Reference no: EM132947594

Google appears to have learnt a few lessons from other innovative organizations, such as 3M. Technical employees are expected to spend 20% of their time on projects other than their core job, and similarly managers are required to spend 20% of their time on projects outside the core business, and 10% to completely new products and business. This effort devoted to new, non core business is not evenly allocated weekly or monthly, but when possible or necessary. These are contractual obligations, reinforced by performance reviews and peer pressure, and integral to the 25 different measures of and targets for employees. Ideas progress through a formal qualification process, which include prototyping, pilots and test with actual users. The assessment of new ideas and projects is highly data driven and aggressively empirical, reflection the IT basis of the firm, and is based on rigorous experimentation within 300 employees user panels, segments of Google's 132 million users and trusted third parities. The approach is essentially evolutionary in the sense that many ideas are encouraged, most fail but some are successful, depending on the market response.In this way the company claims to generated around 100 new products each year, including hits such as Gmail, Adsense and Google News. However, we need to be careful to untangle cause and effect, and determine how much of this is transferable to other companies and contexts. Google's success to date is predicated on dominating the global demand for search engine service through an unprecedented investment of technology infrastructure which estimated at over a million computers. The revenues generated in this way have allow it to hire the best, and to provide the space and motivation to innovate.

Question:

Discuss what factors contribute to the development of creative climate in the organization and what factors could block it?