The separation effect required for innovation choices

Exploit and Explore 3

I have recently been in some different discussions about the merits and balances required for the separation to manage incremental and radical innovation. Partly this is in preparation for a workshop later this month but partly from a conversation, I am having with a sizable, well-respected organization, with its head office based here in Europe.

In the conversation within the organization, we were discussing the breakdown in their treatment of incremental and radical and they suggested this was being managed within an “ambidextrous structure” yet I was not convinced. I have to point out this was only a part of a broader story on the difficulties of managing conflicting innovation demands that they were having.

One key constraint in their thinking I felt was not having distinct units as they were trying to manage incremental and radical through the same process and that, for me, is a basic mistake.

The Innovating Era: Creative Destruction or Destructive Creation?

Creative Destruction
We have been entering some perilous times recently and I can’t imagine when Joseph Schumpeter outlined his groundbreaking efforts for explaining “creative destruction” he or anyone else, could imagine this being flipped around to what we are facing more today, in a more innovative era, that of “destructive creation”.

Schumpeter saw “creative destruction” as the renewing, through new innovation, society’s dynamics that would lead to higher levels of economic development and welfare.

At the same time recognizing that this destroyed a few of the incumbents to the benefit of many more newcomers and increasing value creation for broader society.

Today it seems we are caught in the reverse of this- the process of “destructive creation”- where it benefits a few rather than the many. This sets out often to destroy or greatly diminish the usage value of existing products and services before it is optimal to actually do so, and in the process incurring often significant costs not taken into account at the time.

These unforeseen issues have consequences that negatively affect parts of society not foreseen or contemplated at the time.

Innovation has layers that shear against each other.

“Slow constrains quick, slow controls quick”
There is so much built in tension, bias, barriers, mindsets, mental model conflicts, and all types of friction seemingly going on around us, you must sometimes think all our organizations can only be totally dysfunctional.

The Scream by Edvard Munch for Dysfunctional Organizations

Has anyone not come across some or all of these?

Dysfunctional leadership symptoms and those typical warning signs of dictatorial leadership, no feedback on performance, personal agendas, more ‘political’ compensation than ‘performance related ones, inefficient use of resources, empire-building practices, unequal workload distribution, too much management, fragmented organization efforts.

There is simply just too much talk, ineffective and incessant meetings, a lack of collaboration across departments, ‘selective’ low productivity when you are working way beyond the normal, feeling in a constant crisis mode, watching a morale deterioration take place before your eyes, the backstabbing, starving projects of essential resources and finally, working in highly stressful workplaces.

A pretty depressing list isn’t it? I’m sure you can think of a few more besides.

Finding space for growing innovation

Making innovation a constant daily task for everyone in finding time and space to become involved in, is certainly a real problem for many organizations.

Innovation does not sit comfortably alongside efficiency or effectiveness as it requires a much looser structure. It constantly ‘flies’ in direct conflict too much for many within organizations to create resistance and adoption.

Innovation is looking to increase variability, nearly everything else in the organization is the exact opposite. How do we address this resistance and make innovation part of the daily working routines?

Where can we start?
We have to open up our thinking to a number of “possible paths” to allow it to flow. I believe innovation should not be highly structured; it should be more loosely structured to allow the possibility.

For a start individuals and organizations needs to explore multiple ways to learn and find the right pathway for innovative learning as they progress.

This needs a more ‘dynamic social fabric’ to allow it to flow, it needs organizational encouragement. It needs mutual adaption and mutual adjustment. The understanding of the absorptive capacity framework I’ve outlined before helps structure this.

Three simple rules have great intent.

The Real Need Is Achieving Innovation Fitness

So how do we achieve a greater innovation fitness?

This begins to show you the way www.innovationfitnessdynamics.com is new and perhaps your possible innovative workout gym.

Firstly stop and survey our world from a new advantage point

Can you imagine standing on top of a mountain, looking out across a vast expanse of nothing but mountains and valleys stretching out before you? If you squint hard enough you can just make out that somewhere in the hazy distance, the endpoint of your travels.

The distance you have to travel towards that much-needed innovation understanding, that is made up of so many different dynamics that make you and your organization that much fitter to compete in today’s challenging world seems really far off, or actually is it?

Exhilaration can quickly turn to reality.

