Category: gaining innovation momentum

What is the missing cost of not innovating?

We can often be asked “what is the ROI on this particular innovation or alternatively, on our innovating activity?”

This questioning increases particularly when there grows even more uncertainties in marketplaces, when you are forced into making tougher investment decisions, in allocating resources, in adjusting a strategy to meet changing circumstances.

Then you get the “well, what’s the payback period then?”

Often we struggle to offer a half-decent reply as most innovation has stayed mired in incremental approaches and so becomes fairly complicated in identify the new part from the old that is already the invested part, or it remains uncertain, as it is often exploring the unknowns.

Perhaps we should reverse this question or be ready to ‘gazump’ it and beat them to the question before they ask. Two specific ways to think about this come to mind.

The first was suggested in a post back in 2005 by Ruth Ann Hattori called “the cost of not innovating” and I like this one. The other came from a post by my innovating friend and collaborator, Jeffrey Phillips “what are the opportunity costs on not innovating?”

Jeffrey is still not residing on a tropical beach as he still has not got the complete answer to that one. Both are tough questions but well worth reflecting over. Continue reading “What is the missing cost of not innovating?”

Innovation struggles to integrate fully within the organization

In the past few weeks I have outlined the existing gaps at the leadership level on innovation engagement and innovations continued lack of being integrated into an organizations strategy. Time and time again there are new reports, surveys and different comments made on this serious disconnect still going on that needs clear resolution.

It is always pleasing to sometimes be on the same track as the Big Consultants, for working on and moving beyond the trends they are spotting and highlighting, into some clear tangible solutions, to help resolve these. Recently McKinsey Quarterly conducted an on-line survey of just under 3,000 executives on issues surrounding innovation.

The report is entitled “Making innovation structures work”- see the link below. They confirm much that I have seen or gained through my research and point very specifically to the key difficulties organizations are presently having around innovation. Continue reading “Innovation struggles to integrate fully within the organization”

Seeking engagement for innovation change

I’m right in the middle of a launch of the Executive Innovation Work Mat approach, a series of seven blogs outlining a framework and structured approach to this.

During the seven days these will document seven important “domains” that determine innovation success or failure.

Each domain creates innovation potential, but sustained, successful innovation requires a unified “framework” in which all of these domains are appropriately engaged and aligned.

The development of this framework, which we call the Executive Innovation Work Mat, is the responsibility of the CEO or senior executive.  They can deliver alignment by engaging and providing this leadership required in innovation.

Introduction to the Series of the Executive Innovation Work Mat with image credit: opening curtain image from bigstock

If you have the opportunity, do go over to the www.innovationexcellence.com site to see the first two blogs, the foundation document and whose role it is to design this and why.

The first document is called The Seven Essential Domains for Innovation Leadership – the Work Mat Approach and the second The Critical Role that Senior Leaders must fill for Innovation Success

As this is a collaborative effort between Jeffrey Phillips and me, we see this opening series as the engagement to the innovation community. We are looking for feedback and thoughts to take this forward as we clearly believe it is an important problem within innovation to break down. Continue reading “Seeking engagement for innovation change”

Leaders need to engage and drive innovation

It continues to amaze me; actually it is depressing that although our business leaders constantly confirm that innovation is in their top three priorities yet they stay stubbornly disengaged in facilitating this across their organizations, especially the larger ones.

Of course I am not suggesting this is all our business leaders but I would argue innovation and its ‘make up’ remains a mystery to nearly all our leaders.

They are more than willing to allocate responsibility down the organization, failing to recognize their pivotal role in managing or orchestrating innovation engagement themselves, or even ensuring the mechanisms are fully in place. Why is this?

Time and time again you read one report after another, about the leadership gap in innovation or issues relating to innovation disconnecting from the top of the organization.

You can read reports from Booz, Allen Hamilton, Boston Consulting, the Conference Board, Harvard Business Review, IBM, A T Kearney, A D Little and many others all reporting issues and gaps in connecting innovation at the top of our organizations.

Can they all be wrong, if not then why aren’t our CEO’s listening? Why are we not resolving this and only just keep reporting it?

In March of this year Capgemini Consulting and IESE issued their report called the “Innovation leadership study” and this went deeper than most into the problems. Continue reading “Leaders need to engage and drive innovation”

Identification sits at the core of innovation

There are so many aspects to get right in innovation. These can be ensuring the culture, climate and environment for innovation are working well, it could mean setting up processes, well-designed procedures and structures, it can be providing innovation governance.

Each part has a vital part to play in being combined for innovation, so it can function but these are not the core. Our identification with innovation is that core.

The core lies in the scope and definitions, the context that innovation is set and the identification with these. How often do organizations fail because they rushed into innovation, along those classic lines of: “let’s experiment and learn as we go” as their mentality.

