Description
Leadership Perspective of Promoting Creativity and Innovation
Uppsala University Department of Business Studies Master Thesis Supervisor: C hristina Hultbom 2008?06?04
Daniel Bolanowski
The Leadership Perspective of Promoting Creativity and Innovation
A Case Study of an R&D Organization
SUMMARY
This paper focuses on leadership problems and possibilities regarding creativity in a specific R&D organization. This is done with the help of a model consisting of four domains of special interest for R&D leaders. A survey in the form of personal interviews was conducted with leaders and staff members of two R&D sections in the organization. The analysis pointed towards problems on work load and stress issues. Furthermore the organizational structure of the two sections provided a discussion on optimal structural build?up in order to maximize creativity. Trust issues arose because of the apparent use of control by upper management as described by lower level leaders and the employees. Indications showed that the trust issues put up obstacles for learning and dealing with failure. On the other hand the relationships between section management and staff were perceived as good. Also the ground works of a good creative work was laid with the trusting relationships between fellow professionals within the group.
ii
CONTENTS
1 Introduction 1.1 The Nature and Context of Creativity 1.2 The Focus of this Paper 1.3 The Further Proceedings 2 Theoretical Framework 2.1 Four Domains for Inquiry and Action by Leaders in R&D
2.1.1 Pacing Productivity 2.1.2 Capitalizing on Failure 2.1.3 Managing Connection 2.1.4 Paying the Price
1 1 2 3 4 4
4 6 7 8
5 Analysis 5.1 Managing Connections
5.1.1 The Influence of the Organizational Structure 5.1.2 Geographical Spread of Projects
24 24
24 24
5.2 Pacing Productivity
5.2.1 Section Management Control 5.2.2 Project Management Control 5.2.3 Upper Management Control 5.2.4 Project Commitments
25
25 25 26 26
5.3 Capitalizing on Failure
5.3.1 Project Cycles and Learning 5.3.2 Fear of Failure 5.3.3 Peer Review
27
27 28 30
2.2 The Impact of the Domains 3 Methodology And Case Presentation 3.1 Establishing the Questionnaire 3.2 The Company 3.3 Selection of Respondents 3.4 The Two Sections 3.5 The Individuals Interviewed 3.6 Execution 4 Interview Revelations 4.1 Organizational Structure
4.1.1 The Matrix Structure in Section 1 4.1.2 The Project?Based Structure in Section 2 4.1.3 Leadership Responsibilities 4.1.4 Nature of the Projects
9 10 10 11 11 12 12 12 13 13
13 14 15 16
5.4 Paying the Price
5.4.1 Creative Control Creates Creativity 5.4.2 Breaking Rules
31
31 32
6 Conclusions And Recommendations 6.1 Staff Dispersion among Projects 6.2 Managing International Connections 6.3 Trust 6.4 Pushing for Pace 6.5 Usefulness of the Model
6.5.1 How Exactly Do You Pay the Price? 6.5.2 Learning versus Managing Connections
33 34 35 35 36 37
37 38
Acknowledgements References
39 39
4.2 Work Load 4.3 Reports and Evaluations 4.4 Rules and Commandments 4.5 Learning 4.6 Allowing Creative Roaming? 4.7 The Views of the Leadership Role
17 18 19 20 21 23
Appendix 1: Interview Template R&D Employee 40 Appendix 2: Interview Template R&D Leader 42
FIGURES
Figure 2.1 The four domains for inquiry and action by leaders in R&D Figure 2.2 Managing connections Figure 4.1 Chart of the matrix organizational structure in section 1 Figure 4.2 Chart of the project based organizational structure in section 2 Figure 6.1 A & B: Evaluating the two sections on the four domains Figure 6.1 C: The two graphs superimposed for easy comparison 4 8 13 14 33 33
iii
1 INTRODUCTION
The purpose of this paper is to investigate a case R&D organization. This will be done through a concrete model with the purpose of improving the conditions of the workplace in terms of creativity. A specific aim was set, with the help of the model, to form a resolute analysis easy for any leader to interpret in order to take appropriate action.
1.1 The Nature and Context of Creativity
Creativity is an asset impossible to financially quantify a priori in an organization. Before a product or service is available to the market and sales number are unveiled, no one can tell whether or not the costs involved in development was money well spent or completely wasted. ‘Quarterly based’ economic thinking makes long term investment with unknown outcome a very nervous matter in most corporations. R&D is a costly business. Firstly the staff involved is usually a very educated one (and thereby expensive to keep). Secondly the ever?changing circumstances require customized, high?end technology to make it worthwhile. Yet huge sums of capital are put into R&D worldwide (OECD, 2008). The reason for it is the outlook of many markets today, not only are they highly competitive but they are also very transmorphic. New demands appear continuously, replacing old ones. New technology generates new problems as well as opportunities to fix them. The ability to anticipate change and by all means to do something about it has more than ever become a crucial factor for survival. So then, once you established that innovation is a necessity the next question is; how do you do it? After collecting bright minds and state of the art technology the trick now is to maximize creativity as if was a product. An R&D leader is in the industry of innovation ? its means of production is people and their ability to think out brilliant ideas. But because creativity is a complex matter, intimately connected with human reflection and communication, the maximization of production is a delicate matter which is easily dealt with too bluntly in the world of corporate governance. Part of the problem in attempting to maximize creativity is on one part defining what creativity is. The word has many synonyms and many do not adequately represent the scope of its numerous influences in organizations (Chen & Kaufmann, 2008). Another troublesome part of maximizing creativity is that it is notoriously hard the measure.
1
Because there often is a lack of rigorous thinking about what creativity is and means for the organization it is very easy for the term to degenerate into blurry concepts of what should be included in the concept. (Rickards, 1991). Part of the explanation to the nervous approach towards creativity can be derived from previous studies in this field. Discussions about creativity have traditionally been set on an individual level. Psychological measures have been the primary tools for elaborating and evaluating creativity. This has limited analysis away from the corporate realities where social and environmental aspect play a significant role. No wonder then that many leaders find this topic difficult to handle. Clearly there is a need for a wider approach, one that puts the problems and possibilities of innovation into its proper context. While not excluding the individual perspective, a multi disciplinary approach is recommended to encompass the sum of all factors involved. (Chen & Kaufmann, 2008)
1.2 The Focus of this Paper
With the goal set on creating an innovative environment this paper will focus on the leadership of R&D in the specific case organization. The aim is to avoid arguing around cognitive processes and address issues much easier to put your finger on. Many leaders in R&D are themselves former staff members in product development and usually there are not enough space given to dwell on the intricate meaning of creativity in the reality of corporate work. This paper will aim to break down the concept of creativity into tangible parts recognizable in the everyday work in R&D, thus formulating a handbook for quickly identifying aspects of leadership that could influence innovation. Leadership can assume many forms, especially in an organization as big as the one being surveyed in this paper. Because of the limited time frame of the investigation there was a need to narrow down the part of the organization which was to be included in the survey. With the analysis model in mind, the type of leaders that work closest to the actual R&D was selected in a belief that this would generate most insights. This is because low level management have a tendency both to be leading and to be lead, as well as a good direct view on how the sum of the different leaderships in the organization affect performance on the R&D function. However, the discussion will not be limited to the leadership level surveyed. As we will find out higher level management and project managers have a profound effect on the R&D work and leaving them out of the analysis would make our conclusions
2
seriously incomplete. But we still need to bear in mind that upper level leaders have not voiced their concerns in this paper. Widening the approach to include more forms of leaderships is rather a suggestion for further analysis into this topic.
1.3 The Further Proceedings
A theoretical model on areas needing special consideration when evaluating creativity in R&D organizations will be presented in the next chapter. The model was chosen specifically with usability in mind. It should be easy to patch the model onto virtually any organization; although there is a certain application bias towards large geographically spread companies. Additionally the individual concepts in the model must answer well to the demands on tangibility. That is, problems should be easily identified and the ways of remedy the problems should be straight forward. We will end this paper by briefly discussing how well the model stands up to these demands. The survey was set up initially, on two separate interviews with two section managers in the case organization. Then three staff members in each section were interviewed on their views on R&D work in the company, both on a personal and on a general level. The goal was to analyze the organization and specifically the two individual sections out of an operational perspective. Therefore the questions asked in the interviews were focused on the day to day activities of how work was conducted and under which circumstances. The results of the interviews in chapter 4 were then analyzed through the model, consisting of four domains related to aspects of R&D work that have specific influences on creativity. From this analysis we will be able to indentify certain areas of concern that have a good effect on creativity and should be safeguarded and other areas that have a detrimental effect of creativity thus needing special attention. These special spotlights are presented in the last chapter.
3
2 THEORETICAL FRAMEWORK
This pa aper is built t on an ana alytical model by Stev ve Boehlke (2008) tha at attempts s to cast light on n factors th hat promot te and inhib bit the crea ative proce ess. Innova ative work is set in an envi ironment o of relationships, trust, , communic cation, cult tural differe ences and p political behavio or. Leaders ship is abou ut acknowl ledging the ese factors among oth hers and m make the settings s optimal fo or the type of assignm ments in hand. The original st tudy was co onducted in the shape of 13 workshops w with more th han 200 leaders s in R&D from US?b based glob bally sprea ad compan nies. Toget ther with various existing g theories on creativ vity, politic cal behavio or and othe er subjects s this mak kes up a resultin ng concept in a four domain mod del with are eas of parti icular focus s when it comes to promot ting creativ vity. We will w now explore the four f domai ins listed i in figure 2.1 more closely. .
2.1 Fou ur Domains s for Inquiry and Act tion by Lea aders in R& &D
2.1.1 Pa acing Produ uctivity Many businesses s are facing pressu ure from the parad dox of sho ort?term financial f perform mance dem mands from m sharehold ders and a substantia al dependency on inn novation for long g?term survival. Boeh hlke conclu udes that le ean progra ams like Six x Sigma, or riginally introdu uced by Motorola M fo or defect manageme m ent and later adapte ed by a range of compan nies like AB BB, Sony, a and Honda to reduce cycle time (Klefsjö et t al, 2001; Hahn et al, 1999 9), has a ha ampering e effect on m many R&D f functions. A Astute man nagement m may add value b by eliminati ing redund dancies and d improving g processes s but in doing so run the risk of creat ting a stres ssful enviro onment where creativ vity is neede ed.
Figure 2.1 1 The four r domains for inquir ry and action by y leaders in R&D. As describ bed by Boehlke (2 2008). 4
It may be tempting for R&D leaders to tighten the screws on processes after finding out that constraining budgets and shortening project times has a positive effect on outcome. In line with the proverb ‘necessity is the mother of invention’ Steve Boehlke uses the example of the dramatic events occurring during the Apollo 13 space mission in 1970. A showcase of astounding creativity under immense pressure and with scarce resources may prove that high levels pressure will lead people to unique findings. However research (Amabile et al, 2002) points out that a sustained level of high stress has detrimental effects on performance, including innovativeness. Many managers have found themselves questioning why the modes of encouraging innovation by adding pressure that once seemed so effective suddenly cannot help to bolster performance. The key, it seems, is to keep good control over both break and throttle. Varying the speed at which employees work as well as varying complexity and scope of missions will help encourage a more creative environment. Additionally leaders must know when to inquire at all and when to hold back. Corporate cultures will often slip into promoting action and control over learning and exploration. The emergence of a ‘meeting culture’ is a symptom of such ideals. In the need to always have ‘the answer’ meticulous technical presentations consuming much time for both developers and management is a common recurring theme. All based on a fear of failure and unwillingness to release control. (Boehlke, 2008) Virtually all literature on managing creativity produced in the last decade will specifically tell you to refrain from excessive control and lowering demands on accountability in order to promote innovation (for example Boehlke, 2008; Sutton, 2001; Andriopoulos, 2003). Leaders in R&D walk a politically thin line between the need of control and the need to release innovative talent to roam freely. This political behavior becomes apparent when issues shift from the usual managerial aspects of running a project or managing a team (i.e. a more hands?on approach) and instead is focused on explaining non?tangible aspects which in many ways are very hard for anyone to explain. Therefore a behavior of defensive routines becomes apparent in order bring level?headedness into actions that are perceived as ‘loose’ in the corporate business world. Pacing productivity is all about knowing what spurs the creative process and what chokes it.
5
2.1.2 Capitalizing on Failure Defect management and profound corporate control can easily come head?to?head with the way researchers are used to deduce results. In the scientific method of testing hypotheses, failure is a built?in mechanism of learning while the ability to assimilate this behavior is often underdeveloped in many organizations (Boehlke, 2008). Instead a fear of failure can creep into the minds of R&D functions because of the need to exercise control. Fear of failing induces defensive routines that were mentioned in the previous section. Defensive routines are defined as ‘all the policies, practices, and actions that prevent human beings from having to experience embarrassment or threat, and, at the same time prevent them from examining the nature and causes of that embarrassment or threat’ (Argyris, 1994). Even if the routines are spotted by management they are often ignored because of uncertainty in dealing with this sort of behavior, with the management role being cemented into non?abstract functions such as planning and distributing tasks for instance. It is however essential for leaders to identify and surface defensive routines and keep in mind the underlying reasons for defensive behavior. At least three factors that inhibit a desired an open?hearted social behavior in discussing failure can be identified: (1) Individuals experience negative emotions when examining their own failures; this chips away at self confidence and self?esteem. (2) Most managers are rewarded for decisiveness, efficiency and action rather than reflection and painstaking analysis. (3) Psychological biases and errors reduce human perception, sense making, estimation and attribution (Cannon & Edmonson, 2005) It is important for organizations to work on mechanisms for reducing the influence of these three factors. The looks and shapes of these mechanisms may vary but one component is key for uncovering unwanted defensive routines; trust. Boehlke declares that creativity cannot flourish without trust. Trust ensures that no one is watching you behind your back during the creative process and that employees feel comfortable
6
reporting failures to management which enables organizational learning. That is what Capitalizing on Failure is all about. 2.1.3 Managing Connection The means of communication are changing and rapidly so. While the world seems to be shrinking our personal networks are swelling. Online social networks like Facebook have blossomed and research findings as well as corporate results can reach all corners of the world within seconds. With this many nodes of connection, R&D work must surely become greatly facilitated? Research tells a different story. Even though people have more peers than ever to connect to, people who state they have no one to discuss important issues has almost tripled from 1984 to 2004 (McPherson, Smith?Lovin & Brashears, 2006). And who are these ‘peers’? It is important to differentiate between connections and relationships. Boehlke defines them by connections being characterized by an exchange of value while relationships sustain mutual value. Further, a study by Cross & Parker (2004) on globally spread corporations describes two types of trust that exists within these organizations; competence?based trust and benevolence?based trust. The first one being based on transmitting information – in line with the definition of connections, while benevolence?based trust is a more profound relationship which promotes more frank communication and thereby encouraging creativity. Managing Connection is really about keeping things small. Boehlke claims too much outside information kills creativity and passion within a group. Trusting relationship are not opportunistic but are constant and rewarding, especially in a long?term perspective. The suggestion is to keep the creative process inside four walls (figure 2.2) where valuable feedback happens ad hoc, in line with the principals of Pacing Productivity. A constant coming and going of information does not foster innovation. This goes for leadership as well: “The constant thumping of Blackberries and other mobile devices by leaders in and of themselves reinforce perceptions of constant vigilance and necessary control on the part of management, whether intentional or not. This is actually a kind of ‘political’ behavior though few would initially identify it as such.” (Boehlke, 2008) 7
Figure 2.2 2 Manag ging conne ections. A: It is comm mon in toda ay’s world t that people e have very y diverse communica c ation patterns; much of the communication n and influences come es from the e outside of formal groups. g B: By B focusing g the comm munication to within t the group the t creative e process gets g priorit tized, the re ecommende ed way to manage m connections. ing connect tions in this way must never ta ake a dominant positi ion to the creative Managi spark. L Likewise in nformation n should als so be sprea ad with mo oderation w within R&D D, in fact Boehlke e suggest killing all connection ns to the outer o worl ld for periods of tim me while putting g full attention to creative explor ration. 2.1.4 Pa aying the Pr rice Exercis sing creativ vity and le eading inno ovation comes with a social an nd persona al price. Earlier we conclu uded that creative c wo ork deman nds a devia ation from rules, nor rms and sometim mes corporate cultur re. Decision ns about creativity c a often n are not about financial f investm ment or cos sts but lie on a personal level and d originate out of trus sting relatio onships. Leaders s must rea alize the possible p ne egative effe ect politica al behavior r can have e on the organiz zation and the way people do work. w Howe ever politic cs can be d difficult to identify along with w the potential conflicts involved in n deviatin ng from es stablished norms. (Boehlk ke, 2008) Self? ?awareness s is the mo ost importa ant trait fo or leaders when w it comes to ide entifying politica al behavior r, being able to walk b balanced between con nnecting w with the res st of the world ( (or the com mpany if you like) and d being diff ferent – tha at is what it t means to Pay the Price. B Being creati ive is abou ut separatin ng oneself f from the re est of the w world in the e aspect that innovation works w with h different t rules tha an production. Innov vators are seen as l’. With th hat comes responsibi ility accom mpanied by y insecurit ty, sensibil lity and ‘special defense elessness. Acting like e a humble mediato or between n the crea ative proce ess and strategi ic function ns is not what w leadership is abo out, but ide entifying w what is nee eded for innovat tion to happen is very y much so. ( (Boehlke, 2 2008) 8
2.2 The Impact of the Domains
All four domains are interconnected by different aspects that could be social factors, organizational factors or any other part of R&D. For instance, by managing connections in a way that limits the amount of outside communication could have a positive effect on stress levels, which is an essential part of pacing productivity. With more effective communication patterns in terms of creativity time could be saved and used for reflection on work done, a way of capitalizing on failure. More examples like this are easy to come up with. Boehlke describes each domain as a lens ‘through which to understand and practice inventions in the other three domains’. All four domains are susceptible to political behaviors. In fact politics appear everywhere. They can either work to enhance innovativeness or suppress it. Leaders in positions strongly rewarded by immediate results can easily fall into political behavior which for example aims to quicken thing up. If this type of leadership gets a strong hold on R&D processes, creative performance suffers. Likewise a leader working closely with developers might form a more affectionate personal bond with the staff and therefore might try to exhort influence as to satisfying staff needs, for good or worse. The sum of all these influences is what sets up the creative working environment. (Boehlke, 2008)
9
3 METHODOLOGY AND CASE PRESENTATION
The science of creativity is a multidisciplinary one. Everything could and should be considered from organizational structure, social psychology, personal psychology, business management all the way down to ‘cold?hearted’ measurements such as asset optimization. The scope of subjects considered and the complexity and sensitivity of some of the issues dealt with in the theories explained the previous chapter makes a qualitative interview survey suitable for the purposes of this paper.
