Management innovation not considered key business priority in UK organisations

A new CIPD study of 500 senior managers released today reveals organisations are failing to embrace management innovation. The research, conducted by the MLab at London Business School, examines specific changes in response to two different trends in the workplace: the arrival of Generation Y employees and the emergence of Web 2.0 technologies.

Among the respondents, less than a quarter stated that management innovation was given a high level of attention in their organisations, compared with two-thirds (65%) who said their organisations were giving a high level of attention to product or service innovation. This is despite 8 out of ten agreeing that management innovation is a driver of long-term success. Managers are seen to not have the necessary tools, experience or time to fully implement management innovation.

Almost half (46%) of respondents believe that the attributes of Generation Y employees, or those born after 1980, are different from those of previous generations. The report highlights that Generation Y employees expect jobs that accommodate their family needs and personal lives, and want their managers to get highly engaged in their development.

Similarly, respondents saw Web 2.0 technologies as a significant change. While some of the organisations surveyed had engaged in experimentation around Web 2.0, most were content to read up on the subject, benchmark others and wait to see how these technologies would evolve.

Vanessa Robinson, Head of Operations, Research and Policy, says:

ìThe research shows that organisations have not yet fully considered how management innovation can be used to embrace the needs of Generation Y employees or the opportunities afforded by Web 2.0. We believe that innovation will only come about when organisations experiment with different methods.

ìPioneers in management innovation attract and retain top employees and they build a capability for change and adaptation. These attributes have never been more important in todayís highly competitive business world.î

Julian Birkinshaw, Professor and Deputy Dean, London Business School, says:

ìWeb 2.0 tools, such as Social Networking, Wikis, and Blogs, are having a dramatic impact on the way we interact with one another. Their potential for changing the nature of management –how we make decisions, motivate employees, coordinate activities – are profound.

ìBut what this research shows is that very few companies have got to grips with their potential. Indeed, many companies actually ban their employees from using social networking tools at work. Tomorrowís leading companies will be the ones that actively embrace these exciting new tools today – to find new ways of harnessing their potential and to build deeper levels of trust and responsibility among their employees.î