Promotion, Change and Innovation

The key terms that underpin this unit are in very common use. We all talk about change, innovation and promotion as if we agree on what we mean by them. And often this is not the case.

The definitions that follow are the specific meanings that are being given to the terms in this unit.

In an organisational context change is given a quite specific meaning. The term is usually used to refer to an alteration in the processes that are used to achieve the organisation’s objectives.

Changes in organisational processes are largely due to one or a combination of the following factors:

• change in the nature of the workforce (for example change brought about by theshortage of skilled labour, or the resignation or retirement of a key person)
• changes in technology (for example the introduction of electronic funds transfer impactingon the work requirements of the accounts department, or increased automation ofproduction changing the skill requirements of maintenance staff)
• changes in the economy on a broad scale (for example collapse in confidence in thestockmarket, leading to a rethink of the timing of capital raising and a need to deferplanned expansion)
• changes in the business’ competitive environment (for example a new supermarket chainmoving into Australia and targeting your business’ most profitable demographic)
• changes in the general social environment (for example increasing awareness of energyconservation requiring a change in the marketing of electrical appliances)
• regulatory change (for example the reduction of levels in permitted effluent discharge towaterways).

Change does not have to mean improvement. As an operational manager, you will obviously prefer that change is focused on improvement in one or more of your key performance indicators, but change can also be a response to circumstances where it is not possible to achieve improvement.

The dictionary definition of innovation as ‘ the introduction of something new or different ’ doesn’ t offer managers enough guidance as to what they are supporting when they promote innovation. More useful is the definition espoused by the Australian Quality Council in its submission to the National Innovation Summit in 1999. This defines innovation as the process of finding and applying novel products, processes, technologies and ventures to create significant value for stakeholders In simple terms, anything that is done for the first time in an organisation is an innovation for that organisation This is a critical point.There is a further element of innovation that it is important to remember. This is that it carries with it the expectation of benefit to the organisation. It is seen in the definition above in the phrase ‘significant value for stakeholders’ As a community we tend to think that in order to count as innovation something has to be completely new that a new idea or way of working is only an innovation if no-one else has ever applied it anywhere. If that was the case, it is very unlikely that you as a manager would ever have to promote an innovation. However, the introduction of processes or ideas new to the organisation and designed to deliver beneficial change is something you will certainly experience some of the time and, depending on the enterprise you work in, may experience most of the time. Promotion of innovation and change is a very active role for an operational manager. It requires you to encourage and further the growth of the activity