Introduction
The current proposal presents a set of potential solutions to address the issue of a lack of innovative behavior among employees. The identified problem resulted in a rapid decline in revenue and a loss of competitive edge. The study identified several possible underlying causes of the problem, including low motivation, ambiguous objectives, insufficient communication, ineffective management, and inadequate investment in R&D efforts.
Furthermore, previous attempts to address the problem were evaluated to assess their effectiveness. Based on the data obtained, a set of potential solutions was developed. The proposal presents three key potential changes, including leadership training for employees, the development of a strategic innovation plan, and improved access to creative tools and opportunities.
The document provides a purpose and problem statement, describing the initial need for the changes and solution implementation. It presents valuable data on the adverse effect of the lack of innovative behavior on the company’s performance. The proposal assesses the success of previous attempts to address the problem and identifies potential root causes.
The document describes potential solutions and the benefits stakeholders will obtain from their implementation. It further outlines a change management plan, implementation, and success evaluation methods. Therefore, the proposal presents comprehensive research on the problem and potential solutions based on data analysis. Implementing the solution is expected to address the immediate issue efficiently and have a significantly positive impact on the overall organizational performance in the long term.
Purpose Statement
The business proposal aims to present solutions to address the company’s current problem of the lack of innovative behavior. The problem negatively impacts the organization’s overall performance, necessitating a targeted approach. The lack of innovative behavior results in a decrease in the company’s operational effectiveness, as well as a loss of competitive advantage. The company has not produced any new products in the last two years, which has impacted its revenue. Currently, the organization is in a financially unstable position, as some of its existing customers support it financially.
Problem Statement
The absence of innovative behavior among the company’s employees results in significant financial setbacks and damage to its reputation. The data presented further shows a link between the number of new products the company introduces to the market and its revenue growth. Figure 1 illustrates the organization’s revenue dynamics from 2019 to 2022.
The revenue peak was reached in 2020, following the introduction of three new products in 2019. The revenue drops significantly in 2021 and 2022, as the organization offers only one product in 2020 and none in 2021 and 2022. It is challenging to establish a definitive correlation between these two factors. Still, the data suggest a link between the number of new products and the organization’s revenue.
The problem of a lack of innovative behavior primarily concerns the company’s managers in the form of low numbers of new products developed. This hinders the company’s potential to acquire a solid competitive advantage. Idrees et al. (2022) emphasize that the modern business environment requires companies to possess extensive innovation and knowledge capabilities to stay competitive—the lack of innovative behavior disadvantages the organization and risks losing market share.
Customers nowadays have a wide range of products to choose from, many of which are similar in features and quality. As the organization is losing revenue, it needs to attract customers’ attention by introducing a new product or innovating an existing one. However, the lack of innovative behavior prevents it from generating relevant ideas and winning the market.
Based on the data presented, it is possible to conclude that the company’s inability to address the problem in the near future will result in a further decrease in revenue and a loss of competitive advantage. The situation may have a critical impact on the organization in the future, as it will not be able to sustain itself for an extended period. However, the company currently possesses all the resources necessary to help mitigate the negative impact and change the course of the business. Therefore, the organization must implement the solution swiftly to achieve a positive dynamic.
Data and Research Findings
To identify potential solutions, the measures that had been previously implemented were researched. Surveys and interviews were conducted to evaluate the effectiveness of the solutions and identify the possible root causes of the problem. It further helped to develop the strategy that would be the most efficient in addressing the problem.
As the key aspect of the issue is the lack of innovative behavior among employees, their satisfaction with the measures was studied. The impact on motivation, decision-making power, and creativity options was also considered. Figure 5 presents information on the measures previously implemented and their perception by employees. Based on the data, it can be concluded that the overall initiatives to address the problem were not effective in the long term.
The surveys and interviews helped identify potential root causes of the problem, which was critical for developing solutions. It highlights that the employees identified five factors, in their opinion, that have the highest impact on the situation. These aspects can be considered milestones in the overall strategy that must be developed and implemented. To address the issue, the company must look at and eliminate these root causes. This will help meet the needs of employees, contributing to higher satisfaction and better creative initiatives.
The data presented illustrates that employees have a particular perception of the measures introduced and the root causes of the problem. The organization should consider the information obtained as a basis for developing a strategy and implementing change initiatives. Evaluating the impact of a particular organizational aspect on the overall situation can be challenging, but mitigating some negative factors is possible. The proposed solution aims to address the root causes of the problem.
Proposed Solution
Three potential solutions were chosen as a result of the research, which are:
- Leadership training for employees;
- Strategic innovation plan development;
- Better access to creative tools and opportunities.
