Tibor Dőry

Innovation and excellence

Management methods for innovation transformation


Unattainable goals and contradictions

The best way to understand abstract concepts such as ambidexterity is to look at various corporate examples. Storytelling is one of the most effective management methods. That is why, in the previous chapter, we presented the innovation practices of large international companies and a medium-sized Hungarian company, which illustrate well the operating model of ambidextrous organisations. At the same time, it should be noted that there is no single template or itinerary, as each company operates with a different background and resources. However, it is important to recognise and understand the organisational culture and atmosphere that prevails in a company that is committed to innovation. A well-documented and verified example of this in management literature is Toyota, whose unique corporate culture is undoubtedly its most important success factor (Liker, 2004). Its efficiency has exceeded the industry average for years, which it has achieved through a variety of innovations. Behind this lies Toyota's unique set of values. The company constantly sets itself unattainable goals. The consequence of these unattainable goals is that employees try to break away from long-established working methods and think in new ways, as well as try to achieve radical developments and technical and technological breakthroughs. In addition, it should be noted that a spirit of experimentation prevails within the company. Employees are encouraged to leave the beaten track and set off in new, unknown directions. Failures are not seen as setbacks, but rather as important lessons from which to learn. When employees work on seemingly unattainable goals, they always carefully consider their options for progress, take small steps, and never give up. This entrepreneurial mindset has a positive impact on employee efficiency and the building of corporate knowledge, which is difficult to identify and transfer from one organisation to another due to its tacit nature.
In addition to pursuing unattainable goals, a culture of contradictions contributes most to the development of an ambidextrous organisation. Toyota's management is extremely frugal, yet at the same time constantly spending money. They always turn off the lights during lunch breaks and use open-plan offices without partitions. On the other hand, they finance generous investments. They build new production plants, purchase the most modern manufacturing equipment, and are always willing to invest in the training and development of their employees. Another example of the contradictions in corporate culture is that tasks are assigned from the top down according to a strict hierarchy. At the same time, constructive criticism is expressly welcomed. It is considered normal and indeed the duty of employees to raise justified objections and counterarguments to instructions in order to avoid bad decisions (Liker, 2004).
Another innovative example of a large company is Google. The technology giant encourages its employees to spend 20% of their working time, i.e. one day a week, on implementing their own ideas. By giving employees time to think about things other than their current projects, they become creative, research certain phenomena, and start experimenting, developing and testing prototypes. The result of this curiosity-based practice is, for example, Google Maps and Google Mail, neither of which were part of the company's strategic plan, but were based on ideas that arose during the employees' creative time. One such new product was reportedly created by enthusiastic developers in just one night. Based on 2021 company information, Google is a giant corporation employing 139,000 people. Some believe that the aforementioned 20% corporate principle is largely responsible for Google being as innovative as a startup company that is only a few months or years old, despite its size. In any case, the company's former Hungarian-born HR manager made it clear in his book revealing Google's secrets that the 20% principle significantly promotes entrepreneurial spirit and innovation (Bock, 2015).
It is therefore worth considering for every company leader to give their employees a certain amount of time and resources to come up with and test new methods and services. This should be seen as an opportunity rather than an obligation, and the success of innovative ideas depends largely on the organisational culture. Development proposals can only come to life in the right environment, and then be brought to market after the appropriate gestation period and testing with customers.
 

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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