Strategic innovation and blue ocean workforces in South African banks

Abstract

The strategic management of innovation is the cornerstone to an organisation’s survival, success and sustainability. However, its implementation has proven to be far simpler in theory than practice. Largely attributed to the challenge of managing people and their subjective natures, and exacerbated by the effects of the global pandemic, the failure to holistically align innovation in organisations can have detrimental and irrecoverable impacts. The purpose of this study is, therefore, to explore the extension of the blue ocean leadership frameworks to workforces; to enhance the strategic alignment of innovation, as well as the value obtained from the organisation’s most valuable intangible asset. In the hopes of shaping more purposeful and innovative workforces, the researcher explored the potential of shifting the strategic direction from managing people, to managing the work they do. While the unit of analysis was limited to two firms in the South African banking industry, the findings of the study were enlightening. The proposed conceptual framework provided insights at two levels; one being a general framework for industry-level application, and the other being a contextual framework for firm-level application. The findings suggested that banks are not maximising the pool of potential that comprises their workforce. While one organisation demonstrated a significantly higher average overall employee engagement, the mostly negative view on innovation was consistent across both firms. This study therefore highlights the value of shifting the strategic landscape from managing people, to managing the work they do instead. Moreover, it brings to light the mountain of potential that stands to be gained by extending the blue ocean framework to workforces. By providing a tool to shape current, and desirable workforce profiles, the exploration into the extension of the framework proved to be more than fruitful. Offering insights at both firm and industry-level, the proposed model could provide a means for navigating through the dynamic and uncertain conditions that organisations face on a daily basis. Moreover, by improving the strategic alignment of innovation and maximising the output derived from its workforce, organisations could better equip themselves for future operations. Therefore, this study serves as a testament to the value that stands to be gained from the blue ocean workforce.