Leadership training for employees is designed to enhance communication and collaboration among them. It will also ensure better decision-making power and increased motivation to propose innovative initiatives. Better communication between employees and managers results in higher satisfaction and motivation (Choi et al., 2021). It can lead to better creative capacities in the long term due to increased collaboration efforts (Shah et al., 2022). Possible disadvantages include the need for a specialized training program, which requires additional resources and planning. It can also address the reluctance of employees and managers, making incentives a critical component.
Strategic innovation plan development addresses the issue of unclear strategic goals. Employees can be more motivated when their tasks are aligned with their values (Purc & Lagun, 2019). One of the main advantages of the solution is that it does not require any additional resources except for planning efforts. Additionally, it can help the company refine the business’s overall strategic planning initiatives. However, the disadvantages include the need for extensive research and a lengthy implementation timeframe, as the plan must be thoroughly tested.
Better access to creative tools and opportunities will enable employees to engage in innovative behavior. Through higher creative autonomy, the organization can support and motivate employees (Cho & Song, 2020). The main advantage of the solution is its enhanced decision-making and creative power, which boosts innovative initiatives. However, the disadvantage is that employees can lack creative competencies, which will hinder the solution’s effectiveness and require additional training.
Stakeholder Analysis and Benefits
The problem of the lack of innovative behavior involves numerous internal and external stakeholders. The company’s employees have rather negative views on the problem, as they are primarily interested in the associated outcomes. Human resources play a positive role in addressing the problem by engaging in initiatives that promote motivation.
The R&D department has positive support for the problem as they acknowledge the issues with their primary activities and want to get additional investments. Team managers often struggle to support the problem as they must adapt to a new system in order to achieve strategic goals. Customers generally have a positive attitude toward the problem, as they require new products to meet their needs. Organizational leadership plays a crucial role in addressing the problem, as it impacts overall performance and revenue. Investors are hesitant to support the problem, as they need to see an increase in revenue.
Employees and managers were surveyed about their attitudes toward the previously implemented solutions. It was identified that employees support a monetary reward system and goal-setting activities as they provide clear motivational tasks. Managers are more concerned about goal-setting activities as they need tools to motivate employees and engage them in innovative behaviors. Previously implemented measures are generally scored low as they do not provide employees with the means to implement their creative initiatives.
Stakeholders expressed several ideas for potential solutions. Employees proposed developing a clear monetary reward system based on strategic goal setting. Managers largely support the importance of having clear objectives to target as part of innovative initiatives. The R&D department reported the lack of investments and proposed increasing them. Human resources managers supported the idea of reward and goal-setting systems, as this would potentially increase motivation.
The organization’s leadership and investors should act as sponsors in implementing the solution. The leadership is responsible for policy and structure changes to address the problem. Investors play a crucial role in supporting the changes financially, as well as in approving and implementing the solution.
The solution will directly affect employees as they will be involved in various new activities and a changed motivational system. Team managers will also need to adapt as they will have new responsibilities and performance criteria. The R&D department will also be affected; additional resources must be allocated and used efficiently. Human resources will also be affected, as they will need to monitor the effectiveness of the new motivational system and adjust it as necessary. Customers will get new products and will change their attitudes toward the company.
Employees can pose roadblocks to solving the problem due to possible reluctance and a lack of relevant competencies. Additionally, team managers cannot be experienced enough to adapt to a new structure, which can lead to the inefficient implementation of the solution. Customers may also be reluctant to purchase as they have lost their trust in the organization over the last two years.
Change Management Plan
The organization is currently struggling with a lack of innovative behavior among its employees. The change management model can be organizational, dealing with changes in the company’s structure, procedures, and culture, or individual, focusing on motivating and engaging people. Therefore, the Prosci ADKAR Model is the most appropriate tool. The model is based on the notion that organizational change can only be implemented through individual changes (The Prosci ADKAR Model, n.d). It describes the change process as developing awareness, desire, knowledge, ability, and reinforcement (The Prosci ADKAR Model, n.d).
The model is particularly helpful in addressing the current problem, as it engages employees and motivates them to work together toward the desired outcomes. Engaging all employees in the creative process is crucial to enhancing the company’s innovative capabilities. The model can help employees develop and apply their skills to achieve organizational goals. Additionally, it works best for small and medium-sized companies, which is highly relevant.
The model can foster employee buy-in by raising awareness of the need for change. It is essential to articulate all the potential negative consequences that each individual may experience. Personal values and the benefits of addressing the issue should be outlined and presented to employees. They should understand how the change will affect them, especially their career prospects and financial opportunities. Communication should be built on trust between employees and management. Employees should receive all the information related to the problem and the proposed solution, including the tasks it involves and the outcomes it aims to achieve.
The solution requires numerous resources, including intellectual, human, training, and technological resources. First, an appropriate strategy planning process should be conducted to develop innovation goals that can be integrated into the overall organizational strategy. Additionally, an employee development and growth program should be created.
