Factor 21: Retension of Innovators

Factor extremes as measured in survey:

Innovators tend to stay with the organization

vs.

Innovators tend to leave for other organizations to start new ventures

Overview to restructuring initiatives

It is relatively easy to track a corporation’s success in retaining (and attracting) innovators. Industry newsletters abound with stories of defections of key staff whether at the managerial or technical levels. Departures can have an effect on the stock price if they are seen by the market as significant moves.

Historically, companies provided lagged incentives to encourage key personnel to stay; i.e. funding of incentives would be realizable 5 years down the road and if the individual left early he/she would forfeit the incentive. Such programs are falling out of favor as a means for retaining key personnel.

More than anything else this Factor is a measure of the success with providing incentives and rewards to innovators, a Factor which is referenced in Factor 14.

An example of managements action to keep the innovators in house

Time Magazine; February 20th, 2007. To keep innovating Google has to outspend its competition to attract the best brains. Supercharging the nerd – paid top money for the best. Google has at its facility; a pool, several lounges, dogs can come to the workplace, gourmet meals each day, massages that are subsidized, desk top games.