Achieving Innovations Capability Coherence

Coherence 1Innovation often fails to align to the strategic needs. This is often not the fault of the innovator, happily working away with no specific guidelines, apart from the general remit of “we need to be more innovative”, it lies in the boardroom that is not communicating the board’s needs clearly enough down the organization.

Building up our capacity to innovation does need to understand and reflect the organization’s business activities, as innovators need to grasp the value creation aspects that will deliver the necessary capital-efficient and profitable growth, and then ‘go in pursuit’ to achieve their contribution into these goals.

Even the basic questions often remain unclear, those of how are we looking to grow revenue, save costs, reduce working capital or improve our fixed capital? Managing our innovation activities can help in all of these. Actually if you ask I expect the CFO would say “all of them” but each does have implications on understanding of the fit and eventual role of innovation’s contribution.

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Seeking fresh winds and new directions

the_winds_of_changeAnyone who has felt the ‘full force of the wind’ will know the feeling of how hard it is to keep on your feet, to stay determined to stay upright and true, to hold the course, whatever happens.

When you feel the force of change running through the organization, you tend to have that same sensation, to resist the force with all your energy.

It is often really hard to let go, the environment was something you had become used to, you accepted and become resigned to its weaknesses and constantly exploited its possibilities or even possibly the other way round.

Ignoring the power of choice within change is dangerous

Constructing a climate for any transformation is hard. Our cultures are deep-rooted; we resist those winds blowing into us “full on,” well beyond being reasonable or smart enough to avoid them before they confront us. The Chinese proverb below gives us a clear choice: “to build walls or build windmills”

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Changing the workplace environment for innovation?

Creating the Conditions to InnovateYou can’t escape the reality that having the right environment for innovation means different things to different people. What we should be all able to agree upon is that the environment for innovation houses many of the conditions that connect innovation in people’s minds.

The environment needs to be connected into the vision around innovation, it needs to be translated for each of us to relate too and want to contribute into..

The environment provides the right growing conditions for your organization to foster its unique environment to prosper and grow.

Deny those growing conditions and any innovation initiative is going to struggle and eventually die from the lack of the essential feeding of its roots.

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The Compelling Value of the 3H for Innovation Management

The Value of the Three Horizons of Seeing Beyond

The Value of the Three Horizons of Seeing Beyond

Following on from my suggested Common Language approach to the Three Horizons, I would like to outline here its significant value, within any innovation management thinking.

Clarifying our options requires multiple thinking horizons – seeing beyond for all possibilities by listening to the different voices

For me, the three horizons have great value to bring together and  map all the different thinking and possible innovation options over changing horizons.

You can frame innovation in alternative ways by using this approach. Innovation has multiple evolution points and working with this framework allows you to significantly improve all of your innovation contributions.

It goes well beyond the present value of ‘just’ fitting your existing innovation portfolio and directional management into a typical one dimensional view of just working in the present.

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The Three Horizons – Providing a Common Language in its Innovation Use

Forming a common view of 3H

Forming a common view of the Three Horizon for Innovation

As you may know I have been writing significantly around the Three Horizons in relationship to innovation.

Initially drawing on the foundation within the McKinsey initial papers, updated here under their enduring ideas, and in particular based on by its original authors of the book “The Alchemy of Growth” by Mehrdad Baghai, Steve Coley, David White and Stephen Coley

Then I discovered the work of the International Futures Forum, based in Scotland, where a group of members have extended the 3H significantly, well beyond McK’s initial work from my perspective, into a broader, more robust methodology tackling complex problems.

It was this IFF work that excited me, it opened up my thinking to find better ways to deepen the innovation connections and framing that could be suggested in the use of this three horizon frame in exploring and expanding different techniques and approaches.

Connecting the innovation thinking dots

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Fluidity – the growing need of organizations today.

fluidy 9Organizations are facing increasing a dilemma in how they organize and manage within their systems and structures.

They are being forced to deal in increasingly complexity and environmental turbulence and ‘adapting the appropriate response’  remains increasingly a difficult one to master, within the existing regime and structures.

On the one hand the value in stability is still essential, working within specific routines and practices gives a clear ‘path dependence.’

This allows for efficiencies and effectiveness to be constantly at practice, constantly building the problem-solving processes, so as to master tasks in complex environments to resolve ‘known’ problems in ‘given’ ways.

We need to become increasingly fluid but how and why?

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A new innovation perspective – change to fluidity

Fluidity 5Today most innovation is focused on creating new products or services. These new innovations frequently change or modify operating models and business models, often not by deliberate design.

We’d stipulate that most innovation should be focused on updating and changing business models constantly and with increasing focus. With this focus new products and services become by-products or outcomes that support or sustain new business models for driving greater lasting sustaining competitive advantage.

In short, most innovation should be focused on creating new business models, with new products or services serving as enablers to intentional business model innovation, rather than the other way round. This is what we mean by flipping perspectives.

Critically we have to become far more comfortable with constant, ongoing change and aligning this into new innovation and business models. This move to positive change is discussed here, recommending a movement that allows the changes we need within our organizations to become more fluid in their adaption, for leveraging and exploiting innovation in new, far more compelling ways.

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