Introduction
The current proposal addresses the problem of the lack of innovative behaviors among the organization’s employees. The current internal proposal outlines the issue and presents the related data. The data shows that the problem has a major negative impact on the company’s performance, resulting in a decline in revenue. Potential root causes were identified, and the effectiveness of previous attempts was evaluated.
Based on the research, a solution was developed that can address the problem in the long term. The organization should develop and implement a training program for employees to introduce them to the utilization of creative tools and effective communication methods. The proposal details the implementation process and the evaluation of the proposed solution.
Lack of Innovative Behavior
Innovative behavior plays a key role in the survival and growth of organizations. Choi et al. (2021) underline that it is “the research, development, and practice of new ideas based on the mutual relationship among members in a current situation.” Therefore, competitive capabilities rely heavily on internal communication and leader-member exchange practices.
Shah et al. (2022) note that it also refers to the ability of employees to implement ideas and use creative tools through decision-making. Purc and Lagun (2019) highlight that employees are each organization’s primary source of innovative ideas. Companies should provide them with opportunities to develop and implement their ideas. This facilitates the organization’s growth and allows it to generate new products to keep its competitive advantage.
The company’s lack of innovative behavior significantly impacts its performance. The chart on the slide shows that the organization has experienced a sharp decline in revenue for the past two years. Such dynamics relate to the company’s lack of new products presented to the market.
In 2019, the organization generated three new products, which resulted in a peak revenue of $4.3 million in 2020. However, the number of new products shrank to 0 in subsequent years. These changes can be linked to the decline in revenue in 2021 and 2022, which reached $3.2 million. The trend is continuous, which calls for the organization to take action to address the current problem.
Previous Attempts
Previous attempts to introduce a solution for the problem did not produce the desired outcomes. These included marketing strategy changes, monetary incentives for innovative initiatives, team brainstorming sessions, and introducing goals for innovative initiatives. The effectiveness of the solutions was evaluated by interviewing employees to measure their perception of the positive impact on their innovative behavior.
It was identified that team brainstorming sessions and monetary incentives were rated as the most effective strategies. It gives valuable insights into employees’ motivational needs and innovative behavior. The organization should focus on providing them with creative tools, access to better communication, and the personal benefits of innovative initiatives.
The research on previous attempts’ effectiveness also helped identify possible causes of the problem. Employees were also interviewed on potential reasons for their lack of innovative behavior. The chart on the slide illustrates that most employees point to a lack of motivation, clear innovative goals, and a lack of communication. Additionally, they identify poor management strategies and a lack of investment.
The data shows that the organization should promote innovative behavior by articulating individual benefits and creating personal value for each employee. First, they should be aware of its importance to themselves. The company must create an organizational culture of change and innovation, motivating employees to generate and implement ideas.
Proposed Solution: Implementation and Evaluation
The solution to the problem that is proposed is the development and implementation of employee training programs. The program aims to coach employees on the use of creative tools and skills, as well as introduce effective communication to them. Tan et al. (2023) outline a framework for innovative behavior promotion training, which can be used as an example and guideline.
The program includes Lean Innovation Training based on the principles of Lean Six Sigma and Creative Problem-Solving tools. The training implementation results show a significant positive change in the quality of innovative initiatives of employees six months after the training completion. Additionally, the organization’s overall performance improved, which was illustrated by positive changes in various business metrics.
The solution implementation process should be divided into four stages. The first is planning, which includes researching employee expectations and needs. The data obtained can be used to develop the program’s main points. The second stage is program development, which includes the choice of tools, implementation, methodology application, and overall program design. The third stage is program implementation, which includes the actual training program conducted.
The program is expected to last three months, but can be modified according to performance. The fourth stage is program results evaluation, which will assess the training’s outcomes and measure its impact on the organization and the problem being addressed. The Human Resource Department should conduct the development of the program in collaboration with an outside expert on employee coaching. It is expected that all the stages of program development will take a total of 6 months.
The program will require additional financial resources to hire an external expert. Otherwise, the solution implementation will not take additional resources, as the company has all the necessary intellectual and human resources. The training program will require the introduction of various creative tools and communication techniques. The solution is expected to result in $530,000 in monthly costs. It is expected to have an ROI of 107% in the first year, with subsequent growth of indicators further.
Evaluation of the effectiveness of the solution should be based on the research on the motivation and innovative capacities of the employees. The Human Resource Department should obtain monthly feedback on the impact of the solution. Additionally, it is required to measure the organization’s overall performance after the solution’s implementation.
More specifically, the ultimate goals of the solution implementation are introducing new products to the market and increasing revenue for the company. These metrics should be monitored and compared quarterly to track positive or negative dynamics. The program should be modified and adjusted according to its outcomes to be implemented in subsequent years.
Conclusion
In conclusion, the lack of innovative behavior was identified as a major organizational problem. Based on the research conducted, a solution to address it was developed. The employee training program was selected as the most effective solution as it can provide employees with access to creative tools and communication. It will promote innovative behavior through increased motivation and facilitated leader-member exchange.
The outcomes of the solution implementation are expected to include increased revenue and a higher competitive advantage due to introducing new products to the market. The potential results of the training implementation are extremely positive due to low additional costs and high impact. However, employee attitudes and perceptions can influence the solution’s effectiveness, which cannot be forecasted or modified.
References
Choi, W. S., Kang, S. W., & Choi, S. B. (2021). Innovative behavior in the workplace: An empirical study of a moderated mediation model of self-efficacy, perceived organizational support, and leader-member exchange. Behavioral Science, 11(12). Web.
Purc, E., & Lagun, M. (2019). Personal values and innovative behavior of employees. Frontiers in Psychology, 10. Web.
Shah, S., Shah, S., & El-Gohary, H. (2022). Nurturing innovative work behavior through workplace learning among knowledge workers of small and medium businesses. Journal of the Knowledge Economy. Web.
Tan, A., van Dun, D., & Wilderom, C. (2023). Lean innovation training and transformational leadership for employee creative role identity and innovative work behavior in a public service organization. International Journal of Lean Six Sigma. Web.