3.1 Establishing the Questionnaire
The reason for the method selected is to get as close as possible to the phenomena that we wish to observe and evaluate. The interviews were therefore not too rigidly structured to such an extent that the respondent was held too tight by the questions asked, but could freely communicate his or her views. (In accordance with Holme & Solvang, 1996, p. 91?98) A template was set up which highlighted the special areas involved in the survey deducted from our primary theories (chapter 2). The templates were inspired by an original example from Holme & Solvang (1996, p. 102). The interviews would always start with enquiring about general personal information and then smoothly cross over to descriptions of what kind of work the respondent does. In this way a friendly report was established with the respondent by questions that are easily answered. All to make the person interviewed comfortable with the situation. As the interviews progressed, they tended to diverge from the original setup. Depending on the person and how the interview developed the questions could for example jump straight from work descriptions to reporting down to leadership relationship (See Appendix 1 and 2 for interview templates for R&D employees and leaders respectively). This freedom of expression seemed to result in openness from the respondents leading to a wealth of material for the final analysis. In retrospect the design of the questions turned to be a little too harmless. Fears that the questions regarding leadership assessments and trust issues would be sensitive and needed to be approached with care, turned out to be unfounded. As the series of interviews progressed the form of questioning changed to more directly hit the core concerns of the study.
10
3.2 The Company
While it was probably designed to fit many kinds of organizations, the theory of the four domains mentioned previously in chapter 2 was developed from workshops with representatives from larger corporations that were functioning on a worldwide market and with operating branches spread globally. Therefore fittingly, the company taking part in this paper was one with subsidiaries all over the world as well as having products that sell in virtually every country. Moreover the products can be classified as technologically advanced but also taking part of a very competitive market. By those standards the company suits the purpose of this paper particularly well because of its size, but also because it relies heavily on innovation for its long term survival. The examined organization is situated in Sweden, in a location holding a significant R&D department for a specific set of products. For matters of secrecy and personal integrity both the company as a whole and the persons taking part in the study will remain anonymous.
3.3 Selection of Respondents
Representatives from the human resource function suggested two sections working with developing certain products for the survey. The section managers themselves then picked three representatives from their section who would also take part in interviews to examine the leadership within the organization. It might not be optimal to leave such a large part of the selection process in the hands of the organization examined. However this was partly done because of the time pressure involved in completing this paper but also because this internal selection process was done in two layers of selection. First through human relations that selected the sections and then the section managers picked three respondents each and were told not to select persons too similar in too many aspects. This seemed like fair weight off between the scientific reliability demands and the corporate reality. As it turned out the resulting material was plentiful. None of respondents had any problems with the questions asked. From the interviewer’s point of view the answers seemed honest and truthful. As mentioned above even the more delicate matters included in the survey was dealt with a very open way. It might have been done easier by that fact that some of the question appeared to have been previously asked in various internal evaluations in the organization.
11
3.4 The Two Sections
The two R&D sections examined comprised of roughly 15 persons. Section 1 worked on chemical development of products while section 2 developed software for electronic equipment. The scope of work and the routines involved were therefore different for the two sections in many ways. Overall section 1 can be considered an all embracing R&D group both researching new possibilities and developing products, while section 2 is much more focused on pure development.
3.5 The Individuals Interviewed
The manager of section 1 was highly experienced within the company having spent over two decades as an employee after joining as a then newly graduated Ph.D. in the mid eighties. The person then got promoted to the current section managerial role within R&D 9 years ago. Manager 2 was hired externally as a section manager almost 2 years ago after previously having completed a six month tenure in the company as a consultant working on project management. In total manager 2 has held a manager position for the last 9 years. Both the managers would be considered to be middle aged. All of the staff respondents can be described experienced within the field. The range of employment time in the current company scoped between 3 to 16 years with ages varying between early 30’ies to late 50’ies. In total one female and seven male respondents were interviewed.
3.6 Execution
All of the eight interviews were held during one week in the late spring of 2008. The managers were the first interviewed in the respective sections. The manager’s interviews had a longer scheduled time span with some general information being shared about the organizational structure, missions and other general properties of the sections that was essential for understanding the R&D activities. The two managerial interviews took about one hour to complete while the interviews with the six R&D staff members were done in 40 minutes up to an hour. The conversations were digitally recorded with permission of the respondents. To clarify differences and keep track of the two sections they are designated section 1 and section 2 for the remainder of this paper.
12
4 INTERVIEW REVELATIONS
4.1 Org ganizationa al Structur re
4.1.1 Th he Matrix St tructure in Section 1 The org ganizationa al structure e where we e found sec ction 1 is ill lustrated in n figure 4.1 1. In this matrix structure the t section ns intersec cted the projects. This setup ma ade experts out of the staf ff in section n 1 to be us sed where i it is deeme ed appropri iate in diffe erent devel lopment projects. The R&D D staff therefore is highly h spec cialized for r certain ta asks. Although the rs are phy ysically clo osely locat ted the coo operation between them, t it section’s member seemed d, was very y limited due d to the fact that everyone was spread across different d projects. That was s unless tw wo or more section members happened to work on th he same project. There were w indica ations from m the int terviews th hat this c competence e based structure was bein ng relaxed following a slight reo organizatio on and that t people wit th more differen ntiating ski ills were ge etting into t the differen nt R&D sect tions. The manager o of section 1 1 expressed d an outspoken ‘rule’ ’ about not t engaging persons in more e than 2 pr rojects, pre eferably con ntaining ea ach staff me ember inside a single e project at a tim me. But the manager a admitted th hat is pretty y much not t the case. Some peop ple were indeed working o on a single project but t many were working g on two, in n some cas ses even three projects p at t a time. One O person n in the section was s normally y working on 5?7 differen nt projects simultaneously beca ause of special skills w within a ce ertain narro ow field that cou uld be used d in many p projects. Incidentally t this person n was one o of the interv viewees for this study.
Fig gure 4.1 Ch hart of the matrix org ganization nal structu ure in secti ion 1. Each row (S1S4) is repr resenting one o section in the dep partment with w its emp ployees (let tters) und der a sectio on manage er. Each co olumn repr resents one e project (P P1P6) und der a proj oject manag ger. The com mplexity of f the structure is exem mplified by S Section 3 in n the figu ure when se everal empl loyees in th he same sec ction could fit into a p project. Fur rther, the arrows show that ea ach employe ee also cou uld feature in more th han one pro oject, all making m up for f an intri icate web of communication.
13
Figu ure 4.2 Chart of the project ba ased organ nizational structure in section 2. Her re the sectio on manage ement and project ma anagement work in pa arallel with hin the section to owards one e product line. The employees s are only occasiona ally engaged in other o proje ects (illustr rated by the t dashed d lines). Th he section is concerned with h developm ment of a sp pecific part of the prod duct while o other sectio ons mak ke up for ot ther aspects s of the product. The other two o interview wed staff members m bo oth express sed that working on a single project at a time e was bene eficial as it reduced stress lev vels and also the am mount of adminis stration involved. For instance when a pe erson was a member of two pro ojects it was req quired to at ttend doub ble the amo ount of stat tus meeting gs and mor re so for each extra commit tment to ad dditional projects. Th p his stole tim me from th he pure dev velopment tal work and so was not appreciated d. However r some projects were lengthy an nd one res searcher having to do emergen ncy work fo or other pr rojects simply becaus se of the was positive on h ment and va ariety. excitem Whi ile the cons stant movin ng around to and from m different t project in one could be seen as lacki ing continu uity there w were also p positive voi ices raised regarding the organizational structure. Learnin ng was gre eatly aided d by emplo oyees meeting other project members m with ot ther skill?se ets. In that t way impo ortant techn nical know wledge was spread acr ross the whole o organizatio on and valu uable lesson ns could be e transferre ed between n projects. 4.1.2 Th he Project?Based B Struc cture in Sec ction 2 Section n 2 worked d differently y and the m manager proclaimed that about t 95% of th he work conducted within the section was don ne on the sa ame projec ct (figure 4 4.2). Section n 2 was respons sible for th he software e part of a p product line e and thus works alm most solely o on tasks regardi ing these pr roducts. “This m means you need to ga ather all th he compete ence neede ed to solve the tas sks in one g group” (Man nager 2)
14
This is opposite to the matrix structure where the different skills necessary for one project needed to be picked from sections where they are gathered according to expertise. The route of communication also became different in this product based structure. Because the section staff now was working on the same product communication was denser within the section. However the manager of section 2 did add that substantial communications with other sections had to occur because they were also working on the same product, albeit different aspects of it. The organizational structure changed for this specific part of the whole organization one year before the interview took place, from the matrix structure as described above. This was done to get better continuity on the product line by having the same group of people working on it as the products developed. Manager 2 was generally pleased with this organizational transition but did admit it was still too early to call. 4.1.3 Leadership Responsibilities The section manager duties included staff?care responsibilities ? assuring a good physical and social working environment in accordance with company regulations, including safety requirements. The manager also had to sustain a section budget; one that was by most part set by senior staff but in which the section manager had some say. Moreover each department held an investment budget out of which the section managers made necessary technical improvements for keeping the research work up to date. Another important part of the manager’s tasks involved quality control of material such as technical reports that were to be released to the outside world of the company. Also the progression of projects containing staff from the section were under section manager jurisdiction, by making sure certain milestones was reached without delay. Finally the manager helped project managers staffing projects with the necessary manpower, should the projects require the specific knowledge that the section represented. Manager 1 did voice a concern about the information flow from the projects to the section management. The section manager did have stakes in the projects and an obligation to solve upcoming problems. However, since the manager was not involved in the day to day management of the projects (which was the projects manager’s role) there was a risk that the manager only got involved in problems once things got really 15
bad. The manager commented about not getting a chance to help rectify errors before they developed into serious problems. It seemed that the organizational structure made it difficult for section management to sometimes barge in on the domains of the project manager even though, from the section manager’s point of view, it could be beneficial for effectiveness. Manager 1 said it was important to keep enquiring avidly into the projects as information did not flow naturally. The manager did admit the communication with the projects’ members, including the leaders, had improved in recent years. Previously the manager could feel left out of the ongoing activities of the staff members because of the slow flow of information but these proceedings had indeed improved with time. Apparently the balance of the matrix has shifted from being very project oriented (the vertical arrays in fig 4.1) onto giving the ‘line’ (read: sections, horizontal arrays) more space and authority. In the meantime manager 2 expressed that because of the organizational structure of that section, it was fairly easy to get good insight in what the staff was doing. It was specifically stated that this was probably due to the re?organization that had taken place earlier. 4.1.4 Nature of the Projects A majority of the projects were held inside the site in Sweden where the interviews took place. However there were projects with multinational participants. Some projects were spread across the corporation’s sites in countries like the United Kingdom, United States and India. Both the section managers and the staff raised issues about these cross?the?border projects mainly regarding the limited means of communication. Problems arose when having to work with someone you could not personally see for the larger part of the project as well as some cultural differences. Complaints were for instance raised over scheduled phone conferences that had to be made way out of normal office hours because of the projects overlapping many time zones. One comment about this distance relation was that people generally were too polite when communication over phone or e?mail. This led to many unclarities which often could be remedied by simply meeting face to face where it was much easier to get straight points across and talks were more earnest.
16
Project times in section 1 varied with the shortest ones being a couple of months long. Normally project times stretched from 6 months up to a year, sometimes longer still. In section 2 the talks were about cycles that were dependent on general product development as the ‘project’ was a continuous one. However no generalization about these cycles could be made from the interviews, other than that the section had just left a phase with intensive development because of an upgrade in the product line.
4.2 Work Load
It was widely acknowledged during the interviews with section 1 that the work load on the R&D members was quite high. The section 1 manager recognized having to cut the section members’ working commitments in order to not produce too much over time hours as a prominent managerial task. Overtime hours had to be approved by management but were, at least in stressful periods, a common occurrence. The first manager also admitted that the co?workers experienced the environment as stressful. From the yearly employee questionnaire the amount of stress and lack of recovery was a particularly standing out issue. From the manager’s point of view, the sheer number of projects could sometimes be overwhelming for everyone involved in the section. Section 1’s manager did admit having to push employees to complete certain tasks, but at the same time the manager was often involved in putting other tasks on hold while putting pressure on completing more prioritized tasks. Thereby structuring the work (ex. setting priorities to different tasks) for the staff became something in which the manager was much involved with. However there was never any need for the manager to push employees because things were moving too slowly overall. Manager 1 who had spent a long time with the organization said that some years back, the pace of production was not as high. Nowadays as soon as a project ends R&D workers immediately jump to the next one. Sometimes they even do that before the previous project ends. There used to be a lag?time in?between projects where the staff could catch one’s breath and recuperate. That lag?phase simply did not exist anymore. The answers in the interviews with section 1 staff was not as resounding. In no way was there too little work to do but the mechanisms for stopping employees getting too much work seemed to operate quite well, at least for some. One of the responding staff members simply said there were loads to do and that the always seemed to be a lack of
17
resources. None of the three said they worked overtimes hours for any extensive periods. The manager of section 2 gave a brighter view on the work load and stress levels of that section. Here there were also deadlines to follow and at times there was indeed a lot of work needed to be done. But these peaks of high stress seemed more easily identified and were normally followed by a phase with normalized work load. One problem that could occur was when, in times of high stress levels, upper management did not deliver clear priorities on what should be done primarily and what would have to wait until the storm has passed. But in general the communication with the department managers was good; a view was that was shared by both managers interviewed. When interviewing the developers in section 2, the work load assessments were a bit grimmer. The team has just gone out of a very intensive two year development stage with very high stress levels during which work over time was a reappearing theme. The ‘peaks’ that the section manager was talking about surely was identifiable, but this one happened to be very long. Pressure was dropping since the more intense phase of the project had passed, but one of the developers added that a new project manager had come in – one that played the gatekeeper role much sturdier than the predecessor (i.e. blocking too much work coming in). The staff was therefore given more breathing space.
4.3 Reports and Evaluations
No in?depth investigation into the work progress was made by section managers on a continuous basis except for informal talks in the workplace. The staff was expected to independently go on with their shores on the individual projects. The manager in section 2 was planning to introduce a formal reporting system which would equal the reporting that the section manager gave to the department manager, but now of course on an individual level. The different projects held status meeting weekly or bi?weekly where information about the ongoing work was shared and discussed. A lot of documentation was created in the R&D organization, but there seemed to be a common understanding towards documenting on account of it helping keeping track of the research. If not for the simple reason to quickly be able to patent or in other ways protect innovations created inside the organization. However, there was not a lot of documenting going on in terms of tracking the status or the quantity of work being done.
18
Besides getting approval from section management the scientific reports went under internal peer review. A designated senior scientist left opinions on the staff’s work before the reports were released. One of the interviewed staff members of section 1 expressed gratitude towards these proceedings. As both of the persons were working within the same section and sometimes on the same project, the communication worked very well. There was much openness in the discussion preceding the completeness of the reports, before they were handed over for final review by senior managers. This was told to be a very good, as well as dependable, source for inspiration. The managers held evaluation meetings with the employees quarterly. They were then categorized within three levels; from exceptional talent through valuable member down to underperforming. If a staff member fell into the latter category the number of follow?up meetings increased to monthly talks with the manager. This was done in order to thoroughly come to terms with the problems needed to be rectified. One of the managers expressed some fears from employees involved in the evaluation process. Many were not used to this rather frank method of examining one’s work. The manager indicated that it was not previously accepted in the Swedish corporate culture to hold this kind of feedback talks with staff members. This included giving positive feedback; something manager 1 says had started to come through more recently. The organization was starting to adapt more ‘international’ norms in regards to feedback. Tolerance had become greater and none of the people interviewed expressed any negative concerns about the personal evaluations. Likewise the relationships between the staff and management seemed to be a healthy one and all of staff members interviewed agreed that there was never any problems in coming to their respective manager to discuss problems in whatever form that had arised during work.
