Selfsustaining Innovation through Intrinsic Motivation XII ISPIM Conference

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Self-sustaining Innovation through Intrinsic Motivation ХXII ISPIM Conference, 12 -15 June 2011, Hamburg Professor,

Self-sustaining Innovation through Intrinsic Motivation ХXII ISPIM Conference, 12 -15 June 2011, Hamburg Professor, Director RMC Molodchik Anatoli V. molodchik. [email protected] ru Perm State Technical University, Ph. D, Molodchik Mariya А. [email protected] raid. ru High School of Economics, Perm

Research question: “What are the intrinsic based mechanisms of self-sustaining innovation? ” Methodology: case-study

Research question: “What are the intrinsic based mechanisms of self-sustaining innovation? ” Methodology: case-study Hypothesis: Leaders lifecycle management allows self-sustaining innovation. Findings: Leaders lifecycle management can be provided through intrinsic-based mechanisms of individual tension, knowledge transfer and knowledge retention.

RMC – Regional Management Center p RMC – business school with a product oriented

RMC – Regional Management Center p RMC – business school with a product oriented structure and decentralized profit oriented management system. Indicators: 1990 2000 2010 Employees 18 67 145 Business Units 4 39 49 Market share 26 58 67

Mechanism of individual tension… means additional employee’s tug in productivity, and innovativeness caused by

Mechanism of individual tension… means additional employee’s tug in productivity, and innovativeness caused by the gap between ambitious individual goals and restricted resources. based on ü self-determination of goals (proactiveness) ü responsibility for results (risk-taking) ü long-term rules supplies the alignment of organizational and individual goals is oriented ü on existing leaders ü on future leaders and professors

Mechanism of knowledge transfer… involves willingness to share (impart) own knowledge (skills, experience, iec)

Mechanism of knowledge transfer… involves willingness to share (impart) own knowledge (skills, experience, iec) to the others. based on ü voluntary participate ü openness supplies the synergistic effect of knowledge circulation within organization itself and different network communities is oriented ü on existing leaders ü on future leaders and professors ü on organizations partners

Mechanism of knowledge retention… involves willingness to work in organization sharing corporate values involvement

Mechanism of knowledge retention… involves willingness to work in organization sharing corporate values involvement sense brand common infrastructure common resources based on ü ü supplies retention of leaders knowledge in different stages of lifecycle

The structure of business units portfolio according to their lifecycle stage (2010) 3/1 Leaders

The structure of business units portfolio according to their lifecycle stage (2010) 3/1 Leaders of business unit / Years of existence Revenue Still growth 2/>10 Outflow 2/4 Fail >10/1 -3 2/5 1/2 8/>10 2/>10 3/1 3/0 17/-5 MATURITY GROWTH DECLINE DEVELOPMENT INTRODUCTION PREPARATION 1/12 DEATH

Probable problems and limitations p p Loosing common goals Internal rival Reduce of intrinsic

Probable problems and limitations p p Loosing common goals Internal rival Reduce of intrinsic motivation for self development and performance achievement Risks of high qualified personal outflow Limitations due firm’s specific p Product-oriented structure p Emerging market

Conclusions… p The paper gives practical recommendations to the organizational design accomplishing self-sustaining innovation

Conclusions… p The paper gives practical recommendations to the organizational design accomplishing self-sustaining innovation through behavior based management. p Practical techniques for theoretical models of creative tension (Senge, 1990) and stretch (Hamel and Prahalad, 1993). p p Leadership as organizational knowledge asset. Focus change in strategic management: from Product Life Cycle to Leaders Life Cycle