BUSI1327

Innovation in Competitive Environments

Lecture 11: Informal Organising – analysing

Innovation Projects as people dynamics
Module Leader
Dr John Tull | Lecturer in Business Management
Learning outcomes
 By the end of this lecture, you should be able to:

 understand the importance of identifying and analysing Informal organising

practices, processes and networks in shaping innovation and creativity;

 interpret basic Informal organising practices, processes and network

characteristics and apply them in an innovation project analysis;

 and – through the related Tutorial activty - critically reflect on your own
communication preferences and how these have implications for collaborating
to support innovation.
 Recap – Innovation is a process...

‘Thinking Tools’ for identifying the Innovation

decisions and shaping the analysis to evaluate them.
Good Questions
- e.g. ‘SCAMPER’
 ... innovation process happens in Contexts...

‘Thinking Tools’ for understanding what is influencing

what can be said and done, & by whom

INVESTOR ECOSYSTEM

CULTURE

MARKET STRUCTURE & MATURITY

CULTURE
 ...& those Contexts are shaped by People...

‘Thinking Tools’ for understanding how Structures, Cultures and

Processes shape and are shaped by People: a two-way relation
 ...working in various forms of Organisation

‘Thinking Tools’ for understanding how People organise tasks,

resources, relationships and exchanges to innovate.

FORMAL
ORGANISING

Dynamic Practices
CAPACITY FOR
INNOVATION?

EXTERNAL
TEAMING
Stable Practices
 Social networks everywhere, but are they relevant?

From Top 12 Most popular Social Media Sites in 2022

From flickr

From Firstmonday

From orgnet.com
Why would innovation be any different?
Quick - tell me the names of some
famous innovators...

It may all seem logical and well-

organised. i.e. Formal...

From imore.com
Why would innovation be any different?
Quick - tell me the names of some However…(Asch experiment –
famous innovators... but see also Zimbardo’s)

It may all seem logical and well- If you want to watch another Ted Talk about Social Networks and
conformity, watch Ian McCulloh’s talk – he mentions that position
organised. i.e. Formal... in social networks account for 85% of conformity

From imore.com
Relationship between Formal and Informal

 While formal
organisation is
about hierarchy,
roles and
procedures...
When we get informal
this organisation is
relationship
right...
about relationships,
trust and tacit
knowledge
 Innovation often
emerges through
informal channels
before gaining
Understanding the Invisible Organisation Chart

? ?

?
The relevance of informal networks

Question:
So who has more power?

Cross, Parker, Prusak & Borgatti, 2001:107; see also ‘weak ties’ [Granovetter 1983] to potentially useful people
So: is there a better network structure for Innovation?

 Innovation Project A  Innovation Project B

Show of Hands Vote: A or B ? Or...?

Roles can be an illusion: the Informal Factor

Passive blocking: Information withholding,

meeting absences, delayed responses
Informal resistance manifests as: Active blocking: Highlighting risks, demanding
excessive proof, mobilising allies

Skunkworks: Unofficial innovation groups

operating under the radar
Informal enabling mechanisms: Innovation communities: Cross-functional
enthusiasts

UK Example: Dyson's early vacuum development succeeded through

informal experimentation culture despite formal rejection
Belbin’s Team Roles Framework helps unpack this
 Roles emerge
informally, regardless
of formal job titles

 Creative tensions
between different
roles can drive or
hinder innovation
processes

 See:
https://www.belbin.com/about/bel
bin-team-roles
 Belbin, 1981
Another View: Network position & innovation role
Central connectors
• Bottlenecks?
• Unsung heroes?
Peripheral people
• Stuck?
• Intentional?

Boundary spanners

Adapted from
Cross and Prusak (2002:8-9, reprint)
 This helps you unpack ‘logical’ processes
 Christensen's resource allocation
process explains innovation success
or failure:
o Resources tend to flow toward
initiatives that address existing
customer needs

• Powerful informal players can

influence
which projects receive
resources
o BUT: Disruptive innovations often
lack formal champions initially
 Example: Dyson's ‘cyclone’
technology initially struggled to
Christensen, C. M. (2014, January 1). Disruptive Innovation. Interaction Design
Foundation - IxDF. https://www.interaction-design.org/literature/book/the-encyclopedia-
secure funding in established vacuum
of-human-computer-interaction-2nd-ed/disruptive-innovation
 The projects we’ve looked at give you this ability
- e.g. Reggae Reggae Sauce (Wk4) - e.g. Toucan (Wk6)

