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So how do you manage exploiting and exploring for Innovation?

So how do businesses organise their structures to be able to simultaneously manage the needs to exploit and explore innovation?

In this post I wanted to explain my thinking through on this ability to be ‘ambidextrous’, knowing the difference of when to exploit and when to explore as essential to leveraging innovation, in all its forms and watching out for some of the traps in not managing this well.

Managing this, in all honesty, though, is hard to get the balance right but highly valuable if you do achieve it, it can transform the business. Many of our organisations struggle to manage both successfully as they tend to focus more on separation mostly in organisational structures alone as their attempt to become ambidextrous. It is far more than ‘just’ this. Get the balance right across the organisation’s design and in its leadership management, it becomes a very powerful mechanism for accelerating performances by delivering significantly new innovation and equally sustaining and leveraging the core business you have today.

Recently I contributed a blog post over on the Hype Innovation Blog ” Balancing Exploitation & Exploration for Changing Performance” that opens up the subject but then extensively dives into three examples of Apple, GE and Google that are working in highly ambidextrous ways, pursuing exploiting and exploring in their own unique ways.

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So Are You Thinking Crowdsourcing?

Crowdsourcing does have a real potential in my mind but does seem to have some formidable issues to work through, to be well understood and managed.

Partnering with experts in this field will help overcome many of these barriers or at least have reassuring suggestions for resolving them. Let’s take a look at some of these here in this post.

Certainly, I think over time we will learn what works for us and what becomes leading practice, so we can become a lot clearer on crowdsourcing position and value to us, within our context, terms and circumstances.

That is why it will be really hard to cite ‘best practice’ as each crowdsourcing challenge will need different inputs and will yield very different outcomes for each unique challenge or problem raised.

Continuing with my exploring crowdsourcing. Part one is here. Within this second post, I want to offer some different thoughts to work through around the issues and concerns that came out in my researching the subject. There is a part three coming out in a few days to finish this mini-series off.

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Evaluating Crowdsourcing – offering a bright future?

Crowdsourcing has been growing in interest for some time to change our thinking in innovation discovery. It can hold a key for us to help solve vexing questions, real challenges, and connect different voices, that builds into a community that can combine and open up the fields of opportunity for new solutions.

Crowdsourcing does have both the potential to point towards disrupting possibilities, extends the concept of open innovation into a wider source of participation from a diverse community not possible to reach by other means as effectively. It can simply connect a ‘crowd’ of people to a common purpose. All in all, if applied carefully it can provide you with a leading edge of innovation knowledge and insight.

I wanted to step back a little and take a more measured look at crowdsourcing over three posts. This is part one.

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Dealing with the innovation legacy lying within your business.

I know the feeling, there has been such a considerable investment that has gone into previous innovation processes to get them established but much of this is actually out of date, it has become today a real ‘legacy’ issue but there is, of course, a real reluctance to challenge it. Well you should!

Often this reluctance to dispose of these old systems, processes and inadequate frameworks is holding innovation back.

I would argue that perhaps many of our current innovation practices are ‘frozen’ in past times and they significantly slow us down, in a world that is becoming one built increasing on speed, flexibility and adaptability.

We lose precious time as we should be forward looking. constantly learning and experimenting with new concepts and approaches to innovation and what and where these can bring in new growth, sustainability and value to our organisations.

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I keep arguing we all need to seek out innovation alignment

All too often strategy is not influencing the behaviours and outcomes around innovation, it is simply allowing them to be left to chance.

Innovation is being ‘pushed down’ the organisation for others to interpret and offer their answers. They execute to their own understanding and often the innovations end up as not strategically aligned.

That is plainly wrong, not knowing the strategic objectives it is one of the principle causes of innovation failure and requires fixing.

This poor strategic understanding creates a lack of alignment and directing innovation. If an organisation lacks top leadership engagement it becomes, for many, the reason why they seem to just simply ‘limp’ along in their innovation activity, delivering ‘simply’ incremental outcomes. The more radical innovations can never emerge if these do not have the close alignment to the Corporate vision or objectives and leadership engagement..

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Establishing a new mentality for innovation

Visual two heads….different mindsets, different thinking about innovation but working together, a duality of thinking and managing innovation going forward. We must learn to explore and exploit at the same time, both in parallel and where needed, in separate ways, or entities.

