BUMGT6927 Creativity and Innovation For the Leadership

Answer:

Introduction 

Innovation and creativity in business have become increasingly vital elements of organizational development, performance, achievements, growth as well as long-term sustainability. As business organizations effectively seek to control the ideas, strategies and suggestions offered by their employees, it is highly evident that the procedures of creative ideas and innovation generation along with effective implementation have been serving as a source of distinctive competitive benefits (Anderson, Poto?nik & Zhou, 2014). Yet concepts of ingenuity, creativity and innovation typically are identified as highly multifaceted, multi-level and an increasingly developing phenomenon which tends to necessitate competent leadership techniques to effectively capitalize on the profits of recently developed and enhanced ways of functioning (Edwards-Schachter et al., 2015). The perception of the creative formation of organizations through entrepreneurship has transformed drastically in the past ten years. Entrepreneurship being a creative action tends to occur when desired goals or preliminary propositions remain unidentified at the initial stage but are raised during the process. Creativity and innovation at work thus are defined as processes, results and products of endeavours to successfully develop and generate innovative as well as improved processes of activity (Barroso-Tanoira, 2017). The purpose of the following paper is to emphasize on the value of creativity and innovation in an organizational setting of Atlassian Corporation Plc, an Australian enterprise software company and the way forms of creativity and innovation have witnessed exponential growth over recent years. Furthermore, it evaluates the way modern organizations like Atlassian has attained substantial level of prominence and growth by employing creative thinking and innovation and actions they have employed in order to achieve success with innovation.

Discussion 

Understanding the Conceptualizations of Creativity and Innovation

The ingenuity stage of work processes refers to aspects of idea generation and innovation aimed at the consequent phase of realizing ideas towards improved measures, practices or services. Forms of creativity and innovation can have their occurrence at the stage of the individual, team activity or at other than one of these stages when being collective, however aim to consistently gain at one or more of these levels of evaluation (Lu et al., 2017). Creativity has further been recognized as the invention of constructive ideas, while innovation on the other hand has typically been identified as both the creation of inventive and resourceful ideas at the initial phase and their successful execution at the following stages. However, recent studies have claimed that limitations and margins between both concepts have remained indistinctive (Standing et al., 2016). Furthermore, stronger conceptual divergences have been identified between creativity and innovation. While other section of scholars were of the opinion that incidence not only at the initial phases of the improvement processes but has been identified as a recurring, recursive procedures of creativity, idea generation as well as implementation. Barroso-Tanoira, (2017) has further been claimed that by those concepts of creativity exhibit greater level of inclination with absolute genuine novelty while innovation tends to incorporates ideas and strategies which are considerably innovative (Dees, 2017). These innovative ideas are regarded to have been implemented as well as acclimatized from other business organizations but have recently been developed to the part of adoption.

As creativity serves a fundamental role in the course of generation of ideas and also focuses on successful idea execution, concepts of creativity and ingenuity are typically identified as the primary step of innovation (Anderson, Poto?nik & Zhou, 2014). Furthermore, to the degree to which the concepts of improvement are concerned, recently emerged ideas, strategies and practices are executed in an organization may have the propensity to be created by staffs in the main business. However, studies observed that effective generation of ideas by employee base purposely generates and pertains to new ideas, mechanism or practice whereby employees are said to be intrinsically engage in innovation (Edwards-Schachter et al., 2015). However there can be recognized few significant theoretical perspectives situated in the domain of creativity and innovation studies.

Theoretical Understanding of Organizational Creativity and Innovation

Componential Theoretical Perspective of Organizational Creativity and Innovation:

