By Marianna Avetisyan
Many companies use innovation as a method to create value for customers and gain a competitive advantage. This is a methodology approach that a company can use to tailor its particular needs. However, adopting innovation is often challenging and requires a deeper change in organizational design. Ideas discussed within a company often remain only on paper, held back by fear or doubts about achieving success. While following established decision-making procedures protects stability, it also can prevent access to the modern solutions which customers and markets require.
History provides direct evidence about how to proceed:
- The photography industry leader Kodak refused to adopt digital cameras because it believed this move would damage its film operations.
- The mobile phone industry leader Nokia failed to adapt to smartphone technology which resulted in its complete market disappearance.
These examples show how traditional systems hinder progress. But what if, instead of using a “one-size-fits-all” approach, they adapted innovative solutions to meet the unique needs of the market and new ways of thinking?
Change management strategy: Lewin’s Change Model
Step 1: Unfreeze – Prepare for Change
Adopting an innovation culture is not just about new technologies, but also about creating a new mindset within organization. The Lewin Change Model (1947) provides a basic framework to initiate change by first identifying problems and then understanding them before developing solutions.
Decision makers need to create an environment where teammates can discuss new ideas while openly sharing organizational challenges. Addressing fears is important — they need to see that change can lead to growth and a competitive edge. An example of this can be seen when Microsoft transformed its corporate culture under Satya Nadella by moving from a “know-it-all” to a “learn-it-all” approach which integrated innovation into regular operations.
Step 2: Change or Movement
Now that everybody has been prepared, it is time for the company to act. Decision-makers should lead the action; however, everyone needs to be involved. Training and support coupled with open dialogue between managers and the employees should smooth the way. This can be achieved by holding monthly team meetings and listening to suggestions. Regular monitoring and evaluations will identify areas for improvement and help prevent a return to old ways of working.
Step 3: Refreeze – Turn into the New Normal
The last step makes the change permanent. The innovation is integrated into daily practices and is not a one-time project. The change initiative at Google allowed employees to use 20 percent of their working time on their projects, which laid the foundation for the creation of Gmail and Google Maps.
Hence, saving and growing a business depends upon moving on with the innovation at the right moment.
Benefits of Innovation
Employees feel appreciated: In the shift from doing task-based work to problem-solving, employees obtain a sense of ownership and pride. This, in turn, fosters greater creativity and the generation of new ideas.
Stronger competition: Innovative companies stay competitive. Apple serves as an example, innovating the iPhone and setting global standards. BlackBerry did not keep pace with touchscreen phones and soon lost the market.
Barriers to Innovation
Fear of change: Many people like what they know and alternative modes of working clash with their stereotype.
Cultural and generational divides: Various languages, age groups, and cultural views may obstruct change.
Conclusion
There are several things that need to be done to get innovation into the culture of a company, but it is much more than tools; it is in the minds. Lewin’s Change model explains how to counter resistance to obtain acceptance, so sustainable innovation becomes a daily reality.
The lessons are clear. Netflix, Microsoft, Apple, and Google are examples of will to adapt and move on. Kodak, Nokia, and Blockbuster show what happens when companies cling to the old ways.
Innovation is not a one-time effort. Business transformation is a continuous and dynamic process that requires companies to remain competitive, adaptable, and forward-looking.
