According to BCG’s Global Innovation Study, the biggest obstacles standing in the way of innovation are often related to company culture. Culture consists of various different aspects, such as ethics, values, collective beliefs, assumptions, working methods and standards, to name a few. Because culture is such an all-encompassing concept, it’s no surprise that many leaders face challenges when trying to shape their cultures to be more innovative. Although it can be almost impossible to avoid every hurdle in the process, what matters more is the ability to identify the most common bottlenecks to cultural change and to find ways to remove them. We’ve previously held a webinar to help you transform your company culture with innovation practices and have also written an article about this topic. This post extends the topic even more and focuses on introducing some of the common challenges companies face in cultural transformations, as well as practical tips for overcoming them. What is a culture of innovation?Although innovation means different things to different people, there are certain traits innovative teams share. According to The 2018 Global Innovation 1000 study, the high-leverage innovators have the following key characteristics: 1. They closely align innovation strategy with business strategy. 2. They create company-wide cultural support for innovation. 3. Their top leadership is highly involved with the innovation program. 4. They base innovation on direct insights from end-users. 5. They rigorously control project selection early in the innovation process. The best innovators excel at each of these first five characteristics and can integrate them to create unique customer experiences that can transform their market. What comes to company culture, you can tell a lot about a company and its culture by observing how people behave – especially when the boss isn’t around. Culture of innovation emphasizes on generating and implementing new ideas and is focused on making constant improvement in various areas of the business. Innovation is all about making progress on a company level as well as on a personal level. Therefore, the ideal culture for innovation supports constant learning and experimentation. Because culture is mainly shaped by people, often the most common challenges are also related to them. 1. Resistance to changeShaping peoples’ mindsets and attitudes can be challenging. Often, people have their own, fixed ways of seeing and doing things. While there isn’t necessarily anything wrong with that, those underlying beliefs and assumptions can sometimes hinder innovation. When things have been done in a certain way for a long time, it becomes the norm. This easily leads to people becoming blind to possible inefficiencies in their own work and commonly used processes. Things that have worked well in the past aren’t necessarily guaranteed to work in the future, which is why it’s important to constantly challenge your assumptions, be open to change and look for ways to improve the way you and your team work. Getting too content with how things are now has already proven to backfire in the long run. In addition to this, people can be resistant to change because they are afraid of failure. Being afraid of making a mistake is only natural as no one really wants to be responsible for something that didn’t go quite as planned. These types of attitudes, however, can be changed by creating an environment that embraces the “fail fast mentality”. Innovation involves almost always a certain amount of risk and uncertainty. Because not all ideas can be successful, it’s important to communicate that not all ideas are expected to work and it’s ok to fail as long as people are learning from it. Start with small victoriesGetting started with changing mindsets is often the hardest part. To succeed, it’s important to understand why people are against change. Often, the reason is that they don’t understand what change means for them. They might, for example, see innovation only as a requirement to work more but don’t necessarily see the possible positive impacts it can have on their work. Your job is to communicate how these changes affect your team in practice and most importantly, what’s in it for them. Help people understand why change is necessary for the continuity of the business and the well-being of the team. You can start by making small, gradual changes to the way your team works and focus on getting positive results fast. Consider picking those so called “low hanging fruits” first before announcing any major company-wide reforms. One way to start is to open the conversation by organizing an idea challenge, for example. Once you’ve gathered a few first positive experiences, people can see the upsides and are more likely to have a more open attitude towards improvements and new opportunities. 