Balancing Innovation and Efficiency : Prof. Rishikesha T. Krishnan of IIM Bangalore recently spoke about Balancing Innovation and Efficiency. Some firms choose the efficiency path (GE of Jack Welch era) and some the Innovation path (Apple, Sony etc.) The need of the hour is to marry these two competencies so that the organization is responsive, innovative and efficient at the same time.
This is a tough challenge as "efficiency requires stable routines – read stable & controlled environment whereas Innovation requires creativity & new ideas – read loose & flexible environment." Though this is challenging there are organizations that got this equation right. Prof Rishikesha gives examples of the Ace project of Tata and the Shell GameChanger project.
A great example of the danger of ‘either’ or ‘or’ is 3M where they hired ex GE McNerney as their CEO who almost killed the famed 3M Innovation culture with the ‘efficiency’ mantra. (If all you have is a six sigma hammer everything looks like a DMAIC nail!) Read the insightful article ‘At 3M, A Struggle between Efficiency and Creativity - How CEO George Buckley is managing the yin and yang of discipline and imagination http://www.businessweek.com/magazine/content/07_24/b4038406.htm
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Tharun,
Thanks for the summarizing the talk. As you mention in the blog, "marrying the two competencies" is important at an organization level. However, my experience shows that at an individual level, one does not necessarily have to marry these 2 competencies. In fact, I feel, you are either good at operational efficiency or at driving radical or semi-radical ideas but usually not both. If only, organization can ignite your passion for either of the themes. What do you folks think?
Vinay
cataligninnovation.blogspot.com
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