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oHuman Resource VariablesoHigh commitment (actively promote) to training and development to keep employees’ skills current.oOffer high job security to encourage risk takingoCreative people (encourage individuals to be “champions” of change)oIdeaChampion –dynamic self-confident leaders who actively and enthusiastically inspire support for new ideas, build support, overcome resistance, and ensure that innovations are implemented. (not necessary in mechanistic, stable environments).oCultural VariablesoAcceptance of Ambiguity
oTolerance of the impracticaloLow external controlsoTolerance of risksoTolerance of conflictoFocus on Ends rather than the meansoDevelop an Open System FocusoProvide Positive FeedbackStimulate Innovation: Learning OrganizationoIn learning organizations, everyone…oSets aside the old ways of thinkingoBecomes self aware and open to othersoLearns how the whole organization worksoUnderstands and agrees to a plan of actionoWorks together to accomplish the planChallenges of ChangeoIn highly innovative organizations, corporate strategy and culture should…oEmphasize an entrepreneurial spiritoExpect innovationoAccept failureoBe willing to take risksoIn highly innovative organizations, top management should…oUnderstand the innovation processoBe tolerant of criticism and differences of opinionoTake all possible steps to keep goals clearoMaintain the pressure to succeedoBreak down barriers to innovationoStrategies must come from corporate level and be supported by top management. Will not work through a bottom-up approach.