Peter Mellalieu introduces a new course in February 2012 comprising part of the Unitec Master of Business, MBus.
What is innovation? What do we need innovation? … Is innovation more than inventing an unconventional product, or creating a new service or process?
How do innovations get created? … What are the factors associated with success and failure?
What are the roles of leadership, enterprise, creativity, and design in the process of innovation?
Do you have ‘the right stuff’ to innovate an enterprise? …. Are you motivated to ‘make a difference’?
This short video (3 min) introduces several propositions that begin a journey towards answering these questions. If these propositions ‘strike a chord’ with you, then come join Peter’s learning adventure!
Reviewed by Peter Mellalieu. Peter teaches innovation and entrepreneurship at Unitec Institute of Technology.
How can we create ‘good jobs’?
This is the most urgent question New Zealand, America and all other nations face. According to Jim Clifton, the answer lies in the spirit of free enterprise — not central or local government policy-making.
In my opinion, this book should be compulsory reading for all political candidates and all those public servants busily preparing ‘Briefings to the Incoming Minister’ due for delivery after the forthcoming November election!
In his book ‘THE COMING JOBS WAR‘, Gallup Chairman Jim Clifton argues that job creation happens when start-ups and young companies flourish in cities. Local and central government can assist job creation, but Clifton argues that primary attention should focus on local business and city leaders. He advocates these leaders must:
Invest in entrepreneurs, not innovation
Double the number of engaged employees
Encourage small-business start-ups
Be smarter at winning global customers than anyone else
Put prevention at the centre of healthcare policy
Wage war on the school dropout rate
The cities and countries that act first — that focus everything they have on creating good jobs — are the ones that will win.
Invest in entrepreneurs, not innovation. Reason: it is entrepreneurs (and intrapreneurs) who grow existing businesses and start new businesses. It is their businesses that create the wealth from innovation, research, and science. Furthermore, it is the wealth creation from these businesses that enables more people to be employed in ‘good jobs’, redeployed from low-contribution under-employment and unemployment, and enables re-investment in innovation and growth. A virtuous circle.
Double the number of engaged employees. Reason. Engaged employees add value to both new and existing customers through their creative response to customer needs. They help a business grow sales revenues, profits, and support the commercialisation of innovative ideas.
Encourage small-business start-ups. Reason: Most employment growth arises from start-ups and the growth of small-medium enterprise. Large businesses are often large employers, but they are not the source of employment growth.
Be smarter at winning global customers than anyone else. Reason: In New Zealand, we will never have the local market that provides the scale for supporting the specialised businesses we need to create for the jobs we need (See earlier postings on this blog by Paul Callaghan). America’s automobile industry rested on its laurels for decades whilst Japan, Europe, and Korea improved their product performance, process technologies, and productivity. The decline of Detroit and bankruptcy of well-known American motor companies was the result.
Put prevention at the centre of healthcare policy. Reason: Gallup’s data provides support for substantial deployment of ‘behavioural economics’ to reward those people who improve their health status and thereby work productivity through personal attention to diet and exercise.
Wage war on the school dropout rate. The recent report from the New Zealand Institute (Boven et al,2011) highlighted how our country’s dysfunctional educational system fails in terms of both relevancy to emerging workplace skill requirements, and student engagement in the educational process. Both facets are crucial in providing young job-seekers with the correct skills, with the correct talents and attitudes to undertake a ‘good job’.
What is a ‘good job’?
A ‘good job’ is a job in the formal economy. It is a job with security, with a pay check, good prospects, and a manager willing and capable of developing your job engagement and talents. A full-time good job is thirty hours or more.
Why do we need to create ‘good jobs’?
There are several reasons:
There is a world-wide shortage of ‘formal jobs’. The shortage is estimated by Gallup to be 1.8 billion jobs. Currently, just 1.2 billion of the world’s 7 billion people possess formal jobs. See Figure 1.
‘Good’ formal jobs give rise to: improved income per capita; improved customer satisfaction, market growth, and profitability; and innovation.
Persistent underemployment and unemployment reduces personal wellbeing, physical health, and reduces net national tax revenues. Excessive underemployment leads to social unrest, chaos, and ultimately revolution.
