You are on page 1of 4

c 

    
 

c  (1) | Read All

In 1964, during the heyday of the space age and all its dazzling scientific advances, New York
City hosted a World¶s Fair that paid tribute to the innovative spirit of the times. Leading
companies such as IBM and General Motors offered exhibitions that promised to show visitors a
glimpse of the technological marvels the future held in store. The symbol of that World¶s Fair
was the famous unisphere, a dramatic 12-story high globe built to represent the theme of man's
achievements on a shrinking globe in an expanding universe. That theme serves remarkably well
to capture the state of innovation in today¶s business environment, in which a shrinking globe
and an expanding universe of product and services have combined to create an insatiable need
for innovative achievements.

With its emergence as perhaps the single most critical aspect of business strategy in the 21st
century, the risks and rewards surrounding innovation have never been higher. Innovation, of
course, has always had the potential to create entire new markets, sometimes virtually overnight.
More and more, however, it has also become a central dynamic in existing markets and mature
industries, where the ability to introduce significant change has become a sought-after
competitive advantage. Once upon a time, innovation was seen as a necessary force at the outset,
but of less importance as the company came to dominate its market and to rely on traditional
means of growth.

No more. Today, companies are relentlessly pursuing innovation.

   


Men¶s and women¶s razors do not spring to mind as inherently sophisticated products. One
might even think that they¶re not particularly open to innovation. Yet over the past several years,
the market leaders, Schick and Gillette, have one-upped each other with new brands, new
products and new go-to-market strategies. Indeed, this seemingly staid category has become a
fierce battleground in which innovation is the ultimate competitive advantage.

The battle between Schick and Gillette serves as a useful snapshot of the overall drive for
innovation. Once upon a time, the concept of innovation might have been reserved for high-tech
companies, pharmaceuticals and other traditionally R&D-heavy segments. But now, even a fairly
routine product like razors can become the catalyst for intense innovation ± an indication of how
vital it has become to companies across all industries.

It is not an exaggeration to say that the mandate facing companies in today¶s fast-paced business
environment is µinnovate or die¶. The Quest for Innovation, a global study commissioned by the
American Management Association and conducted by the Human Resource Institute, found that
more than two-thirds of respondents considered innovation either µextremely important¶ or
µhighly important¶ in their organizations today. Furthermore, the majority of respondents said
that innovation would be µextremely important¶ or µhighly important¶ to their organization in 10
years. (The complete study can be found at www.amanet.org/research.)

What are the macro trends that have led us into this age of innovation? Technology, of course,
has played a huge role. It has spawned a truly staggering amount of new products and services.
Take, for instance, the Apple iPod. The product itself represents a major innovation, but just as
remarkable has been the flood of quick-thinking entrepreneurs that have taken advantage of the
iPod¶s popularity by developing peripheral products ± speakers, carrying cases, etc. Furthermore,
it has revolutionized the distribution of recorded music and changed the economic model of the
music industry.

The dizzying speed of the product design and marketing cycle has been another factor.
Researchers Marvin Cetron and Owen Davies have estimated that where the full cycle ± from
idea to invention to introduction to imitation ± once took 30 to 40 years, the time is now more
like 30 to 40 weeks. Staying ahead of that curve requires perpetual innovation.

Last but not least, customer demands have led to innovation¶s current prominence as a strategic
necessity. The µone size fits all¶ approach that typified business for decades is obsolete.
Customers are increasingly demanding customized products and services that meet their specific
needs.

Troublingly, however, the Quest for Innovation study found that most companies judge
themselves as only moderately good at innovation. Interpreting that finding, we can surmise that
there is a serious shortcoming of competencies related to innovation.


    
All of this begs the question: what are the cultural competencies required for innovation? The
Quest for Innovation found that there are 14 critical factors in developing an innovative
organization. Let¶s take a closer look at the top five.

Of the 14 factors in developing an innovative culture, the study found that a customer-centric
approach is the most important. Going beyond mere customer research, innovative companies
invite and encourage their customers to become actively involved in product design, marketing
and other aspects of their go-to-market strategy.

Teamwork and collaboration make up the second most important factor in driving innovation.
Particularly effective is the use of teams that incorporate diverse viewpoints and have a cross-
functional structure. The search for innovation also increasingly leads outside of the
organization, with more and more companies collaborating with academia, government agencies
and other companies, sometimes even competitors, to discover and bring to market new
opportunities.

Taking third place is an appropriate allocation of resources, primarily time and money. While the
study found that insufficient resources are the most common barrier to innovation, devoting too
many resources also can have a negative effect. For example, employees with long spans of time
in which to deliver results may lose motivation and the necessary sense of urgency.
Open communication is the fourth most integral element of an innovative culture.
Communicating means sharing not only ideas but also the lessons learned from failures and
successes. Information must flow freely across the entire organization ± within departments,
between departments, and up and down the corporate hierarchy ± and companies should not take
a µone size fits all¶ approach to the means of communication. Some situations may call for face-
to-face discussion, while others are best suited for technology-mediated channels.

