (2007). Services marketing: an Asia-Pacific and Australian perspective /​ Christopher H. Lovelock, Paul G. Patterson, Rhett H. Walker. (4^th ed.) NSW: Pearson Prentice-Hall.

Executive summary

Team building is very critical in organizations, because it greatly facilitates the realization of set goals and objectives. In the modern world, many organizations have restructured their human resource departments in a way that promotes team work and cooperation.

This is what has made team building activities to become synonymous with organizations that want to leverage their employees’ output for mutual success. This paper extensively covers the role of cross-functional teams, in facilitating strategic innovation of an organization.

Abstract

The importance of effective teams within an organization is a well known fact, especially in current day progressive organizations, that value the critical role played by their employees in the realization of set goals and objectives. It is with this knowledge that team building activities have become synonymous with organizations, that want to leverage their employees’ output for mutual success.

In line with this, the current environment, both internal and external to the organization, calls for constant preparation for imminent changes which are essential. Cross-functional teams and their role in aiding the strategic innovation of an organization are extensively discussed in this paper.

Introduction and Thesis

Team building can broadly be defined as the activities that are carried out within a group of people either in a corporate set-up, in a school or institution, in sports, or any other setting that is aimed at developing the cohesiveness, unity, and most of all, the performance of the group.

The activities comprising of team building could be simulation games, simple bonding activities like games, and even retreats coordinated by team-building professionals that last for a number of days. Team building has a bigger aim of bringing together people, to improve positive communication, leadership building, self development of members of the team, and even improve the ability to solve problems as a team (Beitler, 2005).

Organizational Development and Teams

In efforts to develop the organization and its people to better meet its objectives and goals, there is need to have deliberate and effective teams in place. Effectiveness of teams can be measured by carrying out self-assessments of teams with the aim of identifying current strengths and weaknesses. It could also be a process that allows the team members to identify training and development options to take so as to strengthen the team, and also how to harness the already existing strengths for better results.

In effective organizational development, there is need for focus to be directed at the following factors; the organization leadership has to make clear the expectations in relation to results, the teams are supposed to be working on. Team members need to understand why the team was created and what its mandate is (Bert, 2010).

Organizational Change Management

There is nothing as constant as change, and organizations have to be prepared to deal with inevitable changes in their environment both internally and externally. Needless to say, change brings with it a lot of shake-up and impact in the way things are done; this is mostly for the better even though in the initial periods, this may not appear to be so. Organizations need to be well prepared for any eventuality and for change that is always around the corner (Boot, 2001).

Communicating Change to Employees

Organizations need to understand that new innovations and technologies, which affect the way things are done, and the way people behave, are always in the offing. It is therefore imperative that any one organization needs to find ways of communicating to their teams on changes that will come as a result of certain shifts in the environment.

This is where well structured team building activities are bound to work wonders, so that the people are prepared psychologically for things to come, and to be well aware of their role and importance in moving to the next level. In order for change to be effectively carried out, the change communication has to be carried out in a timely and precise manner.

There is need to identify the business unit or department that owns the particular change or process, identify the interlinked departments that will assist with the change communication and implementation, and choose management levels that will be involved, not forgetting to include Information Technology and Finance departments.

At the lower end of the chain and most important are the front office staff who will be dealing directly at first contact with clients and who will be required to communicate and do things in a manner to reflect the changes.

Resistance to Change

The above processes are especially important because there is bound to be some resistance to change which may drag implementation further, and cause more problems for the organization in the long run. This is the reason management needs to anticipate the challenges likely to be faced, well in advance, and put in place measures to mitigate this.

Depending on the target groups for the change, the effects this will have on a personal level and whether or not there is room for negotiations, depends on the various styles of change that managements may employ including collaborative, consultative, directive or even coercive.

Collaborative and consultative styles are lengthy and involve the feedback by recipients of the change, while directive and coercive are mostly communications by management to the staff maybe through memo or notices, informing them that certain changes will be taking place on a certain date, and why such changes are necessary, and urging them to comply and cooperate.

