Tibor Dőry

Innovation and excellence

Management methods for innovation transformation


Management techniques for boosting innovation levels

Hundreds of books in management literature discuss various methods that can provide effective assistance in identifying certain corporate problems, communicating them and exploring solutions, as well as defining innovation projects, implementing them and managing them. However, it matters when managers get involved in the development process and what decisions they make. Oliver Gassman, a widely cited professor of technology management at the University of St. Gallen as well as consultant on the innovation processes of numerous large Swiss and global companies, emphasises in his article "Managing the Unmanageable", that setting the right direction early in the innovation process can spare companies costly and time-consuming modifications later in the development process. Although it is indisputable that making the right decisions as early as possible is vital, many companies feel that they do not know the methods and processes that improve decision-making in the early stages of development. These decisions are made amid uncertainty about technical and technological feasibility, which can be reduced by testing virtual or real prototypes. The risk of market failure of the final product exists throughout the innovation process, and market acceptance can only be reliably assessed after the product has been launched (Gassmann-Schweitzer, 2014).
With this in mind, my colleagues at the university and I have consulted with a number of business leaders in recent years about the methods they use in the early stages of innovation. This is the so-called fuzzy front end stage, when there are no concrete projects yet and potential project owners only have vague, hazy ideas about development concepts and goals. Moreover, it is not easy to communicate these ideas to decision-makers, either verbally or in writing. Perhaps the majority are too cautious, finding it difficult to open up and not daring to share their insights even with their immediate colleagues, fearing that their groundbreaking ideas will be stolen and they will not receive the credit. The paradox of the situation is that if they do not share their development ideas, they will never be realised, and the longer the launch of the projects is delayed, the greater the chance that someone else will have already implemented the development somewhere else in the world.
During corporate idea management, and the systematic search for and generation of innovative ideas, we constantly had the feeling that we were either hearing ideas that were too general or that the idea generators were trying to outline solutions to problems that were too specific or partial. Consequently, we were not surprised that managers did not really respond to the proposals, as few of them reached their threshold of interest. During corporate brainstorming sessions, the ideas that sparked interest among managers were those that were formulated at the "mezzo level", i.e. precisely enough that even the boss could add a point or two.
We have seen the same thing with university students over the past ten years. In our classes and at various startup events, the ideas that received support and led to the detailed development of the project were those that were formulated in sufficient detail and in a clear manner. Furthermore, it is also an important lesson that it matters who the idea generator is and how well they can communicate. In addition, it must be acknowledged that investors typically invest in teams rather than ideas.
Based on these insights, we selected a few critical topics, developed training themes related to them, and then held pilot workshops for employees and managers of various companies. Typically, we held workshops not for mixed groups of managers and employees, but separately for managers and employees. This method greatly helped to create an atmosphere of honesty, as we saw that when the boss was present, everyone behaved and spoke differently. The groups of employees and managers were also mixed, and we typically tried to involve colleagues from different areas of the company, with different backgrounds and types, in the training courses. Ideally, employees working in production, development, sales and marketing, service and maintenance, and finance and accounting can form a powerful innovation team.
The toolbox is quite extensive, but based on our experience and company feedback, a few well-chosen internal training courses and workshops are more effective than a complete toolbox. The initial steps require techniques that provide significant support for defining development projects with relatively little preparation. Both small and large companies are already well versed in project planning based on known technical specifications and technical-economic plans.
We have found that the fuzzy front end, i.e. the management of the early stages of innovation development, poses the greatest challenge, but the good news is that this can also be learned. With the help of appropriate methods, company employees can master the communication techniques that enable them to present their development proposals in an appropriate manner and ensure that they are (better) understood by managers. The latter can learn active listening and encouraging feedback techniques. In our opinion, the systematic and persistent application of these seemingly simple methods can make the organisational culture of a company significantly more receptive to innovation (see Figure 32).
 
Figure 32. Management methods in the early stages of innovation development
Source: own compilation.
 
In the next part of this chapter, we present the four techniques shown in the figure above and our experiences with their application, summarising the background, purpose, target group and a brief description of each method. In our opinion, these methods are effective in dealing with critical bottlenecks and problems that arise in the early stages of innovation-oriented development. For effective communication of ideas, we provide a well-structured "item sentence" form as a guide, while in the process of actively listening to developers and giving encouraging feedback, we wish to emphasise how much encouragement and motivation a manager can give to colleagues with a developer mindset through their behaviour and statements, while inappropriate statements can discourage them from any significant development initiatives for months or even years. Understanding and empathetic listening and giving the right feedback are important not only in the idea phase, but also in the prototype testing phase, because in line with the "fail fast and often" philosophy, it is inevitable that developments will reach dead ends. In such situations, tempers and decibels can easily flare up, even though the goal should be to work together to find solutions and the right next steps. Finally, we will discuss issues related to the operation of an innovation group or "idea circle" that can be introduced to promote continuous innovation and a high level of innovation culture, according to the structure presented.
 

Innovation and excellence

Tartalomjegyzék


Kiadó: Akadémiai Kiadó

Online megjelenés éve: 2026

ISBN: 978 963 664 182 5

The aim of the book "Innovation and Excellence" is to inspire and encourage company leaders, managers, and experts to initiate and implement innovation transformations with the help of professional literature and corporate case studies. Another important goal is to help develop the innovation capabilities of small and medium-sized enterprises in particular by sharing simple, proven management methods that can be tested in practice.

The first part of the volume reviews the factors of corporate excellence and success, then highlights the possible sources of innovation, with a focus on the role of users and employees. The empirical section presents a detailed description of the supportive role of the workplace environment and creative working conditions based on corporate case studies (AUDI, BOSCH, MELECS). The volume concludes with a description of selected tested practical methods and management techniques that readers can try out in their own businesses.

Hivatkozás: https://mersz.hu/dory-innovation-and-excellence//

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