inKNOWvations: March 2008

Where Will Management Innovation Take Us?

James Heskett

There appears to be a growing impatience with the lack of progress in management innovation and change in the very roles that managers play. Gary Hamel in his new book, The Future of Management, regards management innovation as "anything that substantially alters the way in which the work of management is carried out," including organizational forms. He distinguishes it from operational, product/service, or strategic innovation. Although he maintains that only limited incremental management innovation has taken place since the early part of the twentieth century, he believes the time may be right for significant change. He's not alone. Theodore Zeldin, a British historian who has spent a great deal of time studying the world of work, stated recently in an interview with the Financial Times that "the world of work must be revolutionized to put people—rather than things—at the centre of all endeavors."

Most businesses recognize the value of good ideas. However, good ideas don’t always turn into good business. One can argue that this is simply a result of the uncertainty and risk associated with new ideas and new ventures. On the other hand, one can also argue that the return on innovative efforts could improve in many enterprises. As the conception, evolution and evaluation of ideas are integral parts of innovation, understanding the idea process is crucial to improving innovation performance.