Selfsustaining Innovation through Intrinsic Motivation XII ISPIM Conference

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 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 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 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) 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 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 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 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 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