Creating a reliable capability for innovation requires that a number of factors be addressed and aligned. This article addresses Culture, Communications, and Motivation, but equally important are other elements such as strategy, leadership, process, roles, skills, etc. Prior articles in this series introduce and explore an eight-element framework encompassing these key factors. Much has been written about corporate culture, most of it pointing to the same woeful conclusions: culture is a major determinant of success, and there is no easy way to influence it in one’s favor. Cultural incompatibility has brought down giant mergers, and cultural inflexibility is cited in the decline of major corporations. While changes in strategy and business models, and even huge infusions of cash, can all be accomplished amazingly quickly, culture change can defy even the most determined and persistent leader. And to make matters worse, the culture needed to support innovation is contrary to the “default culture” that exists in organizations that do not manage culture: avoid mistakes, do not surprise your boss, do not “make waves”, do what’s expected. For innovation to flourish, these natural tendencies must be up-ended. The message of this article, however, is that culture can be channeled and aligned to support innovation. The following four aspects are critical: Understand the many different cultures that exist in every organization Communicate accomplishments, not intent Stop talking about failure Reward and recognize appropriately Understand the many different cultures that exist in every organization As challenging as culture can be, it gets even more mind boggling when you realize how many different cultures exist in parallel in any given organization: Headquarters culture (ivory tower, politics) versus other locations (pragmatic performance) Executive culture (big moves in strategy, finance) versus middle management (maintain control) … [Read more...]

Our initial article mentioned taking a systems perspective when it comes to innovation, recognizing that a set of interdependent dimensions comprises one’s innovation capability.  The eight dimensions critical to innovation include: History and Results Strategy and Leadership Culture, Communication and Incentives Infrastructure, Skills, and Resources Ideation Process New Product / Service Commercialization Technology Program Evaluation and Improvement Some of these dimensions will seem obvious – Strategy and Leadership, for example – and others not so apparent.  To assess your organization’s innovation capability against these eight dimensions, and receive a customizable report comparing your responses to others, click here. It’s no coincidence that the eight dimensions start with results, the outcome of your innovation efforts.  Similar to the old catchphrase, “The past is the best predictor of future performance”, your ability to innovate is enhanced by having an innovation history – both ancient and recent – and by leveraging those successes going forward. The most critical determinant of innovation success is leadership.  And because innovation nearly always challenges the status quo, the need for active leadership is constant.  On a formal basis, leaders must develop a strategy for innovation, complete with definition, scope, goals, objectives, and metrics. Few organizations have the luxury of a culture that encourages risk-taking and views failures as learning opportunities; rather, those who innovate often work “against the grain.”  But, culture can be shaped through interventions such as communication and incentives aimed at emphasizing and rewarding the desired behaviors. Even organizations that make innovation “everyone’s business” must invest in a team to focus the effort, manage the innovation pipeline, and select projects to invest in.  Often these teams will serve as an innovation … [Read more...]

Your organization realizes that innovation is critical to its survival.  Your senior leaders are talking about it, and it appears 11 times in the introduction of your last annual report.  Unfortunately, an unofficial poll of your colleagues reveals: Many feel like we are already doing that Many feel like this too shall pass Some see it as their ticket to the executive suite, and are planning a pre-emptive strike And, to make matters worse, there may be an unflattering “history” to this topic, consisting of the scattered remains of pricey false starts: Ideation sessions with a creativity whiz or hip design firm Glitzy presentations by an innovation guru A seemingly intuitive idea management tool that no one really uses Hundreds of employee or “open innovation” suggestions waiting to be evaluated Marketing types trumpeting blue ocean opportunities, sales types trumpeting customer needs, and R&D/IT types trumpeting next gen technologies These days, organizations can’t afford the ramifications associated with poorly conceived programs, misaligned objectives, and high rates of new product / service failure.  Fortunately, research about innovation is starting to mature, and the key components of program success are becoming more evident: Innovation initiatives must be situational, reflecting who you are and what you are trying to accomplish Innovation initiatives need to adopt a systems perspective, addressing ensuring the alignment of eight critical elements Innovation initiatives must take a page from the change management body of knowledge, leveraging the principles of results-based program introduction Over the coming weeks, stay tuned to this space for strategies, tips, and examples to get your innovation program singing – along with free tools you can apply for an immediate impact. … [Read more...]

Creating a reliable capability for innovation requires that a number of factors be addressed and aligned. This article addresses strategy and leadership, but equally important are culture, process, roles, skills, etc. Our prior article lays out an eight-element framework outlining each of these key factors. To assess your organization’s innovation capability across these dimensions, and receive a customizable report comparing your responses to others, click here. Many of the well-mined leadership aphorisms apply to successful innovation leadership: Setting and communicating a strong vision around innovation and its importance to the organization Actively promoting innovation through words (stories are great here) and actions Setting strategic objectives for innovation Establishing clear and measured expectations around innovation Making one senior leader accountable for innovation, while at the same time outlining everyone’s role and involvement Smart leaders exercise these good practices; the best innovation leaders also understand and apply the less intuitive concepts below. Recognize that behavior change is an outcome, not a cause, of improved performance. Of all the factors affecting innovation (any change effort, for that matter), culture is often cited as the most pernicious when it comes to controllability. Since culture is a result of a myriad of drivers affecting organizational behavior, only altering those drivers will effect a change in behavior. Yet somehow, we fall back on the seemingly easy (but ineffective) alternative of pronouncing, “Starting Monday, we all need to think and behave in a more innovative manner.” Instead, focus on bottom-line innovation results: a win, a cool experiment, a business metric on innovation. Share those stories, and ask for more. Demand results, not activity. As with anything else, innovation can fall into the trap of activity over results. Things that are not innovation include: a survey … [Read more...]

Most organizations have their unfortunate history of major initiatives thrust on them by well-meaning executives and zealous consultants: total quality, six sigma, employee engagement, knowledge management, and other fads.  While all can have their value, the reality of a sudden change in direction – “something completely different” – is a huge leap that often fails to pan out.  To succeed with innovation, an organization must build on what it has done in the past, including: Original innovation legacy Past innovation history Recent innovation results By gaining an understanding of these elements, organizations can develop an innovation program that builds on the past – and thus doesn’t feel completely different at all.  To assess your organization’s innovation capability and receive a customizable report comparing your responses to others, click here. Innovation Legacy Many organizations were founded on the basis of disrupting an industry with an exciting new product, service, or business model.  At that point of first innovation, the organization took on the existing establishment – and won.  But fast forward a few dozen years, and what do you see?  Do the stories of those early days still permeate the culture, reminding everyone of the organization’s innovation legacy?  At Hewlett-Packard they do; their legacy is captured in a video, a virtual museum, and even in the preservation of the now-famous “HP Garage” where it all began. To tap into your own organization’s innovation legacy, collect answers to the following questions: How did we get started? What was going on with our industry at the time? What did we do that was different? What was it like to be part of that? Innovation History Most organizations maintain at least a low level of innovation, including new products, services, delivery mechanisms, systems, support, technologies, processes, partnerships, etc.  Chronicling this history and … [Read more...]