2. Not communicating the purposeMost of our time awake is spent at work. Without a larger purpose for what we’re doing, people can easily start seeing their job as just another pay check. It can also be difficult to get people give their best at all times. Without purpose, there’s no direction, and without direction, there’s really no chance of reaching your destination. By communicating purpose I’m not referring to giving a motivational speech or hanging inspirational quotes on the office walls. For people to find real fulfillment and meaning in their jobs, they must feel they are an important part of something that makes a real difference. In the context of creating an innovative culture, it’s important that people know why change is inevitable. If, for example, you’re operating in a declining industry, you simply have to renew in order to survive. It’s your responsibility to communicate what needs to be changed as well as what each individual should do for making this change happen. Create a movementCommunicating the purpose starts with clarifying your vision and turning that vision into a compelling story people are keen to be a part of. This helps convince people to align their actions towards the common goal and join the “movement”. If you were uncertain of the continuity of your business, you’d want to make sure your people understand that they need to keep improving their skills and knowledge on an individual level too. Even if your situation wasn’t as critical, you should still try to constantly learn more about your employees and what energizes and motivates them. Also, when hiring new people to your team, instead of only emphasizing skill, always look for qualities that can help advance your grand vision. 3. Rigid organisational structuresOrganizational structures are typically quite hierarchical, especially in larger organizations. Although having some form of hierarchy is necessary, it might also cause some bottlenecks for innovation if it restricts information flow. Often, middle management, which controls the information flow to and from the front line, ends up as that kind of a bottleneck. Even if managers would want to hear ideas from the front line, they are often too busy and thus end up prioritizing their current tasks over innovation. Typically, this sends a signal that the employees’ input isn’t appreciated, which again leads to decreased motivation to share any new ideas. Move decision-making closer to the front-lineInnovation should happen at all levels of the organization. When ideas need to go through several levels of management, there’s a risk that the feedback and evaluation process will slow down and become ineffective. For this reason, too high organizational barriers and hierarchy will eventually kill innovation. Communication shouldn’t just flow up but also down and across the organization. If middle managers have too much on their plate, they often only see short-term goals and constant pressure to hit their performance metrics, which leaves little room for long-term improvement. One way to overcome this challenge is to move decision making closer to the front-line. Managers could tell more about innovation from a larger perspective and direct the right type of activity by setting goals that support the right kind of change. To do that, managers need to trust their employees and let them execute their ideas but also provide them with certain limits in order to stay focused. Creating an innovative culture requires just the right amount of freedom and control. So, instead of having managers make all the decisions, you should give more responsibility to those who are willing to take it and are passionate about moving things forward. 4. Lack of commitment and reinforcementAnother reason why innovation culture efforts fail is low levels of managerial commitment. If innovation is seen as just an “extracurricular activity”, it easily gets in the way of daily tasks and routines. If management isn’t committed, employees aren’t likely to be either. Innovation isn’t just an activity for times when there’s nothing else to do. You need innovation to reach your goals now and in the long term. Innovation is like a habit; it takes time and effort to form one, but once it’s learned and integrated in the daily life, you’ll eventually start seeing desired results. Just like acquiring any positive habit, scattered and short-term efforts don’t last. Change rarely happens overnight and especially innovation requires a true shift in mindset as well as constant reinforcement. Although employees are coming up with new ideas all the time, the real challenge is to constantly harness those ideas to create more value. Keep offering interesting challenges to increase activity and excitement. If active employee involvement isn’t encouraged, you really can’t expect to see outstanding results because often, the amount of activity correlates with the outcomes. Tie innovation to actual ways of working and reward active participationTo get the best possible results, innovation should be tied to the actual ways of working and projects your teams are currently working on. This ensures that people are always making progress and learning while doing what they’re supposed to do. Introducing a few simple performance metrics can encourage people to keep improving the way they work. Be clear about the common company goals as well as how the input of each team and individual contributes to the big picture. Executive level is also eventually responsible for keeping the conversation active. Inspiring and innovative environment encourages rapid exchange of ideas both vertically and horizontally and constantly provides people with the right kinds of challenges. In order to keep the ideas flowing, always remember to reward the most active participants. Give credit for great effort and never underestimate the power of positive feedback. ConclusionBrian Chesky, the Co-founder and CEO of AirBnb, once said that culture is simply a shared way of doing something with passion. I think we can all agree, as it’s the people who have the real ability to make a culture great. Improving company culture should be everyone’s responsibility. Your