4.4 Rules and Commandments
Safety regulations were very often getting high priority on meeting agendas both with midlevel managers and their staff and when the managers reported upwards. In the first section a bi?weekly section meeting was held where the section member’s work was presented and again safety issues are carefully examined. Also there was a constant stream of information flowing down from corporate governance about these regulations. Manager 1 joked:
19
“Sometimes it feels you are required to wear a space suite as soon as you are about to step into the lab” While all the persons interviewed admitted that the regulations are necessary, in part for the well being of the staff but also because juridical accountability reasons (i.e. the company is very vary of law suits). But there was also a consensus that senior representatives tended to overdo it on more than one occasion. One employee described the steady flow of more or less non?essential information from corporate executives as an annoying interference when the working schedules were already tight. This included web?based training programs that were not well received by many of the employees interviewed because they were seen as time consuming and infantile: “You can get the perception it’s not even serious, like being educated on how to open an office drawer” (Staff member in section 2)
4.5 Learning
By the end of projects or certain project cycles the members were supposed to gather information regarding possible improvements of the development work and address issues that had come up during the projects that may have negative effects on work. However the essence of these ‘moments of reflection’ appeared to have, putting it mildly, not quite made a breakthrough. One of the managers explained: “In the projects we usually have a thing called ‘lessons learned’ by the end of projects where you (the project members) sit down and discuss what we could learn from this, what went wrong and what can we improve until next time. But how people use that feedback from the projects, that varies. Unfortunately these feedback events take place, someone writes it down in a report and then a new project start and that report is never looked at again” A staff member concluded that project participants are released at different times, thereby it was difficult to gather all the people again to compare their experiences in order to make solid conclusions about things to improve. The learning was solely on an
20
individual level whereby your own inner thoughts and experiences evolved into learning for future work. Besides the apparent lack of time to establish proper project evaluations further problems surfaced. One of the persons interviewed, who also had spent some time as a project manager, said that people often had a defensive tendency when it came to looking back on previous work. “Some people were scared of pointing out shortcomings in the project because they are afraid that they themselves have missed something that could hit them back” “There is no problem crying over lack of resources, but no one ever writes (in the evaluation forms) that we came up with bad a method for solving this and that problem. That hardly ever happens.” Another person interviewed who had previously worked with academic research compared the two worlds. The respondent concluded that university professors tended to be more frank and even brutal in their evaluation with scholars. That type of personal revision on project work was not as common in the organization in this study.
4.6 Allowing Creative Roaming?
It could sometimes be hard for a newly recruited scientists from the academic world to understand the demands in commercial industrial research. Some good ideas had been sent to the bin because they would simply not make profits for the company. Summarized manager 1: “You are not just here for your own sake. You are here for the team. That has to be realized for newly graduated recruits. [...] They seem focused on their own career and picking up merits. That is not how it works in the industry. The company owns the results not ‘Me’” At the same time ‘orders from above’ about quickly moving resources to certain projects or problems seemed to tire employees. Manager 1 wanted to see more continuity in the
21
working scheme allowing the R&D staff to focus more carefully on the projects they were assigned to in the first place. Manager 1 pointed out that the employees were encouraged to find solutions independently and bring in new ideas but there was no official time put away to do so. All of the staff members were 100% booked on projects, in reality the manager says, they work 85% on the projects and the remaining part is where you theoretically could put in your own research. However most of that time was consumed by section meetings. In the same time each section has goals set up by senior management in which a number of new ideas and patents should be discovered each year. Manager 1 did admit that it might seem contradictory to push for invention while almost all of the employee work hours were solely dedicated to problem solving on a project level. The other manager shared a similar story. There is some time off from the projects for the staff. Bits of that time are used to improve line production. This could be done by adjusting the development systems in order to make future work more effective. But that is how far off the normal development routines it got. Officially the company both demanded and encouraged innovation. Goals were set for departments and sections to come up with a certain number of new ideas and register a number of patents. The emergence of ideas and patents were financially rewarded but the staff involved in this survey testified that there is no time for conducting independent work outside the projects. Should something interesting emerge then future research into that matter had to be formalized within the organization and under supervision of management. The general consensus from the respondents was that it should be easier to diverge with ideas without too much red tape. Only one respondent dared to say this would produce better results, but the consensus was that it would at least make the R&D?workers more satisfied. Meanwhile the project themselves had been breeding grounds of exceptional ideas. According to some, this has a lot to do with the composition of the project group. If the persons in a group were happy with each other there was a better probability for positive synergy effects. One developer highlighted the importance of the project manager; some let too much pressure from the outside (for example costumer demands or internal corporate demands) flow into the project causing a stressful environment which inhibited good results. While a good project manager would safeguard the group
22
from outside pressure thereby contributing to a better working environment which rendered better results.
4.7 The Views of the Leadership Role
Manager 1 explained some difficulties when advancing from the R&D staff onto managing it. The transition from being a ‘friend’ to the ‘boss’ was in the beginning a bit troublesome. The manager still tried to keep an amicable relationship with the section members but in the same time kept a professional distance. This balancing act had with time became easier naturally; because the manager now barely worked with any former ‘equal’ colleagues. The same manager talked about losing out on a communication network with colleagues when moving to a managerial position. In the beginning this void was difficult to refill before finding the balance recently mentioned and also building a new network with other leaders within the organization. Still the managers felt closely tied with the section, but kept issues regarding regulation and control inside the sphere of other company leaders. The relationship between managers and staff appeared to be a good one. There was no prestige or loss of prestige between them. In the same way the hierarchical differences were not very apparent and many expressed that the mangers stood very close to the section compared to the perceived relationship between the section managers and their seniors in command. This was done without losing clarity in the professional roles. A couple of the staff members interviewed had been appointed section members for shorter periods, for example as a stand?in and one of them concluded; “Being a (section) manager here is more about being a servant than dishing out orders” Much of the manager’s role was about setting priorities to projects and making sure the staff spent their time and energy on matters that were the most important. Therefore an important task was also to let upper management know how much work one could actually load into the groups without causing lapses in quality. Occasionally the managers would inquire into the work being conducted by the staff, but their overall role was not so much technical but more administrative. 23
5 ANALYSIS
5.1 Managing Connections
5.1.1 The Influence of the Organizational Structure Where the matrix structure was predominant it was not uncommon for R&D staff being occupied in at least a couple of projects simultaneously. This meant the size of the connection cloud about doubled for each new project a person got involved in. Many connections per project were with people outside of the section, with each other section physically located separately. It is not hard to see that this goes against the principles of managing connections. Creativity suffered as a single person was subjected to a lot of information while being active in more than one project. This is often because project members are expected to participate in many kinds of meetings and administrative chores for every project. In that respect section 2 was more slim?lined. Most of the communication was kept in?house, at least as far at the developers were concerned. This meant a better focus on important work and less administration that spilled over to the developers. 5.1.2 Geographical Spread of Projects In multinational corporations communications across borders are necessary. All of the persons interviewed expressed some sort of negative feelings towards these collaborations. In part there were practical problems with for instance time zone differences, and on the other hand there were cultural differences in the way people from different countries communicated. This indicates again that keeping things ‘local’ and limiting the communications within the group is beneficial for creative performance. One of the reasons behind the ineffectiveness of international collaborations was mentioned in the interviews; if the communicating persons cannot meet face to face and form a more personal relationship there is a risk of very cautious behavior. When two people feel they are representing their respective country it is very easy to fall into political behavior when trying to advance proceedings. There is always a much greater sense in these kinds of relationships that if things go wrong it will create turmoil in the whole corporation, whether that will actually happen or not. Therefore this sort of problem with managing connections has a lot to do with capitalizing on failure. This is because pointing fingers becomes an absolute no?no in these relationships that are 24
perceived as ‘sensitive’. You cannot have a trusting relationship without having the courtesy of speaking out properly when something is wrong. However this turned out to be a minor problem after all. All of the respondents admitted that the numbers of international connections at the present were fairly limited. But some did have had more collaborations abroad than others and regarding the nature of the company it is very likely that it will happen again.
5.2 Pacing Productivity
5.2.1 Section Management Control On a section level perspective the views on the immediate management were overall good. None of the staff members interviewed felt like managers were looking over their shoulder constantly. There were no splits between staff and managers in terms of trust and the communication between the two was also by most parts satisfactory. There were however some problems expressed in the interviews and the two groups seemed to have similar problems, but from opposite perspectives. In section 2 most of the complaints came from the staff. Here the strong belonging to a single project meant that project management had a stronger grip on the organization. Section management did not employ the same coordinative role as in section 1 because of the handling of numerous projects there. Therefore some of the section 2 staff felt that the line management was somewhat disconnected with their everyday realities. Still much of the evaluation was done by section management, who also was the company representative in the annual salary talks, which seemed incongruent to some. The staff in section 1 on the other hand was pleased with the evaluating role of the management and the help received when too much work was requested. Instead the manager admitted to struggle with keeping up with the work being conducted in the section. There was a desire to better keep track of the projects in order to maintain control. 5.2.2 Project Management Control The shift in influence regarding project management versus section management in section 2 compared to section 1 had effects on the staff. Even though there did seem to be high stress levels in section 1, the section manager must be credited some success in shielding the staff from overworking. This could be ascribed the relative power that
25
section management, in its protective role, held over projects and the rest of the organization. In section 2 much of the gate?keeping role was assigned to the project management. Here the project almost unanimously decided on how the resources should be used and how much pressure from upper management to be released onto the staff. Previously this had not worked very well according to a couple of the staff members. Project management was pushing development progress too hard which raised stress levels and lowered performance. Some of the stress was attributed to an intense phase of product development but there was clear dissatisfaction towards the recent project management. As a new project manager came in the circumstances changed to the better and the work load is now much more carefully considered. 5.2.3 Upper Management Control In section 4.4 we learned that the emotions towards controlling and regulating the employees work from corporate governance was not very well received. There was slightly more understanding in section 1 of all the messages of safety regulation and web?based training courses. This could be attributed to the more hazardous working environment for section 1 regarding chemicals and sensitive equipment. In such conditions it is not hard to realize the need for formalized protocols of conduct. Nevertheless none of the respondents in section 1 could help giving away sarcastic grins when this topic was raised. In section 2 however there was a general consensus that the bombardment of regulation from ‘above’ led to annoyance and added to the general stress levels of the working environment. 5.2.4 Project Commitments While section 2 was concerned with the hardship of mostly a single project, section 1 with its competence based composition juggled with many projects simultaneously. The matricial organizational structure contributes to adding stress to the staff involved. Partly the sheer lack of focus of a single task when dealing with several could contribute to less effective work. Also the partition of activities diverging from core tasks increases with the number of projects a person works on. Compared to just being active on one project, having two projects on your table usually means attending twice the amount of meeting and producing twice the amount of reports. There is clearly a loss of efficiency involved in multitasking like this. Not to mention adding to stress levels.
26
The constant flow of new projects on to section 1 is also a clear violation to the recommendations regarding pacing productivity. The lack of lag?phases means that variation of speed regarding the work load is very low. It is not difficult to see that this becomes very tiring in the long run and therefore contributes to a drop in performance. There were also instances when the staff in section 1 dropped their ongoing work to deal with more acute problems, wherever those occurred. Often the section manager would ring the alarm and nominate one or a number of persons to put all other work down to quickly solve a specific task. On first glance this may seem like yet another stress factor to pile on top of all the other work. A bit surprisingly perhaps, a few of the employees interviewed said that this was actually a refreshing event. This allowed them to leave their everyday chores on their long term projects and focus on something new and exciting. When studying the theories presented in this paper it is not hard to understand how this actually provide for improvements in creativity. Varying the speed is the key in pacing production and here we discover the differences in ‘good’ and ‘bad’ stress. Bad stress comes from wearing out, constantly being pushed to perform on a high level. Good stress comes from inspiring challenges that are sustained for shorter periods of time. However, in the organization examined in this survey there seem to be a belief that constantly being subjected to stress will enhance performance when it comes to developing products. Only adding stressful deadlines every now and then will have that positive effect.
5.3 Capitalizing on Failure
5.3.1 Project Cycles and Learning The tight lineup of projects one after another in section 1 does not only affect stress levels, properties connected with the pacing production dimension. With the quick jumps between projects evaluating completed work becomes a low priority. Problems on previous projects are overlooked as the staff quickly needs to move on. At best some learning in this scenario is taking place on an individual level but there is no discussion among colleagues and there is little opportunity for the organization as a whole to learn from the experiences of single persons. It is clear that this factor could have a dampening effect on performance, both quality wise and on the rate of innovation. This is an example of corporate demands fooling themselves while trying to squeeze more out the R&D?function they are in fact receiving 27
less by doing this, especially in a long term perspective. Learning is crucial in shortening future cycle times, a necessity for survival in a competitive and changing market. Therefore the leadership, at whatever level it may be, sometimes will have to ease the short term demands and allow pure developing work to halt in favor for reflection and improvements of procedures. These views do also apply for section 2. While that group was mostly concerned with one continuous project there were tendencies of pushing employees too hard on completing project milestones. As a consequence section 2 also did not allow for much thought on work completed and therefore risked suffering from the same symptoms as section 1. This was strongly indicated from manager 2’s views on how the information from the ‘lessons learned’ session was used, or rather not used at all. 5.3.2 Fear of Failure One of the most sensitive areas of this survey regards evaluating one’s work and also the people around you. The employees are categorized by section management on performance and quality (Chapter 4.3). This seemingly frank way of evaluation staff members and their work is much in line with the thinking behind capitalizing on failure. However this requires trust in order to be properly conducted and to avoid political behavior. There is slight glitch in this approach in section 2, probably because of the dominance of project management on the staff. While there did not appear to be any personal problems between section management and the development staff (the respondents were clear on this matter) there seem to be a lack of involvement from section management caused by the structure. This lead to some conspicuousness from the staff when facing evaluation situations with section management. Probably because there was a sense that project management was better equipped for evaluating them. The evaluation process does have a backside. If much is at stake for the individual during the evaluation (like salaries and the prospect of promotion) there could easily be a tendency from staff members not to assume responsibility and to make sure they do not do anything wrong. A few of the respondents acknowledged that the sort of political behavior explored in chapter 2.1.2 did exist in the organization. That is, when things go wrong people tend to blame everything and everyone except themselves and their peers with whom they have good personal relationships with. The reasons for this are straight forward: 28
(1) There is a fear that blaming peers will have dire consequences for them which will harm the relationship as well as the personal and social working environment. (2) There is a fear that taking personal responsibility for errors will lead to reprimands from management and loss of professional prestige. The risks of getting shot when putting yourself in the front?lines then overweight the possible gains personnel and the organizational as whole would get from openly discussing things that have gone wrong. However all of the respondents claimed that the relationship with management was good, both on a personal and professional level. This should then not contribute too much to the sort of political behavior that was expressed in the interviews. But then, what does? The upper corporate functions let themselves known every now and then by sending regulatory e?mail to employees, making them sign agreements on everything from work ethics to lab and office safety requirements, and giving mandatory web?based courses. The regulations on work are made very clear. Also informing the demands on the employees regarding goals to be met and numbers on how well the company is doing is very common. Some of the safety measures taken regarding the working environment are truthfully accepted by the employees. There is a common understanding for those values to be met of everyone’s sake. However a lot of the other information is, at best, perceived as annoying. Many of the persons interviewed in this study claimed much of the general information sent down from upper management was only briefly looked at and then put away. Some commandments needed active participation of some kind, like the web? courses. Those were time consuming and stole resources from matters that seemed more important for the staff and management interviewed, R&D work for instance. In fact it seemed that most of the information sent out from corporate governance had a commanding tone is some way or the other. It is not in the job description of high level managers to be best buddies with the employees. But there are deeper values at stake besides the perceived time loss and the annoyance of getting ‘spam’ mail from company leaders. For every waiver or contract that is signed, for every note saying results must improve and for every mandatory 29
training course undergone it can be seen as the company transferring more and more responsibility and accountability to the employees. If you fail it is on you. Should you not produce results according to our demands, management will deem you as underperforming. This synchs very badly with the scientific method of research. Failure is built in to the learning process and without failure there is no learning. Therefore fear of failure is bad for creativity. If the price for assuming responsibility is too high then nobody will take it. The feedback surrounding projects becomes unreliable in such situations because the sanctions of a person admitting failure are too costly, so people protect themselves by diverting attention away from them. Instead of inciting with demands, it might be a good idea to incite with trust. In this way the people you put faith in will feel inclined to give back hard work and innovative results. 5.3.3 Peer Review Trust often goes hand in hand with familiarity and identification. This is why co?workers in a well functioning workplace tend to trust each other more than they do superiors. It is in the managerial role to evaluate, but in the same time often not to be involved in the day to day work. Equal level colleagues often know the strengths and weaknesses of each other better than their managers, this is simply because they work closer and more often with one and other. It is not surprising to hear that staff members of both sections in this study claim to have good discussions regarding most work related issues with their colleagues, that also lead to better results. When the propensity to trust is large, the environment becomes learning friendly and there are good prospects for capitalizing on failure. It is essential for leaders to recognize the peer factor as one of the best, if not the best learning tool available. For a good starting point on optimizing this way of learning we go back to managing connections. The idea here is to a certain extent isolate the group from the rest of the world during periods of time for solving whatever problem lays ahead. Communication should be kept inside the group and nothing else. This ‘greenhouse’ of thinking will help build trusting relationships inside the group which in turn promotes learning, and there you have it: Creativity!
