Social Responsibility and the Innovation Process

The impact of social responsibility in the innovation process is huge. Today, more than ever, as our boundaries vanish globally and our actions have a ripple affect across an infinite expanse, we need to be aware of how everything we do impacts other lives, businesses, and our environment. “With organizations, economies, and entire societies increasingly interconnected, our actions affect (and are affected by) others, often literally a world away” (Senge, 2003). Gebler (2006) posits that there are 7 levels on which ethical organizations operate: 1) financial stability, 2) communication, 3) systems and processes, 4) accountability, 5) alignment, 6) social responsibility, and 7) sustainability. Gebler (2006) also states that successful organizations “operate across the full spectrum with particular focus in the upper levels of consciousness-the common good-accountability, leading to learning and innovation” (Gebler, 2006). All of these constructs are created by nurturing an ethical organizational culture which starts with leadership that has a “cascading effect from higher level leaders to lower level leaders due to modeling effective behaviors, hiring others with similar behaviors, and behaviors being reinforced by the organization (Bass, Waldman, Avolio, & Bebb, 1987) (Tucker & Russell, 2004).

References:

Gebler, D. (2006). Creating an ethical structure. Strategic Finance. May 2006, Vol. 87, Iss.11; p. 28.

Senge, P.M. (2003). Creating desired futures in a global economy. Reflections. Vol. 5, Iss. 1. Retrieved from Ebscohost October 1, 2008.

Tucker, B.A. & Russell, R.F. (2004). The influence of the transformational leader. Journal of Leadership & Organizational Studies (Baker College). Spring 2004, Vol. 10, Iss. 4; p. 103-111.

If we fail to plan, We plan to fail

I know we have all heard the phrase "if you fail to plan, you plan to fail". It just automatically comes to mind when thinking of business plans and failure. Learning from failure is probably some of the best learning because it brings "in your face" experience that we probably didn't want but will enrich our future decisions to know better next time. The four stages of the business life cycle includes introduction, growth, maturity, and decline. When maturity is hitting, this is the time to begin to re-strategize about renewing the vitality of the business so that failure is not the end result of decline. "According to Scott Clark of the Puget Sound Business Journal, the majority of the causes can be condensed into three "Ms" of business failure; Money, Management and Marketing" (Holland, 1998). Planning ahead in business and being prepared for failure is one of the best ways to avert it and if we can frame failure as an opportunity to learn then we can more confidently step out to take risks that have the potential for success.

Reference:

Holland, R. (1998). Planning against a business failure. Agricultural Development Center. October 1998. Retrieved October 6, 2008 from http://cpa.utk.edu/pdffiles/adc24.pdf

Failure and Innovation

“The more you fail, the more you succeed” (Kotelnikov, 2008). I personally believe that failure is the foundation to success and innovation. One never knows what genius lurks in the cloak of failure waiting to be unveiled. “Failure provides great learning opportunity and should be viewed as a very lifeblood of success” (Kotelnikov, 2008). Within an innovative organization, new ideas might sound crazy but “it takes a great many silly ideas to spawn one viable one, and ..in the early stages there is no way of telling the silly idea from the stroke of genius” as they “both look equally impossible or equally brilliant” (Denning, 2005). Alfred Sloan the success maker of General Motors says, “life itself is a process of trial and error…and those people who make no mistakes are those who make nothing”. My husband and I had a successful contracting business for 11 years and as a result of many factors including hurricanes, structural damage, and dwindling liquid capital, our business went down in December of 2005. Many factors in this equation were out of our control but I take full responsibility for making poor choices, bad decisions, and having bad judgment which all equaled demise in the end. This was a huge personal and professional failure. These times of failure create defining moments that challenge us in deep ways and they “form, reveal, and test” us (Badaracco, 2003). These defining moments produce critical opportunities for self-inquiry that allow us to refocus our core values and principles, birthing a renewed sense of purpose, and crafts an authentic and strong identity based upon an understanding of our experiences and what is right (Badaracco, 2003). I learned so much from this experience about myself amidst this failure and how to approach future business. We now have another contracting business and it was from valuable lessons of past failures that we can have better judgment today and make more seasoned choices that produce better outcomes. Failure contains encapsulated lessons to be learned about myself, life, and business and creates opportunities to learn, change, and grow. It is difficult to make a comeback, but I would not trade the experience and lessons I have gained for easy success on any given day. It is through reflective efforts and vigilant scanning that I am able to move forward with confidence knowing that failure is vital to the learning process, the innovation process, and to personal and professional success.

