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BY: Dr. Arnold Encomendero Dávalos
www.arnoldencomendero.com

In the academic world as well as in professional consulting and private and public entrepreneurship and business development, INNOVATION is one of the most preferred subjects to achieve successful business. In the light of the best experiences, Innovation gives us the chance to think and grow up by OURSELVES and with others and BE ABLE TO ACT in order to CREATE VALUE in our company, whether small, medium or large, so it will be MORE COMPETITIVE. So the following questions are worthy for the best answers: How to implement and create an innovating culture in the company?, how to manage Innovation and who is accountable for its excellent implementation and development?, which is the role of the State and Governments to promote and foster Innovation, and whereby, to increase business Competitiveness and Productivity which are the base of a country’s productive diversification?


FURR AND DYER’S CONTRIBUTIONS
Well recognized professors Nathan Furr and Jeff Dyer on their book named “The Innovator’s Method” provide us with wise advice so a company keeps fresh, and put on the table the FOUR steps for Innovation: IDEA, PROBLEM SOLVING, SOLUTION, AND CREATION OF A BUSINESS MODEL. They add: Entrepreneurs, Directors and Managers must all remember that although uncertainty can be frustrating, it is also the source creativity, innovation, and growth. The importance in applying these 4 steps is to test and validate a CREATIVE IDEA in the market before wasting resources in producing something that will be neither favorable nor beneficial. With much expertise, Louis V. Porstner, former IBM’s chairman, said: “I have proved during time that in IBM culture is not just a GAME. It is the game. At the end of the day, an organization is the collective capacity of its people to CREATE VALUE”1. On the other hand, the well-known guru of corporations, Richard Branson2 gave us this lesson: “If you are an Entrepreneur looking for new ideas, remember that Innovation is a never-ending quest. You have to learn to listen to people’s hopes, frustrations and points of view. If you keep eyes wide open, you will definitely find great ideas. But keep in mind, DO NOT COPY THEM, EMBRACE THEM”3.
richard branson
 
IS INNOVATION A MATTER OF TALENT OR RESOURCES?
Experience has showed us that in the world of successful business, financial resources are useful and necessary to concrete good ideas and projects in order to make a feasible endeavor. The expert in Leadership NAVI RADJOU in his book “Frugal INNOVATION” states that “it is possible to INNOVATE, find intelligent solutions with little resources, as happens to many entrepreneurs from China, India, Africa and Latin American, where solutions, neither sophisticated nor perfect, were found – indicated - Felipe Ortiz de Zevallos4 but solutions with HIGH VALUE and low cost, solving real problems of their clients”. From concrete projects with social and economic results, very satisfactory, for managerial projection and development, I have seen that qualified experience joint with effective professionalization of management is the key motor for opening all doors and taking advantages from opportunities to successful positioning in the business world regardless the size of the company. At the end of the day, as said by VICTOR HUGO “what drives the world is not machines but ideas”, we then agree with all management leaders interested in having work teams that generate new and better ideas with emotional intelligence, passion and commitment, aware that “passion does not make the leader. The LEADER makes passion” as pointed out by Stanley Huffty.

Within this framework of thinking – action, before Managerial Archeology that binds us to the past, this Managerial Anthropology joins us with the future to give human value, and never-ending sustainable feasibility to the company. Therefore, the Informatics Leader Steve Job said: “Innovation is what makes the difference for a LEADER”, i.e., what makes a REGULAR MANAGER different from a GOOD MANAGER IS CREATIVITY, and what makes a REGULAR LEADER different from a GOOD LEADER is Innovation; therefore, we will never cease to highlight that Innovation is not only to invent and create, but also to give non-stopping VALUE TO THE COMPANY and to life, bearing in mind that in the kernel of a competitive position MAIN IDEAS with little words SAY AND MAKE a lot, and encourage us to do MORE WITH LESS related to thinking and strategic vision with the capacity of performance, always with INNOVATION of value seeking for boldness and spirit of achievement, DIFFERENT OUTCOMES but SUCCESSFUL.

 
HOW TO BETTER MANAGE INNOVATION?
This singular question was answered by Daniel Harris5 when he said: “Managing Innovation is to know that we count with positive and negative risks, knowing how to control them through sound strategies or steps to obtain wanted results. There are many ways to manage Innovation, but first it must be defined why to innovate and to set clear goals, and the expected impact. All these help define the type of Innovation to be reached”.

As it is responsible to name things, apart from ambiguities, we have considered pertinent to select a few concepts very illustrative about Innovation as a way to better support our appreciation and empirical exposition. As per Luecke (2004) Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products and processes, or services”.

According to Daniel Harris6: “Innovation is a set of ideas that generate changes and a new culture in productive procedures and handling them, creating strategies to control and execute, with safety, the implementation in the market to obtain profits”.

But, it is also quite relevant the concept widely ONLINE shared in the academic world in the sense that Innovation is the drive transforming IDEAS into VALUE, thus, in positive results. Once again INNOVATION must be “A SYSTEM OPEN to all collaborators, and the General Manager must be an enabler for an ongoing and smooth process in the organization with the main target to INCREASE Productivity and Competitiveness”.
 
