Management by Innovation (MbI)

What is management by innovation?
Management by innovation concept was developed by Joseph M. Juran. It was first featured in the course organized by the American Association for the Management. Management by innovation aims to develop the business by introducing broad changes (permissions, improvement or innovation) mainly in breakthrough areas of business activity.


For management through innovation to be effective, the management of the company should:

  • Be sure that innovation is necessary to be successful in the marketplace and support efforts to make progress by nurturing and supporting creative and active employees,
  • be able to create a climate and organizational culture that promotes change,
  • Openness to suggestions for technical and technological improvements,
  • Ready to nurture employee ingenuity and creativity and get rid of conservative and inactive people.

Approach of management through innovation

  1. Employees must be made aware that the success of the company depends on an active and offensive approach. Managers should ensure a breakthrough in the company's current operations, expanding the technology, range, quality, marketing, organizational and financial areas.
  2. SWOT analysis
  3. Develop a list of problems to be solved, prepare business plans and organizational-technical projects to be implemented.
  4. Assess the opportunities, risks and consequences of the expected innovation.
  5. Change the management approach for new, necessary processes and activities (discussions, training, evaluation systems and incentives).
  6. Finding potential sources of conflict that could be caused by the change.
  7. Careful introduction of new solutions that are integrated into the early warning system and control.
  8. Review of the efficiency of the changes made with the possible change of ineffective projects.

advantages and disadvantages

Advantages of the management method through innovations:

  • Technology promotes and accelerates progress and thus the development of the company,
  • Increases its competitiveness of the company thanks to constant observation of the actions of competitors and the reaction of customers and the need for permanent introduction of new products,
  • Focuses all members of the organization and focuses them on a common goal, which is the development of the company,
  • Supports the professional development of employees, increases the Corporate culture the company.

Disadvantages of the method:

  • Concerns from employees normally associated with introducing changes that may lead to errors or mistakes,
  • Difficulties in overcoming resistance, habits and traditionalism,
  • The need to support innovation management techniques with other management techniques,
  • Impatience while waiting for the effects.
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