References:

Badaracco, J.L. (2003). The Discipline of Building Character. Chapter 19. Business Leadership: A Jossey-Bass reader.

Denning, S. (2005). Transformational Innovation: A journey by narrative. Strategy & Leadership. Vol. 33, Iss. 3; p. 11.

Kotelnikov, V. (2008). Freedom to fail. The Highway to Success. Retrieved October 2, 2008 from http://www.1000ventures.com/business_guide/crosscuttings/failure_freedom.html

Stress and the Job

Leaders can create a less stressful workplace via supportive leadership style and mentoring constructs. Additionally, stress may be allayed via effective communication, increasing efficacy expectations, clarifying performance expectations, developing supportive group relationships which bolster social support and providing career developing opportunities (Sosik & Godshalk, 2000). Sosik and Godshalk (2000) found that the transformational leadership style incorporates traits such as individual consideration which support the mentoring construct and has been found to abate job-related stress. Job-related stress is often a function of individual perception of their environment and what meaning they may assign to external events (Sosik & Godshalk, 2000). Locus of control “can influence experienced stress by affecting one’s perceived ability to cope with and perhaps change a stressful environment” (Chiu et. al., 2005). According to Chiu et. al. (2005) employees who perceive low stress and high leadership support remain in positions longer; however, everyone differs in their perceptions of each of these constructs. Depending upon an individual’s LOC whether it be internal (viewing stress as controllable) or external (viewing themselves as powerless) will be a large factor in determining how they will perceive their environment and their ability or lack thereof to control it.

References:

Chiu, C., Chien, C. Lin, C. & Hsiao, C.Y. (2005). Understanding hospital employee job stress and turnover intentions in a practical setting: The moderating role of locus of control. The Journal of Management Development. Bradford: 2005. Vol. 24, Iss. 10; p. 837.

Sosik, J.J. & Godshalk, V.M. (2000). Leadership styles, mentoring functions, a job-related stress: A conceptual model and preliminary study. Journal of Organizational Behavior. Chichester, June 2000. Vol. 21, Iss. 4; p. 365

Situational Variables effecting Leadership

The behaviors and effectiveness of leaders are not always indicative of the leadership process or style. Situational modifiers such as task structure, group environment, and the leader’s power position play a big role, with each factoring into the equation of leadership effectiveness (Bass & Stogdill, 1990). Yukl (1994) described the use of situational modifier variables relative to leadership and the Contingency Approach. Fiedler’s Contingency Theory posits that “leadership effectiveness is the result of the interaction between the style of the leader and the characteristics of the environment in which the leader works” (12manage, 2008). According to Chen & Silverthorne (2005) the follower dictates the most appropriate leader behavior.

Relative to my personal workplace, as a business owner our environment consists of the environment at large working in different locations on varied job-sites and if we are working in a private residence then the home-owner is always an independent variable that can influence and contribute to the “culture” of the work group in either negative or positive ways. If we are working in a public space then there is an even larger diverse group of people that can contribute to the mix of the employee work group. There are also other contractors within each job site that factor into the equation. Our work environment and the group environment are always changing depending upon our location and what other individuals might be influencing the structure. The task structure itself is somewhat repetitive but can change with each job site as every builder incorporates multiple surfaces which create greater and lesser degrees of difficulty with application. The products used with each job also influences task structure and difficulty level. The abilities of employees become relevant here as experience plays into how difficult each task may or may not be for each individual. Leader power position may change as we deal with employees and also with home owners, business owners, builders, and other stakeholders. Leadership effectiveness on each level may vary as each of these situational variables are always changing. However, we always strive to communicate effectively, clarify performance expectations, and develop supportive group relationships.

