Steve Blank considerately pointed out that it is not easy for giant companies to innovate. He clearly explains that once organizations attain a certain size, they devote most of their resources (financial, human and time) to executing and defending their existing business models. However, most of the skills needed for achieving current results differ from those that aid in discovery and experimentation (both required to foster innovation). Therefore, it is imperative for large companies to not only aspire for a culture of innovation but to make it a reality (Ashkenas and Burch, 2014).
Thomson Reuters’ existing innovation culture and strategy
Thomson Reuters is a key conglomerate in mass media and information founded in Toronto, Canada. Over the past decade, the company has a steady revenue growth reliant on acquisitions. However, the company is trying to change this tradition stating that the costs associated with the acquisitions were too high. Katherine Manuel, Thomson Reuters SVP of innovation stated that “the growth just could not keep up with the cost structure of the company” (Johnson, 2016).
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The steady growth and profitable growth of the company through acquisition over the years reduced their focus on innovation. Most of the employees including the managers were innovative and created new products and services for their own businesses but they were not leveraging innovation across the enterprise and thus the multinational media firm relied more on acquisition to drive both innovation and growth. Because of the cost implications and the realization of the untapped potential in the company, the senior leadership decided to change their strategy to growth by innovation. The company decided to stop its overreliance on acquisitions and focus on innovation to boost the growth of the company (Johnson, 2016).
Whether the organizational culture supports or undermines creativity and innovation
Although at first the company was oblivious of the need for innovation as a major growth factor in a company, their priorities changed and they decided to focus on innovation to build their company. The senior leadership agreed to support innovation and creativity and took a few steps to ensure that the employees are motivated. First, they shifted their funding from small incremental acquisitions to innovation. They established a ‘catalyst fund’ that will be utilized by internal innovation teams to do rapid proof of concept on new ideas. They then invited teams from anywhere in the enterprise to submit their innovative suggestions for funding (Ashkenas and Burch, 2014).
How the Thomson Reuters’ structure, people, social media, and technology play a part in organizational change
As the organization changed to be reliant on innovation and creativity, its structure, the employees, senior leadership, social media and technology played a significant role in the realization of the change. First, the key management had to take the major step of shifting its reliance from acquisitions to innovation and thus providing the funds to finance the creativity and innovative processes. In addition to the financial support, they acted as judges who picked the innovations that would best benefit the company (Barrett M., Velu C., Kohli R., Salge T. O., and Brown D. S, 2011).
Secondly, the employees complied with the organizational terms of participation if they wanted their innovations approved and adapted by the company. The teams with the most compelling ideas were selected and posted on the organizational official website. This spiked a lot of curiosity from those who were reluctant to participate before and they joined on the quest. Social media plays a very important role in delivering the company’s plans and activities to the customers, stakeholders and the employees (Barrett M., Velu C., Kohli R., Salge T. O., and Brown D. S, 2011).
How IQ, EQ, SQ and PQ play a part in the organization’s innovation strategy
Emotional quotient- the opportunity given to everyone in the enterprise is tapping into people’s desires to do great work. Employees feel motivated and they work tirelessly to make sure that their ideas stand out from the crowd.
Intelligence quotient- the company laid out a simple application form for anyone with an idea to fill; the forms had sections to state their idea, the potential market and the value to the customer. The teams with the most compelling ideas were selected and they are to present their ideas before a board which included the company’s CEO for deliberation.
Spiritual intelligence- cynics criticizing the program and calling it a fad that will be over very soon, has given the management the morale to keep the catalyst fund rhythm vital. The managers believe that although they had a fallow on innovation, they will still be able get back on track and make up for the lost times.
Physical intelligence- the employees were able to listen, identify and respond to internal strengths. They are to divide themselves into groups because a team works better than a single entity.
Conclusion
Thomson Reuters is a company that is trying to change its growth strategy to accommodate innovation. It has changed most of its operation processes and changed its business model. Through team work, the company has been able to challenge its employees to work hard and be as creative as they can be. The team members are able to realize their maximum potential physically, spiritually, emotionally and intellectually.
References
Ashkenas Ron and Cary Burch. 2014. How Thomson Reuters is Creating a Culture of Innovation. Business Review: Organizational Culture . Retrieved on September, 1 from Https://Hbr.Org/2014/10/How-Thomson-Reuters-Is-Creating-A-Culture-Of-Innovation
Barrett M., Velu C., Kohli R., Salge T. O., and Brown D. S. 2011. Making the Transition to Collaborative Innovation: Issues of Readiness, Trust and Governance. Nesta: Business Briefing
Johnson, Mary. 2016. How to Kick Start Innovation at a Multinational Corporation. Thomson Reuters Blog . Retrieved On September, 1 from Https://Blogs.Thomsonreuters.Com/Answerson/Kickstart-Innovation-Multinational-Corporation/
Kujawa R., 2014. True Leadership: Sq+Eq+Iq+Pq=Success. Retrieved on September, 1 from Https://Www.Linkedin.Com/Pulse/20141116173602-54252615-Sq-Eq-Iq-Pq-Success
