Gwen’s recent post - The "C" in "C-Level" Stands For "Critical” – touched on the necessity of having C-Level support if innovation efforts are ever to progress into the development or manufacturing stages. This got me thinking about the other side of that coin when innovation becomes a dire need for an organization to survive and is being pushed from the top-down.
Then I turned on the news this morning and heard about GM’s record-paced return from bankruptcy. Here is an example of a company that is going through an incredible culture change and will be placing a great deal of focus on innovation. For years GM has been able to successfully focus on the truck and SUV segments, but trending popularity of smaller, more efficient vehicles is a product of necessity when you consider where oil prices are heading. The “new” GM appears ready to shift into the latter category with a vengeance.
However, just because GM is dedicated to innovation from the top does not mean it will be an easy road ahead.
Culture change is something that we all know develops over time, and creating an innovative culture is something that also takes a unique mix of special people. I think that GM is up to the task considering that they have already been moving in the right direction with electric and hybrid autos, plus I have an affinity for comebacks and underdogs.
Another hurdle GM must maneuver will be speed to market with new products, business tactics, and sales channels. This is something that we’ve seen many larger companies struggle with in the past, as sheer size can make the approval procedure for new ideas into a nightmare. The company already has plans to reduce white-collar positions this year in an effort to streamline this process and instill more accountability on an individual level, which moves away from previous committee-laden processes.
So what do you think: is it more difficult for companies to innovate in a sudden top-down push or from a grassroots effort from the bottom?
--Justin Sutton