An employee dedicated to innovation can be the foundation for getting your whole company moving again
An employee dedicated to innovation can be the foundation for getting your whole company moving again
We’ve all heard about the exciting business developments in the world of start-ups. Yet it can be difficult to relate the innovative practices of the tech-heavy start-up scene with the realities of established businesses in other sectors.
Yet that’s what Scott Anthony, David Duncan and Pontus M.A. Siren, of the innovation consultancy firm Innosight, have tried to do in an essay for the Harvard Business Review. MPA has boiled down their points to help you decide if an ‘innovation engine’ could be useful for you.
They recommend you spend up to a month looking at your company’s recent results, to decide whether innovating existing practices will be enough to hit your goals.
In a rather eccentric step, the authors than advise you to “lock the members of the senior leadership team in a room for an afternoon, share the findings, and instruct them not to leave until they have identified three strategic opportunity areas that each combine the following:
• A job that many potential customers need to do that no one is addressing very well.
• Either a technology that will enable customers to do that job much more easily, cheaply, or conveniently, or a change in the economic, regulatory, or social landscape that is greatly intensifying the need for that job.
• Some special capability of your company that competitors can’t easily copy that will give you an advantage in seizing this opportunity.
• Venture capital partners often disagree about investment opportunities. In fact, seasoned VCs will tell you that the best investments are the most polarizing. Every project should have a senior executive sponsor or champion who believes in it deeply, but you shouldn’t require approval from the entire shepherding group to go ahead.
• A decision to invest in a start-up is considered very carefully, but most day-to-day spending decisions are left to the start-up’s CEO. Corporate innovation shepherds should set a threshold investment amount that project teams can spend themselves without asking for leadership approval.
• Major VC funding doesn’t follow quarterly or annual budget cycles. When a start-up resolves a key risk, it gets further investment. And when a big issue arises, the board of a venture-backed company gathers within 36 hours. You should ensure that your shepherds are likewise capable of assembling and making decisions that quickly.
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You may also find interesting:
The nine traits behind bad decisions
Take the Top 100 CEO quiz
Business essentials translated: integrative decision-making
We’ve all heard about the exciting business developments in the world of start-ups. Yet it can be difficult to relate the innovative practices of the tech-heavy start-up scene with the realities of established businesses in other sectors.
Yet that’s what Scott Anthony, David Duncan and Pontus M.A. Siren, of the innovation consultancy firm Innosight, have tried to do in an essay for the Harvard Business Review. MPA has boiled down their points to help you decide if an ‘innovation engine’ could be useful for you.
1. Decide what type of innovation you’re seeking
Innovation falls into two buckets, the authors explain: “In one are innovations that extend today’s business, either by enhancing existing offerings or by improving internal operations. In the other are innovations that generate new growth by reaching new customer segments or new markets, often through new business models.”.They recommend you spend up to a month looking at your company’s recent results, to decide whether innovating existing practices will be enough to hit your goals.
2. Focus on ‘opportunity areas’
To pick these areas, the authors advise you spend around three weeks meeting customers, and ask about unmet needs, whilst looking at other recent developments in your industry, and asking your own staff for their input.In a rather eccentric step, the authors than advise you to “lock the members of the senior leadership team in a room for an afternoon, share the findings, and instruct them not to leave until they have identified three strategic opportunity areas that each combine the following:
• A job that many potential customers need to do that no one is addressing very well.
• Either a technology that will enable customers to do that job much more easily, cheaply, or conveniently, or a change in the economic, regulatory, or social landscape that is greatly intensifying the need for that job.
• Some special capability of your company that competitors can’t easily copy that will give you an advantage in seizing this opportunity.
3. Put resources into innovation
Depending on the size of your firm, this could vary from a single employee devoted to innovation, to a small team. Mainly speaking to larger businesses, the authors advise you to look for ‘zombie projects’: projects which aren’t going anywhere, from where you could find extra staff. For smaller businesses bringing in a temp, so you an experienced staff member can focus on innovation, may be another option.4. Create a management and budgeting structure around innovation
The authors draw inspiration from venture capital firms:• Venture capital partners often disagree about investment opportunities. In fact, seasoned VCs will tell you that the best investments are the most polarizing. Every project should have a senior executive sponsor or champion who believes in it deeply, but you shouldn’t require approval from the entire shepherding group to go ahead.
• A decision to invest in a start-up is considered very carefully, but most day-to-day spending decisions are left to the start-up’s CEO. Corporate innovation shepherds should set a threshold investment amount that project teams can spend themselves without asking for leadership approval.
• Major VC funding doesn’t follow quarterly or annual budget cycles. When a start-up resolves a key risk, it gets further investment. And when a big issue arises, the board of a venture-backed company gathers within 36 hours. You should ensure that your shepherds are likewise capable of assembling and making decisions that quickly.
___
You may also find interesting:
The nine traits behind bad decisions
Take the Top 100 CEO quiz
Business essentials translated: integrative decision-making