30
5.4 Paying the Price
Leading innovative functions is a sensitive matter in both directions of communication for low level managers. The section managers in the organization studied are the closest representatives R&D staff has towards corporate leaders. Meanwhile they are also the final outpost for much of the communication from high level governance towards staff members. They have to exhort corporate control in the sense of keeping budgets and assuring protocols are met. At the same time staff members have demands on working conditions and certain degrees of freedom in their work. Paying the price is about balancing the two stakeholders just described. It can be a risky job as it could potentially damage relationships with co?workers and it could get you vilified by senior leaders as strange, ineffective and disobedient. Paying the price is also different from the other three dimensions in that they establish norms that intend to enhance creativity and hopefully improve chances of innovation. Paying the price on the other hand is descriptive, it paints a picture of the problematic world a leader in R&D faces but does not exactly tells you where to stand your ground. You could easily interpret this dimension in such way that releasing control over creatively talented people automatically will induce an innovative environment. However the following segment of this analysis will argue that is not the case. 5.4.1 Creative Control Creates Creativity The manager of section 1 saw regulating staff engagement as one of the most prominent tasks. We have already indicated this as a power struggle between individual project management and section management. The single project wants to squeeze as much efficiency possible out of the resources coming from the section. At the same time the section manager is responsible for the well being of the staff, the quality of work produced and the results of all the projects in which the section’s staff members are involved. The manager had to work hard on obtaining information from the staff members and their various projects. This was partly done to ease work load off the staff so that quality of work would not suffer, or in the words of the analysis frame – pacing productivity. The managers also wanted to inquire into projects regarding problems that had arised, and complained that often information about issues got to the management table too late. Things had already gone pretty bad at that stage and the desire was to earlier step in and put out small fires before they blazed, that is to better capitalize on failure. 31
The manager seemed uncomfortable with this constant struggle and this anxiety. If it is to any comfort, this is part of leading creativity according to Boehlke. Finding just the right balance of inquiry and accepting that you will sometimes be left out of the loop is part of successful leadership. That is an explanation why manager 1 during the early years of the managerial career felt like an outsider to the colleagues that used to be on an equal level. This also applies to section 2, but the roles seemed to be reversed, especially during the time when there was some dissatisfaction with the project management. In section 2 the project had more leverage over section management because the staff was engaged in this single project by most part. Still the section manager had the same responsibilities over staff welfare and some of the staff members interviewed felt there was too little inquiry into the events in the project when thing got very demanding, resulting in overworked staff. 5.4.2 Breaking Rules Anecdotes are plentiful in the professional literature on creativity. Famous inventions often seem to be coming from people who stepped outside of norms. Part of paying the price as a leader is to dare let people work in directions not previously thought of. But from the interviews the indication is that there is little space to do this in. While officially the company encourages creative thinking and even demand it in the goals set up for R&D groups it also provides stringent rules on how work should be conducted. There seems to be too high stakes involved in the breaking of rules for it to happen as we concluded regarding capitalizing on failure. One way of paying the price as a leader in R&D could be to tighten up the gate? keeping efforts in line with managing connection, thereby shutting out corporate information that could incite fear instead of trust into employees as well as creating annoyance and stress. However when rules are constantly flowing down on management and staff, it is easy to get the perception that breaking the rules have too dire consequences to even be thought of. This is a clear breach of the ‘laws of creativity’ as defined in this paper.
32
6 CONCLUSIONS AND RECOMMENDATIONS
The ove erall assess sment from m this study y regarding g the four domains on the two s sections is prese ented in fig gure 6.1. Wh hile this se erves only a as estimatio ons from an n admitted dly short study there t are still some valuable v po oints to be made. Re egarding pacing prod ductivity both se ections see ems to hav ve issues with w high work w load. In section n 2 it seem ms more depend dent on the e project phase which h for the moment m of this paper r was on a a calmer level. In I section 1 there was w a con nstant flow w of projects withou ut lag?time e which contrib buted to hig gh stress le evels. Both managers, but partic cularly man nager 1 tri ied hard to control the staff’s work lo oad. The de emands on n reporting g were satis sfactory ac ccording to the basis b of pa acing produ uction. Non ne of the employees e complained about managers constan ntly overloo oking how work was done or progressing. Man naging conn nections ap ppeared eas sier in sect tion 2 than in section 1. This was s simply down to the nu umber of projects staff in section 1 had to be engaged in. The organiz zational str ructure als so contribu uted to em mployees in n section 1 1 probably y having fewer ‘i in?house’ connections s during projects as di iscussed in n chapter 5..1.1.
Managing Connections s
Managing Connections C
Paying the Price
Pacin ng Productivity Section 1 Capitalizing g on Failure
Pay ying the P Price
Pacing Productivity
Section 2
A C
B
Capitalizing C on Failure
Managing Connections s
Paying the Price
Pacin ng Productivity Section 1 Section 2 Capitalizing g on Failure
Figur re 6.1 A & B: Evaluat ting the tw wo secti ions on th he four do omains. Th he perip pheral ends s of each ax xis represent ideal conditions s for creat tive work of each dimension according to Boehlke e’s mode el. This means m the larger are ea cover red by th he graph the higher congr ruence with h the model l overall. Figur re 6.1 C: C The tw wo graph hs supe erimposed for f easy co omparison n.
33
Work load and stress comes back to the discussion when considering capitalizing on failure. In neither sections does there seem to be enough time given to careful learning processes. We have also looked at corporate control and how that could propose a threat to creativity. On the other hand the creative influence of co?workers is strong. The section 1 manager was very keen on keeping up with eventualities in the projects that could lead to problems, thereby helping to capitalize on failure. This ability to use control to influence wears off when considering paying the price, the one of the four dimensions most difficult to quantify like in this attempt. There could be good reason for the perceived differences of paying the price in the two sections. While section 1 can be characterized as a bona fide R&D group, section 2 is more geared towards development alone. This does not diminish the importance of creativity but it might influence the working style of management because of the more structured nature of work. We now continue to summarize some problems and possibilities in the company regarding creativity that has surfaced during this survey. Finally in 6.5 we look back on the model and discuss how well it performed in this study.
6.1 Staff Dispersion among Projects
In the section where the matrix organizational structure still was prominent there was an obvious problem with allowing persons working on several projects at the same time. It heightened stress levels and lowered the time staff could spend on actual development work. There is a need here for management to be very stringent about long time lending of staff between projects. There is evidence, both in the interviews themselves but also in connection with the theoretical reasoning, that performance will indeed improve if the R&D?staff is allowed to focus more on fewer tasks. Either the section or department management must stand their ground on a continuous basis to face up to the demands of swift resource movement. Alternatively the section specialization (in regards to products) that already in part had taken place should be written in stone, much like the organizational structure of section 2. Speaking in terms of the theoretical framework this will aid connection management so that communication within the group becomes denser but the communication with the rest of the world become more limited and more controlled by the gate?keeping section manager or project manager.
34
Moreover as communication within the group is promoted hopefully the relationship inside the group will become more long term and ideally more trustworthy which will encourage learning and to capitalize on failure.
6.2 Managing International Connections
Initially questions about international collaboration were included in the interview questionnaire because of its potential influence on managing connections. It did not turn out to be a great problem in the organization as far as this survey was concerned. However some issues were raised in the interviews and the future prevalence of off?site connections in the organization is inevitable. Also other parts of the organization might benefit from discussing this topic. Putting it zealously, when working with outside people or even groups the numbers of connections should be kept at a minimum. Preferably most of the communication should be kept at a managerial level although in reality, with the technical nature of many projects that is not feasible or effective. When limiting the means of communication with an outside group to only occur with between as little as two persons that relationship will have better chances of becoming more personal. Much like the intention regarding relationships inside a group the aim is to make the few intergroup relationships more trustworthy, therefore more honest and learning. This is opposite to superficial and often overly careful and political communication that was analyzed in 5.1.2.
6.3 Trust
The interviews indicated good relationships within the two sections. In 5.3.3 we concluded that extensive reviewing and communication inside a tight group were beneficial circumstances for innovation. Furthermore the prevalence of trust is the key factor for attaining these hotspots of creativity. By embracing the reasoning in managing connections this positive group effect can be further improved. Managers can incite trust by exhorting just the appropriate amount of control. Not too much so that the employees feel that they are under constant surveillance, something both managers in this study did well. Not too little for the demands on the employees from for example corporate control and projects becomes too stressful to handle. Here the section manager’s role is clearly to pace productivity. But it has to be done with timing in mind as well. Varying the pace of work can have positive effects on 35
creativity. Sometimes mangers should allow breathing space for thought and recuperation while sometimes set sharp urgent deadlines resulting in heavier work load. Another perspective to look at is the prevalence of trust between the ground staff and the corporate management. Practically all of the respondents in this study expressed some ill feelings towards the influence corporate control tried to impel. There was a wealth of rules, regulations and training programs aimed at the very basics of how work was done. Some was accepted, some met with skepticism. Meanwhile there were also tough demands of performance and goals to be met. The wiggle room in?between regulations and demands open for creative thinking was therefore limited. Fear of corporate failure was clearly noticeable in the communications with the staff. ‘Management by fear’ does not build trust and with the actions of carefully regulating R&D staff, upper management signaled a lack of trust. It is therefore difficult to demand trust back. The fear of failure easily seeps downwards in the rest of the organization, this results in defective learning because of inability to assume responsibility and to forcefully attack erroneous behaviors and procedures. Instead communication from upper management should be kept to a minimum. Only the most important regulations should be imposed for the well being of the employees. Many staff members on R&D?level are not even interested in financial numbers, especially not regarding parts of the company in which they have no insight or control in. In the name of trust all sorts of information should be accessible but must not be pushed down the throat of employees.
6.4 Pushing for Pace
We have extensively argued the role of low level management on controlling the work load. So we continue to look at the influence of corporate control. According to many of the persons interviewed, upper level manager seems to think that constantly pushing the envelope on endurance and setting just about unattainable goals is the best way to get as much performance as possible out of R&D (and perhaps other functions as well for that matter). Our theoretical report tells us that this is not the way to go forward. High stress levels will only improve performance for a limited period of time. After that performance will drop as a consequence of wearing out. In order to find the right pace that will maximize performance there is a need to empower the low level managers. They have the best knowledge of the capacity of their
36
groups and are better equipped to push employees when needed. Again we fall back to trust as this included giving up power on a high level to redistribute it closer to the core activities. Signaling trust therefore will make the best out the resources provided, it will encourage ‘good’ rule breaking that will enable more creative work. This will result in better performance, better results, more satisfied employees and less staff turnover.
6.5 Usefulness of the Model
A lot of significant insights were given when analyzing the company through the four domains. Some known problems in the organization could be placed in the context of the model and therefore, hopefully, help leaders remedy issues standing in the way of innovation. Also some not so obvious problems have been casted into the light that perhaps would have been difficult to identify otherwise. The scope of the model meant that it was not hard to extract a lot of useful material from interviewing eight persons only. Further exploration into the field of creativity for the organization in this study can be given by inquiring into the views of project management and high level management. Because, as the analysis show those two players have a lot of influence on the innovative work, being an integral part of the aggregated leadership. Despite the apparent usefulness of the model two distinctive problems did occur during the analysis. 6.5.1 How Exactly Do You Pay the Price? Apart from paying the price the breakdown of the other three dimensions were very straightforward because of their normative nature. Trying to quantify the results for this fourth dimension like in figure 6.1 was difficult because of the confusion of what you were actually measuring. Paying the price could be seen as a measure of involvement from leaders. But if you instead see paying the price as an aggregate of the other three dimensions you discover that it is not a linear measure, pacing production too much for instance will not be good for creativity. It seems that the art of paying the price is about finding the middle way, one where just enough effort on to the creative working conditions is what you want. The analysis therefore becomes very individual for each organization, for each group or even when managing certain individuals. 37
6.5.2 Learning versus Managing Connections According to the interview material there was one contradiction to the positive correlativeness of the dimensions managing connection and capitalizing on failure. Managing connections suggested keeping communication inside the group. But a couple of the respondents said that widening perspectives by opening up communications with other parts of the company and even resources on the outside could facilitate learning. This could indicate a contrast between both managing connections and parts of capitalizing on failure and what the respondents said. Reaching out to distant relationships of which there is little initial trust could be beneficial for learning and therefore on capitalizing on failure as well. But our theory on capitalizing on failure was very focused on creating trustworthy relationships out of which creativity would bloom. While managing connection wanted to limit the outside world’s intruding on the creative process. Surely Boehlke’s reasoning did not intend to lock up R&D staff completely from any influences of the outside world. But the model still fails to fully acknowledge the perceived stimulation given from outside influences as a positive factor on creativity. ?
38
ACKNOWLEDGEMENTS
I would like to thank my supervisor and my fellow students who helped me with feedback on this paper. Also thank you to the company who volunteered and especially the company representative who helped me organize the survey. A warm thank you to all of the participants that took time off their busy schedule to contribute with insightful and honest comments. Finally thanks to Dad for his help with proofreading.
REFERENCES
Argyris, C (1994) Good Communication That Block Learning. Harvard Business Review, 72, 77?85. Andriopoulos C. (2003) Six Paradoxes in Managing Creativity: An Embracing Act. Long Range Planning 36, 375–388 Amabile, T., Hedley, C. and Kramer S. (2002) Creativity under the Gun. Harvard Business Review, 80, 52?61. Boehlke, S (2008) The Politics of CreativityTM: Four Domains for Inquiry and Action by Leaders in R&D. Creativity and Innovation Management, 17, 77?87. Cannon, M.D and Edmondson, A.C. (2005) Learning from Failures: Why It May Not Happen. Long Range Planning Journal, 38, 281?98. Chen, M?H. and Kaufmann, G. (2008) Employee Creativity and R&D: A Critical Review. Creativity and Innovation Management, 17, 71?76. Cross, R. and Parker A. (2004) The Hidden Powers of Social Networks, Harvard Business School Press Hahn G., Hill W., Hoerl R. and Zinkgraf S. (1999) The Impact of Six Sigma Improvement?A Glimpse into the Future of Statistics. The American Statistician, 53?3, 208?215 Klefsjö, B., Wiklund H. and Edgeman R. L. (2001) Six sigma seen as a methodology for total quality management, Measuring Business Excellence, 5, 31?35 Magne Holme I. och Krohn Solvang B. (1996) Forskningsmetodik – Om kvalitativa och kvantitativa metoder, ISBN 91?44?00211?4 McPherson, M., Smith?Lovin, L., Brashears, M.E. (2006) Social Isolation in America: Changes in Core Discussion Networks Over Two Decades. American Sociological Rewview, 71, 353?75 OECD (2008) Main Science and Technology Indicators (MSTI), Volume 2008/1 ISSN 1011?792X Rickards, T. (1991) Innovation and Creativity: Woods, Trees and Pathways. R&D Management, 21, 97?108 Sutton R. The Weird Rules of Creativity. Harvard Business Review, Vol. 79?8.
39
APPENDIX 1: INTERVIEW TEMPLATE R&D EMPLOYEE
General Personal Information Age? Education? Time of current employment? Total time in company? Time of employment in the industry? Time of employment in R&D organizations? Work Description Describe tasks? Special title within workgroup? Responsibilities? How many people are you normally collaborating with? How many of these are outside of your group? How many of these are outside of this site? National and international connections? How many people do you share your research results with? To what extent do you take part of the work produced by others in the company? How many from this site? Work Load Assess stress levels Assess variation on stress levels Work tempo Overtime Do you work on simultaneous projects? Are all projects similar? In scope? Length? Responsibilities? Reporting Who do you report to? How often? In what form? How many work hours are using for preparing reports? Overall feelings towards reporting? Is is too much? Do want them removed completely? Do you find it interesting/useful taking part of other people’s status reports? (if there is opportunity) 40
Feedback To what extent do you look back on work accomplished? What mechanisms kick in when something goes wrong/projects fail? Your perception on management in these situations? Do you often talk about occurring problems with management? If not, why? Do you often receive useful help when discussing problems with management? Views of Leadership Do you think the management works closely with the rest of your group? Do you talk to your manager often? Did you ever work with manager as a colleague before his/her present position? Do you consider the relationship with your manager as a frank one? Do experience any problems in your manager’s relationship with his/her senior staff? Does your manager share his/her work related problems? How is your personal relationship with your manager? Do you feel your manager defends you/your group against the rest of the organization? Does your manager relay pressure on you/your group from his/her senior staff? Assessments of Creativeness Are you allowed time to work independently on developing new idea besides the projects? If not what do why do you think this is? Would you like to have such time? Do think it would improve results? Additional Questions (Added as the series of interviews progressed) How do you experience the leadership and commands of upper management? In terms of quantity? In terms of quality? Does it add stress? Does it affect overall results? Who you rather do without interference from above/parts of it? What kind of information or commandments come from senior managers? Do you have any personal contact with senior managers?
41
APPENDIX 2: INTERVIEW TEMPLATE R&D LEADER
General Personal Information Age? Education? Time of current employment? Total time in company? Time of employment in the industry? Time of employment in R&D organizations? Total time as manager? Work/Group Description Describe tasks? Special title within workgroup? Responsibilities? How many people are in your group Does your group collaborate with other groups? How and to what extent? Where are these groups located? (National/International connections) Are the people in your group responsible for any communication with the rest of the company? Or to the ‘outside world’? ‘Production’ Pace Assess overall stress levels on you and your group? Do you often feel you have to urge your group to work faster? Does superior staff often demand higher output tempo? Do you impose deadlines of other restrictions to pace up productivity? On the contrary, do you take action to relief stress? Does the projects vary for your groups? In terms of scope? Length? Responsibilities? Are people working on simultaneous project? If so, is this forced upon you? Convenient way of allocating special talents to different project where needed? Reporting Who do you report to? How often? What kind of information do you report? Work progress? Financial information (costs etc.)? How often do your subordinates report to you? Does the amount/outlook of the reporting vary depending on the stage of development? Do you keep your group up to date with demands from your superiors? 42
How do they report? How are the reports useful to you? How much of your subordinates report information do you forward to superior officers? How many work hours do you think your group members are using for preparing reports? Feedback To what extent do you look back on work accomplished? What mechanisms kick in when something goes wrong/projects fail? How do you see your roles in such situations? How much are you involved in the day to day work in the group? Do you often feel you give handson solutions to problems in your group? ‘Friendly’ Leadership Does your group member share their work related problems with you? Or do tend to come in went things go really bad? Have you ever worked as a colleague with anyone in your group? Do you think it is affecting your ‘style’ of management? Do you sometimes do R&D work within the group yourself? Do you talk to your group members often (1 on 1)? Do you consider the relationship with your group members as a frank one? Do you feel a need to defend your group against the rest of the organization?
