For me, there is never enough talked about innovation risk. Innovation is held back so often because the quantification of it’s risk cannot fit into an organization’s current assessment and measurements of risk.
Innovation is often too intangible, full of unknowns as the very nature of anything new and different. Innovation risk leaves many executives very uncomfortable.
Organizations get uncomfortable when the words “radical” “intangible”, “unknowns” and other words like these when they form part of the conversation. It often starts to induce that “risk twitch” where that careful management for short-term performance might become threatened, or the manager feels any decision is ‘going out on a limb’ and possibly career threatening.
That growing uncomfortable feeling that innovation places their bonus at “risk” so they like to ring-fence innovation as much as possible. Now some of that ring-fencing is fine, you contain a risk to keep it manageable but most innovation does not constitute organization risk, yet it gets caught up in that risky fear that innovation seems to induce. Actually, if we were managing innovation at the core, our risk management for it would be very heightened and managed differently, but how many of our companies’ have innovation as their core?
So I always welcome discussion on risk and innovation. The more we talk about it the better for what is coming towards us. Continue reading →
When you read a report that has within its executive summary this: “In combination the boards stand unarmed to enter the battlefield of future business creation in a disrupted world” it makes you want to read on.
In a recent report called “Radical Innovation and Growth: Global Board Survey 2016 ” (link opens the pdf) we have results from a survey jointly conducted by Deloitte Denmark and Board Network – The Danish Professional Directors Association, that opens up much that can concern us about the current boardroom and its great difficulty with managing more radical innovation.
It seems within our boardrooms they are ill-equipped to managing in today’s world, grappling with the past, holding on, perhaps too tightly, to the present and certainly being unsure of the future. It is struggling to adjust to all that is entering their world.
In this report, they surveyed 614 global board professionals from a total of 50 countries during the period covered from November 2015 through to February 2016 and then published in February 2016.
There is always a healthy debate on who “owns” innovation within any organization. Often it can boil down to where the innovation concept is along the pipeline is or who has been designated with manoeuvring or piloting the innovation through its different stages.
The reality of lasting ownership is much tougher; there are huge, often yawning gaps, in innovation accountability. The right answer should of course be everyone but making that statement on its own is a little bit of a cop-out, an easy answer to a complicated dilemma. So let me offer a connected way.
Working through the Executive Work Mat , jointly developed with our friends at Ovo Innovation , this Work Mat was designed for many reasons but principally to gain leadership engagement within all things involving innovation. One of its overarching principles was the quest to gain alignment from the top, at board level, through its interconnected structure and their strategic inputs so as to establish and make the critical connections all the way down and throughout the organization.
What we needed also was putting in place a fairly rigorous ‘litmus test‘ to establish if this is achieving the positive reaction required and the Work Mats intent.
It really depresses me when you hear the remark “actually, in all honesty, we have no appetite for innovation, we are so risk averse.” Actually it is heard a fair amount if you ask about risk and innovation. This is often never stated in earshot of others within the same organization, it comes in a sudden burst of honesty, perhaps over drinks, and always outside their ‘normal’ working environment. Sometimes you have a rare exception, especially if you have been called in to help, when someone has just been appointed into the position to simply “do something about innovation, we are dying as an organization”
We all need meaning but we don’t like the risks associated with it
I was reading an excellent article by Teresa Amabile and Steven Kramer on “How leaders kill meaning at work” and they offer the insight about the lack of recognition that everyone within any organization requires as the single most important need,that is the feeling they are making progress in meaningful work. Managers often undermine the meaningfulness of work to us as individuals; it is too often dismissed or not thought as relevant to the work at hand.
In the article they suggest four traps to avoid and one of them ‘Mediocrity signals’ triggered this blog. The organization they used as the example within this trap drove new-product innovation into the ground as the top management was so focused on cost savings they no longer were a leader in innovation, they simply became followers. One comment made by an employee was “mediocre work for a mediocre company”, yet it was not previously like that. Risk aversion had become dominating and the organizations leadership was signalling “they were really more comfortable being ordinary”.
How do we arrive at this point of being just ordinary?