Communication

Communication is vital in all change management processes, the reason why collaborative and consultative styles would be favoured over directive or coercive, though, it also depends on the nature of the work being done and the people involved. Change management is a process that should be well thought through and planned in good advance, so that all parties involved come out unscathed and well prepared for the next phase of their jobs, careers and life in general.

The people likely to be affected by the change due to redundancies, relocations, acquiring new skill sets, training and many other situations, all need to get the necessary support mechanism for success to be realized. Preparing the people through thoughtful advance communication is just one step of supporting their adoption to the change(s).

Organizational Redesign and Restructuring

After the change management process, comes the organizational redesigning and restructuring. This basically means that, the organization now becomes a new brand with new ways of doing things. It now has in place people who understand this new brand and the direction of the organization, as they have been trained and prepared for the changes. It therefore becomes imperative that a new strategy that is aimed at more innovations and development of the organization as a whole is launched.

Restructuring within an organization shapes processes, ways of thinking, and even behaviors of the people. What is important to note here is that organizations should desist from copying what other successful organizations in the industry have done when redesigning and restructuring.

Culture Change

Perhaps, it is important to point out that organizational culture change is the most difficult kind of change to implement. This is because normally, culture is deeply rooted, and it provides consistency, stability and meaning to those within the organization. Attempting to change what people believe and have worked with for ages can be very frustrating and difficult (Beitler, 2005).

Organizational culture is historically rooted, implicit (unquestionable and complet), woven in every day activities, guides all decision making, leads to uniform thinking and behavior, and is used to socialize new staff members. It has not been reviewed or questioned for ages, and most people prefer to remain with what they know (status quo) as opposed to moving towards the unknown, making it difficult to change.

Strategic Innovation and Cross-Functional Teams

Change does not necessarily mean an innovation though innovations bring about change and improvements in the way things are done. Innovation is defined as going first where no one else has been, leaving the comfort zone and being a leader in a purely new concept and new way of doing things.

Innovation is not part of the business as usual annual plans of an organization; rather, research shows that successful innovation depends on the level of strategic alignment; that is alignment of corporate strategy, corporate culture and innovation strategy (Boot, 2011).

For innovation to be successful, it requires a specific innovation strategy and culture; it is all about how organizations deal with competencies and qualities to create innovation, how they deal with trial and error, how they deal with failure, how they use available resources, how teams are managed and many other factors.

In organizations, strategic innovation calls for cross-functional teams to work together in identifying new revenue streams, create breakthrough growth strategies, define innovative new products, services, processes and business models (Strategic Innovation Group, 2002). These cross-functional teams aim at taking the road less travelled in the normal business of the organization. They look beyond what they know to see how else business can be carried out in an open-minded and creative scenario.

Conclusion

The essence of building teams and the connection between teams and organizational change management, culture change management and even strategic innovation within an organization cannot be overemphasized. The stronger the teams in an organization are, the stronger its growth, development and innovation will be. The stronger the teams are, the easier it will be to go through change management and culture change management, as cohesiveness and unity already exists.

As much as culture change is a giant initiative, it is imperative that it is achieved, for realization of change management and innovation. Management in organizations should make it their priority to put in place strong functional teams and where necessary cross-functional teams, which will be instrumental in carrying out change initiatives required.

Strong and effective teams are pertinent within an organization, if it is to realize its objectives and strategy, be it in cultural change initiatives or when harnessing skills and competencies for innovation.

It is only when the people who make up teams are empowered and their potential utilized, that the organization will make strides towards realization of goals. Resistance to change is bound to take place at some levels, which may be contained through effective communication, restructuring and training.

References

Beitler, M. (2005). Organizational Culture Change: Is it Really Worth the Effort. Web.

Bert, S. (2010). Implementing Organizational Change: Theory into Practice” 2. Web.

Boot, A. (2011). Leading Change: Three Major Misconceptions That Hinder Innovation. Web.

Strategic Innovation Group. (2002). A Framework for Strategic Innovation: From Breakthrough Inspiration to Business Impact. Web.