43
doc_547977473.pdf
Leadership Perspective of Promoting Creativity and Innovation
Uppsala University Department of Business Studies Master Thesis Supervisor: C hristina Hultbom 2008?06?04
Daniel Bolanowski
The Leadership Perspective of Promoting Creativity and Innovation
A Case Study of an R&D Organization
SUMMARY
This paper focuses on leadership problems and possibilities regarding creativity in a specific R&D organization. This is done with the help of a model consisting of four domains of special interest for R&D leaders. A survey in the form of personal interviews was conducted with leaders and staff members of two R&D sections in the organization. The analysis pointed towards problems on work load and stress issues. Furthermore the organizational structure of the two sections provided a discussion on optimal structural build?up in order to maximize creativity. Trust issues arose because of the apparent use of control by upper management as described by lower level leaders and the employees. Indications showed that the trust issues put up obstacles for learning and dealing with failure. On the other hand the relationships between section management and staff were perceived as good. Also the ground works of a good creative work was laid with the trusting relationships between fellow professionals within the group.
ii
CONTENTS
1 Introduction 1.1 The Nature and Context of Creativity 1.2 The Focus of this Paper 1.3 The Further Proceedings 2 Theoretical Framework 2.1 Four Domains for Inquiry and Action by Leaders in R&D
2.1.1 Pacing Productivity 2.1.2 Capitalizing on Failure 2.1.3 Managing Connection 2.1.4 Paying the Price
1 1 2 3 4 4
4 6 7 8
5 Analysis 5.1 Managing Connections
5.1.1 The Influence of the Organizational Structure 5.1.2 Geographical Spread of Projects
24 24
24 24
5.2 Pacing Productivity
5.2.1 Section Management Control 5.2.2 Project Management Control 5.2.3 Upper Management Control 5.2.4 Project Commitments
25
25 25 26 26
5.3 Capitalizing on Failure
5.3.1 Project Cycles and Learning 5.3.2 Fear of Failure 5.3.3 Peer Review
27
27 28 30
2.2 The Impact of the Domains 3 Methodology And Case Presentation 3.1 Establishing the Questionnaire 3.2 The Company 3.3 Selection of Respondents 3.4 The Two Sections 3.5 The Individuals Interviewed 3.6 Execution 4 Interview Revelations 4.1 Organizational Structure
4.1.1 The Matrix Structure in Section 1 4.1.2 The Project?Based Structure in Section 2 4.1.3 Leadership Responsibilities 4.1.4 Nature of the Projects
9 10 10 11 11 12 12 12 13 13
13 14 15 16
5.4 Paying the Price
5.4.1 Creative Control Creates Creativity 5.4.2 Breaking Rules
31
31 32
6 Conclusions And Recommendations 6.1 Staff Dispersion among Projects 6.2 Managing International Connections 6.3 Trust 6.4 Pushing for Pace 6.5 Usefulness of the Model
6.5.1 How Exactly Do You Pay the Price? 6.5.2 Learning versus Managing Connections
33 34 35 35 36 37
37 38
Acknowledgements References
39 39
4.2 Work Load 4.3 Reports and Evaluations 4.4 Rules and Commandments 4.5 Learning 4.6 Allowing Creative Roaming? 4.7 The Views of the Leadership Role
17 18 19 20 21 23
Appendix 1: Interview Template R&D Employee 40 Appendix 2: Interview Template R&D Leader 42
FIGURES
Figure 2.1 The four domains for inquiry and action by leaders in R&D Figure 2.2 Managing connections Figure 4.1 Chart of the matrix organizational structure in section 1 Figure 4.2 Chart of the project based organizational structure in section 2 Figure 6.1 A & B: Evaluating the two sections on the four domains Figure 6.1 C: The two graphs superimposed for easy comparison 4 8 13 14 33 33
iii
1 INTRODUCTION
The purpose of this paper is to investigate a case R&D organization. This will be done through a concrete model with the purpose of improving the conditions of the workplace in terms of creativity. A specific aim was set, with the help of the model, to form a resolute analysis easy for any leader to interpret in order to take appropriate action.
1.1 The Nature and Context of Creativity
Creativity is an asset impossible to financially quantify a priori in an organization. Before a product or service is available to the market and sales number are unveiled, no one can tell whether or not the costs involved in development was money well spent or completely wasted. ‘Quarterly based’ economic thinking makes long term investment with unknown outcome a very nervous matter in most corporations. R&D is a costly business. Firstly the staff involved is usually a very educated one (and thereby expensive to keep). Secondly the ever?changing circumstances require customized, high?end technology to make it worthwhile. Yet huge sums of capital are put into R&D worldwide (OECD, 2008). The reason for it is the outlook of many markets today, not only are they highly competitive but they are also very transmorphic. New demands appear continuously, replacing old ones. New technology generates new problems as well as opportunities to fix them. The ability to anticipate change and by all means to do something about it has more than ever become a crucial factor for survival. So then, once you established that innovation is a necessity the next question is; how do you do it? After collecting bright minds and state of the art technology the trick now is to maximize creativity as if was a product. An R&D leader is in the industry of innovation ? its means of production is people and their ability to think out brilliant ideas. But because creativity is a complex matter, intimately connected with human reflection and communication, the maximization of production is a delicate matter which is easily dealt with too bluntly in the world of corporate governance. Part of the problem in attempting to maximize creativity is on one part defining what creativity is. The word has many synonyms and many do not adequately represent the scope of its numerous influences in organizations (Chen & Kaufmann, 2008). Another troublesome part of maximizing creativity is that it is notoriously hard the measure.
1
Because there often is a lack of rigorous thinking about what creativity is and means for the organization it is very easy for the term to degenerate into blurry concepts of what should be included in the concept. (Rickards, 1991). Part of the explanation to the nervous approach towards creativity can be derived from previous studies in this field. Discussions about creativity have traditionally been set on an individual level. Psychological measures have been the primary tools for elaborating and evaluating creativity. This has limited analysis away from the corporate realities where social and environmental aspect play a significant role. No wonder then that many leaders find this topic difficult to handle. Clearly there is a need for a wider approach, one that puts the problems and possibilities of innovation into its proper context. While not excluding the individual perspective, a multi disciplinary approach is recommended to encompass the sum of all factors involved. (Chen & Kaufmann, 2008)
1.2 The Focus of this Paper
With the goal set on creating an innovative environment this paper will focus on the leadership of R&D in the specific case organization. The aim is to avoid arguing around cognitive processes and address issues much easier to put your finger on. Many leaders in R&D are themselves former staff members in product development and usually there are not enough space given to dwell on the intricate meaning of creativity in the reality of corporate work. This paper will aim to break down the concept of creativity into tangible parts recognizable in the everyday work in R&D, thus formulating a handbook for quickly identifying aspects of leadership that could influence innovation. Leadership can assume many forms, especially in an organization as big as the one being surveyed in this paper. Because of the limited time frame of the investigation there was a need to narrow down the part of the organization which was to be included in the survey. With the analysis model in mind, the type of leaders that work closest to the actual R&D was selected in a belief that this would generate most insights. This is because low level management have a tendency both to be leading and to be lead, as well as a good direct view on how the sum of the different leaderships in the organization affect performance on the R&D function. However, the discussion will not be limited to the leadership level surveyed. As we will find out higher level management and project managers have a profound effect on the R&D work and leaving them out of the analysis would make our conclusions
2
seriously incomplete. But we still need to bear in mind that upper level leaders have not voiced their concerns in this paper. Widening the approach to include more forms of leaderships is rather a suggestion for further analysis into this topic.
1.3 The Further Proceedings
A theoretical model on areas needing special consideration when evaluating creativity in R&D organizations will be presented in the next chapter. The model was chosen specifically with usability in mind. It should be easy to patch the model onto virtually any organization; although there is a certain application bias towards large geographically spread companies. Additionally the individual concepts in the model must answer well to the demands on tangibility. That is, problems should be easily identified and the ways of remedy the problems should be straight forward. We will end this paper by briefly discussing how well the model stands up to these demands. The survey was set up initially, on two separate interviews with two section managers in the case organization. Then three staff members in each section were interviewed on their views on R&D work in the company, both on a personal and on a general level. The goal was to analyze the organization and specifically the two individual sections out of an operational perspective. Therefore the questions asked in the interviews were focused on the day to day activities of how work was conducted and under which circumstances. The results of the interviews in chapter 4 were then analyzed through the model, consisting of four domains related to aspects of R&D work that have specific influences on creativity. From this analysis we will be able to indentify certain areas of concern that have a good effect on creativity and should be safeguarded and other areas that have a detrimental effect of creativity thus needing special attention. These special spotlights are presented in the last chapter.
3
2 THEORETICAL FRAMEWORK
This pa aper is built t on an ana alytical model by Stev ve Boehlke (2008) tha at attempts s to cast light on n factors th hat promot te and inhib bit the crea ative proce ess. Innova ative work is set in an envi ironment o of relationships, trust, , communic cation, cult tural differe ences and p political behavio or. Leaders ship is abou ut acknowl ledging the ese factors among oth hers and m make the settings s optimal fo or the type of assignm ments in hand. The original st tudy was co onducted in the shape of 13 workshops w with more th han 200 leaders s in R&D from US?b based glob bally sprea ad compan nies. Toget ther with various existing g theories on creativ vity, politic cal behavio or and othe er subjects s this mak kes up a resultin ng concept in a four domain mod del with are eas of parti icular focus s when it comes to promot ting creativ vity. We will w now explore the four f domai ins listed i in figure 2.1 more closely. .
2.1 Fou ur Domains s for Inquiry and Act tion by Lea aders in R& &D
2.1.1 Pa acing Produ uctivity Many businesses s are facing pressu ure from the parad dox of sho ort?term financial f perform mance dem mands from m sharehold ders and a substantia al dependency on inn novation for long g?term survival. Boeh hlke conclu udes that le ean progra ams like Six x Sigma, or riginally introdu uced by Motorola M fo or defect manageme m ent and later adapte ed by a range of compan nies like AB BB, Sony, a and Honda to reduce cycle time (Klefsjö et t al, 2001; Hahn et al, 1999 9), has a ha ampering e effect on m many R&D f functions. A Astute man nagement m may add value b by eliminati ing redund dancies and d improving g processes s but in doing so run the risk of creat ting a stres ssful enviro onment where creativ vity is neede ed.
Figure 2.1 1 The four r domains for inquir ry and action by y leaders in R&D. As describ bed by Boehlke (2 2008). 4
It may be tempting for R&D leaders to tighten the screws on processes after finding out that constraining budgets and shortening project times has a positive effect on outcome. In line with the proverb ‘necessity is the mother of invention’ Steve Boehlke uses the example of the dramatic events occurring during the Apollo 13 space mission in 1970. A showcase of astounding creativity under immense pressure and with scarce resources may prove that high levels pressure will lead people to unique findings. However research (Amabile et al, 2002) points out that a sustained level of high stress has detrimental effects on performance, including innovativeness. Many managers have found themselves questioning why the modes of encouraging innovation by adding pressure that once seemed so effective suddenly cannot help to bolster performance. The key, it seems, is to keep good control over both break and throttle. Varying the speed at which employees work as well as varying complexity and scope of missions will help encourage a more creative environment. Additionally leaders must know when to inquire at all and when to hold back. Corporate cultures will often slip into promoting action and control over learning and exploration. The emergence of a ‘meeting culture’ is a symptom of such ideals. In the need to always have ‘the answer’ meticulous technical presentations consuming much time for both developers and management is a common recurring theme. All based on a fear of failure and unwillingness to release control. (Boehlke, 2008) Virtually all literature on managing creativity produced in the last decade will specifically tell you to refrain from excessive control and lowering demands on accountability in order to promote innovation (for example Boehlke, 2008; Sutton, 2001; Andriopoulos, 2003). Leaders in R&D walk a politically thin line between the need of control and the need to release innovative talent to roam freely. This political behavior becomes apparent when issues shift from the usual managerial aspects of running a project or managing a team (i.e. a more hands?on approach) and instead is focused on explaining non?tangible aspects which in many ways are very hard for anyone to explain. Therefore a behavior of defensive routines becomes apparent in order bring level?headedness into actions that are perceived as ‘loose’ in the corporate business world. Pacing productivity is all about knowing what spurs the creative process and what chokes it.
5
2.1.2 Capitalizing on Failure Defect management and profound corporate control can easily come head?to?head with the way researchers are used to deduce results. In the scientific method of testing hypotheses, failure is a built?in mechanism of learning while the ability to assimilate this behavior is often underdeveloped in many organizations (Boehlke, 2008). Instead a fear of failure can creep into the minds of R&D functions because of the need to exercise control. Fear of failing induces defensive routines that were mentioned in the previous section. Defensive routines are defined as ‘all the policies, practices, and actions that prevent human beings from having to experience embarrassment or threat, and, at the same time prevent them from examining the nature and causes of that embarrassment or threat’ (Argyris, 1994). Even if the routines are spotted by management they are often ignored because of uncertainty in dealing with this sort of behavior, with the management role being cemented into non?abstract functions such as planning and distributing tasks for instance. It is however essential for leaders to identify and surface defensive routines and keep in mind the underlying reasons for defensive behavior. At least three factors that inhibit a desired an open?hearted social behavior in discussing failure can be identified: (1) Individuals experience negative emotions when examining their own failures; this chips away at self confidence and self?esteem. (2) Most managers are rewarded for decisiveness, efficiency and action rather than reflection and painstaking analysis. (3) Psychological biases and errors reduce human perception, sense making, estimation and attribution (Cannon & Edmonson, 2005) It is important for organizations to work on mechanisms for reducing the influence of these three factors. The looks and shapes of these mechanisms may vary but one component is key for uncovering unwanted defensive routines; trust. Boehlke declares that creativity cannot flourish without trust. Trust ensures that no one is watching you behind your back during the creative process and that employees feel comfortable
6
reporting failures to management which enables organizational learning. That is what Capitalizing on Failure is all about. 2.1.3 Managing Connection The means of communication are changing and rapidly so. While the world seems to be shrinking our personal networks are swelling. Online social networks like Facebook have blossomed and research findings as well as corporate results can reach all corners of the world within seconds. With this many nodes of connection, R&D work must surely become greatly facilitated? Research tells a different story. Even though people have more peers than ever to connect to, people who state they have no one to discuss important issues has almost tripled from 1984 to 2004 (McPherson, Smith?Lovin & Brashears, 2006). And who are these ‘peers’? It is important to differentiate between connections and relationships. Boehlke defines them by connections being characterized by an exchange of value while relationships sustain mutual value. Further, a study by Cross & Parker (2004) on globally spread corporations describes two types of trust that exists within these organizations; competence?based trust and benevolence?based trust. The first one being based on transmitting information – in line with the definition of connections, while benevolence?based trust is a more profound relationship which promotes more frank communication and thereby encouraging creativity. Managing Connection is really about keeping things small. Boehlke claims too much outside information kills creativity and passion within a group. Trusting relationship are not opportunistic but are constant and rewarding, especially in a long?term perspective. The suggestion is to keep the creative process inside four walls (figure 2.2) where valuable feedback happens ad hoc, in line with the principals of Pacing Productivity. A constant coming and going of information does not foster innovation. This goes for leadership as well: “The constant thumping of Blackberries and other mobile devices by leaders in and of themselves reinforce perceptions of constant vigilance and necessary control on the part of management, whether intentional or not. This is actually a kind of ‘political’ behavior though few would initially identify it as such.” (Boehlke, 2008) 7
Figure 2.2 2 Manag ging conne ections. A: It is comm mon in toda ay’s world t that people e have very y diverse communica c ation patterns; much of the communication n and influences come es from the e outside of formal groups. g B: By B focusing g the comm munication to within t the group the t creative e process gets g priorit tized, the re ecommende ed way to manage m connections. ing connect tions in this way must never ta ake a dominant positi ion to the creative Managi spark. L Likewise in nformation n should als so be sprea ad with mo oderation w within R&D D, in fact Boehlke e suggest killing all connection ns to the outer o worl ld for periods of tim me while putting g full attention to creative explor ration. 2.1.4 Pa aying the Pr rice Exercis sing creativ vity and le eading inno ovation comes with a social an nd persona al price. Earlier we conclu uded that creative c wo ork deman nds a devia ation from rules, nor rms and sometim mes corporate cultur re. Decision ns about creativity c a often n are not about financial f investm ment or cos sts but lie on a personal level and d originate out of trus sting relatio onships. Leaders s must rea alize the possible p ne egative effe ect politica al behavior r can have e on the organiz zation and the way people do work. w Howe ever politic cs can be d difficult to identify along with w the potential conflicts involved in n deviatin ng from es stablished norms. (Boehlk ke, 2008) Self? ?awareness s is the mo ost importa ant trait fo or leaders when w it comes to ide entifying politica al behavior r, being able to walk b balanced between con nnecting w with the res st of the world ( (or the com mpany if you like) and d being diff ferent – tha at is what it t means to Pay the Price. B Being creati ive is abou ut separatin ng oneself f from the re est of the w world in the e aspect that innovation works w with h different t rules tha an production. Innov vators are seen as l’. With th hat comes responsibi ility accom mpanied by y insecurit ty, sensibil lity and ‘special defense elessness. Acting like e a humble mediato or between n the crea ative proce ess and strategi ic function ns is not what w leadership is abo out, but ide entifying w what is nee eded for innovat tion to happen is very y much so. ( (Boehlke, 2 2008) 8
2.2 The Impact of the Domains
All four domains are interconnected by different aspects that could be social factors, organizational factors or any other part of R&D. For instance, by managing connections in a way that limits the amount of outside communication could have a positive effect on stress levels, which is an essential part of pacing productivity. With more effective communication patterns in terms of creativity time could be saved and used for reflection on work done, a way of capitalizing on failure. More examples like this are easy to come up with. Boehlke describes each domain as a lens ‘through which to understand and practice inventions in the other three domains’. All four domains are susceptible to political behaviors. In fact politics appear everywhere. They can either work to enhance innovativeness or suppress it. Leaders in positions strongly rewarded by immediate results can easily fall into political behavior which for example aims to quicken thing up. If this type of leadership gets a strong hold on R&D processes, creative performance suffers. Likewise a leader working closely with developers might form a more affectionate personal bond with the staff and therefore might try to exhort influence as to satisfying staff needs, for good or worse. The sum of all these influences is what sets up the creative working environment. (Boehlke, 2008)
9
3 METHODOLOGY AND CASE PRESENTATION
The science of creativity is a multidisciplinary one. Everything could and should be considered from organizational structure, social psychology, personal psychology, business management all the way down to ‘cold?hearted’ measurements such as asset optimization. The scope of subjects considered and the complexity and sensitivity of some of the issues dealt with in the theories explained the previous chapter makes a qualitative interview survey suitable for the purposes of this paper.
