Part Three... "Why Asian Companies
Lose Billions Annually"

Part Three Why Asian Companies Lose...

4. The Innovation Dilemma

In the era of instant coffee, success and noodles it seems that organizations in asia also want instant innovation.

However, when no instant answers are found in the latest fad book in the markey the innovation efforts are pushed to the side.

Part of the fear is the perceived risk (real or imaginary) why asian companies lose confidence while embarking on the road to innovation.

These companies are caught much like a deer in the headlights; fearful to stay and to move.

The apparent caution or inactivity, while safe may ultimately cost more in future lost revenue for these asian enterprises than taking what may amount to be prudent risks! Further hampering this move ahead toward increased revenue are asian leaders that operate from one of five leadership styles.

Only the first will be discusses as it pertains to Asian leadership style.

The sole decision maker (CEO/ owner) sets the course for which the organization will embark. The buck starts and stops here approach.

This lack of faith in employees other than family memembers also account for why asia companies lose competitively.

To its own demise, this autocratic style of business ownership does not make full use of the available talent generated by means of the active contributions of others.

Employee boredom is soon followed by frustration which eventually leads to the employee separating from the organization.

In real terms, the organization losses the net gain as a result of the employee¡¦s contribution and instead accrues a financial deficit due :

a. Initial investment made to attract new recruit is lost

b. Attracting new top talent may require increasing the package offered

c. Vacant position is not generating income

d. Investing in time and money training new employee

Organizations in asia that fall into this cycle of catch and release of top talent and lack of divine inspiration to innovation are best served by:

I. Fostering innovation from those in the organization

 3M encourages technical people to spend 15 percent of their time on projects of their own choosing

II. Examining unexpected success around them

 Scotch guard fabric protector and Pos-it (both of 3M) were discovered by accident.

III. Looking at process weaknesses of systems that can be exploited

 Fred Smith came up with the concept of overnight postal delivery while a student. His company (Federal Express) has revolutionized how mail and parcels are sent.

IV. Find converging technologies

Examples of this can be found in the marriage of computers, disks,business and education.

Today, E-learning is growing in popularity while E-commerce will set new benchmarks on the way companies market their products and services.

Asian organizations will not become truly innovative by divine inspiration; conversely by looking at existing processes and capitalize on their weaknesses and strength and like 3M creating an atmosphere of creativity in the organization.

Finally, it's said that perception shapes reality.

If this is true; asian organizations which learn how to see the larger picture, develop global vision and foster innovation will reap their share of the millions if not billions of dollars that asian companies lose annually.

Muneer A. Rasheed

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