Rounding out the top five is the ability to select the right ideas for development. The lack of a
method to identify those ideas with the greatest potential holds many companies back from
achieving innovation: nearly half of the firms surveyed in the study reported that they ³don¶t
have a standard policy for evaluating ideas´. Companies searching for a process to pick winning
ideas may want to follow the example of Whirlpool, which encourages innovation teams to
pursue new ideas by creating a business case and applying US$25,000 in funding to quickly
prove its worth. This low-budget, quick-turnaround method was designed to generate radical
ideas with little risk.

c  

The competencies that drive innovation don¶t develop overnight, but rather are created by
specific behaviors. In Leading Innovation, a new seminar offered by the American Management
Association based on the resources of the innovation experts at FutureThink, participants learn
that there are five core behaviors that make up an innovative climate:

y? Leading by example. Senior management must play an active role in leading the pursuit
of innovation. At Starbucks, for instance, founder and chairman Howard Schultz makes it
a point to attend innovation meetings and suggest ideas.
y? A willingness to experiment. This also includes a tolerance for smart risk-taking. With
every opportunity, there is a chance of failure. It¶s not enough to passively accept the
possibility of failure, organizations must actively embrace it ± or even mandate it, as does
Bank of America, which requires that 30 percent of all innovative projects fail.
Overcoming a risk-averse mindset requires welcoming all ideas, even the most
impractical ones, with a nonjudgmental approach.
y? Sharing. A reluctance to discuss ideas or works-in-progress is anathema to an innovative
climate. Most people would prefer to keep working on the project until it¶s perfect before
revealing it, but successful innovators recognize the value of developing rapid prototypes
and sharing those prototypes early and often.
y? ´ncouraging new thinking. Fresh perspectives lead to fresh solutions, and innovative
companies recognize that truth. Some companies use their intranet as a message board for
sharing new ideas; others hold internal µtrade shows¶ that bring people together from
different departments and locations and give them a chance to show off their interests and
expertise.
y? ´nergize. Jump-starting innovation means finding meaningful ways to hire, train and
motivate the workforce. For instance, too many companies emphasize finding a candidate
who fits into their culture to the detriment of hiring someone who can bring new insights
to the table.
c 
 
The popular image of innovation is that of an idea arriving like a bolt of lightning, unexpectedly
and with galvanizing force. Yet despite all of its glamour and allure, the simple truth is that
innovation requires a lot of tedious practice and work; dare I say it needs to be managed and
consciously nurtured? We¶ve all heard the old Thomas ´dison quote about genius being one
percent inspiration and 99 percent perspiration. The same ratio applies to innovation. Companies
that have mastered the spirit of innovation are more likely to resemble quiet, sensible
laboratories than madcap creative playpens. As unexciting as it sounds, innovation at its heart is
as orderly and well-planned as any other business process.

This is not to deny that innovation has a mysterious quality; that one percent of inspiration
represents some pretty potent magic. Despite its sometimes elusive nature, however, innovation
can be cultivated and instilled just as readily as any other competency. As with any skill, training
is the key.

´dward T Reilly is the 17th President and Chief ´xecutive Officer of American Management
Association (AMA), the world's leading not-for-profit membership-based management
development organization. He has held the post since 2001. ´ach year, AMA directly interacts
with over 100,000 managers and executives in the United States and around the world, through
its renowned management education seminar programs.

´d previously served as President and Chief ´xecutive Officer of Big Flower Holdings, Inc.
(now Vertis, Inc.), and prior to this he spent nearly 30 years McGraw-Hill a publishing and
communications company.

 
Posted: 31 March 2010 @ 03:26 | Updated: 31 March 2010 @ 03:28

In Innovate the Pixar Way, we write..."Collaboration is critical to the process of generating ideas
and solving problems in any organization. At Pixar, there are literally thousands of ideas that are
considered during the making of a film. As president ´d Catmull explained, '´veryone is trying
to solve these problems, and a lot of ideas are thrown out there that don't work...You get in a
group of people, they look at it, you get ideas...and you come back and you make the
performance better...If you think about it, this is creative problem solving.' When team members
come together to find a solution to a problem, they are energized and strive to discover creative
options for accomplishing their goals. They don't get trapped into thinking that an answer is the
only answer."

Disclaimer: All comments posted in a personal capacity


In order to post a comment you need to be registered and signed in.
Register | Sign in
Read All Comments

Source: www.hrmreport.com
© 2010 GDS Publishing Ltd. All rights reserved.

You might also like