Constructing Innovation as Value Management

Innovation and ValueInnovation needs to create value, both short-term and progressively over time. It fuels the growth and fires the imagination.

Yet our innovation activities are constantly coming up short for the leaders within our organizations, who continue to remain disappointed in its final outcome to stimulate and drive the growth they want to see.

It is actually the classic “chicken and egg”. Aristotle (384–322 BC) was puzzled by the idea that there could be a first bird or egg and concluded that both the bird and egg must have always existed. Leaders need to lead and are they the chicken, they are the resource for how can the people charged with innovation can lay the ‘golden eggs’ needed, if they are incapable of laying? Or should the innovation egg come first for our leaders to become more confident and build further, believing in innovation far more?

There should be no dilemma we can’t treat innovation lightly anymore, it needs to develop its uniqueness for each of our organizations to evolve. We need both the egg and the chicken to be ‘producing’.

What I’m driving towards here is that innovation is evolving is my 1st point

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Building an innovation framework that has real capabilities at its heart.

SCA FormulaI’ve strongly believed when you begin to think through a framework for innovation, see my last article as an example, you also should equally need to recognize the capability framework that you will need to build into this.

Working through these as essential combinations can become the real enabler.

Here is my solution that I think is worth working through, to firstly absorb and then consider for applying to your own innovation building activity. Try it!

I have worked on a formula SCA = II + OC + EE + MLC + RNE for this. I have never published the make-up of this in the public domain before, although I had briefly outlined it in a past post here. In that post I outline my thinking and I do not think it needs repeating, does it?

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Are we moving towards integrated software for innovation management?

Software innovationWhat is striking me recently is the upsurge in the software being specifically designed for managing innovation. The competition seems to be warming up in the more ‘standalone’ out-of-the box segment and the innovation tools being provided are certainly accelerating the innovation process.

The software being provided is going well beyond the simply mining and capturing of promising ideas. The solutions are moving into sound idea enrichment, evaluation processes and managing a portfolio of innovation in more holistic ways.

The providers here, namely Hype, Brightidea, Spigit, Imaginatik and a growing group of others have been significantly improving their ‘front end’ offerings to capture and develop concepts- They are increasingly turning their attentions to the ‘back end’ and support with greater focuses on governance, knowledge repositories, campaign cockpits, evaluation and dialogue exchange mechanisms. Mobility has also been a growing feature to capture innovation ‘on the go’.

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Measuring and motivating the innovation elephant

Elephant and the blind men 1I often think of the parable of “The Elephant and the Blind Men” when I get into discussions about measuring innovation. What are truths, what are the fallacies?  The parable implies that one’s often subjective experience can be true on your need, but not necessarily the other persons view of their understanding of value.

You get, as the end result, a failure to account for other ‘beliefs’ or capture the real value and miss providing broader motivations to encourage the innovation elephant along.

Establishing the right metrics that motivate and yield the result you are looking for is sometimes a tough challenge. You should always start with the bigger picture, organizational needs and then design the metrics and cascade these throughout the organization.

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Developing talent to drive innovation

Talent for innovation visual 1I recently participated in a survey for APQC that was looking to identify the hot topics within product development and innovation. One or two hot spots surprised me, others less so.

In the round-up of results almost two-thirds of survey respondents have placed refining the identification of customer needs and remaining competitive in terms of profit at the top of their product development agendas. I like the increasing emphasis on identifying customer needs

Among the potential research areas respondents were asked about, they felt that developing talent to drive innovation was the most important. The second one was around rapid product development: How to Move Products to Market Faster.

The one that really caught my eye was organizations have allocated the most funds to improvement in developing talent to drive innovation. This is heartening but also a worry.

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Innovation requires the nesting of all capital

Nested capitalsInnovation cannot exist without all the capitals that contribute to its make-up. Yet we simply fail to appreciate all the capitals that innovation requires. It is a real pity as they are truly nested.

Equally many innovators are simply not prepared to put in the necessary work to achieve this understanding and the organization’s innovation looses out, stuck in perpetual incremental mode, lacking in anything really new or radical.

All the capitals ‘fire’ innovation. They make innovation combustible.

More often than not when we talk within business of capital we tend to default to the financial kind. Of course providing the financial capital into innovation is vital; it provides the potential ‘burn’ but what is often understated and certainly under-appreciated is the other capitals. These have been ‘tagged’ under intellectual capital or are often ‘lumped’ into our intangible assets.

What we need is to recognize the real “nesting effect” all our capitals.

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Alignment is needed everywhere

Alignment of Innovation to Organization's Strategic Goals

Alignment of Innovation to Organization’s Strategic Goals

Working in most organizations you spend a disproportional amount of time on looking to achieve alignment. This can range from aligning your meeting schedules to the bigger strategic issues by gaining agreement on the way forward.

 I would bet you that working on alignment is certainly one of the main tasks that is sucking up a large part of your working day. Interesting enough the higher up in the organization you go, the more you have to seek alignment. Gaining alignment is actually very hard.

In corporate life we are constantly attempting to also link organizational goals with our own personal goals. To make this alignment, it requires the difficult aspect of achieving common understanding of all the parties for the specific purpose you are requiring, so as to achieve a consistency between ‘agreed’ objectives and the implementation of these across those involved.

In pursuit of alignment

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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.

The study revealed that “the absence of a well-articulated innovation strategy is by far the most important constraint for companies to reach their innovation targets.”

