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Friday, November 5, 2010

Does innovation stops when company get bigger?

I was reading an articles on CNN other day about how small company are more innovative than big company. The author point out  example between facebook and google.  Employee from google are fastly moving  to facebook because they think  facebook is more innovative and inspire their employee  to be more creative and share their ideas.
It was not before two to three years ago when google was "the place to work " for and they receive almost thousand resume  a day. Job seeker and employee think  google provide environment  for innovation and creative to their employee. But as google expand and become big company suddenly turnover become a major problem to the company. If they cannot retain their best and smart  employee there will be not innovation?  So is it ok to say that once the company  become bigger then  innovation stop?

3 comments:

  1. I don't know if it stops, but it certainly becomes more difficult. As the company adds beuracracy (sp?) and layers, the opportunity to innovate seems to lessen. The more people you have to get to say yes, the less likely your iniative is going to go through, especially if it has any sort of "risk". But, there are always areas that are willing to buck the system, you just have to find those and hang out there, if that's what you are looking for. But, I agree, it is limited.

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  2. I agree - as the company gets bigger more people are involved in the approval processes. It seems like having more people with more ideas would help innovation, but more people bring additional leaders and additional rules and additional hoops that must be jumped through.

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  3. I don't know that its true that the bigger an organization the lower the level of creativity. I think it largely depends on the culture of the organization and whether an environment of continuous learning and innovation is promoted.
    Think of the Boeing 787 project as outlined in our text...a very big company being very creative. Then you have the local hardware store down the street who doesn't believe he can increase his business by advertising. Same lack of creativity that often exists at much bigger companies.

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