Although we are seeing a number of cases where innovation in its structures, functions and design are evolving, we still have not achieved the mainstream recognition of innovations importance within the boardroom. In many organizations it still lacks a clearly separated ‘voice.’ Its present voice tends to be fragmented within its parts represented by the separate functions providing their narrower view of innovation.
You still have marketing, research, financial, strategic development all offering their unique views of what and where innovation can contribute. This often ‘fragmented’ approach reduces the promising breakthrough effect of innovations potential contribution.
By not having this comprehensive and cohesive viewpoint articulated at board level by a fully accountable person, the Chief Innovation Officer, innovation often stays locked up in one position or another. No one is stepping in and unlocking its full potential from a holistic viewpoint, totally responsible for innovation by structuring it, for adding real scale, giving it momentum and growing sustainability but more importantly driving it throughout the organization from the top board room perspective.
What this ‘combined’ voice can really bring too many present and future growth orientated discussions is real strategic alignment significance; it can transform discussions and significantly influence directions the organization can take and where to allocate its resources. Yet innovation still struggles to be fully accepted as a fully functioning discipline and expertise needed in the boardroom to focus innovation on providing real sustaining growth, fully integrated and aligned across the whole organization for its value potential.
The exploring going on around innovation
Many organizations still are exploring how to approach innovation and you can see plenty of experimentations and I’d say interim ‘bridging’ solutions. We are making some progress within innovation for its function, location, financing and ownership, as these have shifted more towards the top of organizations, yet they still lack that final unifying catalyst, of appointing a chief innovation officer for many, and innovation as a strategic activity being pulled together in a unifying strategic innovation framework.
Some that have made this appointment are still working through the make-up of the function and how the ‘arm-wrestling’ works out between the existing groups making up their part of innovation and this new realignment can be hard work. Often, as the CEO lacks real innovation expertise to effectively arbitrate such an appointment, to design in the real accountability and appropriate weighting for managing such a critical component needed for growth, it does not have the executive strength built into the position to make it the pivotal role it should be. The role remains poorly understood in its focused value and contributions, and can be reduced to this in-fighting and trading, to make slower headway than it should.
Driving outcomes often required separate innovation functions.
Added to the lack of recognition of what ‘makes up a clear innovation function’ many organizations are still rather stuck in a silo thinking that innovation is only about developing products and services based on traditional functional lines. Innovation has evolved way beyond this product and service view only, or certainly should have done.
We need to explore making major shifts by thinking through different business models, working on a variety of collaborative platforms and ventures, having increased agility to explore, experiment and step far more out of the ‘classic’ core, into new adjacencies, or even investigate whole new ‘white spaces’ for business opportunities. Many are leaving this to others as they stay ‘locked into’ traditional viewpoints of what innovation contributes.
These significant changes on ‘how to innovate’ are creating organizational tensions that do need resolution as they are increasingly colliding against each other, like tectonic plates. These tensions are disrupting organizations and having a lot of internal friction that reduces performance, at this critical time when a unified approach to tackling external challenges would be better served by aligning the innovation view.
In some ways organizations are experimenting in different innovation designs but these still tend to be ring fenced, islands of experimentation that stay locked in their space and unable to be seen, strategically, for their (rapid) scaling opportunity due to this lack of a comprehensive, innovation view, from the top.
There are different designs being explored, often within the same organization. All serve a ‘given’ purpose but perhaps stay constrained by this lack of an overarching strategic understanding of innovation and its contribution to strategy and driving growth. We might be in real danger of dispersing innovation energy when we should be unifying it.
Diversity is made up of innovation experimentation.
We see today innovation centres, new-business development functions, separate emerging-business opportunities groups and selected incubators along with emerging-technologies business groups and even advanced-technologies or institutional collaborations. Each has a focused and valuable role to play but the cross-over values, the ability to drive cross collaboration and learning often lack that overarching coordination that only a dedicated top person can bring in bringing this together to serve the strategic purpose of the organization. Usually we also have the older established research and development centres, the marketing pilot plants and other more established and traditional avenues that product and service tend to work through.
I think we definitely duplicate resources, loose knowledge, constrain expertise and don’t get the potential innovation ‘horsepower’ out of the combining effect as and when needed. Can this change? It certainly should to extract and unlock all of innovations true potential.
How we align innovation will decide many of our futures.
Alignment between the goals and objectives at the top of our organizations is still at serious ‘odds’ with what is being worked upon. We need a real strategic innovation framework. I’ve offered some thought on this in the past if you care to pick up on this as one starting point, in this article “The Overarching Proposition for the Executive Innovation Work Mat.
We are daily being faced by significant challenges in meeting our strategic objectives and where often innovation fails to bridge. Examples of this can be seen in the ongoing competition with short-term priorities from across the parts of the business as well as the difficulties of integrating different function’s objectives with those of the core needs.
Then there is still the poor business case or value propositions made often to corporate leaders, or that consistent dilemma of withdrawing funding from an idea that has not lived up to its promise and become one that drags and diverts away critical resources. All work against innovation delivering on its much-needed potential.
We are managing more cross-functional issues than in the past.
The more we engage with open innovation partners or begin to develop promising new business models then more we conflict with many established positions. This slows the real contributing value of innovation. These new challenges need a different type of boardroom representation, it needs a clear mandate for a Chief Innovation Officer, to bring the ‘disparate parts’ together and explore the broader potential that wider innovation can bring in all its potential forms.
A call for a new concerted effort for providing an overarching innovation design
Designing a new strategic innovation framework at the top of organizations helps close the many gaps we see today. We need to move from ‘disconnect’ to ‘reconnect’ and make innovation more centrally designed to meet today’s challenges, those that are cross-cutting, to allow innovation that greater freedom and scope to contribute into the growth organizations leaders are demanding.
To align innovation to the organizations strategic goals, we need to challenge many of the established practices and functions to allow innovation to fulfil its promise of being the true catalyst to growth.