culture doesn’t only concern those working for the company but has an impact on your customers as well. To be able to better serve your existing and potential clients, you want to keep your standards high and work hard towards creating better solutions and services for them because that’s what innovation is ultimately about. Although you might not be able to avoid all challenges when shaping your culture, you should try to approach them systematically. If you fail to see positive change, look for possible obstacles that might be standing in the way of innovation and start removing these obstacles one by one. This is the first part of Viima’s guest post series for KISMC. Stay tuned for the next article in which we’ll talk more about how the right tools and practices can help succeed in driving innovation in your organization. About the author ![]() Julia Myllylä Julia represents Viima, the best way to collect and develop ideas. Viima’s innovation management software is already loved by thousands of organizations all the way to the Global Fortune 500. She’s passionate about helping leaders drive innovation in their organization and frequently writes on the topic, usually in Viima’s blog. The first transnational meeting of the “Internet of Things security nuggets” - a strategic partnership co-funded by the Erasmus plus programme of the European Commission, took place on 9-10 October 2018 in Sofia and was hosted by University of Library Studies and Information Technologies (ULSIT), the project coordinator. Partners in the project are:
The project aims at developing a new methodology and framework with a model of digital competence for the Security of the Internet of Things (IoT) ecosystem including security and privacy to face the challenges that cybersecurity put in place. It is targeting VET providers and trainers in the ICT field, software engineers and programmers who want and need to update their competences, skills, and knowledge in cyber security of the ecosystem of IoT. And, ICT entrepreneurs who have, want, and/or would like to start a business in the IoT field. IoT security nuggets: 2018-1-BG01-KA202-047919 is an Erasmus + project. For more information about the project, read here. Did you know that SMEs represent 99% of all businesses in the EU? Or that statistics from the European Commission (EC) outline that in the past five years SMEs have created around 85% of new jobs and have provided two-thirds of the total private sector employment in the EU? The availability of skilled labour is an important prerequisite to the SMEs’ prosperity, however, there is a mismatch between the skills the labour market demands and those that the education and training system provides. In order to tackle this mismatch, the EC has identified that quality work-based learning (WBL) and apprenticeships can be an efficient way of addressing labour market imbalances. What is work-based learning?“Acquisition of knowledge and skills through ‘carrying out – and reflecting on – tasks in a vocational context, either at the workplace (such as alternance training) or in a VET (vocational education and training) institution”. What is apprenticeship? “Systematic, long-term training alternating periods at the workplace and in an educational institution or training center. The apprentice is contractually linked to the employer and receives remuneration (wage or allowance). The employer assumes responsibility”. In countries, where there is a well-established apprenticeship system, such as UK, Austria and Germany, SMEs contribute strongly to the training of the future workforce through their involvement in work-based learning and apprenticeship schemes. On the contrary, in countries with more school-based systems such as Slovakia, Spain, Portugal, Greece and Bulgaria, the engagement of SMEs in the supply of placements is more challenging as they lack the support systems and fail to realize both the financial and social benefits. Based on this need, the project - “Return on Investment of Work Based learning and apprenticeships” (project N°: 2017-1-SK01-KA202-035375) suggests the development of a return on investment (RoI) model and digital tool that will allow European SMEs to calculate and visualize how investment on WBL and apprenticeships can manifest to multiple benefits, especially economic benefits, which you can have a glimpse on below. 10 Economic benefits for SMEs
ConclusionIn conclusion, there are a number of key benefits of work-based learning and apprenticeships for SMEs, which are not always considered by the companies. If you are leading one of the 99% of SMEs in the EU, wouldn't you want to increase your productivity and innovation capacity? Or strengthen your brand as an employer, develop your talent in-hose and increase your retention rate? Overall, wouldn't you want to decrease your talent acquisition costs? If every employer asks themselves these questions, it appears significantly evident how important it is to review their practices regarding work-based learning and apprenticeships and to better evaluate their future investment. However, more awareness needs to be raised about the benefits of WBL and apprenticeship among SMEs as well as support. “Return on Investment of Work Based learning and apprenticeships”, co-funded by the Erasmus+ programme of the European Union has developed a return on investment (RoI) model and digital tool that allows European SMEs to calculate and visualize how investment on WBL and apprenticeships can manifest to multiple benefits.