We fail because we don’t take the necessary time to examine the significant differences in innovation terminology, in the different ways or types of innovation, in gaining from ‘evidence based’ research and experimentation.

What we expect to see from our day-to-day work seems not to apply to our innovation selection criteria. We experiment indiscriminately, poking a stick around the opportunity haystack looking for that elusive ‘golden’ needle. Continue reading “Identification sits at the core of innovation”

People, motivations and a well-designed innovation framework

We still do not seem to understand all the linkages that make up innovation. We just continue to struggle because we don’t connect all the essential parts together. We need too. I think there are different components that when combined can form the innovation ‘glue.’

Let me suggest some that can be combined well within a broader framework I think is emerging from work I’m currently working upon and being conducted in a collaborative effort showing increasing promise.

People are the last great innovation frontier and great connectors

People are essential across all of innovation and its useful production; innovation does not work unless you have full engagement, commitment and desire from the people involved. Everything else we provide in tools, techniques and methods only enables and supports that one vital cog in the need to turn the innovation wheel, our people, and their commitment to ‘generate to innovate’.

Innovation is the last people-centric process.  While many other business processes or functions have changed consistently over the decades, innovation has been placing more demands on its people than any other business process or function and as yet, we cannot automate this.

We rely on engagement, on relying on people wanting to be involved, sometimes we simply just seem to hope with the lack of support or encouragement they often seem to get!

How do we make this happen? Continue reading “People, motivations and a well-designed innovation framework”

Two sides of an equation for shaping innovation.

To manage innovation you have to move across a broad spectrum of activities. You need to think through Structure, Strategy, Processes, Culture, Metrics and a host of other aspects to support a robust innovation management system.

When it comes to fostering innovation we do get more into the fuzzy part that for many is made up of more the intangibles that covers culture, climate and conditions to innovate. These increasingly make up the environment for innovation.

There is another side of the equation, less fuzzy if you determine its parts well, and that is its governance.

For me, the environment and governance make up the formal and informal part of fostering innovation. I’d like to touch on both here in this blog.
Continue reading “Two sides of an equation for shaping innovation.”

Fitting existing culture and innovation- no chance!

“Culture is something we can’t touch but we can feel” and innovation is highly dependent on the right cultural environment to thrive

All around us we have culture. Where we live, how we see ourselves against others, who we identify with and how we react when ‘our’ culture gets threatened. We become comfortable, sometimes complacent and treat ‘our’ culture as something that is just there, just around us, wrapping us up in a warm blanket.

Every now and again we get confronted. It can be within the community we live, it can be within our organizations. Innovation is one of those confronting points that challenge our accepted culture.

Organizational culture forms an integral part of our general functioning. A strong culture tends to indicate a set of shared values that move the ‘whole’ along we then get that feeling we are on the same track.

The more we integrate, the more we coordinate, the more we socialize we eventually create the accepted boundaries, that feeling of growing identity among ourselves that seems to signal a similar commitment to the organization.

The sudden demand for innovation needs managing thoughtfully
Continue reading “Fitting existing culture and innovation- no chance!”

Renaissance comes from combining art and science for innovation

“The art of innovation needs to be broken out of the science that needs to be applied”.

 I wrote this in my last article and I thought some might ask “what the heck does he mean by that?” So I owe an explanation, perhaps partly to myself as well.

I’ve often heard and read that innovation is either an ‘art’ or a ‘science’ but we do seem it always struggle to combine them.  Why is that?

I finished that particular article (bit.ly/NlrOpV ) with this:
“The art of innovation needs to be broken out of the science that needs to be applied, and then knowing its entire component parts then recombined in sustaining, thoughtful ways. We do need to harness the energy of innovation and we are not yet fully achieving that”.

Let’s begin at the beginning when art and science were one Continue reading “Renaissance comes from combining art and science for innovation”

Lingering dogma, fixed mindsets, tensions and conflicting needs

Sometimes you would be amazed at the underlying tensions that occur when you get into those discussions around the board table on what and where innovation contributes to strategic direction.

Even managing the present portfolio of innovation initiatives gets caught up in these underlying tensions as it becomes another opportunity to open up the old wounds of bruising past battles and get back into those discussions again.

Suddenly the CFO becomes animated over the uncertainties; the research director grows defensive, and the marketing director more strident in why it is constructed that way.

The HR director raises their concerns on stretching the resources too thinly and suddenly a fast and furious open debate erupts. Then the Supply Chain director throws in the concerns that the system will not cope with the sudden influx of new introductions in the remaining part of the year.

Each has a valued perspective but much of these are based on past positions, attitudes built up from other pitch battles and scores to be settled.

The CEO listens and silently thinks to himself:  “what happened to the series of bonding exercises that we had all had invested in, suddenly just gone”. Continue reading “Lingering dogma, fixed mindsets, tensions and conflicting needs”