3.1 Establishing the Questionnaire
The reason for the method selected is to get as close as possible to the phenomena that we wish to observe and evaluate. The interviews were therefore not too rigidly structured to such an extent that the respondent was held too tight by the questions asked, but could freely communicate his or her views. (In accordance with Holme & Solvang, 1996, p. 91?98) A template was set up which highlighted the special areas involved in the survey deducted from our primary theories (chapter 2). The templates were inspired by an original example from Holme & Solvang (1996, p. 102). The interviews would always start with enquiring about general personal information and then smoothly cross over to descriptions of what kind of work the respondent does. In this way a friendly report was established with the respondent by questions that are easily answered. All to make the person interviewed comfortable with the situation. As the interviews progressed, they tended to diverge from the original setup. Depending on the person and how the interview developed the questions could for example jump straight from work descriptions to reporting down to leadership relationship (See Appendix 1 and 2 for interview templates for R&D employees and leaders respectively). This freedom of expression seemed to result in openness from the respondents leading to a wealth of material for the final analysis. In retrospect the design of the questions turned to be a little too harmless. Fears that the questions regarding leadership assessments and trust issues would be sensitive and needed to be approached with care, turned out to be unfounded. As the series of interviews progressed the form of questioning changed to more directly hit the core concerns of the study.
10
3.2 The Company
While it was probably designed to fit many kinds of organizations, the theory of the four domains mentioned previously in chapter 2 was developed from workshops with representatives from larger corporations that were functioning on a worldwide market and with operating branches spread globally. Therefore fittingly, the company taking part in this paper was one with subsidiaries all over the world as well as having products that sell in virtually every country. Moreover the products can be classified as technologically advanced but also taking part of a very competitive market. By those standards the company suits the purpose of this paper particularly well because of its size, but also because it relies heavily on innovation for its long term survival. The examined organization is situated in Sweden, in a location holding a significant R&D department for a specific set of products. For matters of secrecy and personal integrity both the company as a whole and the persons taking part in the study will remain anonymous.
3.3 Selection of Respondents
Representatives from the human resource function suggested two sections working with developing certain products for the survey. The section managers themselves then picked three representatives from their section who would also take part in interviews to examine the leadership within the organization. It might not be optimal to leave such a large part of the selection process in the hands of the organization examined. However this was partly done because of the time pressure involved in completing this paper but also because this internal selection process was done in two layers of selection. First through human relations that selected the sections and then the section managers picked three respondents each and were told not to select persons too similar in too many aspects. This seemed like fair weight off between the scientific reliability demands and the corporate reality. As it turned out the resulting material was plentiful. None of respondents had any problems with the questions asked. From the interviewer’s point of view the answers seemed honest and truthful. As mentioned above even the more delicate matters included in the survey was dealt with a very open way. It might have been done easier by that fact that some of the question appeared to have been previously asked in various internal evaluations in the organization.
11
3.4 The Two Sections
The two R&D sections examined comprised of roughly 15 persons. Section 1 worked on chemical development of products while section 2 developed software for electronic equipment. The scope of work and the routines involved were therefore different for the two sections in many ways. Overall section 1 can be considered an all embracing R&D group both researching new possibilities and developing products, while section 2 is much more focused on pure development.
3.5 The Individuals Interviewed
The manager of section 1 was highly experienced within the company having spent over two decades as an employee after joining as a then newly graduated Ph.D. in the mid eighties. The person then got promoted to the current section managerial role within R&D 9 years ago. Manager 2 was hired externally as a section manager almost 2 years ago after previously having completed a six month tenure in the company as a consultant working on project management. In total manager 2 has held a manager position for the last 9 years. Both the managers would be considered to be middle aged. All of the staff respondents can be described experienced within the field. The range of employment time in the current company scoped between 3 to 16 years with ages varying between early 30’ies to late 50’ies. In total one female and seven male respondents were interviewed.
3.6 Execution
All of the eight interviews were held during one week in the late spring of 2008. The managers were the first interviewed in the respective sections. The manager’s interviews had a longer scheduled time span with some general information being shared about the organizational structure, missions and other general properties of the sections that was essential for understanding the R&D activities. The two managerial interviews took about one hour to complete while the interviews with the six R&D staff members were done in 40 minutes up to an hour. The conversations were digitally recorded with permission of the respondents. To clarify differences and keep track of the two sections they are designated section 1 and section 2 for the remainder of this paper.
12
4 INTERVIEW REVELATIONS
4.1 Org ganizationa al Structur re
4.1.1 Th he Matrix St tructure in Section 1 The org ganizationa al structure e where we e found sec ction 1 is ill lustrated in n figure 4.1 1. In this matrix structure the t section ns intersec cted the projects. This setup ma ade experts out of the staf ff in section n 1 to be us sed where i it is deeme ed appropri iate in diffe erent devel lopment projects. The R&D D staff therefore is highly h spec cialized for r certain ta asks. Although the rs are phy ysically clo osely locat ted the coo operation between them, t it section’s member seemed d, was very y limited due d to the fact that everyone was spread across different d projects. That was s unless tw wo or more section members happened to work on th he same project. There were w indica ations from m the int terviews th hat this c competence e based structure was bein ng relaxed following a slight reo organizatio on and that t people wit th more differen ntiating ski ills were ge etting into t the differen nt R&D sect tions. The manager o of section 1 1 expressed d an outspoken ‘rule’ ’ about not t engaging persons in more e than 2 pr rojects, pre eferably con ntaining ea ach staff me ember inside a single e project at a tim me. But the manager a admitted th hat is pretty y much not t the case. Some peop ple were indeed working o on a single project but t many were working g on two, in n some cas ses even three projects p at t a time. One O person n in the section was s normally y working on 5?7 differen nt projects simultaneously beca ause of special skills w within a ce ertain narro ow field that cou uld be used d in many p projects. Incidentally t this person n was one o of the interv viewees for this study.
Fig gure 4.1 Ch hart of the matrix org ganization nal structu ure in secti ion 1. Each row (S1S4) is repr resenting one o section in the dep partment with w its emp ployees (let tters) und der a sectio on manage er. Each co olumn repr resents one e project (P P1P6) und der a proj oject manag ger. The com mplexity of f the structure is exem mplified by S Section 3 in n the figu ure when se everal empl loyees in th he same sec ction could fit into a p project. Fur rther, the arrows show that ea ach employe ee also cou uld feature in more th han one pro oject, all making m up for f an intri icate web of communication.
13
Figu ure 4.2 Chart of the project ba ased organ nizational structure in section 2. Her re the sectio on manage ement and project ma anagement work in pa arallel with hin the section to owards one e product line. The employees s are only occasiona ally engaged in other o proje ects (illustr rated by the t dashed d lines). Th he section is concerned with h developm ment of a sp pecific part of the prod duct while o other sectio ons mak ke up for ot ther aspects s of the product. The other two o interview wed staff members m bo oth express sed that working on a single project at a time e was bene eficial as it reduced stress lev vels and also the am mount of adminis stration involved. For instance when a pe erson was a member of two pro ojects it was req quired to at ttend doub ble the amo ount of stat tus meeting gs and mor re so for each extra commit tment to ad dditional projects. Th p his stole tim me from th he pure dev velopment tal work and so was not appreciated d. However r some projects were lengthy an nd one res searcher having to do emergen ncy work fo or other pr rojects simply becaus se of the was positive on h ment and va ariety. excitem Whi ile the cons stant movin ng around to and from m different t project in one could be seen as lacki ing continu uity there w were also p positive voi ices raised regarding the organizational structure. Learnin ng was gre eatly aided d by emplo oyees meeting other project members m with ot ther skill?se ets. In that t way impo ortant techn nical know wledge was spread acr ross the whole o organizatio on and valu uable lesson ns could be e transferre ed between n projects. 4.1.2 Th he Project?Based B Struc cture in Sec ction 2 Section n 2 worked d differently y and the m manager proclaimed that about t 95% of th he work conducted within the section was don ne on the sa ame projec ct (figure 4 4.2). Section n 2 was respons sible for th he software e part of a p product line e and thus works alm most solely o on tasks regardi ing these pr roducts. “This m means you need to ga ather all th he compete ence neede ed to solve the tas sks in one g group” (Man nager 2)
14
This is opposite to the matrix structure where the different skills necessary for one project needed to be picked from sections where they are gathered according to expertise. The route of communication also became different in this product based structure. Because the section staff now was working on the same product communication was denser within the section. However the manager of section 2 did add that substantial communications with other sections had to occur because they were also working on the same product, albeit different aspects of it. The organizational structure changed for this specific part of the whole organization one year before the interview took place, from the matrix structure as described above. This was done to get better continuity on the product line by having the same group of people working on it as the products developed. Manager 2 was generally pleased with this organizational transition but did admit it was still too early to call. 4.1.3 Leadership Responsibilities The section manager duties included staff?care responsibilities ? assuring a good physical and social working environment in accordance with company regulations, including safety requirements. The manager also had to sustain a section budget; one that was by most part set by senior staff but in which the section manager had some say. Moreover each department held an investment budget out of which the section managers made necessary technical improvements for keeping the research work up to date. Another important part of the manager’s tasks involved quality control of material such as technical reports that were to be released to the outside world of the company. Also the progression of projects containing staff from the section were under section manager jurisdiction, by making sure certain milestones was reached without delay. Finally the manager helped project managers staffing projects with the necessary manpower, should the projects require the specific knowledge that the section represented. Manager 1 did voice a concern about the information flow from the projects to the section management. The section manager did have stakes in the projects and an obligation to solve upcoming problems. However, since the manager was not involved in the day to day management of the projects (which was the projects manager’s role) there was a risk that the manager only got involved in problems once things got really 15
bad. The manager commented about not getting a chance to help rectify errors before they developed into serious problems. It seemed that the organizational structure made it difficult for section management to sometimes barge in on the domains of the project manager even though, from the section manager’s point of view, it could be beneficial for effectiveness. Manager 1 said it was important to keep enquiring avidly into the projects as information did not flow naturally. The manager did admit the communication with the projects’ members, including the leaders, had improved in recent years. Previously the manager could feel left out of the ongoing activities of the staff members because of the slow flow of information but these proceedings had indeed improved with time. Apparently the balance of the matrix has shifted from being very project oriented (the vertical arrays in fig 4.1) onto giving the ‘line’ (read: sections, horizontal arrays) more space and authority. In the meantime manager 2 expressed that because of the organizational structure of that section, it was fairly easy to get good insight in what the staff was doing. It was specifically stated that this was probably due to the re?organization that had taken place earlier. 4.1.4 Nature of the Projects A majority of the projects were held inside the site in Sweden where the interviews took place. However there were projects with multinational participants. Some projects were spread across the corporation’s sites in countries like the United Kingdom, United States and India. Both the section managers and the staff raised issues about these cross?the?border projects mainly regarding the limited means of communication. Problems arose when having to work with someone you could not personally see for the larger part of the project as well as some cultural differences. Complaints were for instance raised over scheduled phone conferences that had to be made way out of normal office hours because of the projects overlapping many time zones. One comment about this distance relation was that people generally were too polite when communication over phone or e?mail. This led to many unclarities which often could be remedied by simply meeting face to face where it was much easier to get straight points across and talks were more earnest.
16
Project times in section 1 varied with the shortest ones being a couple of months long. Normally project times stretched from 6 months up to a year, sometimes longer still. In section 2 the talks were about cycles that were dependent on general product development as the ‘project’ was a continuous one. However no generalization about these cycles could be made from the interviews, other than that the section had just left a phase with intensive development because of an upgrade in the product line.
4.2 Work Load
It was widely acknowledged during the interviews with section 1 that the work load on the R&D members was quite high. The section 1 manager recognized having to cut the section members’ working commitments in order to not produce too much over time hours as a prominent managerial task. Overtime hours had to be approved by management but were, at least in stressful periods, a common occurrence. The first manager also admitted that the co?workers experienced the environment as stressful. From the yearly employee questionnaire the amount of stress and lack of recovery was a particularly standing out issue. From the manager’s point of view, the sheer number of projects could sometimes be overwhelming for everyone involved in the section. Section 1’s manager did admit having to push employees to complete certain tasks, but at the same time the manager was often involved in putting other tasks on hold while putting pressure on completing more prioritized tasks. Thereby structuring the work (ex. setting priorities to different tasks) for the staff became something in which the manager was much involved with. However there was never any need for the manager to push employees because things were moving too slowly overall. Manager 1 who had spent a long time with the organization said that some years back, the pace of production was not as high. Nowadays as soon as a project ends R&D workers immediately jump to the next one. Sometimes they even do that before the previous project ends. There used to be a lag?time in?between projects where the staff could catch one’s breath and recuperate. That lag?phase simply did not exist anymore. The answers in the interviews with section 1 staff was not as resounding. In no way was there too little work to do but the mechanisms for stopping employees getting too much work seemed to operate quite well, at least for some. One of the responding staff members simply said there were loads to do and that the always seemed to be a lack of
17
resources. None of the three said they worked overtimes hours for any extensive periods. The manager of section 2 gave a brighter view on the work load and stress levels of that section. Here there were also deadlines to follow and at times there was indeed a lot of work needed to be done. But these peaks of high stress seemed more easily identified and were normally followed by a phase with normalized work load. One problem that could occur was when, in times of high stress levels, upper management did not deliver clear priorities on what should be done primarily and what would have to wait until the storm has passed. But in general the communication with the department managers was good; a view was that was shared by both managers interviewed. When interviewing the developers in section 2, the work load assessments were a bit grimmer. The team has just gone out of a very intensive two year development stage with very high stress levels during which work over time was a reappearing theme. The ‘peaks’ that the section manager was talking about surely was identifiable, but this one happened to be very long. Pressure was dropping since the more intense phase of the project had passed, but one of the developers added that a new project manager had come in – one that played the gatekeeper role much sturdier than the predecessor (i.e. blocking too much work coming in). The staff was therefore given more breathing space.
4.3 Reports and Evaluations
No in?depth investigation into the work progress was made by section managers on a continuous basis except for informal talks in the workplace. The staff was expected to independently go on with their shores on the individual projects. The manager in section 2 was planning to introduce a formal reporting system which would equal the reporting that the section manager gave to the department manager, but now of course on an individual level. The different projects held status meeting weekly or bi?weekly where information about the ongoing work was shared and discussed. A lot of documentation was created in the R&D organization, but there seemed to be a common understanding towards documenting on account of it helping keeping track of the research. If not for the simple reason to quickly be able to patent or in other ways protect innovations created inside the organization. However, there was not a lot of documenting going on in terms of tracking the status or the quantity of work being done.
18
Besides getting approval from section management the scientific reports went under internal peer review. A designated senior scientist left opinions on the staff’s work before the reports were released. One of the interviewed staff members of section 1 expressed gratitude towards these proceedings. As both of the persons were working within the same section and sometimes on the same project, the communication worked very well. There was much openness in the discussion preceding the completeness of the reports, before they were handed over for final review by senior managers. This was told to be a very good, as well as dependable, source for inspiration. The managers held evaluation meetings with the employees quarterly. They were then categorized within three levels; from exceptional talent through valuable member down to underperforming. If a staff member fell into the latter category the number of follow?up meetings increased to monthly talks with the manager. This was done in order to thoroughly come to terms with the problems needed to be rectified. One of the managers expressed some fears from employees involved in the evaluation process. Many were not used to this rather frank method of examining one’s work. The manager indicated that it was not previously accepted in the Swedish corporate culture to hold this kind of feedback talks with staff members. This included giving positive feedback; something manager 1 says had started to come through more recently. The organization was starting to adapt more ‘international’ norms in regards to feedback. Tolerance had become greater and none of the people interviewed expressed any negative concerns about the personal evaluations. Likewise the relationships between the staff and management seemed to be a healthy one and all of staff members interviewed agreed that there was never any problems in coming to their respective manager to discuss problems in whatever form that had arised during work.