If we fail to grow the number of good jobs in our business, or our city, then our most skilful and enterprising job-seekers and business builders will relocate else where. That relocation will contribute to a vicious downward spiral of rising unemployment, declining taxes and rates, and city-wide decline.
Figure 1: Distribution of available and required jobs (world-wide, billions of people). Based on Clifton, 2011.
I love graduation! I love meeting my previous students. What are their plans? Where are they working?
At graduation yesterday I found one of my Chinese students is returning to China to work in her father’s factory. The factory manufactures motorcycles and quad cycles for an international brand name. Later, she intends to work in the USA as part of the distributor’s retail chain. Always asking the ‘green’ question, I asked if the factory manufactured electric motorcycles? “No”…. I suggested she might consider launching a ‘new venture’ project to start manufacturing electric cycles – either within her father’s factory, or in her own venture. In encouragement, I mentioned my previous Chinese student had returned to China, worked briefly for her father’s clothing company, and then left to set up her own clothing factory…. hopefully as a supplier to the the clothing company in New Zealand where she undertook her Industry Based Learning project on Safety and Health.
Peter Mellalieu teaches Innovation and Entrepreneurship at Unitec Institute of Technology. Course BSNS 5391
Change in New Zealand sectoral greenhouse gas emissions 1990 − 2007. Image via Wikipedia
Unitec students and staff have embarked on an innovative programme focussed on helping medium and small enterprise owners advance their journey towards ‘greening the business’. Every two weeks from August, business owners from Rosebank Business Association are invited to participate in an Enterprise GreenWorks™ (EGW) session focussed exclusively on developing promising pathways to guide a ‘guest’ business towards environmentally sustainable business processes and products. During the half-day Enterprise GreenWorks session, a new venture project team is established involving staff from the business and members from Unitec. Think of the reality TV show ‘The Apprentice’ adapted so that no one gets fired, but the earth gets saved … and a better profit is made compared with ‘business-as-usual’!
Source: Frederick & Chittock, 2008.
Several years ago a Unitec survey of Rosebank Business Association (RBA) members established that 22 per cent of respondents sought education and training support for ‘greening the business’ (Frederick & Chittock, 2008). A more recent national survey has found that despite the economic downturn certain types of businesses have continued to deepen their deployment of green business practices. For example, between 2003 and 2010 medium and especially larger companies have doubled their focus on being more selective about their suppliers (Collins et al, 2010). Despite the recession, this trend has continued to strengthen since 2006 so that by 2010 more than 30 per cent of firms larger than 99 employees use environmental criteria as part of their selection of suppliers.
Source: Collins et al, 2010
However, in contrast to these ‘greening’ trends, most small businesses have retreated from their earlier commitments to environmentally sustainable business practices. Also, their practices are typically very narrowly limited to recycling and environmental impact analysis. Professor Collins and her colleagues at Waikato Management School argue that a ‘sustainability divide’ is now growing between between most small businesses (less than 10 employees) and other businesses that have recognised the value and strategic imperative for ‘greening their business’.
Source: Collins et al, 2010.
Since 2008, teachers at Unitec Institute of Technology have begun to respond to Rosebank business’ call for graduates who understand that ‘greening the business’ is much more than reducing waste and recycling. For example, students in Unitec introductory business course BSNS 5391 Innovation and Entrepreneurship learn from New Zealand and world-class examples of eco-innovation and eco-enterprise.
In a recent class exercise, students learned how a three-year systematic programme of design-led ‘cradle-to-cradle’ thinking applied in Wellington-based Formway Furniture lead to the creation of the Life office chair. The chair has gained remarkable success in world markets for its innovative functional features and green credentials. Amongst its many new-to-market features, the Life Chair was constructed from both recycled and natural materials and designed for ease of refurbishing in the event of an office interior decor redesign. Licensed to Knoll, a leading US furniture company, the Life chair has generated sales of $500 million (Macfie, 2011; McClaren, 2008; Ministry for the Environment, 2007).
In early May this year, Unitec business students interviewed Robb Donzé, Managing Director for InteraceNZ, the New Zealand distributor for modular carpet tile systems manufactured by US-based multinational Interface Global. Under the helm of industrial engineer and founding entrepreneur Ray Anderson, Interface has achieved ‘legendary’ status in terms of its ingenious innovations in environmental practice and products. Remarkably, the company began as a typical 20th century industrial manufacturing company with no special interest in taking care of the natural environment apart from complying with environmental legislation. In the words of Ray Anderson, the company is on a mission to climb ‘Mount Sustainability’ achieving a zero ecological footprint by 2020. Coincidentally, the Unitec students saw practical proof of this type of product in their new student common room in the business studies building.
