Nuggets from IBM Business Leadership Forum in Rome

Some of the world’s leading thinkers from across business, industry, government and academia gathered in Rome earlier this month for the IBM 2006 Business Leadership Forum. The discussion focused on innovation and the challenges facing businesses in the 21st century. "The bottom line of all this is that innovation is really a 'must do' unless we want to live in an environment that's commoditized and not unique, not differentiated," said IBM Chairman and CEO Samuel Palmisano. He also offered the following nugget: "Last year, human beings produced more transistors (and at lower cost) than they did grains of rice.”. Key speakers were Lord Browne of BP, Mario Monti (former EEC Competition Commissioner), Linus Torvalds, Tom “flat earth” Friedman and Sunil Mittal. Among the insights reported by IBM:

Innovation is essential. Globalization is inevitable. Ubiquitous connectivity is breaking down physical borders and creating connections between people, economies, organizations and governments in ways that were never thought possible.

It's about being unique. In this age where competition for talent and brand share is critical, businesses need to cultivate their uniqueness. They need to encourage an environment that allows people to be open, to be multi-disciplined, to be collaborative, and to be global in their thought process.

The speed of change is much faster — and more disruptive — than seen before. The goal amidst all this change is to find value in the marketplace. Whether it's innovation for money or whether it's innovation for business, society or for governments, the binding force in the end is trying to see the problem differently, to find new value quicker than anyone else. This is what the 21st century is all about — and it’s all just beginning.

CEOs must pay attention to the implications of change among employees. Done incorrectly, change can create fear and uncertainty within organizations. Unless it is properly managed, too much change can be a great disaster for companies. CEOs and leaders must establish a course, a plot and/or a purpose to lead their people. Constant reorganization is futile. Instead, leaders must look at a company’s structure strategically, consider which pieces need to shift and then unfold change bit by bit.

Technology plays a leading role in innovation, but it isn't the only factor. What were once disruptive technologies now are commodities. Technology can be the establishing base for innovation, but people are the ones that drive it forward. Technology is really only the mechanics of the process. Real innovation is about great people generating and then implementing new ideas.

To innovate, CEOs don’t need to control all the resources or build within their own frameworks. Partner and collaborate, then disband and go back to doing whatever the individuals’ strengths are. CEOs aren’t limited to using their own staff or resources. They have to identify the problem and deploy the right people against it over a period of time, partnering with other institutions to get the 'right people' if necessary.

Comments

[Ben Simonton]

Concur that innovation is a critical element. But to unleash employee innovation, the CEO must go much farther than you have indicated.

The determining factor in each person is whether they feel a "sense of ownership" for whatever they are doing because that determines to what extent their brain is fully functioning or not. All creativity and innovation comes from a person's brain. With no "sense of ownership" there is no caring and thus no reason to apply one's brain to the effort at hand.

Conversely, with a strong "sense of ownership", one's brain will most likely be applied on a continuous basis whether physically at work or not. That's how real innovation occurs.

So the critical question is what controls an employee's "sense of ownership"? Can it be ordered? Can it be given? The answer to the last two questions is a resounding NO. "A sense of ownership" can only be developed by the person herself and by no one else.

Can management cause an employee to develop it, possibly through the person's work environment? Yes, yes a thousand times yes. In fact, for about 95% of all employees, the workplace environment is in almost total control of their innovation by either frustrating them or releasing them to the power of their own motivations.

Creating such an environment is easy to do given that the CEO has the right script to follow. I used mine to effect four successful turnarounds of management disasters so I know that it works. I am sure that others have them and using one should be a CEO's primary goal.

Best regards, Ben Simonton
Author "Leading People to be Highly Motivated and Committed"
http://www.bensimonton.com

[AltaGid]

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Very often try to enter the forum, but says that the password is not correct.
Regrettably use of remembering. Give like to be?
Thank you!

[Rick Rexor]

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