The Model for calculating the return on investment (ROI) of worked-based learning and apprenticeship reflects the perspective of the consortium project - “Return on Investment of Work Based Learning and Apprenticeships”, coordinated by Slovakia, with partners from Portugal, Greece, Bulgaria, Cyprus, Italy, United Kingdom and Spain. For more information about the partners in the project, read here. The “RoI of WBL and apprenticeships” is based on the traditional model of calculating ROI, taking into consideration the costs and benefits of the SMEs regarding their investments in WBL and the apprenticeship courses. The list/menu of key “costs” and “benefits” proposed by the model are based on national research reports, developed for partners' countries (such as Slovakia, Portugal, Greece, Bulgaria, Italy and Spain), highlighted the SMEs' needs and their national apprenticeship system. What is ROI?ROI is the calculation that compares the value of outcomes (changes as a result of an activity) to the value of the resources needed to create them. Presented as a ratio, the value of outcomes is divided by the value of resources required to create them. The results of the calculation demonstrate the efficiency of an investment or activity. This can support the decision-making process by highlighting if an investment provides a positive return, and if there is more than one option, it can help decide which option provides the greatest return. The return on investment formula is: ROI = Value of outcomes / Value of investment In the above formula, "Value of outcomes” refers to the aggregated value of all of the included outcomes of investing in WBL. As well as presenting results as ROI, the net present value of money can also be used to support the decision-making process. This is calculated by subtracting the value of the investment from the value of the outcomes. The net present value formula is: Net present value = Value of outcomes – Value of investment |
The project aims at developing a new methodology and framework with a model of digital competence for the Security of the Internet of Things (IoT) ecosystem including security and privacy to face the challenges that cybersecurity put in place.
No one doubts that the Internet of Things (IoT) represents a massive opportunity for businesses and consumers. Most organizations are only just starting to scratch the surface of what they can achieve with IoT solutions. On the other hand, security is what really needs to be designed from the very beginning of developing IoT services and products.
The growing threat of cyberattacks has made governments and companies more aware of the need to defend the computerized control systems of utilities and other critical infrastructure.
The project is targeting VET providers and trainers in the ICT field, software engineers and programmers who want and need to update their competences, skills, and knowledge in cyber security of the ecosystem of IoT. And, ICT entrepreneurs who have, want, and/or would like to start a business in the IoT field.
Partners in the project are:
- University of Library Studies and Information Technologies (ULSIT), Bulgaria
- Knowledge, Innovation and Strategies Management Club, Bulgaria
- IDEC: Aintek symvouloi epicheiriseon ypsilis technologias ekpaidefsi anonymi etaireia, Greece
- The University of Deusto, Spain
- Dlearn: European Digital Learning Network, Italy
- GAIA: Asociacion de industrias de conocimiento y technologia, Spain
IoT security nuggets: 2018-1-BG01-KA202-047919 is an Erasmus + project.
For more information about the project, read here.
The conference was organised to reveal the results of the 2-years DigiThink project, where 6 organisations were working together: KISMC - Bulgaria, State University of Library Studies and IT - Bulgaria, University of Deusto - Spain, Tecnalia - Spain, Constantine the Philosopher University in Nitra - Slovakia, Training 2000 - Italy. In addition to that, the international conference "Digital Skills & Innovation @2030" brought together innovation and digital experts, entrepreneurs, investors, academicians, professionals and stakeholders in the innovation and entrepreneurship ecosystem. During the event like-minded people had the opportunity to exchange views on various topics in the digital, innovation and entrepreneurship space and discuss potential collaboration.
The event was full of excitement, great networking over glasses of wine and plenty of follow ups bringing potential opportunities for everyone.
1. Design Thinking for DigiThink
- Human Oriented approach: “Empathising”
- We focus on the “creators” of new digital products and services, their needs and the environment for their activity.
- In today’s fast developing and increasingly digital world, organizations face many challenges: disruptive technologies, economic pressures, globalization and, mainly, keeping up with changes in customer behaviour.
2. Objectives for "Design Thinking for Digital Innovation"
- to take students out of their comfort zone of learning to create innovative products and services
- to encourage students to start their social businesses
- to develop necessary digital skills for both target groups: student teams - digital business creation and lecturers – open educational resources in courses
- to develop empathy, ethics, values, and sense of social responsibility.
3. Responsible Research & Innovation (RRI)
- A major part of the current EU Research Framework Programme “Horizon 2020” is dedicated to societal challenges.
- Challenge-driven programmes are usually interdisciplinary and often cover the entire innovation chain from fundamental research to demonstration.
