A new organisational model for fast-paced, uncertain, changing times.

The people, process and innovation alignment model

Magnetic North

Organisations, like people, are like some other organisations, all other organisations and no other organisations. In a new world where we constantly have to change direction, often at very short notice and at great speed, rather than tie ourselves down with Mission, Objectives, Strategy, Tactics, (the old M.O.S.T. principle), we simply determine our 'magnetic north' as an organisation.

An organisation is simply a system and a system is a collection of components working together to achieve an objective within a changing environment. This 'magnetic north' is the one common factor which unites the organisation - the creation of a shared vision. So often, this vision is either woolly or ethereal, or a set of impenetrable figures dislocated from the real operation. To create a shared vision, which all staff truly understand and buy in to, and which drives the organisation forward, we need to make it sensory, ie appeal to at least five of the nine or so senses.

History was shared through the ages by story-telling and pictures and the 'magnetic north' should also be like a story which creates meaning in peoples' lives. We have been marching in this direction and now we will be 'moving the needle' to march in that direction; here are the reasons for the recalibration; here is what the future will look like, and this is what it will mean for all of us.

People and Processes

People and processes, not products, are an organisation's true competitive advantage. So next, we must align our processes and people behind our 'magnetic north;' in any organisation if we break it down to its constituent parts all we have are processes and people and so they have to be fully aligned behind our new magnetic north.

For many years we have heard the mantra that people are the organisation's greatest asset, and in many cases it was just that, a mantra, words. Now we have no choice with skills shortages, greater globalisation, international competition, demographics, the mobility of labour market, flexibility of terms, the open flow of information, ideas, brains and capital; people really are an organisation's greatest asset. If we can't attract and retain the talent, we will not be able to compete.

However we can add to this that to get the best out of our 'greatest asset,' we need the best work processes. Sure people can change work processes but that takes time and coordinated effort. The best talent needs the best processes to allow people to perform at their fullest capacity. The definition of the best talent and the best processes will flex and evolve in response to the changes in our magnetic north. 

Innovation

The goal of innovation is to make a positive change occur. It is not about incremental improvement but about a quantum leap, a breakthrough. Nor is 'Innovation' synonymous with invention. In the commercial world invention has been described as the conversion of cash into ideas whilst innovation is the conversion of ideas into cash.

Innovation is not simply about finding new ways of doing things. Luecke and Katz (2003), defined 'innovation' in this way: "Innovation...is generally understood as the successful introduction of a new thing or method... Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services.

Nor is it only about creativity; whilst innovation typically involves some aspect of creativity the most important point is that it does something tangible with that creativity to make some sort of actual difference. Amabile et al. (1996) suggest: "All innovation begins with creative ideas...We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second". So for innovation to take place, the creativity must be put into action, rather than being creative for creativity's sake.

Innovation can change processes, organizations, even change lives because it is about the practical application of a great idea and so it is about outputs, rather than inputs. Therefore innovation, in our model, straddles both people and processes; indeed it is the seed-bed of developing both.

Recalibration, re-alignment, or even the creation of a completely new strategy can all appear to be daunting, time-consuming and complex activities. And in the relentless, breathless pace of the business world of 2009 we don't really have time for the ponderous old-school models which become defunct before the consultant has filled the flip-chart. However by bringing together the three components of people, process and innovation we can move quickly to establish the new 'magnetic north,' refocusing, re-energising and refreshing the organisation and creating the momentum and direction for the next phase; a simple, quick, effective and refreshing model for a new age.