If we ‘subject’ all of our innovation thinking to go through the same process we lose so much. How can you treat incremental innovation in the same way as radical or breakthrough innovation? You need to apply a completely different thinking and approach to the type of innovation you are thinking through. You must be prepared to abandon established thinking if it is not resolving the problems you are facing.

Beginning any journey is never easy, you stumble a little until you find a certain rhythm

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Shining a powerful innovation light into the Corporate Boardrooms

So after a fairly ‘dark’ period for me, of absorbing and reflecting on a series of reports, each indicating that innovation and its management understanding is not as deeply understood in the boardroom as it should be, you need to respond.

This seems an appropriate time to begin to rethink and explain innovation, partly in this need to fight these “immune systems” in fresh ways and partly to redrawn, re-frame and renew the value of innovation; in how it can help organizations going forward in very volatile times.

So let’s shine some light on new ways or even recognized paths for innovation to re-enter the thinking within our corporate boardrooms, in different ways that might resonate more in these more ‘dynamic’ times.

I like this organizing framework shown above, it can allow us to gain a revised understanding of how innovation can be mobilized in different ways, to give value in dealing with these different forces to help move you towards a growing level of renewal.

So I want to begin a series of posts around positioning innovation frameworks, tools or approaches that build the boardroom “innovation toolkit” to deal in both the predictive and unpredictive environments. The suggestions that will be offered are designed to help tackle the disruptive forces swirling around the business that are rising, increasing the uncertainties to future invest. It is attempting to address the concerns on how to organize the “forces of innovation” to combat them, to raise the confidence level in the boardroom to ’embrace’ innovation far more than seemingly the case today. Continue reading “Shining a powerful innovation light into the Corporate Boardrooms”

Closing the innovation leadership gap

We cannot get away from the reality that in most of our organizations we have a disconnect going on around innovation.

Research shows a lack of engagement around innovation by non-managers, also there are claims through studies that 7 out of 10 of employees do not understand how they can make a worthwhile contribution.

The cynicism around innovation has turned it into nothing more than a buzzword for many, not taken with the seriousness that it really deserves for sustaining growth within organizations and achieving broader engagement to make this happen.

Innovation is treated as more the opportunity taken when it fits and works, often toned down when it does not. There is often a total lack of sustaining strategic commitment to innovation.It is just not integrated into the core of the organization.

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Warm and Fuzzy at the Front End of Innovation

Perhaps I have fallen into the very trap I have campaigned about in the past, in recognizing and resolving the disappointing results we achieve from all the work we put into the front end of innovation. The “warm and fuzzy” front end of innovation can make us all a little grumpy.

Let me explain. I recently wrote out a newsletter – termed a thought or two – to my innovation network. This network is split between the advisers and consultants delivering into clients and the clients themselves, that I have a connections into that have built over the years. These are mostly through knowing them, working with them, exchanging or simply connecting in LinkedIn. The subject was the changes occurring at the front end of innovation.

My argument was the results we have obtained from a disconnected set of front end activities was poorer than they should be, and this needs changing. I feel there is a real shift potential happening today through connecting technology and connected solutions to ‘transform’ this front end. My feeling is the front end is often “warm and fuzzy” and it needs to be radically redesigned. I wrote about “hearing all the voices of ideas at the front end and the “two distinct parts of the innovation funnel” building from my original post “the new extended innovation funnel“, written in 2011.

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Achieving a Level of Fluidity in Innovation

There is this constant set of discussions about changing structures and models to become more adaptive, agile, lean, flexible and fluid; to react and deal with the increasing turbulence occurring all around us.

We all sense this pressing need to react and become more responsive, becoming more adaptive to changing environments and business challenges, that are often unknown, unexpected, or not yet explored or exploited. The question is how much and how far can we go?

Organizations 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 they have in place.

On the one hand the value in stability is still essential; working within specific routines and practices gives a clear ‘path dependence.’ This stability allows for efficiencies and effectiveness to be constantly at practice, constantly building the problem-solving processes, to master tasks in complex environments to resolve ‘known’ problems in ‘given’ ways but this relies on this stable flow and that is not the case of much of what we have to handle today.

We are being challenged more and more on this efficiency and effectiveness focus. It is often not working to deliver the results. We are missing a new way of working. Continue reading “Achieving a Level of Fluidity in Innovation”