- Within the R&I system there have been examples of controversies and failures in fulfilling societal expectations in part because not all key actors were engaged
- Certain key issues (or policy agendas) need to be taken into account:
- ethics
- gender equality
- governance
- open access
- public engagement
- science education
4. Experience Logic Marketing & Design Thinking
5. The Agile School & Scrum Ban Lab for Business
- A lab for experiments for creating didactic instruments based on the toolbox applied in real practice
- Parents are the stakeholders in the education process and are kind of Product Owners, along with teachers
- Teachers are moderators, mentors and observe the processes of building the "overall picture" as they are the Product Owners together with the representatives of the companies, organizations and institutions
- Students self-organize, self-assess (somewhat) and work in teams / clusters
6. Gameplay for Inspiring Digital Adoption (GIRDA)
- GIRDA is using multiplayer touchscreen games to introduce older people to digital technology. The aim is to help them build confidence, motivation and skills in an informal, social setting where there is no pressure to learn.
- Research has shown how trust and confidence in using the internet grow quickly with first-hand experience - but many older people don’t take the first step.
7. Design Principles in Higher Education
- The dimensions of wickedness are prevalent in the problem; and
- Student tasks are challenging and require them to get involved in the problem. This leads to the (experienced) open-endedness of the problem solving process and the need to cross boundaries.
- Ensure alignment between learning goals, coaching, assessment with regard to boundary crossing
- Organize milestones.
8. Is Design Thinking the Right Tool?
- developing technology enablers?
- creating startups?
- easily design products?
9. Cluster & Digital Innovation Hub
An important component within the cluster is the development of working groups such as:
10. Design Thinking & Intrapreneurship
Where to start from?
No, it's not creating ideas...
It is FINDING PROBLEMS.
Combining empathy, creativity, collaboration and prototyping.
11. Entrepreneurship & Innovation
- Entrepreneurs use innovation to drive and achieve change for commercial or socio-economic results
- Innovation underpins the differentiator that allows the entrepreneurs to succeed by utilising their unique skills-set and personality
12. SMEs Innovation & Growth Acceleration
- SMEs represent 99% of all business in the EU
- SMEs are the backbone of the economy and have skills they can leverage
- Start-ups are interesting but risky (96% die before they turn 5 years)
That is why the IXLerator has been designed to take multiple teams in the creation of the
innovation process system and obtaining results in SMEs.
13. Smart Cities & Accelerating Innovation
Conclusion
If you didn't have a chance to attend, don't forget to follow our social media as well as sign up for our Newsletter.
However, most of us know, have seen or/and have attended the large number of events that have been taking place in Sofia and Bulgaria in the last 6 months because of Bulgaria holding the Presidency of the Council of the European Union. Despite that, we believe that 'Digital Skills & Innovation @2030' will bring value to you and below you can find 6 reasons why you should attend it.
1. Conference programme featuring international panellists
2. Panels with exciting topics to inspire hot discussions
3. Deeper understanding of Design Thinking for Digital Innovation
4. Practical workshop / Competition game on Design Thinking
5. Wine Networking
6. Meet all the project partners/conference organizers for potential future collaboration
The group gathering took place as part of the main project objective of BASET: Boost Aid for Social Entrepreneurship through Training which is to establish and maintain a well-developed and a more effective the process of training the trainers of social entrepreneurs (SE).
For more information on the focus group, please read here
The results will provide the base for the elaboration of the digital tool for the calculation of the return on investments (ROI) of WBL and apprenticeships made by SMEs. The research is part of the project “Return on Investment of Work Based learning and Apprenticeships” project N°: 2017-1-SK01-KA202-035375.
We would highly appreciate your participation in this study. The research is taking place in all the countries of the project's partnership: Bulgaria, Greece, Italy, Portugal, Slovakia, Spian and the UK. However, with this post we are focussed on Bulgarian SMEs and will take you a few minutes to enourmously help the study.
* In the processing of analysis data, partners will maintain the confidentiality of your response.
Why the ROI Project?
The innovative force of the project is the development of a model of costs and benefits calibrated on the specific needs of small and medium enterprises (SMEs) in order to calculate in advance the return of investments. Differently from traditional ROI analysis, the model presented by the project focuses on both SMEs-related benefits as well as on society-related ones in order to clearly demonstrate the multilevel outcomes derived from work-based learning practices.