Lecture 4
 Where does Informal Organising feature?
An Innovation Project has Aims People Resources Time
To analyse its progress:

Invest
What? Strategy
Design
Market

Creativity Implement
Teams
Start End
Leadership Roles (actual)
Decision-making

Reflexivity Communication
How ?
Culture
Learning outcomes - recap
 You should now be able to:

 understand the importance of identifying and analysing Informal organising

practices, processes and networks in shaping innovation and creativity;

 interpret basic Informal organising practices, processes and network

characteristics and apply them in an innovation project analysis;

 and – through the related Tutorial activty - critically reflect on your own
communication preferences and how these have implications for collaborating
to support innovation.
Additional Resources
• Book an appointment (online or face to face) with an academic skills tutor.
• Book time with John Tull: Office hours – great to see some people are already doing so!
• Review the marking rubric so that you better understand what we are assessing.
• You may also find ‘studiosity’ helpful. Studiosity is an online service that can help you improve your
academic writing skills. Link is in the Moodle.
Request: Your Feedback (EVASYS)
This year we adapted the module based on student feedback, including:

1. More guest speakers  this year: 4)

2. More role plays, plus continue using Lego (and spaghetti!)  did these
3. Explain the Assessment more than once  ‘Clinic’ week 4, Tutorial week 6
4. Faster Formative feedback ( done; 126 students used this – everyone could have)

Your feedback on what went well, what you liked and what could be improved or
considered for the next class is very welcome. The Tutor team will discuss it next week,
and we will share any innovative learnings for teachers planning Year 3 modules as well!
Please take 6 minutes to go to the EVASYS Survey now and complete it.
Thank you, it means a lot to me.
References – additional available upon request
 Burt, R. S. (2000). The network structure of social capital. Research in organizational behavior, 22, 345-423.
 Burt, R. S. (2004). Structural holes and good ideas. American journal of sociology, 110(2), 349-399.
 Chrisakis, N. (2010). The hidden influence of social networks [video], TED Conferences,
https://www.ted.com/talks/nicholas_christakis_the_hidden_influence_of_social_networks
 Cross, R., & Gray, P. (2013). Where has the time gone? Addressing collaboration overload in a networked economy. California management review,
56(1), 50-66.
 Cross, R., Nohria, N., & Parker, A. (2012). Six Myths About Informal Networks---and How to Overcome Them. Sloan Management Review, 43.
 Cross, R., Parker, A., Prusak, L., & Borgatti, S. P. (2003). Knowing what we know. Networks in the knowledge economy, 208.
 Cross, R., & Prusak, L. (2002). The people who make organizations go-or stop. Harvard business review, 80(6), 104-112.
 Cross, R., & Thomas, R. (2011). Managing yourself: a smarter way to network. Harvard business review, 89, 149-153.
 Granovetter, M. (1983). The Strength of Weak Ties: A Network Theory Revisited. Sociological Theory, 1, 201–233. https://doi.org/10.2307/202051
 Labun, A., & Wittek, R. (2014). Structural Holes. In R. Alhajj, & J. Rohne (Eds.), Encyclopedia of Social Network Analysis and Mining (pp. 2075-2083).
Springer.
 Mannucci, P. V., & Perry-Smith, J. E. (2021). “Who are you going to call?” Network activation in creative idea generation and elaboration. Academy of
Management Journal, (in press).
 McCulloh, I. (2019). The Untapped potential of social networks [video], TED Conferences,
https://www.ted.com/talks/ian_mcculloh_the_untapped_potential_of_social_networks
 Perry-Smith, J. E., & Mannucci, P. V. (2017). From creativity to innovation: The social network drivers of the four phases of the idea journey. Academy
of Management Review, 42(1), 53-79, page 56
 Stevenson, H. H., & Jarillo, J. C. (2007). A paradigm of entrepreneurship: Entrepreneurial management. In Entrepreneurship (pp. 155-170). Springer,
Berlin, Heidelberg.
 BUSI1327
Innovation in Competitive Environments

Informal networks to foster innovation

Riccardo De Vita, PhD