4.4 Rules and Commandments
Safety regulations were very often getting high priority on meeting agendas both with midlevel managers and their staff and when the managers reported upwards. In the first section a bi?weekly section meeting was held where the section member’s work was presented and again safety issues are carefully examined. Also there was a constant stream of information flowing down from corporate governance about these regulations. Manager 1 joked:
19
“Sometimes it feels you are required to wear a space suite as soon as you are about to step into the lab” While all the persons interviewed admitted that the regulations are necessary, in part for the well being of the staff but also because juridical accountability reasons (i.e. the company is very vary of law suits). But there was also a consensus that senior representatives tended to overdo it on more than one occasion. One employee described the steady flow of more or less non?essential information from corporate executives as an annoying interference when the working schedules were already tight. This included web?based training programs that were not well received by many of the employees interviewed because they were seen as time consuming and infantile: “You can get the perception it’s not even serious, like being educated on how to open an office drawer” (Staff member in section 2)
4.5 Learning
By the end of projects or certain project cycles the members were supposed to gather information regarding possible improvements of the development work and address issues that had come up during the projects that may have negative effects on work. However the essence of these ‘moments of reflection’ appeared to have, putting it mildly, not quite made a breakthrough. One of the managers explained: “In the projects we usually have a thing called ‘lessons learned’ by the end of projects where you (the project members) sit down and discuss what we could learn from this, what went wrong and what can we improve until next time. But how people use that feedback from the projects, that varies. Unfortunately these feedback events take place, someone writes it down in a report and then a new project start and that report is never looked at again” A staff member concluded that project participants are released at different times, thereby it was difficult to gather all the people again to compare their experiences in order to make solid conclusions about things to improve. The learning was solely on an
20
individual level whereby your own inner thoughts and experiences evolved into learning for future work. Besides the apparent lack of time to establish proper project evaluations further problems surfaced. One of the persons interviewed, who also had spent some time as a project manager, said that people often had a defensive tendency when it came to looking back on previous work. “Some people were scared of pointing out shortcomings in the project because they are afraid that they themselves have missed something that could hit them back” “There is no problem crying over lack of resources, but no one ever writes (in the evaluation forms) that we came up with bad a method for solving this and that problem. That hardly ever happens.” Another person interviewed who had previously worked with academic research compared the two worlds. The respondent concluded that university professors tended to be more frank and even brutal in their evaluation with scholars. That type of personal revision on project work was not as common in the organization in this study.
4.6 Allowing Creative Roaming?
It could sometimes be hard for a newly recruited scientists from the academic world to understand the demands in commercial industrial research. Some good ideas had been sent to the bin because they would simply not make profits for the company. Summarized manager 1: “You are not just here for your own sake. You are here for the team. That has to be realized for newly graduated recruits. [...] They seem focused on their own career and picking up merits. That is not how it works in the industry. The company owns the results not ‘Me’” At the same time ‘orders from above’ about quickly moving resources to certain projects or problems seemed to tire employees. Manager 1 wanted to see more continuity in the
21
working scheme allowing the R&D staff to focus more carefully on the projects they were assigned to in the first place. Manager 1 pointed out that the employees were encouraged to find solutions independently and bring in new ideas but there was no official time put away to do so. All of the staff members were 100% booked on projects, in reality the manager says, they work 85% on the projects and the remaining part is where you theoretically could put in your own research. However most of that time was consumed by section meetings. In the same time each section has goals set up by senior management in which a number of new ideas and patents should be discovered each year. Manager 1 did admit that it might seem contradictory to push for invention while almost all of the employee work hours were solely dedicated to problem solving on a project level. The other manager shared a similar story. There is some time off from the projects for the staff. Bits of that time are used to improve line production. This could be done by adjusting the development systems in order to make future work more effective. But that is how far off the normal development routines it got. Officially the company both demanded and encouraged innovation. Goals were set for departments and sections to come up with a certain number of new ideas and register a number of patents. The emergence of ideas and patents were financially rewarded but the staff involved in this survey testified that there is no time for conducting independent work outside the projects. Should something interesting emerge then future research into that matter had to be formalized within the organization and under supervision of management. The general consensus from the respondents was that it should be easier to diverge with ideas without too much red tape. Only one respondent dared to say this would produce better results, but the consensus was that it would at least make the R&D?workers more satisfied. Meanwhile the project themselves had been breeding grounds of exceptional ideas. According to some, this has a lot to do with the composition of the project group. If the persons in a group were happy with each other there was a better probability for positive synergy effects. One developer highlighted the importance of the project manager; some let too much pressure from the outside (for example costumer demands or internal corporate demands) flow into the project causing a stressful environment which inhibited good results. While a good project manager would safeguard the group
22
from outside pressure thereby contributing to a better working environment which rendered better results.
4.7 The Views of the Leadership Role
Manager 1 explained some difficulties when advancing from the R&D staff onto managing it. The transition from being a ‘friend’ to the ‘boss’ was in the beginning a bit troublesome. The manager still tried to keep an amicable relationship with the section members but in the same time kept a professional distance. This balancing act had with time became easier naturally; because the manager now barely worked with any former ‘equal’ colleagues. The same manager talked about losing out on a communication network with colleagues when moving to a managerial position. In the beginning this void was difficult to refill before finding the balance recently mentioned and also building a new network with other leaders within the organization. Still the managers felt closely tied with the section, but kept issues regarding regulation and control inside the sphere of other company leaders. The relationship between managers and staff appeared to be a good one. There was no prestige or loss of prestige between them. In the same way the hierarchical differences were not very apparent and many expressed that the mangers stood very close to the section compared to the perceived relationship between the section managers and their seniors in command. This was done without losing clarity in the professional roles. A couple of the staff members interviewed had been appointed section members for shorter periods, for example as a stand?in and one of them concluded; “Being a (section) manager here is more about being a servant than dishing out orders” Much of the manager’s role was about setting priorities to projects and making sure the staff spent their time and energy on matters that were the most important. Therefore an important task was also to let upper management know how much work one could actually load into the groups without causing lapses in quality. Occasionally the managers would inquire into the work being conducted by the staff, but their overall role was not so much technical but more administrative. 23
5 ANALYSIS
5.1 Managing Connections
5.1.1 The Influence of the Organizational Structure Where the matrix structure was predominant it was not uncommon for R&D staff being occupied in at least a couple of projects simultaneously. This meant the size of the connection cloud about doubled for each new project a person got involved in. Many connections per project were with people outside of the section, with each other section physically located separately. It is not hard to see that this goes against the principles of managing connections. Creativity suffered as a single person was subjected to a lot of information while being active in more than one project. This is often because project members are expected to participate in many kinds of meetings and administrative chores for every project. In that respect section 2 was more slim?lined. Most of the communication was kept in?house, at least as far at the developers were concerned. This meant a better focus on important work and less administration that spilled over to the developers. 5.1.2 Geographical Spread of Projects In multinational corporations communications across borders are necessary. All of the persons interviewed expressed some sort of negative feelings towards these collaborations. In part there were practical problems with for instance time zone differences, and on the other hand there were cultural differences in the way people from different countries communicated. This indicates again that keeping things ‘local’ and limiting the communications within the group is beneficial for creative performance. One of the reasons behind the ineffectiveness of international collaborations was mentioned in the interviews; if the communicating persons cannot meet face to face and form a more personal relationship there is a risk of very cautious behavior. When two people feel they are representing their respective country it is very easy to fall into political behavior when trying to advance proceedings. There is always a much greater sense in these kinds of relationships that if things go wrong it will create turmoil in the whole corporation, whether that will actually happen or not. Therefore this sort of problem with managing connections has a lot to do with capitalizing on failure. This is because pointing fingers becomes an absolute no?no in these relationships that are 24
perceived as ‘sensitive’. You cannot have a trusting relationship without having the courtesy of speaking out properly when something is wrong. However this turned out to be a minor problem after all. All of the respondents admitted that the numbers of international connections at the present were fairly limited. But some did have had more collaborations abroad than others and regarding the nature of the company it is very likely that it will happen again.
5.2 Pacing Productivity
5.2.1 Section Management Control On a section level perspective the views on the immediate management were overall good. None of the staff members interviewed felt like managers were looking over their shoulder constantly. There were no splits between staff and managers in terms of trust and the communication between the two was also by most parts satisfactory. There were however some problems expressed in the interviews and the two groups seemed to have similar problems, but from opposite perspectives. In section 2 most of the complaints came from the staff. Here the strong belonging to a single project meant that project management had a stronger grip on the organization. Section management did not employ the same coordinative role as in section 1 because of the handling of numerous projects there. Therefore some of the section 2 staff felt that the line management was somewhat disconnected with their everyday realities. Still much of the evaluation was done by section management, who also was the company representative in the annual salary talks, which seemed incongruent to some. The staff in section 1 on the other hand was pleased with the evaluating role of the management and the help received when too much work was requested. Instead the manager admitted to struggle with keeping up with the work being conducted in the section. There was a desire to better keep track of the projects in order to maintain control. 5.2.2 Project Management Control The shift in influence regarding project management versus section management in section 2 compared to section 1 had effects on the staff. Even though there did seem to be high stress levels in section 1, the section manager must be credited some success in shielding the staff from overworking. This could be ascribed the relative power that
25
section management, in its protective role, held over projects and the rest of the organization. In section 2 much of the gate?keeping role was assigned to the project management. Here the project almost unanimously decided on how the resources should be used and how much pressure from upper management to be released onto the staff. Previously this had not worked very well according to a couple of the staff members. Project management was pushing development progress too hard which raised stress levels and lowered performance. Some of the stress was attributed to an intense phase of product development but there was clear dissatisfaction towards the recent project management. As a new project manager came in the circumstances changed to the better and the work load is now much more carefully considered. 5.2.3 Upper Management Control In section 4.4 we learned that the emotions towards controlling and regulating the employees work from corporate governance was not very well received. There was slightly more understanding in section 1 of all the messages of safety regulation and web?based training courses. This could be attributed to the more hazardous working environment for section 1 regarding chemicals and sensitive equipment. In such conditions it is not hard to realize the need for formalized protocols of conduct. Nevertheless none of the respondents in section 1 could help giving away sarcastic grins when this topic was raised. In section 2 however there was a general consensus that the bombardment of regulation from ‘above’ led to annoyance and added to the general stress levels of the working environment. 5.2.4 Project Commitments While section 2 was concerned with the hardship of mostly a single project, section 1 with its competence based composition juggled with many projects simultaneously. The matricial organizational structure contributes to adding stress to the staff involved. Partly the sheer lack of focus of a single task when dealing with several could contribute to less effective work. Also the partition of activities diverging from core tasks increases with the number of projects a person works on. Compared to just being active on one project, having two projects on your table usually means attending twice the amount of meeting and producing twice the amount of reports. There is clearly a loss of efficiency involved in multitasking like this. Not to mention adding to stress levels.
26
The constant flow of new projects on to section 1 is also a clear violation to the recommendations regarding pacing productivity. The lack of lag?phases means that variation of speed regarding the work load is very low. It is not difficult to see that this becomes very tiring in the long run and therefore contributes to a drop in performance. There were also instances when the staff in section 1 dropped their ongoing work to deal with more acute problems, wherever those occurred. Often the section manager would ring the alarm and nominate one or a number of persons to put all other work down to quickly solve a specific task. On first glance this may seem like yet another stress factor to pile on top of all the other work. A bit surprisingly perhaps, a few of the employees interviewed said that this was actually a refreshing event. This allowed them to leave their everyday chores on their long term projects and focus on something new and exciting. When studying the theories presented in this paper it is not hard to understand how this actually provide for improvements in creativity. Varying the speed is the key in pacing production and here we discover the differences in ‘good’ and ‘bad’ stress. Bad stress comes from wearing out, constantly being pushed to perform on a high level. Good stress comes from inspiring challenges that are sustained for shorter periods of time. However, in the organization examined in this survey there seem to be a belief that constantly being subjected to stress will enhance performance when it comes to developing products. Only adding stressful deadlines every now and then will have that positive effect.
5.3 Capitalizing on Failure
5.3.1 Project Cycles and Learning The tight lineup of projects one after another in section 1 does not only affect stress levels, properties connected with the pacing production dimension. With the quick jumps between projects evaluating completed work becomes a low priority. Problems on previous projects are overlooked as the staff quickly needs to move on. At best some learning in this scenario is taking place on an individual level but there is no discussion among colleagues and there is little opportunity for the organization as a whole to learn from the experiences of single persons. It is clear that this factor could have a dampening effect on performance, both quality wise and on the rate of innovation. This is an example of corporate demands fooling themselves while trying to squeeze more out the R&D?function they are in fact receiving 27
less by doing this, especially in a long term perspective. Learning is crucial in shortening future cycle times, a necessity for survival in a competitive and changing market. Therefore the leadership, at whatever level it may be, sometimes will have to ease the short term demands and allow pure developing work to halt in favor for reflection and improvements of procedures. These views do also apply for section 2. While that group was mostly concerned with one continuous project there were tendencies of pushing employees too hard on completing project milestones. As a consequence section 2 also did not allow for much thought on work completed and therefore risked suffering from the same symptoms as section 1. This was strongly indicated from manager 2’s views on how the information from the ‘lessons learned’ session was used, or rather not used at all. 5.3.2 Fear of Failure One of the most sensitive areas of this survey regards evaluating one’s work and also the people around you. The employees are categorized by section management on performance and quality (Chapter 4.3). This seemingly frank way of evaluation staff members and their work is much in line with the thinking behind capitalizing on failure. However this requires trust in order to be properly conducted and to avoid political behavior. There is slight glitch in this approach in section 2, probably because of the dominance of project management on the staff. While there did not appear to be any personal problems between section management and the development staff (the respondents were clear on this matter) there seem to be a lack of involvement from section management caused by the structure. This lead to some conspicuousness from the staff when facing evaluation situations with section management. Probably because there was a sense that project management was better equipped for evaluating them. The evaluation process does have a backside. If much is at stake for the individual during the evaluation (like salaries and the prospect of promotion) there could easily be a tendency from staff members not to assume responsibility and to make sure they do not do anything wrong. A few of the respondents acknowledged that the sort of political behavior explored in chapter 2.1.2 did exist in the organization. That is, when things go wrong people tend to blame everything and everyone except themselves and their peers with whom they have good personal relationships with. The reasons for this are straight forward: 28
(1) There is a fear that blaming peers will have dire consequences for them which will harm the relationship as well as the personal and social working environment. (2) There is a fear that taking personal responsibility for errors will lead to reprimands from management and loss of professional prestige. The risks of getting shot when putting yourself in the front?lines then overweight the possible gains personnel and the organizational as whole would get from openly discussing things that have gone wrong. However all of the respondents claimed that the relationship with management was good, both on a personal and professional level. This should then not contribute too much to the sort of political behavior that was expressed in the interviews. But then, what does? The upper corporate functions let themselves known every now and then by sending regulatory e?mail to employees, making them sign agreements on everything from work ethics to lab and office safety requirements, and giving mandatory web?based courses. The regulations on work are made very clear. Also informing the demands on the employees regarding goals to be met and numbers on how well the company is doing is very common. Some of the safety measures taken regarding the working environment are truthfully accepted by the employees. There is a common understanding for those values to be met of everyone’s sake. However a lot of the other information is, at best, perceived as annoying. Many of the persons interviewed in this study claimed much of the general information sent down from upper management was only briefly looked at and then put away. Some commandments needed active participation of some kind, like the web? courses. Those were time consuming and stole resources from matters that seemed more important for the staff and management interviewed, R&D work for instance. In fact it seemed that most of the information sent out from corporate governance had a commanding tone is some way or the other. It is not in the job description of high level managers to be best buddies with the employees. But there are deeper values at stake besides the perceived time loss and the annoyance of getting ‘spam’ mail from company leaders. For every waiver or contract that is signed, for every note saying results must improve and for every mandatory 29
training course undergone it can be seen as the company transferring more and more responsibility and accountability to the employees. If you fail it is on you. Should you not produce results according to our demands, management will deem you as underperforming. This synchs very badly with the scientific method of research. Failure is built in to the learning process and without failure there is no learning. Therefore fear of failure is bad for creativity. If the price for assuming responsibility is too high then nobody will take it. The feedback surrounding projects becomes unreliable in such situations because the sanctions of a person admitting failure are too costly, so people protect themselves by diverting attention away from them. Instead of inciting with demands, it might be a good idea to incite with trust. In this way the people you put faith in will feel inclined to give back hard work and innovative results. 5.3.3 Peer Review Trust often goes hand in hand with familiarity and identification. This is why co?workers in a well functioning workplace tend to trust each other more than they do superiors. It is in the managerial role to evaluate, but in the same time often not to be involved in the day to day work. Equal level colleagues often know the strengths and weaknesses of each other better than their managers, this is simply because they work closer and more often with one and other. It is not surprising to hear that staff members of both sections in this study claim to have good discussions regarding most work related issues with their colleagues, that also lead to better results. When the propensity to trust is large, the environment becomes learning friendly and there are good prospects for capitalizing on failure. It is essential for leaders to recognize the peer factor as one of the best, if not the best learning tool available. For a good starting point on optimizing this way of learning we go back to managing connections. The idea here is to a certain extent isolate the group from the rest of the world during periods of time for solving whatever problem lays ahead. Communication should be kept inside the group and nothing else. This ‘greenhouse’ of thinking will help build trusting relationships inside the group which in turn promotes learning, and there you have it: Creativity!
