A Critical Analysis on Innovative Management

1-Introduction ——— 2 2- Discussion ———2 2. 1 Critically Evaluate Current Creative and Innovative ———3 Management process in the Organisation 2. 2 Explain how to Lead Others to Embrace Innovation and Change. ———3 2. 3 Critically evaluate the relevance of leadership within the organisation. ——5 2. 4 Produce an appropriate rationale to persuade stakeholders ———5 of an organisation of the benefits of a creative and innovative idea. 3-Conclusions ——— 6 4-Recommendations ———- 7 5-References ———- 7

1. Introduction John Kotter (1996) defined management as number of procedures which can keep the complex interaction between individuals and technology moving efficiently. He identified several phases of this complex interaction, but the most important pieces are considered to be the “planning, budgeting, organising, staffing, controlling, and problem solving”. (Kotter, 1996) Effective management and leadership can lead an organisation to successfully achieve its targets.

Leaders are people ‘who inspire with clear vision of how things can be done better’. (Olson et al. , 2001) 2. Discussion In this case study we will look Jack Welch, a well-known and influential business leader of the 20th century. Mr Welsh was the Chairman and Chief Executive Officer (CEO) of General Electric Co. (GE) and he is considered a very good example of a born leader. During the 41 years he spent working with GE, he helped transform the company into a very successful, productive and thus valuable business.

As a CEO, he is renowned for his creative and innovative leadership style. Jack Welsh commenced his career at GE as a Junior Engineer in 1960, just after receiving a doctorate in chemical engineering from the University of Illinois. Not long after starting work at GE, Mr Welch accepted a different offer from International Minerals and Chemicals, as he was not satisfied with the bureaucracy at GE. However, this plan never materialised as Reuben Geutoff, an executive at GE at the time, convinced him to stay and helped reduce the bureaucracy.

As such, Jack Welch remained with GE, and gradually progressed through the company, from head of the plastics division in 1968, to group executive in 1973. 2. 1 Critically Evaluate Current Creative and Innovative Management process in the Organisation In this case study, only twenty years after starting at the company, Mr Welch became the youngest CEO at GE to date. During this time working in this post, the company grew from a relatively small manufacturer of light bulbs and simple electrical appliances, to a multi-billion industrial conglomerate by the turn of the century.

Over 900 acquisitions, worth several billion dollars were under his supervision, and made the company several more billion dollars through the sale of part of businesses. 2. 2 Explain how to Lead Others to Embrace Innovation and Change Innovative ideas can originate from anywhere in an organisational structure, but it is recognised that developing the “raw idea” to an “implemented idea” needs careful support. Managers should be provided the opportunity to be creative and try out new ideas and concepts (within pre-considered risks).

Of course the manager should remain accountable and as such the project should be implemented with consideration for timing and budgets. It is also of vital importance to keep in mind the likely issue of ‘resistance to change’ and to ensure that all who could be affected by the proposed change are kept informed and up to date with the implementation. Thereby helping to create a culture of accountability and transparency. This is the type of culture which is required for the ‘seeds’ of change to take root.

It is important that the Champion or Leader of change is aware of Tuckman (1965) Model of the change process which is that all groups and teams will develop through the following process: Forming, Storming, Norming and Performing. (Tuckman, 1965) Forming This stage focus on abilities of leaders to lead and guide the team, leaders have to be able to answer all team’s purpose question. Storming In this stage there is a challenge for leaders because of the competition between team members and who can have their own personal agendas.

For that reason decision don’t come easily, there must be compromises. Norming Consensus among team members under leader’s facilitation. Decision made to develop the processes by all team member agreement. Performing The team have clear vision to achieving the goal, and they have the ability to achieve the objectives with no participation from the leader. (Tuckman, 1965) It is important for leaders to have vision and authority, but it is more important for them to reach out to individuals all along the chain of command to make sure that everyone feels involved in the process of change.

