As we deeply think about innovation and what it takes to create an innovative culture we’re seeing the real challenges and barriers that organizations face. In February 2013 Graded hosted the Innovate 2013 Conference and Fabio Gandour, IBM Brasil Chief Scientist, was one of our panelists. He presented a wonderful metaphor for what inertia looks like. He says that this metaphor can make people feel a bit uncomfortable.
Organizational inertia is the tendency of a mature organization to continue on its current trajectory. This inertia can be described as being made up of two elements — resource rigidity and routine rigidity. Resource rigidity stems from an unwillingness to invest, while routine rigidity stems from an inability to change the patterns and logic that underlie those investments. Resource rigidity relates to the motivation to respond, routine rigidity to the structure of that response.
In the face of rapid or discontinuous external change, it is the organizational inertia that must be overcome if a firm is to survive. In a competitive situation where new players are entering the industry, it is the incumbents that are particularly susceptible to the downside of this inertia. In this case it is often referred to as incumbent inertia.
Overcoming organizational inertia —
Threat perception in organizations experiencing discontinuous change is often thought to be the impetus necessary to prompt organizational change, a change in inertia, by decreasing the current inertia through changes in resources and routines. While threat perception is a response catalyst, it has been found to decrease inertia in some cases, a good thing, but increase inertia in other cases.
What is your organization doing to overcome inertia?