Human resources professionals must engage in the research and development of training processes. Finally, employees should be introduced to new creative tools, which include various technological resources for generating ideas and presenting them effectively. The availability of communication tools is also crucial as people need to communicate and collaborate efficiently.
Employee resistance to change can be a significant problem when implementing an organizational change. Employees should be aware of the personal benefits that the change offers. It is crucial to gather detailed information about employees’ perceptions of the problem and its impact on them.
It will help identify possible incentives that can be introduced to create a desire for change. Apart from articulating possible benefits each employee will get when the problem is addressed, supporting and promoting employees’ engagement in the process is essential. Therefore, the strategy should be developed based on their needs and requests to make goals valuable and meaningful for individuals.
Employees should understand that they are valued and that their opinions are genuinely taken into consideration. They should also receive monetary incentives to participate in and progress in change initiatives. Constant communication addresses reluctance, as employees should be informed of the change process’s aims, milestones, and expected outcomes. They should also be able to share their ideas on the planning and implementation process, which will help promote their engagement.
Implementation Methods
The implementation of the proposed solution requires the application of specific strategies. First, the company needs to research employees’ specific needs. It is critical to identify which creativity skills they are willing to develop and what tools they lack. Additionally, the organization needs to plan all training programs and associated activities to clearly understand the resources and efforts required.
Furthermore, it is crucial to introduce employees to new creative strategies to improve their motivation, decision-making abilities, and overall satisfaction. The solutions should be implemented as a complex approach to address the problem holistically. Planning should be implemented before training to consider all the data obtained to develop the most effective training program.
Leadership training for employees would take approximately 4 months, consisting of 2 months of development and 2 months of implementing the actual training program. The program’s cost will reach $130,000 as creativity experts should collaborate with the human resources department. Strategic innovation plan development will take approximately one year, as research needs to be conducted and the strategy tested.
The solution costs $75,000, as the company must pay the planning team incentives. Better access to creative tools and opportunities implies higher decision-making power, improved communication, and greater autonomy for employees. The implementation of the new creativity structure would take approximately 1 year. It does not require additional resources, so the solution costs $60,000, allocated for the research efforts.
Evaluating Success
Evaluation of the solution’s effectiveness should be based on research on the motivation and innovative capacities of the employees. The human resource department should obtain monthly feedback on the solution’s impact. It includes conducting interviews with employees and managers to assess the level of the solution’s effectiveness and its overall impact on motivation and innovative behavior.
Human resource professionals should monitor the quality of communication among employees, as well as the use of various creative tools and techniques. Increasing and maintaining motivation is a key result expected from implementing the solution. Therefore, employees’ perceptions and attitudes should be critical metrics of a successful strategy.
Additionally, it is necessary to measure the organization’s overall performance after the solution has been implemented. More specifically, the ultimate goals of the solution implementation are to introduce new products to the market and increase the company’s revenue. The number of new products should also be tracked to measure the progress.
However, it is not expected that the company will be able to introduce a new product within the first year of solution implementation. Measuring the number of new ideas generated that resulted in developing prototypes and concepts in the R&D department is essential. These metrics should be monitored and compared quarterly to track positive or negative dynamics. The program should be modified and adjusted according to its outcomes to be implemented in subsequent years.
Conclusion
Stakeholders and sponsors should review the proposal’s points to select the most effective techniques to address the problem. It is essential to evaluate the potential benefits of the solutions and develop an implementation plan. Stakeholders should make any changes to the solutions that are critical for the success of the change management initiative. Communication with the employees about the problem and upcoming changes is also required to prepare them and gain support. Sponsors should consider the cost-effectiveness of the solution and propose any necessary changes.
References
Cho, Y. J., & Song, H. J. (2020). How to facilitate innovative behavior and organizational citizenship behavior: Evidence from public employees in Korea. Public Personnel Management, 50(4). Web.
Choi, W. S., Kang, S. W., & Choi, S. B. (2021). Innovative behavior in the workplace: An empirical study of a moderated mediation model of self-efficacy, perceived organizational support, and leader–member exchange. Behavioral Sciences, 11(12). Web.
Idrees, H., Hynek, J., Xu, J., Akbar, A., & Jabeen, S. (2022). Impact of knowledge management capabilities on new product development performance through mediating role of organizational agility and moderating role of business model innovation. Frontiers in Psychology, 13. Web.
Purc, E., & Lagun, M. (2019). Personal values and innovative behavior of employees. Frontiers in Psychology, 10. Web.
Shah, S., Shah, S., & El-Gohary, H. (2022). Nurturing innovative work behavior through workplace learning among knowledge workers of small and medium businesses. Journal of the Knowledge Economy. Web.
The Prosci ADKAR Model. (n.d). The Prosci. Web.