Proctor and Gamble is an innovative leader. The following is an analysis of the leadership qualities that create a culture and on-going process improvement for innovation throughout the organization. This evaluation will begin with an assessment of modern leadership models that support innovation in organizations. Leadership Models Impacting leadership requires delivery skills (analyzing, planning, detail- oriented implementing, and disciplined executing). However, effective innovative leadership requires the added proficiency of discovery skills (associating, questioning, observing, networking, and experimenting).
Modern leadership models support a leader’s delivery skills. However, when an organization is innovative, the leader employs several models that support discovery skills. Classical leadership models have provided innovative leaders the basics for success. Identified leadership traits have an eagerness to accept responsibility, capacity to motivate people, trustworthiness, and adaptability (Doyle & Smith, 2001 , up. 5-6). The behavioral model has a concern for people and believes in participative leadership, where “leaders try to share decision-making with there” (Doyle & Smith, 2001, up. -8). “A premium on people who were able to develop an ability to work in different ways, and could change their style to suit the situation” (Doyle & Smith, 2001 , p. 9) is the classical model, contingency. Contingency leaders provide what is necessary depending on the situation. “New technologies and major shifts in economic activity, along with hypersensitive markets and blurring of industry boundaries (Hit, Haynes, & Sera, 2010, p. 438) have changed the leadership model for success. The type of leadership essential is transformational leadership.
Transformational Leadership: Disruptive Innovators Transformational leaders “are visionary leaders who seem to appeal to their followers’ better nature and move them toward higher and more universal needs and purposes” (Doyle & Smith, 2001, p. 12). The 21st century requires innovative leadership where “valuable knowledge is widely distributed within and across organizational units and potentially across firms operating in complementary markets” (Miles, 2007, p. 198). Dyer, Sorenson & Christensen (201 1), provide the discovery skills framework for innovative leaders.
The following is a summary of he five discovery skills outlined by Dyer, Sorenson, & Christensen (2011) that encourages innovation and sustainability in the global context. Associational Thinking Innovators use associational thinking, where they “cross-pollinate ideas in their own heads and in others. They connect wildly different ideas, objects, services, technologies, and disciplines to dish up new and unusual innovations” (Dyer, Sorenson, & Christensen, p. 45). Research has found that the best associational thinking comes as the result of the effort put into the other discovery skills (Dyer, Sorenson, & Christensen, p. 9). Questioning “Innovators ask lots of questions to better understand what is and what might be” (Dyer, Sorenson, & Christensen, p. 65). Questioning is not a random exercise. Questioning does not lead to automatic innovation, without the other discovery skills. Instead “innovators puncture the status quo with why, why-not, and what- if questions that uncover counterintuitive, surprising solutions (Dyer, Sorenson, & Christensen, p. 71). Innovators must be careful to focus less on the solution, but asking the right question. Observing Observing in this sense is not the casual way one views the world every day.
Instead, “you have to consciously be looking for surprises-the unexpected- because they are typically lost as our minds conform what we see to fit our preexisting beliefs” (Dyer, Sorenson, & Christensen, p. 102). Observing requires more than just what the eye can see, but must include all one’s senses, similar to what one does in their environment. In order to see something different an anomaly, it is important to change your environment, by visiting another country, organization, or industry. This expands one’s point of reference and has the potential to spark the innovative process. Networking
Traditional networking focuses on building relationships with people who can provide them with the resources they seek. “Innovators are less likely to network for resources or career progression; rather, they actively tap into new ideas and insights by talking with people who have diverse ideas and perspectives” (Dyer, Sorenson, & Christensen, p. 115). Innovators use networking to learn new things, test ideas, target people who are different from them in backgrounds and perspectives (Dyer, Sorenson, & Christensen, p. 115). Experimenting Innovative leaders take reasonable risks when bringing a new product or arrive to market.
They also expect to fail more than they succeed. Taking acceptable risks starts with experimenting. Innovators tend to use three types of experiments: trying out new experiences; taking apart products, processes, and ideas; and test ideas through pilots and prototypes. Through these ways, innovators know that experimenting is often the only way to generate the data require to ultimately achieve success” (Dyer, Sorenson, & Christensen, 2011, p. 151). The Case: Proctor & Gamble (P&G) The Organization Proctor & Gamble (P&G) founded in 1837, by two brothers-in-law, William
Proctor and James Gamble entered into business together at the suggestion of their father-in-law. Their first branded product was Ivory Soap. 175 years later, the multinational consumer goods company remains headquartered in Cincinnati, Ohio, with a reported 121 ,000 employees selling their products in more than 180 countries and territories (P&G Annual Report, 2013, p. 13). Is structured in an inverted organizational pyramid (appendix A), where the “support functions and executives [are] accountable to frontline workers, rather than the other way around” (Nary, 2010, p. 13).
This assists P&G Innovative Leadership Initially, had a closed innovation policy in which the only ideas were created internally. In 2001, A. G. Leaflet introduced an open policy called Connect and Develop (C&D). This model set the standard that 50% of all innovations would come from outside the organization. The C&D “model generated ideas from scientists, engineers, inventors, entrepreneurs, and individuals outside the company” (P&G used the network of 70 technology entrepreneurs around the world to develop and identify consumer need and the technology and to create adjacency maps.
There is a clear commitment to innovation at P&G because they have “dedicated innovation facilities on five continents ? in the U. S. , England, Switzerland, Brussels, and the recently announced end-to-end innovation hubs in Beijing and Singapore” (P&G, Global Structure and Governance, 2013). The culture at P&G that encourage innovation among the employees is described in their latest annual report: Innovation has always been – and continues to be – P&G’s lifeblood.
To consistently win with consumers around the world across price tiers and references and to consistently win versus our best competitors, each product category needs a full portfolio of innovation, including a mix of commercial programs, product improvements, and game changing innovations (P 2013 Annual Report, 2013, p. 25). DNA Factor Most Important “Finding the right question, making compelling observations, talking with diverse people, and experimenting with the world usually deliver productive, relevant associational insights” (Dyer, Sorenson, & Christensen, 2011, p. 0) While all five are important, the most important factor is asking questions. A leader can make observations, network all over the world, and experiment. However, without the right question, the solution the organization comes up with will not solve anything and therefore, will fail to be a success. P must continue to ask questions of their employees, customers, and non-customers to determine where they have the largest impact. Conclusion True success in the 21st century and beyond will require more of leaders than delivery skills for the old way of doing business.