Can we overturn built-in innovation legacy?

Often organizations are weighed down by legacy. This comes in many forms; in its culture, in its history, its core markets or products, in its systems, structures and processes built around innovation practice.

Today, we are confronted with a very different global marketplace than in the last century. National borders and regulations built to protect those that are ‘within’ in the past have rapidly become a major part of the ‘containing- restraining’ factors that are rendering many previously well-respected organizations as heading towards being obsolete and not in tune with today’s different world where global sourcing determines much.

They are increasingly trapped in declining markets, and starved of the new capabilities and capacities to grow a business beyond ‘traditional’ borders, so this means they are unable to take up the new challenges that are confronting them.

They see themselves as reliant on hanging on to the existing situation as long as they can, often powerless to make the necessary shifts, failing to open up, finding it increasingly more than difficult to find the ways of letting go, of changing. They are trapped in legacy.

Innovation failure starts at the top

So who do you think form the group that are the most likely candidates for innovations consistent failure? It may surprise you to know that most fingers point straight to the top of the organization as the main cause for its enduring failure.

I don’t think this is sour grapes of the people working away on innovation daily, that the ‘finger of failure’ is well and truly pointing upwards. There is more of an innovation knowledge gap at board room level or even just below this, than many can imagine, that is the plain reality.

They often simply have no real clue on how innovation really works and what their essential role is in connecting all the different parts necessary to align this into the organizations overarching goals, objectives and strategies.

Let’s simply select the top common causes of innovation failure.

In a recent survey I was reading*, it provided a set of results about the common cause of innovation failure. The survey was asking participants to check all that applied and although there were 30-odd possible reasons the top ten that stand out as head and shoulders above all the others are nearly all down to the simple failure of innovation engagement in its leadership.

Failure lies at the very top on why innovation fails.

Forming the unified view on innovation design

Although we are seeing a number of cases where innovation in its structures, functions and design are evolving, we still have not achieved the mainstream recognition of innovations importance within the boardroom. In many organizations it still lacks a clearly separated ‘voice.’ Its present voice tends to be fragmented within its parts represented by the separate functions providing their narrower view of innovation.

You still have marketing, research, financial, strategic development all offering their unique views of what and where innovation can contribute. This often ‘fragmented’ approach reduces the promising breakthrough effect of innovations potential contribution.

By not having this comprehensive and cohesive viewpoint articulated at board level by a fully accountable person, the Chief Innovation Officer, innovation often stays locked up in one position or another.

No one is stepping in and unlocking its full potential from a holistic viewpoint, totally responsible for innovation by structuring it, for adding real scale, giving it momentum and growing sustainability but more importantly driving it throughout the organization from the top board room perspective.

Using visuals to understand the business offering and its evolution.

I do so enjoy doing a wordle (www.wordle.net), they make you feel a whole lot clearer on what and where any focus might be, or has been, from a perspective of my business and how it is evolving in content and areas of value for any innovative offering to clients.

Towards the end of a calendar year I like to always look back and reflect, to see where my innovation activities have headed. Did they add value, did they move innovation and my thinking forward? I think initially exploring these within a wordle does help make the critical focal points stand out.

So here are mine that reflect where I am in what I am exploring and looking to increasingly work with clients upon. I thought I’d share the evolution of how this is evolving, I hope positively for all concerned.

Seeking common cause through innovation

Although it is simple to state, creating a common language for innovation is very hard, demanding work. To begin to create it, then to gain a broader identification with its make-up and then to build upon it requires some dedicated time and effort, but above all, it needs recognition of its importance to obtaining a sustaining innovation entity.

Yet there is incredible sustaining value in achieving a common language. In the work that Jeffrey Phillips and I have been undertaking we see the Executive Innovation Work Mat  and its seven connected parts we really saw language, context and communications, as central to any innovation initiatives to work towards.

The Executive Innovation Work Mat

Languages unites us or divides us

Language can have the power to unite us or potentially divide us. Developing a language to unite us in our innovation efforts goes some way to reduce disagreements and egos, that can block success.

To create an environment for innovation, to offer within a set of governance, process and functional structures, to build a culture responsive, we need this common cause, this central innovation language, our clear unifying context.

Reducing confusion, promoting diffusion for new knowledge in innovation

The third and final part of exploring knowledge and education for innovation.

Part three – the value is in changing, doing and exchanging

How are we going to engage more people within the innovation process? Getting people involved is getting people “doing”. We learn far more when we are doing and gaining experience yet organizations are always in seems to me consciously or unconsciously reducing the experimental part to any persons learning.

We need to reverse this and simply encourage the exploring of new skills, gaining new experiences and probing established rules to value them but also to challenge and push them. Innovation is certainly not a friend to rules, established protocols and traditions.

‘It’ looks to attract the diverse opinions, the people willing to speak up and be heard as they often have observed and feel something can be changed and ‘itch’ for the chance to explore and learn from this.