Leaders who don’t do this, and attempt to impose their vision from the top-down instead, might manage to achieve something that looks like their vision, but which is essentially empty. Deming (1986) the father of Quality Management could indicate that Mr Welch’s leadership is in alignment with Deming’s 14 points for management for example: Point 1. Create Constancy of Purpose, Point 7, Institute Leadership of People, Point 9, Break Down Barriers, Point 13, Encourage Education.

In essence Mr Welch was a visionary who created a working climate of a culture of continuous improvement where the workforce could grow and develop. (Deming, 1986) 2. 3 Critically evaluate the relevance of leadership within the organisation One of Mr Welch’s most important skills was the fact that he was an intuitive strategist. Intuitive leadership sensitively opens opportunities for personal expansion among high value executives, enabling them to connect with and discover the hidden distinctions of transformational change that exist within themselves .

The strategy used by Mr Welch provides an opportunity to reduce unnecessary rules and continually question the development of different rules, as well as implement a new structure or alter the way in which the organisation operates. Such changes may be necessary because the organisation’s circumstances have changed or it is taking on new activities. Mr Welch was known as a great communicator, skilled at building trust between staff throughout the organisation. At the same time, he was highly competitive. He believed that management should make sure that new ideas are encouraged and that obstacles be removed from product advancement.

Companies should create a setting where staff-led initiatives are promoted, and where training and innovation was available to all that worked there. As a result of his competitive edge, Mr Welch believed such innovative projects should be carefully controlled and managed within the company. 2. 4 Produce an appropriate rationale to persuade stakeholders of an organisation of the benefits of a creative and innovative idea To persuade stakeholders of the benefits of a creative and innovative idea, one must adopt a variety of approaches to make the ideas appear powerful and compelling.

If the ideas you are promoting are congruent with your core beliefs and values, it will be easier to promote them with true passion. Hence, it is important to first consider as to why a particular change or improvement needs to happen and also how you see this happening. The change will only happen if you truly believe in the results. Andriopoulos and Dawson (2009). The following notes can be used for guidance: 1. Get all the facts behind your idea 2. Link human emotions to the facts supporting your idea 3. Describe your idea and support it by example 4.

Create a clear implementation roadmap 7. Be ready for any questions 3. Conclusion Mr Welch had a democratic style leadership- he was greater communicator and he shared information with his colleagues and employers. It is considered very important to include the employer in sharing information, as it if often the higher level managers who interact on a face to face level with the customers, and thus they need to have access to all necessary facts. Mr Welch had the ability to make decisions and change the rules and he possessed the spirit of competition.

This competitive edge helped push the business towards success and his intuitive strategies helped lead the company accomplish a wide set of goals and targets. As a business leader, Jack Welch was able to work in harmony with the larger business entity and his specific business characteristics made him a successful business leader. 4. Recommendation I recommend that those who want to become great leaders like Jack Welch build on their charisma. Every leader wants to be an excellent one, and follow in the footsteps of a good example, the writer believes Mr Jack Welch is a very good example to follow.

Companies should ensure they have the capacity to accurately envisage potential risks and opportunities, and have the ability to act on any necessary changes. As such, they should ensure that their administrative rules provide support to the innovations in the workplace, instead of providing red-tape which may hold back ideas. 5. References: DEMING( 1986). Out of the crisis: quality, productivity and competitive position. ARTICLE, 435-445. Slater, R. (1999). Jack welch and the GE way: Management insights and leadership secrets of the legendary CEO, McGraw-Hill Companies KOTTER,( 1996).

Leading change, Harvard Business Press. OLSON, E. M. , CRAVENS, D. W. & SLATER, S. F. 2001. Competitiveness and sales management: a marriage of strategies. Business Horizons, 44, 25-30. Mohanna, K. (2007). “The student-centred sensitive teacher. ” Your Teaching Style: A Practical Guide to Understanding, Developing and Improving: 31. TUCKMAN, B. W. 1965b. Business Psychology and Organisational Behaviour. Lawrence Erlbaum Associates Andriopoulos and Dawson (2009). Managing change, creativity and innovation. Sage Publications Ltd.