• Four Factor Theory of Team Climate for Innovation: West’s theoretical understanding of Four Team Climate for Innovation primarily focus on components beneficial of innovation such as aim, participative wellbeing, task direction as well as sustainability for innovation (Barroso-Tanoira, 2017). Aspects of Innovation is fundamentally been improved if idea is comprehensive, appreciated and approved by the team members, team associates recognized they can create recently developed thoughts and resolutions without  properly being reviewed or assessed. Furthermore, Lu et al., (2017) witnessed an invigorating debate and contest of various potential solutions within the team which simultaneously be vigilantly evaluated. Lastly, team members identify sustainability for innovation and significant advancements. However, such a theoretical aspect has significantly been functional in the domain of collective innovation study and thus has successfully attained sustainability from diverse domain of meta-analytic observations.
• Cultural Divergences in Creativity: The role of imagination- Emphasizing at individuals’ ingenuity and creativeness, conjectural aspects have shed light on cultural variances in the sphere of individual creativity. These variances are related to the way task as well as social situational contexts which tend to restrain the association between the cultural perceptions, values and ideas of individuals. These values furthermore are related to aspects of individualism or collectivism, power distance and uncertainty avoidance as well as creativeness (Dees, 2017).  Theorization of cultural disparities further focus on the way culture exhibit the tendency to moderate leadership persuasion, managers, workplace peers along with social associations on inventiveness and creativeness and the way these factors tend to impact the whole process of creativity (Roth, Sorg & AG, 2017).

Theoretical backgrounds have significantly been recognized as fundamental methods in the domain of generation of ideas, creativity as well as innovation in organizations. However, certain theories have attained considerable observed facilitation in comparison to the other theoretical understandings but tend to highlight the role of diverse determinants of either generating or implementing creative ideas (Lu et al., 2017). However, the primary oversight of these outlines is that each one of these theoretical concepts fundamentally posits in the process of idea generation or realization.

Processes of Business Opportunity 

The role of an entrepreneurship during organizational process is to primarily invigorate and uphold the economy by contravention of conventional routines and frameworks. A business opportunity can further be recognized on the basis of entrepreneurship cognition of the business context (Standing et al., 2016). During business processes where business opportunities would have the propensity to occur through the relevance of logic, organizations attain the expertise to efficiently establish the initial conditions and ideas and further decide the necessity and relevance of the ideas. Furthermore, Anderson, Poto?nik & Zhou, (2014) claimed that during the preliminary stage, organizations attain a position whereby they could successfully acquire an indication of the status of its business. However, the development of a venture opportunity has been noted as a significant rational process whereby individuals reveal incompetence of acquiring relevant ideas and knowledge of the information which has its accessibility in any situation or has been utilized in order to raise an inclusive illustration of reality (Barroso-Tanoira, 2017). Furthermore, in relation to problem-solving, attainment and generation of information does not reveal rationality because of high level of creativity, ingenuity and innovativeness of individuals (Burns, 2016).

Sources of Innovation

The primary forms of advances and innovation can be segmented into product innovation, service innovations along with important technical innovations. Furthermore, universal types of innovation have been recognized as market-oriented or market-push innovation whereby the rest are engaged in the spheres of technology-oriented innovations the reasons for which market must successfully be developed (Dentchev et al., 2016). However, the seven vital sources of innovation or creativeness have significantly been identified by Peter Drucker:

• Transitions in market or industry
• Development in perceptions and knowledge
• Process requirements
• Various forms of inaptness
• Demographic development
• Unanticipated emergences
• Recently developed knowledge or proficiency

Peter Drucker furthermore had highlighted those innovative or advanced organizations while seeking new avenues need to search for simple, focused explanations to valid issues which tends to constitute considerable degree of diligence, perseverance, innovativeness, expertise and knowledge (Roth, Sorg & AG, 2017).

Leveraging Modern and Innovative Organizations

`Creativity and ingenuity in products, services, procedures in recent times have obtained considerable level of value and prominence and is essentially important in established, successful business enterprises, public sectors and new endeavours (Altman, Nagle & Tushman, 2015). With elevated rate of expectations, major proportions of managers and supervisors do not purposefully suppress forms of creativity (Hogan & Coote, 2014). However, in the pursuit of efficiency, expertise and strict regulations and supervisions, innovative idea generation can highly be destabilized (Dees, 2017). Furthermore, it has been observed that in Atlassian Corporation Plc, a start-up software company, the organization’s co-founders, Cannon-Brookes and Farquhar that creative-perspective and thinking abilities constitute one section of creativity while other forms of skills and motivation are also considered as fundamental. In the opinion of Altman, Nagle & Tushman, (2015), the decisive role played by managers and co-founders have also been claimed which however tends to be expensive and more time intensifying but reveals an enhanced disparity by amplifying the inherent and fundamental motivation level of the employees (Hogan & Coote, 2014).  