30
5.4 Paying the Price
Leading innovative functions is a sensitive matter in both directions of communication for low level managers. The section managers in the organization studied are the closest representatives R&D staff has towards corporate leaders. Meanwhile they are also the final outpost for much of the communication from high level governance towards staff members. They have to exhort corporate control in the sense of keeping budgets and assuring protocols are met. At the same time staff members have demands on working conditions and certain degrees of freedom in their work. Paying the price is about balancing the two stakeholders just described. It can be a risky job as it could potentially damage relationships with co?workers and it could get you vilified by senior leaders as strange, ineffective and disobedient. Paying the price is also different from the other three dimensions in that they establish norms that intend to enhance creativity and hopefully improve chances of innovation. Paying the price on the other hand is descriptive, it paints a picture of the problematic world a leader in R&D faces but does not exactly tells you where to stand your ground. You could easily interpret this dimension in such way that releasing control over creatively talented people automatically will induce an innovative environment. However the following segment of this analysis will argue that is not the case. 5.4.1 Creative Control Creates Creativity The manager of section 1 saw regulating staff engagement as one of the most prominent tasks. We have already indicated this as a power struggle between individual project management and section management. The single project wants to squeeze as much efficiency possible out of the resources coming from the section. At the same time the section manager is responsible for the well being of the staff, the quality of work produced and the results of all the projects in which the section’s staff members are involved. The manager had to work hard on obtaining information from the staff members and their various projects. This was partly done to ease work load off the staff so that quality of work would not suffer, or in the words of the analysis frame – pacing productivity. The managers also wanted to inquire into projects regarding problems that had arised, and complained that often information about issues got to the management table too late. Things had already gone pretty bad at that stage and the desire was to earlier step in and put out small fires before they blazed, that is to better capitalize on failure. 31
The manager seemed uncomfortable with this constant struggle and this anxiety. If it is to any comfort, this is part of leading creativity according to Boehlke. Finding just the right balance of inquiry and accepting that you will sometimes be left out of the loop is part of successful leadership. That is an explanation why manager 1 during the early years of the managerial career felt like an outsider to the colleagues that used to be on an equal level. This also applies to section 2, but the roles seemed to be reversed, especially during the time when there was some dissatisfaction with the project management. In section 2 the project had more leverage over section management because the staff was engaged in this single project by most part. Still the section manager had the same responsibilities over staff welfare and some of the staff members interviewed felt there was too little inquiry into the events in the project when thing got very demanding, resulting in overworked staff. 5.4.2 Breaking Rules Anecdotes are plentiful in the professional literature on creativity. Famous inventions often seem to be coming from people who stepped outside of norms. Part of paying the price as a leader is to dare let people work in directions not previously thought of. But from the interviews the indication is that there is little space to do this in. While officially the company encourages creative thinking and even demand it in the goals set up for R&D groups it also provides stringent rules on how work should be conducted. There seems to be too high stakes involved in the breaking of rules for it to happen as we concluded regarding capitalizing on failure. One way of paying the price as a leader in R&D could be to tighten up the gate? keeping efforts in line with managing connection, thereby shutting out corporate information that could incite fear instead of trust into employees as well as creating annoyance and stress. However when rules are constantly flowing down on management and staff, it is easy to get the perception that breaking the rules have too dire consequences to even be thought of. This is a clear breach of the ‘laws of creativity’ as defined in this paper.
32
6 CONCLUSIONS AND RECOMMENDATIONS
The ove erall assess sment from m this study y regarding g the four domains on the two s sections is prese ented in fig gure 6.1. Wh hile this se erves only a as estimatio ons from an n admitted dly short study there t are still some valuable v po oints to be made. Re egarding pacing prod ductivity both se ections see ems to hav ve issues with w high work w load. In section n 2 it seem ms more depend dent on the e project phase which h for the moment m of this paper r was on a a calmer level. In I section 1 there was w a con nstant flow w of projects withou ut lag?time e which contrib buted to hig gh stress le evels. Both managers, but partic cularly man nager 1 tri ied hard to control the staff’s work lo oad. The de emands on n reporting g were satis sfactory ac ccording to the basis b of pa acing produ uction. Non ne of the employees e complained about managers constan ntly overloo oking how work was done or progressing. Man naging conn nections ap ppeared eas sier in sect tion 2 than in section 1. This was s simply down to the nu umber of projects staff in section 1 had to be engaged in. The organiz zational str ructure als so contribu uted to em mployees in n section 1 1 probably y having fewer ‘i in?house’ connections s during projects as di iscussed in n chapter 5..1.1.
Managing Connections s
Managing Connections C
Paying the Price
Pacin ng Productivity Section 1 Capitalizing g on Failure
Pay ying the P Price
Pacing Productivity
Section 2
A C
B
Capitalizing C on Failure
Managing Connections s
Paying the Price
Pacin ng Productivity Section 1 Section 2 Capitalizing g on Failure
Figur re 6.1 A & B: Evaluat ting the tw wo secti ions on th he four do omains. Th he perip pheral ends s of each ax xis represent ideal conditions s for creat tive work of each dimension according to Boehlke e’s mode el. This means m the larger are ea cover red by th he graph the higher congr ruence with h the model l overall. Figur re 6.1 C: C The tw wo graph hs supe erimposed for f easy co omparison n.
33
Work load and stress comes back to the discussion when considering capitalizing on failure. In neither sections does there seem to be enough time given to careful learning processes. We have also looked at corporate control and how that could propose a threat to creativity. On the other hand the creative influence of co?workers is strong. The section 1 manager was very keen on keeping up with eventualities in the projects that could lead to problems, thereby helping to capitalize on failure. This ability to use control to influence wears off when considering paying the price, the one of the four dimensions most difficult to quantify like in this attempt. There could be good reason for the perceived differences of paying the price in the two sections. While section 1 can be characterized as a bona fide R&D group, section 2 is more geared towards development alone. This does not diminish the importance of creativity but it might influence the working style of management because of the more structured nature of work. We now continue to summarize some problems and possibilities in the company regarding creativity that has surfaced during this survey. Finally in 6.5 we look back on the model and discuss how well it performed in this study.
6.1 Staff Dispersion among Projects
In the section where the matrix organizational structure still was prominent there was an obvious problem with allowing persons working on several projects at the same time. It heightened stress levels and lowered the time staff could spend on actual development work. There is a need here for management to be very stringent about long time lending of staff between projects. There is evidence, both in the interviews themselves but also in connection with the theoretical reasoning, that performance will indeed improve if the R&D?staff is allowed to focus more on fewer tasks. Either the section or department management must stand their ground on a continuous basis to face up to the demands of swift resource movement. Alternatively the section specialization (in regards to products) that already in part had taken place should be written in stone, much like the organizational structure of section 2. Speaking in terms of the theoretical framework this will aid connection management so that communication within the group becomes denser but the communication with the rest of the world become more limited and more controlled by the gate?keeping section manager or project manager.
34
Moreover as communication within the group is promoted hopefully the relationship inside the group will become more long term and ideally more trustworthy which will encourage learning and to capitalize on failure.
6.2 Managing International Connections
Initially questions about international collaboration were included in the interview questionnaire because of its potential influence on managing connections. It did not turn out to be a great problem in the organization as far as this survey was concerned. However some issues were raised in the interviews and the future prevalence of off?site connections in the organization is inevitable. Also other parts of the organization might benefit from discussing this topic. Putting it zealously, when working with outside people or even groups the numbers of connections should be kept at a minimum. Preferably most of the communication should be kept at a managerial level although in reality, with the technical nature of many projects that is not feasible or effective. When limiting the means of communication with an outside group to only occur with between as little as two persons that relationship will have better chances of becoming more personal. Much like the intention regarding relationships inside a group the aim is to make the few intergroup relationships more trustworthy, therefore more honest and learning. This is opposite to superficial and often overly careful and political communication that was analyzed in 5.1.2.
6.3 Trust
The interviews indicated good relationships within the two sections. In 5.3.3 we concluded that extensive reviewing and communication inside a tight group were beneficial circumstances for innovation. Furthermore the prevalence of trust is the key factor for attaining these hotspots of creativity. By embracing the reasoning in managing connections this positive group effect can be further improved. Managers can incite trust by exhorting just the appropriate amount of control. Not too much so that the employees feel that they are under constant surveillance, something both managers in this study did well. Not too little for the demands on the employees from for example corporate control and projects becomes too stressful to handle. Here the section manager’s role is clearly to pace productivity. But it has to be done with timing in mind as well. Varying the pace of work can have positive effects on 35
creativity. Sometimes mangers should allow breathing space for thought and recuperation while sometimes set sharp urgent deadlines resulting in heavier work load. Another perspective to look at is the prevalence of trust between the ground staff and the corporate management. Practically all of the respondents in this study expressed some ill feelings towards the influence corporate control tried to impel. There was a wealth of rules, regulations and training programs aimed at the very basics of how work was done. Some was accepted, some met with skepticism. Meanwhile there were also tough demands of performance and goals to be met. The wiggle room in?between regulations and demands open for creative thinking was therefore limited. Fear of corporate failure was clearly noticeable in the communications with the staff. ‘Management by fear’ does not build trust and with the actions of carefully regulating R&D staff, upper management signaled a lack of trust. It is therefore difficult to demand trust back. The fear of failure easily seeps downwards in the rest of the organization, this results in defective learning because of inability to assume responsibility and to forcefully attack erroneous behaviors and procedures. Instead communication from upper management should be kept to a minimum. Only the most important regulations should be imposed for the well being of the employees. Many staff members on R&D?level are not even interested in financial numbers, especially not regarding parts of the company in which they have no insight or control in. In the name of trust all sorts of information should be accessible but must not be pushed down the throat of employees.
6.4 Pushing for Pace
We have extensively argued the role of low level management on controlling the work load. So we continue to look at the influence of corporate control. According to many of the persons interviewed, upper level manager seems to think that constantly pushing the envelope on endurance and setting just about unattainable goals is the best way to get as much performance as possible out of R&D (and perhaps other functions as well for that matter). Our theoretical report tells us that this is not the way to go forward. High stress levels will only improve performance for a limited period of time. After that performance will drop as a consequence of wearing out. In order to find the right pace that will maximize performance there is a need to empower the low level managers. They have the best knowledge of the capacity of their
36
groups and are better equipped to push employees when needed. Again we fall back to trust as this included giving up power on a high level to redistribute it closer to the core activities. Signaling trust therefore will make the best out the resources provided, it will encourage ‘good’ rule breaking that will enable more creative work. This will result in better performance, better results, more satisfied employees and less staff turnover.
6.5 Usefulness of the Model
A lot of significant insights were given when analyzing the company through the four domains. Some known problems in the organization could be placed in the context of the model and therefore, hopefully, help leaders remedy issues standing in the way of innovation. Also some not so obvious problems have been casted into the light that perhaps would have been difficult to identify otherwise. The scope of the model meant that it was not hard to extract a lot of useful material from interviewing eight persons only. Further exploration into the field of creativity for the organization in this study can be given by inquiring into the views of project management and high level management. Because, as the analysis show those two players have a lot of influence on the innovative work, being an integral part of the aggregated leadership. Despite the apparent usefulness of the model two distinctive problems did occur during the analysis. 6.5.1 How Exactly Do You Pay the Price? Apart from paying the price the breakdown of the other three dimensions were very straightforward because of their normative nature. Trying to quantify the results for this fourth dimension like in figure 6.1 was difficult because of the confusion of what you were actually measuring. Paying the price could be seen as a measure of involvement from leaders. But if you instead see paying the price as an aggregate of the other three dimensions you discover that it is not a linear measure, pacing production too much for instance will not be good for creativity. It seems that the art of paying the price is about finding the middle way, one where just enough effort on to the creative working conditions is what you want. The analysis therefore becomes very individual for each organization, for each group or even when managing certain individuals. 37
6.5.2 Learning versus Managing Connections According to the interview material there was one contradiction to the positive correlativeness of the dimensions managing connection and capitalizing on failure. Managing connections suggested keeping communication inside the group. But a couple of the respondents said that widening perspectives by opening up communications with other parts of the company and even resources on the outside could facilitate learning. This could indicate a contrast between both managing connections and parts of capitalizing on failure and what the respondents said. Reaching out to distant relationships of which there is little initial trust could be beneficial for learning and therefore on capitalizing on failure as well. But our theory on capitalizing on failure was very focused on creating trustworthy relationships out of which creativity would bloom. While managing connection wanted to limit the outside world’s intruding on the creative process. Surely Boehlke’s reasoning did not intend to lock up R&D staff completely from any influences of the outside world. But the model still fails to fully acknowledge the perceived stimulation given from outside influences as a positive factor on creativity. ?
38
ACKNOWLEDGEMENTS
I would like to thank my supervisor and my fellow students who helped me with feedback on this paper. Also thank you to the company who volunteered and especially the company representative who helped me organize the survey. A warm thank you to all of the participants that took time off their busy schedule to contribute with insightful and honest comments. Finally thanks to Dad for his help with proofreading.
REFERENCES
Argyris, C (1994) Good Communication That Block Learning. Harvard Business Review, 72, 77?85. Andriopoulos C. (2003) Six Paradoxes in Managing Creativity: An Embracing Act. Long Range Planning 36, 375–388 Amabile, T., Hedley, C. and Kramer S. (2002) Creativity under the Gun. Harvard Business Review, 80, 52?61. Boehlke, S (2008) The Politics of CreativityTM: Four Domains for Inquiry and Action by Leaders in R&D. Creativity and Innovation Management, 17, 77?87. Cannon, M.D and Edmondson, A.C. (2005) Learning from Failures: Why It May Not Happen. Long Range Planning Journal, 38, 281?98. Chen, M?H. and Kaufmann, G. (2008) Employee Creativity and R&D: A Critical Review. Creativity and Innovation Management, 17, 71?76. Cross, R. and Parker A. (2004) The Hidden Powers of Social Networks, Harvard Business School Press Hahn G., Hill W., Hoerl R. and Zinkgraf S. (1999) The Impact of Six Sigma Improvement?A Glimpse into the Future of Statistics. The American Statistician, 53?3, 208?215 Klefsjö, B., Wiklund H. and Edgeman R. L. (2001) Six sigma seen as a methodology for total quality management, Measuring Business Excellence, 5, 31?35 Magne Holme I. och Krohn Solvang B. (1996) Forskningsmetodik – Om kvalitativa och kvantitativa metoder, ISBN 91?44?00211?4 McPherson, M., Smith?Lovin, L., Brashears, M.E. (2006) Social Isolation in America: Changes in Core Discussion Networks Over Two Decades. American Sociological Rewview, 71, 353?75 OECD (2008) Main Science and Technology Indicators (MSTI), Volume 2008/1 ISSN 1011?792X Rickards, T. (1991) Innovation and Creativity: Woods, Trees and Pathways. R&D Management, 21, 97?108 Sutton R. The Weird Rules of Creativity. Harvard Business Review, Vol. 79?8.
39
APPENDIX 1: INTERVIEW TEMPLATE R&D EMPLOYEE
General Personal Information Age? Education? Time of current employment? Total time in company? Time of employment in the industry? Time of employment in R&D organizations? Work Description Describe tasks? Special title within workgroup? Responsibilities? How many people are you normally collaborating with? How many of these are outside of your group? How many of these are outside of this site? National and international connections? How many people do you share your research results with? To what extent do you take part of the work produced by others in the company? How many from this site? Work Load Assess stress levels Assess variation on stress levels Work tempo Overtime Do you work on simultaneous projects? Are all projects similar? In scope? Length? Responsibilities? Reporting Who do you report to? How often? In what form? How many work hours are using for preparing reports? Overall feelings towards reporting? Is is too much? Do want them removed completely? Do you find it interesting/useful taking part of other people’s status reports? (if there is opportunity) 40
Feedback To what extent do you look back on work accomplished? What mechanisms kick in when something goes wrong/projects fail? Your perception on management in these situations? Do you often talk about occurring problems with management? If not, why? Do you often receive useful help when discussing problems with management? Views of Leadership Do you think the management works closely with the rest of your group? Do you talk to your manager often? Did you ever work with manager as a colleague before his/her present position? Do you consider the relationship with your manager as a frank one? Do experience any problems in your manager’s relationship with his/her senior staff? Does your manager share his/her work related problems? How is your personal relationship with your manager? Do you feel your manager defends you/your group against the rest of the organization? Does your manager relay pressure on you/your group from his/her senior staff? Assessments of Creativeness Are you allowed time to work independently on developing new idea besides the projects? If not what do why do you think this is? Would you like to have such time? Do think it would improve results? Additional Questions (Added as the series of interviews progressed) How do you experience the leadership and commands of upper management? In terms of quantity? In terms of quality? Does it add stress? Does it affect overall results? Who you rather do without interference from above/parts of it? What kind of information or commandments come from senior managers? Do you have any personal contact with senior managers?
41
APPENDIX 2: INTERVIEW TEMPLATE R&D LEADER
General Personal Information Age? Education? Time of current employment? Total time in company? Time of employment in the industry? Time of employment in R&D organizations? Total time as manager? Work/Group Description Describe tasks? Special title within workgroup? Responsibilities? How many people are in your group Does your group collaborate with other groups? How and to what extent? Where are these groups located? (National/International connections) Are the people in your group responsible for any communication with the rest of the company? Or to the ‘outside world’? ‘Production’ Pace Assess overall stress levels on you and your group? Do you often feel you have to urge your group to work faster? Does superior staff often demand higher output tempo? Do you impose deadlines of other restrictions to pace up productivity? On the contrary, do you take action to relief stress? Does the projects vary for your groups? In terms of scope? Length? Responsibilities? Are people working on simultaneous project? If so, is this forced upon you? Convenient way of allocating special talents to different project where needed? Reporting Who do you report to? How often? What kind of information do you report? Work progress? Financial information (costs etc.)? How often do your subordinates report to you? Does the amount/outlook of the reporting vary depending on the stage of development? Do you keep your group up to date with demands from your superiors? 42
How do they report? How are the reports useful to you? How much of your subordinates report information do you forward to superior officers? How many work hours do you think your group members are using for preparing reports? Feedback To what extent do you look back on work accomplished? What mechanisms kick in when something goes wrong/projects fail? How do you see your roles in such situations? How much are you involved in the day to day work in the group? Do you often feel you give handson solutions to problems in your group? ‘Friendly’ Leadership Does your group member share their work related problems with you? Or do tend to come in went things go really bad? Have you ever worked as a colleague with anyone in your group? Do you think it is affecting your ‘style’ of management? Do you sometimes do R&D work within the group yourself? Do you talk to your group members often (1 on 1)? Do you consider the relationship with your group members as a frank one? Do you feel a need to defend your group against the rest of the organization?
43
doc_547977473.pdf