BERRY, BENISA JEWEL; PHD

                        CALIFORNIA SCHOOL OF PROFESSIONAL PSYCHOLOGY - BERKELEY/ALAMEDA, 1994
 
                        PSYCHOLOGY, INDUSTRIAL (0624); BUSINESS ADMINISTRATION, MANAGEMENT (0454); HEALTH SCIENCES, HEALTH CARE MANAGEMENT (0769)
 

                         The effectiveness of organizational intervention in facilitating innovation in traditionally-oriented
                         organizations is not substantiated through empirical research. To the contrary, research evaluating the
                         effectiveness of intervention strategies and the resulting effects and outcomes of innovation is rare. In
                         addressing this gap in the literature, this study assesses the role and effectiveness of intervention in
                         developing the innovative potential of traditional organizational systems. Specifically, this study
                         evaluates the effectiveness of an innovation program which was implemented by Kaiser Permanente,
                         Northern California region. Program strategies include (1) the establishment of innovation as a formalized
                         goal of the organization; (2) structural separation of the innovation process; (3) the availability of
                         resources for innovation; (4) policies and procedures for coordinating the innovation process; and (5)
                         fulfillment of key roles in the innovation process. In this study, effectiveness refers to the degree to
                         which the Innovation Program has achieved its stated purposes over time, based upon the perceptions
                         of organizational staff who directly participated in innovation efforts sponsored through the program.
                         There are three explicitly stated purposes of the Innovation Program: (1) to coordinate the process of
                         organizational innovation; (2) to reduce characteristics in the existing organizational culture that limit
                         innovation and encourage the development of an organizational culture that supports innovation; and (3)
                         to make contributions toward improving organizational operations through innovative initiatives. The
                         findings of this study are that the program is most effective with coordinating the idea generation and
                         initial development stages of the innovation process, but it needs significant development for effective
                         coordination of the adoption/implementation and transfer/diffusion stages of innovation. Program
                         effectiveness in influencing characteristics in the organizational structure, climate and culture that are
                         known to facilitate innovation are also findings of this study. In contrast, the findings do not demonstrate
                         program effectiveness in facilitating alignment with leadership goals for innovation. In addition, the
                         findings do not demonstrate program effectiveness in coordinating organizational recognition or rewards
                         for the innovative efforts of program participants. Finally, the program is perceived as effective in making
                         contributions to organizational improvement through innovative initiatives. This study lends empirical
                         support to the use of carefully designed intervention strategies in developing the innovative potential of
                         traditional organizations. It is concluded that effective interventions must be designed to address both
                         organizational design characteristics and the process of innovation, must undergo continuous evaluation
                         and improvement efforts, and should be informed through a systems approach to organizational
                         improvement. This study also identifies important success factors related to the achievement of
                         innovation, and supports the utilization of a stakeholder approach in evaluating the effectiveness of
                         intervention.
 

Social Systems Simulation Group P.O. Box 6904 San Diego, CA  92166-0904 Roland Werner, Principal Phone/FAX  (619) 660-1603