TECH LEADERS Want Innovation, Not Risk

Training & Development, Apr 2007

Managers of science and technical professionals say that promoting innovation is a major organizational challenge. But according to a new study by global consulting firm BlessingWhite, these same leaders are slow to cultivate risk-taking and innovation within their teams.

The organization surveyed 898 executives who lead expert employees in such industries as financial services, pharmaceuticals, technology, and manufacturing, and found that half of the respondents believe that "encouraging innovation that meets customer and market needs" is extremely or highly challenging.

"Fostering creativity is certainly on the minds of managers, especially those in research and development-based organizations," says BlessingWhite CEO Christopher Rice. "But we hardly expected to see respondents rank risktaking and innovation last on a list of actions essential to their own effectiveness because new ideas are at the very core of their company's mission."

He adds that these leaders certainly know the pivotal role played by innovation, yet they seem to shy away from the actions needed to cultivate it. They may consider the responsibility for coming up with the 'next big idea' someone else's job. They also may hesitate to release the creativity of their teams because they fear some of the inevitable failures that accompany increased risk-taking.

According to Rice, the research findings go to the root of the dilemma facing science- or technology-driven organizations. "These organizations need transformational leadership," he asserts. "Senior management knows it has to overcome its directive leadership style and deal with institutional inertia and even opposition to disruptive innovation," he adds.

At the same time, Rice also believes that in spite of its commitment to innovation, senior management invariably tries to curtail "out of control" research and development spending and pressures each function or department for better margins and profits.

"This is the duality challenging organizations today," he says.

MORE/ www.blessingwhite.com