Management innovation is the implementation of new management practices, processes and structures.
Management innovation consists of changing how managers do what they do, including setting goals and strategies, aligning resources, coordinating activities, acquiring and applying knowledge, and Identifying and developing talent.
Management innovation is not to be confused with innovation management, which is the
According to Gary Hamel, a visiting professor at London Business School, these are some of the steps you need to take to become a management innovator:
Commit to a big problem
Look for new principles
Uncover management orthodoxy
Take inspiration from companies with unconventional practices
Analyze current management processes to uncover opportunities
Many of the management practices, processes, principles, and structures of modern organizations were developed in the last 150 years. Hence, it’s not surprising that most management processes are extremely similar.
Management innovation has allowed companies to improve performance more than any other type of innovation.
It's important to note that for small companies it’s much easier to have innovative management practices since you can manage everything on an informal basis.
I understood the importance of management innovation during a course offered by London Business School about managing the company of the future.
Main takeaway: Through management innovation, companies can invest in management innovation to develop a source of long-term competitive advantage.