Reference:

Bass, B. M. (1990). Bass and Stogdill’s handbook of leadership: theory, research, and managerial applications, 3^rd edition, Free Press: New York

Chen, J. & Silverthorne C. (2005). Leadership effectiveness, leadership style and employee readiness. Leadership & Organization Development Journal. Vol. 26, Iss. ¾; p. 280

Yukl, G. (1994). Leadership in organizations, 3^rd edition, Prentice-Hall: Englewood Cliffs.

12manage, 2008. Contingency Theory. Retrieved October 9, 2008 from http://www.12manage.com/methods_contingency_theory.html

Transformational Leadership

Steven Covey says of transformational leadership that the “goal… is to “transform” people and organizations in a literal sense – to change them in mind and heart; enlarge vision, insight, and understanding; clarify purposes; make behavior congruent with beliefs, principles, or values; and bring about changes that are permanent, self-perpetuating, and momentum building.” My goal is to continually learn, to always be open to experience, stretch myself, be flexible, ask questions, practice vigilance, never settle, and to positively engage others. I hope that by living my life in such a way that I am always seeking to learn, change, and grow that I am able to do what is right in my life, in leadership, and to always seek to bring about positive change for myself and others. My desire is to be encouraging and supportive to others, to be individually considerate, and to empower others to be active participants in the midst of constant change. I will apply transformational leadership in my business by keeping relationships as the foundational structure to which all else springs forth as a result and I will apply innovation by being environmentally vigilant, always seeking to instill new processes, perfecting old processes, and taking risks to try new methods.

Failure as the Impetus for Success

“The more you fail, the more you succeed” (Kotelnikov, 2008). I personally believe that failure is the foundation to success and innovation. One never knows what genius lurks in the cloak of failure waiting to be unveiled. “Failure provides great learning opportunity and should be viewed as a very lifeblood of success” (Kotelnikov, 2008). Within an innovative organization, new ideas might sound crazy but “it takes a great many silly ideas to spawn one viable one, and ..in the early stages there is no way of telling the silly idea from the stroke of genius” as they “both look equally impossible or equally brilliant” (Denning, 2005). Alfred Sloan the success maker of General Motors says, “life itself is a process of trial and error…and those people who make no mistakes are those who make nothing”. My husband and I had a successful contracting business for 11 years and as a result of many factors including hurricanes, structural damage, and dwindling liquid capital, our business went down in December of 2005. Many factors in this equation were out of our control but I take full responsibility for making poor choices, bad decisions, and having bad judgment which all equaled demise in the end. This was a huge personal and professional failure. These times of failure create defining moments that challenge us in deep ways and they “form, reveal, and test” us (Badaracco, 2003). These defining moments produce critical opportunities for self-inquiry that allow us to refocus our core values and principles, birthing a renewed sense of purpose, and crafts an authentic and strong identity based upon an understanding of our experiences and what is right (Badaracco, 2003). I learned so much from this experience about myself amidst this failure and how to approach future business. We now have another contracting business and it was from valuable lessons of past failures that we can have better judgment today and make more seasoned choices that produce better outcomes. Failure contains encapsulated lessons to be learned about myself, life, and business and creates opportunities to learn, change, and grow. It is difficult to make a comeback, but I would not trade the experience and lessons I have gained for easy success on any given day. It is through reflective efforts and vigilant scanning that I am able to move forward with confidence knowing that failure is vital to the learning process, the innovation process, and to personal and professional success.

References:

Badaracco, J.L. (2003). The Discipline of Building Character. Chapter 19. Business Leadership: A Jossey-Bass reader.
Denning, S. (2005). Transformational Innovation: A journey by narrative. Strategy & Leadership. Vol. 33, Iss. 3; p. 11.

Kotelnikov, V. (2008). Freedom to fail. The Highway to Success. Retrieved October 2, 2008 from http://www.1000ventures.com/business_guide/crosscuttings/failure_freedom.html