Другое : Knowledge, Innovation and Development
Knowledge, Innovation and Development
The KID
Written by: Kuropatkina Serafima
Saint-Petersburg
1998
Ó
Kuropatkina S.N.
1. Moving
into the future
Knowledge is the thing that makes a difference. It is matter
of being better informed than the others, getting ideas before the others, -
these are the things that allow some companies to take off and remain leaders
for a long time. In the past knowledge and innovations didn't play an important
role in company management. The impact of these factors on the competition
wasn't very big and obvious. From the second half of 19th century industries
and management started to develop rapidly and by the end of 20th century
inventions have penetrated all spheres of production, business and human life
in general. Competition has dramatically increased, creating the necessity for
each company to improve and develop constantly. We are moving into the future
where it is not possible to win the game using traditional methods. This proves
a need of a separate structure within each company that would deal with
existing knowledge, innovative ideas, development of production process and
working life. It is essential to design a completely new department. Let’s call
it - the department of Knowledge, Innovation and Development (KID). This system
also will allow the company to avoid high opportunity costs of not doing some
improvements which could reduce costs and give rise to profits. Let's take a
close look on the KID department, its functions and structure.
2.
The department of Knowledge, Innovation and Development (KID)
2.1
KID's functions
The general functions of the KID are:
·
to solve different problems that come up in a company using known
methods or new ideas of the employees;
·
to constantly develop company's production cycle and products
·
to give aid to all departments concerning possible improvement
and elimination of drawbacks
In order to fulfill its general functions KID will carry out
the following subfunctions:
·
receiving fresh ideas or problems from staff of different departments
·
selecting the most useful and relevant ideas and checking the
existence of the problem
·
developing ideas and problem solutions (if needed) to level
required for implementation
·
making the final decision in cooperation with the department(s)
involved
·
implementing the developed idea
·
controlling the implementation process, altering if necessary
·
evaluating the outcome, calculating financial results
·
rewarding the idea maker
·
changing the corporate culture and working environment towards
creativity and innovation values.
2.2
Structure of the KID department
In correspondence with its main activities the KID should
consist of the following departments:
1) gathering
and filtering department (organizes research, selects ideas, checks the
relevance of problems, responds to idea proposers and customers)
2) developing
department (works out solutions to problems pointed out by employees or
customers, invites authors of good ideas for closer cooperation)
3) executive
department (plans, runs, controls implementation process, negotiates with other
departments)
4) social
relations department (deals with motivation, awards, customer relations and
different social activities)
At first the department 2) should closely cooperate with
present R&D. In the future R&D can become subject to 2).
3.
How to create a KID?
Creation of KID must be supported on the highest level of
management. Without this nothing can happen.
3.1
Preliminary activities
First we must analyze how innovative is the company. How
often changes take place. Who proposes them. How do workers feel about sharing
the ideas. Do their ideas get attention? This will show the present situation
and allow us to estimate the how much time and resources KID creation will
take.
Next step is to introduce to everyone in the company the new
department, to explain its purpose and functions, to show how the company and
every single employee will benefit from it.
Then allocate the people and resources and create the
department itself. For the beginning KID can be formed with existing managers
and experts. But when many companies are going to be using similar systems they
will need specially trained workers. Faculties should be designed in
universities and colleges teaching students to deal with new ideas and to use
existing theories and experience of preceding generations in order to solve
problems and develop their company.
3.2
Designing information flows
As a part of organization’s information system we must work
out a mechanism of idea and problem flow from the employees and customers to
the KID. Among the numerous motivation theories there are theory X and theory
Y. X suggests that the worker is passive and needs to be closely controlled and
forced in order to get results. Y - the worker is creative and eager to work.
He just needs proper conditions to show himself. I went further. I believe that
there are two types of workers in the company - X and Y, active and passive.
That's why the KID needs two approaches. For example:
open entry - every worker can come to the gathering
department directly or put his ideas in written form into special bins that
would be available at his working place. This way the employees will be able to
express their thoughts at any desired time;
obligatory interviewing - from time to time KID will
give out to workers questioners which they must fill. These could consist of
the following questions:
-
"Have you noticed any problems concerning the work of your
department? Have you any suggestions on how to solve them?"
-
"Is there anything you'd like to improve in your department
and in the whole company? How (your suggestions)?"
-
"How do you feel about our company’s products (services)?
How can they be developed or improved?" Etc.
The interviewing should be carried out at all departments,
but not at the same time. This will allow to avoid conjunction at the gathering
and filtering department.
3.3
Motivation
Motivation of the workers. We must estimate the level of
actual needs of employees and develop a mechanism of motivation universal for
every worker. There can be many motivating factors. They depend on the economic
conditions in the country, standards of living and financial situation in the
company. Money, job promotion, board of honor, competition of ideas with
prizes, etc. Motivation through corporate culture is also required. We can put
posters in often visited places. Posters may say:
-
"By participating the KID's activities you will help your
company, improve your work and life!"
-
"Be company patriotic!"
-
"Be a perfectionist. Spot a problem - tell the KID about
it!"
-
"Give us ideas because nobody knows your work better then
you!"
-
etc.
3.4
Cooperation with experts
We need to organize cooperation with specialists. It isn't
useful to have our own staff of experts because:
·
they will not always be logged with work and this will produce extra
costs
·
they will soon become useless because they will be drawn away
from current work of their departments.
We also must investigate whom we can rely on. Not all
experts innovative and understand the necessity of change. Cooperation with KID
will be part of responsibilities of those experts who work with it.
Organize cooperation with management of different
departments. An order to implement any idea must come directly from the
management of the department involved.
3.5
KID's position within the company
The scheme of KID's position in the company can look like
this:
Kid provides each department with its services. Department
in return provide KID with some information, resources etc. The connections
are:
1. Marketing department
provides information received from different marketing research. Specifies the
situation on the market. Gives feedback on KID's activities (have the sales
increased? how much?)
2. Production department gives
feedback on KID's activities (has productivity increased? how much?)
3. Human resource
administration cooperates with KID closely. Helps it with motivation.
4. Financial department
provides KID with money for all activities (within the budget of course). Gives
feedback on KID's activities (financial results figures, information about
changes in costs and revenues).
5. Customers give KID valuable
feedback about products and services.
6. Employees give KID ideas,
cooperate with it and receive rewards for their work.
7. Experts work with KID on
specific problems.
3.6
Control functions of the KID
If the innovation is complex we must monitor closely the
field of implementation and if problems occur - take care of them immediately.
Collect feedback from all people related concerning the
results. Taking action if necessary. Remember that no change comes without
negative response. Calculate results (based on financial information,
information about productivity and costs, etc.). Reward the idea author
depending on these figures. Tell everyone about this "great man, who
helped to the company so much".
3.7
Customer relations
Customer feedback must also come to the KID, not marketing
department. Marketing department doesn’t have direct stimulus to analyze
information related to other departments. It might have difficulties making
changes in other departments due to lack of power.
The KID system is not of course ideal. It is just a draft,
an idea of what could be developed into a universal model. But as I see it -
every company that wants to succeed in the coming high-tech future must start
to develop such a system as soon as possible.
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