Fast Innovation? An Entrepreneurial Model Is Better Than a Management Model

HIGH-VALUE COLLABORATORS WHO KNOW EACH OTHER, INFORMAL RULES AND CLEAR OBJECTIVES. THESE ARE THE IDEAL INGREDIENTS FOR FAST INNOVATION ACCORDING TO A BOCCONI ANALYSIS BASED ON A STUDY OF PIRELLI'S ENTRANCE AS F1'S ONLY SUPPLIER

Clear objectives, delegating, free exchange of information and the right people. These are some of the fundamental ingredients for creating a successful team capable of developing an innovative project in a short amount of time. Illustrating this is a study carried out by CRIOS Bocconi (the Center for Research on Innovation, Organization and Strategy), in collaboration with Fondazione Silvio Tronchetti Provera, which analyzed changes in the organization and modus operandi at Pirelli when entering the Formula 1 company.

In late August 2010, Pirelli was chosen as the only tire supplier to the 12 teams in the F1 championship, with only 5 months to provide all the teams with tires for winter tests. The CRIOS Bocconi study, with the collaboration of the Pirelli team that coordinated the F1 project, analyzed in detail how the company designed, developed and tested a new competitive product in such a short amount of time.

Initial results revealed that when projects are developed and research and development are completed within limited timelines, entrepreneurial-like practices substitute management-like practices. These practices, for example, have changing organizational models, with small autonomous structures created, coordinated by the R&D department, and human capital becomes a strength, with employees forming a multi-function team.

"A real revolution of business models was verified and at the same time, people and the make-up of teams take on a fundamental role," explains Alfonso Gambardella, CRIOS Bocconi and coordinator of the study. "We also noticed that this initial revolution then became a routine practice within the company."

Among other things, the analysis highlighted the importance of the choice in people and that it must be based on personal knowledge. This choice should be made not only regarding technical skills, but also personal characteristics, choosing people who are motivated and willing to take risks. In addition, informal rules and decentralization must also be included, avoiding hierarchies and facilitating quick decision-making.

"The study established several key factors for success, such as the need to define clear, short-term objectives, to be continuously verified, and being rigorous in the workplace, stopping often to evaluate, in order to avoid too much time pressure," says Gambardella. !Information also has to circulate freely, allowing people to collaborate and help each other. In addition, it's important to note that people create the success in these kinds of processes. Attention must be placed on choosing the people who are able to work on a team and who can embark on a risky endeavor."

Lastly, the study indicated that the extraordinary processes that characterized the work of the F1 team were then made routine in the company's normal performance, also significantly affecting the organizational culture, which now considers transparency of information one of its key values.

"The research in question is part of a large study plan with our Foundation and Università Bocconi involved in the analysis of business procedures. This research stresses that in order to achieve very challenging objectives a specialized team with a large sense of engagement is required," says Lucio Pinto, Director of Fondazione Silvio Tronchetti Provera.  

by Tomaso Eridani
Translated by Jenna Walker