| Many people associate innovation with high | | | | journey up a mountain |
| technology products and services, and certainly | | | | (10) Give people the freedom to do it |
| those industries create lots of innovation. On the | | | | (11) Help people learn |
| other hand, almost every business seems to | | | | (12) Don't penalize failure because big flops are |
| enjoy the potential to be more innovative if | | | | part of necessary learning. |
| people think about the business that way. | | | | To implement these principles, Nucor has made |
| Few industries had a greater reputation for being | | | | many innovations. The company has only two |
| stodgy than steel making during the 1950s and | | | | organizational levels between the head of a |
| 1960s. Today, the industry has been totally | | | | division and the floor worker in a mill. Responsibility |
| reshaped, by relying on technology that did not | | | | and authority are delegated as much as possible. |
| exist until it was developed in the United States. | | | | Education is generously supported for employees, |
| Talk to North American profit leader, Nucor, about | | | | their spouses and children. The company |
| this success as a technology story, and they will | | | | emphasizes promoting from within. In hiring, Nucor |
| tell you that you have it all backwards. The | | | | looks for people who want to move ahead in life. |
| success was due to the organizational culture and | | | | To encourage them, everyone in the company |
| system that Ken Iverson emphasized for Nucor. | | | | gets variable compensation based on the firm's |
| Mr. Iverson's successor as CEO, Dan DiMicco, | | | | profit performance n the Profit Sharing program. |
| sees the foundation as being found in the | | | | And production bonus incentives are paid weekly |
| company's values: | | | | to constantly encourage the "pay for |
| (1) Don't overextend yourself | | | | performance" culture of profit consciousness. |
| (2) Be a risk taker and take on the unknown | | | | The vision behind this culture and structure was |
| (3) Focus on long-term rather than short-term, | | | | to be a growing company and to take advantage |
| whipsaw thinking | | | | of commercializing new technology to leapfrog the |
| (4) Treat customers, employees, and other | | | | competition. |
| stakeholders the way you would like to be | | | | If such opportunities can be found in steel, why |
| treated | | | | should your company and industry be any |
| (5) Minimize barriers to effective communication | | | | different in terms of providing profitable |
| (6) Build relationships | | | | innovation? Work on your values and |
| (7) Hold people accountable to honor the | | | | organizational structure, and who knows what you |
| relationship and perform | | | | can accomplish. |
| (8) Take your time in evaluating people you hire | | | | Copyright 2008 Donald W. |
| (9) See continuous improvement as a nonstop | | | | |