Your Contribution to the Research Matters
1. Model for Return on Investment of WBL and apprenticeships
2. Digital tool
3. Good practice guide
For more information on the tools, please read here and below you will find useful information from the resources you will have access to when they become available:
- If you are an SME already involved in apprenticeships, you will gain a model and a practical digital tool to calculate the return on investment from your engagement in the provision of WBL and apprenticeships. You will also benefit from the opportunity to promote your related activities through the Good Practices Guide and the participation in the apprenticeships-friendly enterprises badge. This will allow you to gain visibility on your local and national markets, as a company that cares for their apprenticeships. This visibility will support your company’s’ image and social responsibility.
- If you are an SME with no previous experience in apprenticeships, you will get familiar and discuss the benefits of apprenticeships for the local development and the progress of your own company. By visualising the benefits for your company, through the provision of WBL and Apprenticeships, you are expected to engage in the provision of such positions thus enhancing the overall VET provision at local level and enhancing access to training and qualifications for all.
- If you are a VET provider, you will have at your disposal a model and a digital tool to promote to SMEs in order to engage them in the provision of apprenticeships. This way you will be able to find more easily apprenticeship positions for your learners.
- If you are a policy maker, you will be able to use the model and the digital tool results in your decision making processes in order to discuss the funding mechanisms for apprenticeships and engage in a dialogue with SMEs, VET providers and social partners for the identification of a sustainable funding formula.
* Erasmus+ is the European Union’s (EU) programme for education, training, youth and sport, with the EU committing £12 billion to the programme between 2014 and 2020. By 2020 it is expected that over 800,000 education and training staff and youth workers will teach or train abroad across Europe with Erasmus+. Projects provide opportunities for learners and staff to improve their skills, enhance their employability and gain cultural awareness.
Knowledge, Innovation and Strategies Management Club (KISMC) is a partner along with a diverse and complementary mix of organisations - from Slovakia the Technical University of Kosice (TUKE), 3 training organisations active in VET: IDEC - Greece, CECOA - Portugal, PIT - Spain and also from the UK - Social Value UK - a network focusing on social value and social impact, from Italy a network focusing on the promotion of digital learning and use of ICT - DLEARN and an ICT company focusing in ICT-enabled E&T - Cosmic Innovations - Cyprus.
Calculate the ROI for Apprenticeships & WBL
For SMEs with limited financial resources, work based learning (WBL) represents an important tool. The RoI online tool offers:
- a cost and social benefits model calibrated on specific needs of SME managers and entrepreneurs to calculate the RoI for apprenticeships and WBL supply.
ROI Project Objectives
- Contribute to the sustainable investment of WBL and apprenticeships by making apparent their benefits for both individual SMEs and the society as a whole
- Develop a model for the calculation of RoI of WBL and apprenticeships by SMEs
- Design a digital tool that will demonstrate the RoI model in a visual way
- Develop a Good Practice Guide addressed to SMEs, giving guidance on how to design, implement and monitor profitable apprenticeship practices which can benefit the enterprise, the apprentice and the entire society
- Create and promote an apprenticeship-friendly SMEs badge to increase the engagement of companies in the provision of WBL
- Promote a VET – SMEs cooperation, through experimentation and validation of the RoI model
A Project Designed to Engage
- Managers, staff and trainers from SMEs that already host or are interested in providing WBL and apprenticeship;
- Staff from VET providers, i.e. VET teachers and trainers, administrative staff dealing with apprenticeships, etc;
- Policy makers, representative of stakeholders, VET expert and practitioners, social partners.
In addition to that, long-term beneficiaries such as VET learners who will benefit from the increased provision of WBL opportunities in their local, regional and national area.
KISMC Team
Blog post by our team, innovation contributors, VIP members, blog guests, etc.
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The Knowledge, Innovation and Strategies Management Club is a non-profit organisation set up in Sofia, Bulgaria in 2012 to foster knowledge and innovation management across South East Europe. KISMC is supporting the development of the innovation ecosystem in the region by bridging the gap between education, research and business.
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