WHAT ROLE DOES THE STATE PLAY TO PROMOTE INNOVATION?
The prominent Chilean economist Sergio Melnick7 in a thorough article named “Can Reality Change?” said: “Science and Technology are pillars of current society and even more for upcoming society. The strong support to Science and Technological Innovation is a must for any STATE aspiring to DEVELOPMENT in this time, and these debates must be opened instead of being closed as dogmas”. On the other hand, FOZ in his weekly column in Revista Semana Economica8 indicated that: “Technological change is today the main drive for global economy. Automation and robotization will enhance the productivity gap between the most talented ones and those unable to adapt. GOVERNMENTS require favoring Innovation and creativity, and ensuring that their citizens pursue education to understand and take advantages from new realities”.

With high scientific authority, Pablo Valenzuela, awarded by the Chilean National Prize for Science, noted, in an article published on Revista CAPITAL9, the low budget given by the Chilean Government for 2016, according to the resources submitted by the National Commission for Scientific and Technological Research (CONICYT), since it was only increased from 0.38% to 0.76% of the GDP, when, in accordance with him, it should have been a TENFOLD increase. That is why, he signed a letter called: “Our Governments Have Chosen Ignorance”, because “transforming SCIENCE into a product, in SOMETHING USEFUL FOR SOCIETY is more difficult in Chile than in USA; beside, we have to use American organizations because here we have neither knowledge nor credibility! ”.

For further information, countries that are part of OECD invest in science and technology an average of 2.4% of their GDP, and the Latin American countries invest an average of 1.75% of their GDP. Peru is way back with 0.12%, said Peru’s Ministry of Production Phiero Ghezzi. “We think about double this figure in 2016 with 0.25% of GDP and then to 1% of GDP”, added.
 
WHICH IS THE ROLE AND CHALLENGE FOR MANAGERIAL LEADERSHIP TO MAKE INNOVATION AN EFFICIENT MOTOR FOR BUSINESS COMPETITIVENESS?
In sum of my managerial vision and mission with successful results applying true Leadership with innovation with Value, these are my SEVEN KEY IDEAS to achieve MANAGERIAL SUCCESS10. - THINK BIG: Creative and Innovating Thinking

- DIG A LOT: Research and Development
- DRIBBLE SHORT: Efficient Strategic and Tactic
- STARE AT THE BIG PICTURE: Vision of Future
- RUN SLOWLY: Prevision and Caution
- GET HIGH: Entrepreneur and Bold Spirit
- ALWAYS CHECK: Internal and External ControlIt

is also fair to recognize that in managerial development and projection with transforming Leadership, not anything is a piece of cake, as wished; as stated by Mario Benedetti “in life, there are THREE geometric shapes to be avoided: vicious circles, love triangles, and square minds, and paraphrasing Benedetti and applying it to business, from true Managerial Leadership, it means to AVOID three geometric accidents due to their negative consequences:

1.- SQUARE-MINDED PEOPLE that cloud the future
2.- MOB triangles
that distort the MISSION, and,
3.- VICIOUS circles
that destroy TRUST

It is precisely that, having not AVOID and transparently and honorably exclude these 3 geometric shapes, many Chief Executive Officer (CEOs), admired and cherished managers considered the best business leaders worldwide, now in their WAY OUT, are smart Leaders that failed due to corruption, due to running their back then famous and BREATHTAKING corporations among vicious circles and Mob triangles. That is why SYDNEY FINKELSTEIN on his work “Why Smart Executives Fail” revealed the grounds of the collapse of the most successful American corporations such as ENRON, TICO, XEROX, MERC etc. admired worldwide for being solid, correct and transparent: whose CEO’s failed because of being VAIN, MANSPLAINING and strongly GREEDY who “compromised their personal prestige for million dollars”. What a lesson! This bad experience of being famous Leaders that fell into disgrace happened again in highly successful corporations such as PARMALAT, VOLKSWAGEN, ODEBRECHT among others. Therefore, true Managerial Leaders are responsible for Thinking Big, fully aware that Innovation is a strategic tool inside the Company where knowledge, continuous improvement of products, processes and services match the technical aptitude and ethics of the General Manager, staff and all executives. Finally, let me share with you my own thinking – action inspired in management.

- PURSUANT TO PETER’S PRINCIPLE: A PERSON CLIMBS IN LIFE UNTIL REACHING HIS/HER LEVEL OF INCOMPETENCE.
- PURSUANT TO DRUCKER’S PRINCIPLE: A PERSON CLIMBS IN THE COMPANY UNTIL REACHING HIS/HER LEVEL OF INTELLIGENCE.
 
THEREFORE, IT IS SMART TO MAKE LIFE AN INNOVATING COMPANY THAT GROWS AND THRIVES to provide all people with HONOR AND VALUE. CONGRATULATIONS. VERUM ID QUOD EST. “THE TRUTH IS WHAT IT IS”.
www.arnoldencomendero.com
SOURCE: FORTHCOMING BOOK: “FROM MANAGER TO LEADER”.
 
BIBLIOGRAPHY:

1.- UTAH University. USA
2.- Diario Estrategia CHILE 2012
3.- Semana Economica Management 2015. NYT Syudicate
4.- La Columna de FOZ. Revista S.E Peru 2015
5.- Revista Economica, March 15, 2015
6.- Revista Capital de Chile Nº 411 24.12.2015
7.- Peru Economico: Columna de FOZ Lima 2014
8.- Revista Capital de Chile Nº 411 24.12.2015
9.- Revista Capital de Chile Nº 411 24.12.2015
10.- “Amigo, Gerente y Lider”. JAED May 2010 Lima, Peru