Thus in order to uphold forms of creativity, ingenuity and innovations in ways which would improve the sustainability of clients, audiences and stakeholders Atlassian Corporation Plc aim to emphasize on five levers which focus on:

• The extent of challenge organizations can give to employees in order to stimulate their thinking procedures (Roth, Sorg & AG, 2017)
• Level of autonomy enterprises grant based on procedures and processes in order to curtail obstacles and complexities
• Processes through which advanced organizations design teams in order to successfully identify ideas from all hierarchies (Polzin, von Flotow & Klerkx, 2016),
• Level of support and incentives globalized software corporation offer which typically incorporate rewards, motivation as well as recognition
• The nature of organizational encouragement and motivation given by Atlassian. 

Importance of Leadership in establishing culture of Innovation 

The role of leaders typically is perceived as a facilitative determinant of innovation within the organization. However it does not comprehend those leaders should take their responsibilities as a universal phenomenon while generating ideas and creativity in business (Willburn & Cullen, 2013). Leadership team of Atlassian- Mike Cannon-Brookes, Scott Farquhar, Sri Viswanath and others focus on developing various approaches in order to successfully shape the innovation and creativity process in organization by efficiently providing active creative and inventive value (Barroso-Tanoira, 2017). However, leaders or managers constituting high levels of creativity and ingenuity typically recognized as self-initiators who possess the ability of rapid development through extensive degree of ease and expertise in leading new and challenging ventures. However Lu et al., (2017) state that it is immensely essential for the leadership team of Atlassian not to regulate innovation procedures as this could restrain others of the workforce from sincerely sharing individual knowledge and innovative inputs and have the opportunity to contest the ideas or strategies generated by leaders.

Reports reveal by Business.gov.au, (2018) that Cannon-Brookes and Farquhar recently received a prestigious recognition and has been signified as a vital determinant in the start-up sector of Australia. The company has significantly constituted wide range of tools and software products that has been facilitating large array of organizations ranging from Airbnb to NASA (Atlassian, 2018). Furthermore, having provided a contributory role in the process of government creativity and innovation agenda and the start-up community to a large extent, Atlassian has obtained substantial level of prominence in the sector and a persistent creativity leadership technique has been reinforcing several other innovators in Australia (Business.gov.au, 2018).  

Furthermore, recent observation by Business.gov.au, (2018) on process of innovation and ingenuity tendencies during the phase of global recession witnessed several business enterprises to persistently invest in generating ideas and demonstrating creativeness.  Organisations have been doing so regardless to recession or risks of organizational threats in order to generate an enhanced recovery outcome after the conclusion of recession period. Such a stance however, has been identified as a factor of immense risk as their fundamental aim has been reliant on secured and stable bottom line sustainability (Willburn & Cullen, 2013). Thus leaders of Atlassian Mike Cannon-Brookes, Scott Farquhar, Sri Viswanath must exhibit high level of stringency while selecting significant areas of ingenuity and innovation to efficiently develop the awareness of investment of the business. Leaders further posses the opportunity of proficiently establishing a supportive and highly enthusiastic environment which facilitates the chances of lateral thinking process and further enhance creativity (Dentchev et al., 2016). Thus providing adequate autonomy and scope to personnel to proficiently alter physical environment and further personalize those ingenuity can be considered as a significant way of encouraging creativity and innovation. Organizations such as Atlassian and other innovation-oriented organizations like Invoice2Go as well as QB50  (project of EU initiative) have provided opened avenues for significantly collaborating on highly creative and innovative endeavours. Furthermore they provide their workforce with enhanced availability to leaders and develop creative role models and improved chances of successfully identifying as well as capitalizing on exceptional ideas (Business.gov.au, 2018).