Coupling, uncoupling and recoupling in complex systems
Innovation is a complex system where the coupling, uncoupling and re-coupling of  technology, design, product, organization, art and science, to name just a few of the parts, that need to constantly engage for good worthwhile innovation to happen, is important for us to recognize.

Organizations have real difficulties with this ‘fluid need’ to allow innovation to evolve as the natural tendencies are to apply, traditional, established ways to track, to attempt to ‘file away’ something that can be related too within the experiences.

This is why encouraging enquiry, by pushing experiences you ‘form’ less and ‘allow’ more to evolve before you make the judgement. Innovation needs to be allowed to stay ‘fluid’ as long as possible before the final commercial ‘freeze’ moment when all the combinations emerge as new to the world.

The real value of knowledge exchange

Continuing in the series on knowledge exchanges and education for innovation.

Part two – what needs to improve in innovation?

I asked in the first part of this series of blogs –How do we advance the learning needed for innovation?  So first, do we (all) agree that we do need to improve the education around the subject of innovation and its management?

Do we need to recognize it as an essential discipline that should be fully recognized with our organizations?

Today it is not central, it is not driving the business surprisingly when you stop and think about it, older more established practices drive the business and innovation is a responder. I think this needs reversing totally.

We live in knowledge-based societies and we need to constantly increase our share of understanding as this new knowledge becomes the building block for innovation to take hold and grow our wealth, create the next generation of products or services.

Our challenges are greater and more complex today.

What is your capacity for innovation really like?

In a series of articles I’d like to explore the value of knowledge and education for innovation.

Part one –  an opener to innovation change

How do we advance the learning needed for innovation? In my last article I wrote about the need to prepare ourselves for some forthcoming standards for innovation.

In a number of  earlier articles, I have also written on a range of contributing factors that will advance innovation in its learning and adoption. In this series I want to go deeper – an emerging treaty for innovation advancement.

I have to be clear here, I am becoming increasingly frustrated by the seemingly lack of advancement in our understanding of innovation. Today we have a real challenge, all of us, in boosting our capacity for innovation.

We need to achieve this ‘boost’ as the outcomes we can gain and are required are both economic and social in the potential value. We need to move beyond the existing and tackle the blockages to the preferred, when it comes to innovation achievements.

We face many challenges within a highly competitive world
As we seek out fresh opportunities, locally and globally, we are becoming increasingly challenged. The world is highly competitive.

The key driver to meet these ‘twin’ challenges is innovation, not just for the short-term results businesses are so obsessed about but the critically important need to simply find the pathway to sustainable development through re-occurring innovation activities.

What is top of your mind? Mine’s innovation and value creation

I’ve been watching the debate for the Presidency of the United States and thankfully the second one became a more ‘alive’ one, one that offered a good value where you felt some real tensions on different issues.

One of the most central discussion points was around jobs- creation, partly from bringing them back to America, and unleashing the Entrepreneurs from all that ‘crushing’ burden of bureaucratic ‘red’ tape but lacking in real specifics.

Innovation I noticed came to the rescue as that ‘certain’ word needed to be played, like a cloak you can hid behind, so the person waving its potential in magic dust will make us all feel happy,  that it will solve most of our problems. Apple was raised in the questions asked and how can the jobs overseas be brought back to the USA?

President Obama stated some of the jobs lost will not come back, those that are low skill, low wages and he wants to achieve high skill, higher earning jobs. I’m sure both candidates would want that and both know certain jobs will never come back.

Will Apple invest back in the United States in manufacturing unless there is a fundamental change in policy or consumer sentiment? They are more likely to invest on consumer sentiment than just policy alone, if it changed and suddenly there was demanded “I want home-made products, made within the US 100%” stamped upon them.

Customers voting with their feet and wallets can deliver more than policy incentives alone. Pride of ownership might even replace status in ownership.

What is the missing cost of not innovating?

We can often be asked “what is the ROI on this particular innovation or alternatively, on our innovating activity?”

This questioning increases particularly when there grows even more uncertainties in marketplaces, when you are forced into making tougher investment decisions, in allocating resources, in adjusting a strategy to meet changing circumstances.

Then you get the “well, what’s the payback period then?”

Often we struggle to offer a half-decent reply as most innovation has stayed mired in incremental approaches and so becomes fairly complicated in identify the new part from the old that is already the invested part, or it remains uncertain, as it is often exploring the unknowns.

Perhaps we should reverse this question or be ready to ‘gazump’ it and beat them to the question before they ask. Two specific ways to think about this come to mind.

The first was suggested in a post back in 2005 by Ruth Ann Hattori called “the cost of not innovating” and I like this one. The other came from a post by my innovating friend and collaborator, Jeffrey Phillips “what are the opportunity costs on not innovating?”

Jeffrey is still not residing on a tropical beach as he still has not got the complete answer to that one. Both are tough questions but well worth reflecting over.