Green thinking in the business curriculum at Unitec is regarded increasingly as a core component, rather than something ‘added on’ as an optional extra. Developing from their studies in the introductory Innovation and Entrepreneurship course, final year studies require each student to examine critically the competitive strategies of a business to assess the risks and opportunities faced from market, technological, legal, and other factors including emerging green issues. Students then proceed to develop risk mitigation and/or opportunity development strategies for the business within the overall context of its competitive position and strategic ambitions. Rosebank businesses are especially welcome to invite Unitec students to engage in this student project work.
Unitec industrial technologist Peter Mellalieu notes that “Our students enter our courses expecting that ‘greening the business’ is hard work and reduces profit. Through exposure to real business examples, my students are surprised and delighted that there are both new start-up and long-established companies using ‘green thinking’ as a core process for stimulating creativity. The creative thinking inspired by ‘green thinking’ leads to win-win outcomes for the business and the environment. The new Enterprise GreenWorks program integrates these – and other Unitec green initiatives – in an exciting learning adventure beneficial to Rosebank Business Association members and their future employees and entrepreneurs from Unitec”.
Example of an Enterprise GreenWorks episode (Video: Massey University, 1997)
Enterprise GreenWorks™ is a trade mark of MyndSurfers Ltd.
An abridged version first published as:
Mellalieu, P. J. (2011, May). Greening your business with Unitec. Roundabout – Newsletter of the Rosebank Business Association, (61), 7.
Further reading
Anderson, R. C., & White, R. (2011). Business Lessons from a Radical Industrialist. St. Martin’s Griffin.
Collins, E., Lawrence, S., Roper, J., & Haar, J. (2010). Business sustainability practices during the recession: The Growing Sustainability Divide. Hamilton, NZ: Waikato Management School, University of Waikato. Retrieved from http://www.management.ac.nz/sustainabilitydivide
Elements of an Enterprise MasterWorks (EMW) learning adventure. (1997). . Palmerston North, NZ: Massey University Television Production Centre. Retrieved from http://www.youtube.com/watch?v=FYya4gfcxs4&feature=youtube_gdata_player
Enterprise GreenWorks – 2011-1 Part 1: Overture and Interview [video]. (2011). . Retrieved from http://www.youtube.com/watch?v=6NiB20ERj9c&feature=youtube_gdata_player
Frederick, H., & Chittock, G. (2008). Human resource strategies for training and education in the Rosebank business precinct. Auckland, NZ: Unitec Institute of Technology.
McLaren, J. (2008). Life Cycle Management – Sustainability and society bridging piece [Case study of Formway Furniture]. Wellington, New Zealand: Landcare Research. Retrieved from http://www.landcareresearch.co.nz/publications/researchpubs/LCM_Briefing.pdf#search=%22mclaren%22
Mellalieu, P. J. (2011a, May 7). The Master’s Challenge: Ecotec’s “Green Op” fund. Innovation & chaos … in search of optimality. Retrieved April 7, 2011, from http://pogus.tumblr.com/post/4411593536/the-masters-challenge-ecotecs-green-op-fund
Mellalieu, P. J. (2011b, April 7). Enterprise GreenWorks – 2011-1 Part 1: Overture and Interview. Innovation & chaos … in search of optimality. Retrieved April 7, 2011, from http://pogus.tumblr.com/post/4411050625/enterprise-greenworks-2011-1-part-1-overture
Ministry for the Environment. (2007). Sustainable Design at Formway Furniture (INFO 182). Ministry for the Environment. Retrieved from http://www.mfe.govt.nz/publications/sus-dev/case-study-sustainable-design-at-formway-furniture-feb07/
Gary Hamel: Reinventing the Technology of Human Accomplishment
Check out this fast-paced, idea-packed, 15-minute video essay, in which Hamel paints a vivid picture of what it means to build organizations that are fundamentally fit for the future-resilient, inventive, inspiring and accountable.