Significant obstruction to business innovation

It has been observed in recent times, that Atlassian has exhibited high level of inclination towards government control and regulation, deficit of investigation and developmental funding, lack of marketing proficiency, availability of investments as well as shortage of suitable workforce as critical barriers to the path of innovation (Altman, Nagle & Tushman, 2015). Reports revealed by MYOB further witnessed those medium-sized businesses encounter more obstacles in comparison to small-sized businesses whereby a diminutive 4% of that segment claimed to have encountered no critical  barriers towards innovation (Polzin, von Flotow & Klerkx, 2016). On the other hand, around 30% of medium-sized enterprises showed greater propensity to state deficit of R&D funding, availability to investment funding and around 25% revealed the shortage of suitable workforce as critical barriers to the process of novelty and innovation (Hogan & Coote, 2014).

Furthermore, the lack of proficient people has further been recognized as a significant barrier to innovation by Roth, Sorg & AG, (2017) while certain micro, small as well as medium sized enterprises consider that such a deficiency of proficient workforce has been identified as a more critical barrier in comparison to large organizations. Several small and medium sized businesses have emphasized on managerial barriers and challenge which hinder the generation of creativity and innovation in these sectors. Furthermore, small businesses in Australia also show incompetence to successfully comprehend consumers’ requirements and developments as per customers’ desire (Anderson, Poto?nik & Zhou, 2014). Furthermore, extensive deficit of information on markets, business and technologies has also been identified as organizational barrier in both small and medium sized enterprises in Australia. Lack of well established network has also been observed by observers Roth, Sorg & AG, (2017) which typically provide information, knowledge and guidance to wide range of SMEs operating in Australia. Moreover, high incompetence in efficiently handling unexpected situations, uncertainties related to organizational threats and challenges, outcomes and timing of innovation and creativity have been predominantly acting as critical barriers to idea generation and ingenuity (Polzin, von Flotow & Klerkx, 2016).

Conclusion 

To conclude, it can be stated that Australia’s prospective workforce will necessitate highly proficient expertise in areas of greatest importance to the sectors of new economy such as science, technology and marketing. As recently developed initiatives are identified as primary drivers of progress and achievement in the Australian economy. Learning about recently developed creativity and various forms of ingenuity have facilitated my understanding about the way creativity and idea generation of not only leaders but employees have contribute high level success to modern organizations. Being a student of business, such a wide-ranging understanding of various forms of inventive and ingenuity will aid me comprehend globalized business sector and further guide me  to successfully complete this module. 

This paper has provided an explicit understanding of the way creative idea generation and innovation has been a significant foundation for several organizations in Australia. Furthermore, it identified certain common barriers which emerge in the process of innovation and creativity which results few organizations not to achieve success. However, the paper has also highlighted the assertions of several theorists who have provided substantial understanding of the way innovative and creative knowledge and leadership techniques have facilitated several start-up organizations to attain success and raise the Australian economy.

References 

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Anderson, N., Poto?nik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of management, 40(5), 1297-1333.

Anderson, N., Poto?nik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of management, 40(5), 1297-1333.

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Dees, J. G. (2017). 1 The Meaning of Social Entrepreneurship. In Case Studies in Social Entrepreneurship and Sustainability (pp. 34-42). Routledge.

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Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test of Schein's model. Journal of Business Research, 67(8), 1609-1621.

Lu, J. G., Hafenbrack, A. C., Eastwick, P. W., Wang, D. J., Maddux, W. W., & Galinsky, A. D. (2017). “Going out” of the box: Close intercultural friendships and romantic relationships spark creativity, workplace innovation, and entrepreneurship. Journal of Applied Psychology, 102(7), 1091.

Polzin, F., von Flotow, P., & Klerkx, L. (2016). Addressing barriers to eco-innovation: Exploring the finance mobilisation functions of institutional innovation intermediaries. Technological Forecasting and Social Change, 103, 34-46.

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Standing, C., Jackson, D., Larsen, A. C., Suseno, Y., Fulford, R., & Gengatharen, D. (2016). Enhancing individual innovation in organisations: a review of the literature. International Journal of Innovation and Learning, 19(1), 44-62.

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