In the report they mentioned not just the lack of many formal mechanisms were missing but the total environment for innovation was missing this explicit innovation strategy. That is a serious failure at the top of organizations in my opinion. How can leaders expect innovation if they remain unclear of their role and function in facilitating and encouraging it? Can this change?

A collaborative effort

Jeffrey Phillips of Ovo Innovation and myself have collaborated on a number of different innovation frameworks over the last twenty-four months or so. These have been  to offer concepts or frameworks that we felt were missing or needed explaining. We have set about the offering up of possible solutions to reduce much of this ‘mystery’  that seems to still surround innovation.

As we shared and exchanged views, we have mutually recognized our personal frustrations on this continued leadership gap towards innovation. This has been triggered even more by this Capgemini report and so we decided on a way forward as our ‘tipping point’ to set about studying this and seeing if we could find a solution to this innovation leadership issue.  Or at the very least, advance this recognition, beyond debates from this constant recognition of a problem, into offering an emerging framing on the ways to begin to resolve this.

A soft launch will happen offering our integrated innovation ‘framing’ as a solution.

We think we have now arrived at a further tipping point and will ‘soft’ launch the integrated innovation framework this coming weekend, starting Sunday 9th September 2012. We will build within a series of seven articles, one per day over a week, which we believe make up the component parts. We will attempt to explain what we see as an integrated executive innovation framework that will be delivered through a work mat methodology approach. These articles will be published initially through www.innovationexcellence.com to gain an audience of innovators and then will be taken out further by our two respective organizations in further field work, validation and consultation.

I recently wrote a series of articles in August and one is perhaps worth reading again, this is “From a buzzword to the imperative.” In this I discuss this need for a framework and then go on and explore different components within a series of subsequent articles, that I felt needed leadership attention.

The present argument needs moving on and resolving

There is no argument surely that we need to break into this leadership gap around innovation? We need to offer suggestions towards their role, to address this lack of engagement or awareness? We need to provide an organizing framework that achieves alignment into the organizations goals and provides the structure across innovation that can ‘cascade’ down and across an organization. The end aim is that so all those involved within the organization, or closely associated with it, can relate too and ‘gather’ around an overarching framework, articulated and constructed from the top, that guides innovation.

We want to narrow this leadership gap and organization understanding so as to achieve a specific connection between leaders and their role in how they can facilitate and bridge this clear divide and present seen ‘impediment’ for innovation. The leaders of organizations are no different from all the employees working within the company, they are all looking to secure a sustaining future and participate in a vibrant one that primarily comes from the innovation engine needed for all businesses and economic growth. The contribution of the leaders within organizations falls mainly on defining their role, laying out its parts in a coherent way for all to relate too. We believe this framework approach can be one of the primary organizing ways for that engagement and identification so much needed.

Tune in please and we certainly hope you can relate to what we are offering

We believe this integrated framework will require some real leadership engagement but we believe the outcome can offer four significant benefits:

  1. The framework can create cohesion and consistency of innovation purpose that will reduce many existing barriers and uncertainties around innovation
  2. As the leadership does become engaged this will demonstrate a significant commitment and promise that will certainly increases the visibility of innovation, lowers risks, encourages more involvement and generation of better ideas.
  3. The framework itself will generate work flows that connect, become more dynamic to explore and promote the innovation skills, capabilities and competencies needed. They become more cohesive, coordinated and focused
  4. As the framework connects, in its understanding and as its impact grows, we certainly believe confidence builds. Both formal and informal areas are addressed in parallel, growing all-round identification and alignment.

A challenging road to travel

To get to this tantalizing promise needs a lot of recognition, engagement, investment and commitment. You don’t suddenly arrive at enacting such a change without some ‘hard yards’ to cover and tough issues to resolve.

We are only at the starting point by offering this integrated innovation framework. We have confidence it will help, what we need is the right audience to listen and simply say “I get it.” For the leaders, to hopefully see its organizing value and fit and their critical role to play in supporting innovation through this organizing and integrated framework so the organization initiates and delivers what is expected, better than today.

Do we see bumps on the way, of course, do we feel they can be navigated, again of course; otherwise you don’t start the journey. We are equipping ourselves for some demanding challenges.

We continue to invest in this framework as we see it does offer real potential

We feel this period of research, investment and consistently exchanging between us both has certainly increased in intensity over the last six months. We have built a structure; a methodology and a guiding set of approaches that help facilitate and provide the CEO and his leadership team with a way to radically reduce that innovation leadership gap.

We can offer a clear ‘way forward’ for engagement and alignment that can help, perhaps radically, the organization to establish innovation firmly into the minds of the boardroom and their vital role to play within this real need for all to engage in.

We seek to bridge the innovation leadership gap

All I can do at this stage is ask you to please explore this series of articles, don’t rush to judge and dismiss, take the more explore and reflect, approach. We simply want you to have a similar identification and equally ‘I get it, maybe we need it’ at this stage. We hopefully begin to bridge the innovation leadership gap and the role they need to play and we feel we offer a way to address the lack of innovation leadership that is clearly ‘out there missing’ in nearly all organizations.

In organizations this needs internal discussions to recognize this ‘gap’ and then gain the leaderships attention to how this can be addressed. The proposed integrated innovation framework might be the place to start and our arguments might be the catalyst.

We launch our “emerging thoughts” in this series of articles on the different innovation domains needed to be explored at the leadership level, this coming weekend 9th September 2012, and each day, during that week. We outline these through the frameworks different domains themselves. Do take a look and I hope you agree, we offer a way forward and are wanting to engage and deploy this framework to the leadership of innovation.