Clearly, while you are on top of this mountain you feel exhilarated to have even got up to this point. To even get there you have already made a decision that you and your organization need to become more innovative.

One that needs to look beyond what you have, to what is possible, you are curious to explore this further, you have to, innovation is a strategic imperative for, adding value, growth and improved wealth creation.

You have innovative choices

Your dominating innovation design is?

Each organization seems to favour one design approach over another when it comes to how they innovate. It favours either the more comfortable repeatable zones or is determined to push the boundaries out on its innovation activities.

We often talk about simply incremental and radical, yet we do have other choices such as a more ‘distinctive’ design or one that sets out to be ‘disruptive’.

Let me offer this for thinking through on your fits on the innovation path you want to take and ‘flag’ some areas you need to consider. Each degree of innovation (or type) has considerable organization design issues to think through.

Those disruptive moments when you simply need to let go

Emotional attachment prompts some incredibly strong bonds, a host of clear affections and different reactions when it comes to our favourite brands or products but then something disruptive happens and these bonds are broken.

When something suddenly ‘disrupts’ this, it triggers a set of mixed emotions that shakes you and stirs up different feelings that take some time to re-order in your mind.

I try to seek understanding and then simply have to let go, even when they so often stare me in the face. Sometimes you still don’t want to finally let go until you are ‘hit’ by such a disruptive event.

The recent Kodak moment is one of those

One of those has happened to me with the filing of bankruptcy protection under Chapter 11 for Kodak.

For so many people those “Kodak moments” make up such incredibly important parts of our lives. Stuffed under the beds, in boxes, in cupboards are those images of youth, family, important occasions and holidays that sit happily in the back of our minds waiting to be prompted by those images captured with the help of Kodak.

Hindsight and that regrettable smugness, that seems to always emerge.

Open Innovation, Technology Platforms and a New Business Model- All-in-One Biggie!

Recently I was reminded about one of the most ambitious open innovation projects around- the Innovation Medicines Initiative- set up here in Europe. I think you will find this interesting to pick up upon.

Without doubt, this is one of the most highly ambitious and bold initiatives I’ve come across.

I think anyone seriously interested in the combination of open innovation, the use of a collaborative technology platform built around a novel new business model within such a highly competitive industry of Pharmaceuticals should watch this initiative with growing interest.

It can point to significant changes in the impact and contribution of innovation management.

From its initial concept inception in 2004 and 2005, with the IMI established in 2007 as a Joint Undertaking, it has operated as an autonomous body for approximately a little over two years as I understand it.

Here I provide a fairly concise outline of its evolution and what challenges it is currently facing. It still is too long but it provides the essentials (I hope) on an amazing and bold initiative here in Europe and is worth reading until the end-really!

Background to the Innovation Medicines Initiative (IMI)

The value of having an innovation coach.

Behavioural coaching is big business, by having your personal coach alongside you when you are making a significant change in your role has been invaluable to many executives.

Equally in having external support when someone is either stepping up in the organization or making a significant change in their responsibilities has recognised value to that person and to the organization to manage the transition.

There is significant value in employing an innovation coach in my opinion, let me explain why here.

The growth of the innovation coach
I predict innovation coaching will grow in its recognition, value and importance in the future. Why?

There is a growing sense of urgency around the need for innovation to solve our growth problems. This quest for seeking out growth and new opportunities continues to raise innovation consciousness.

We all are aware that part of the barriers to better innovation adoption come from our existing and constrained mental models, so when you introduce the need for greater innovation you introduce multiplicity- you get challenged more, and your current framework of ‘business as usual’ gets disturbed significantly.

What is called for increasingly is a far more open mind that allows for opening up and gaining greater connectivity on a host of different levels.

The more we connect, the more we see innovation potential.

A Christmas Story looking out on Innovation

Jim turned from staring through his microscope, rubbing his eyes, and looking out the window. It was dark and the snow was really coming down.

The lamppost had turned that funny yellow colour, as more and more snow was falling in the car park and building those little domes of snow on top of everything.

It was the Friday before Christmas, the last day in the office for three days.

Jim was looking forward to getting home tonight, so he could share some time with the family after having been on a frantic trip to four different cities, on three continents, in seven days, to meet with his different team members.

This was quickly put together to coordinate the project they were all working upon, compare notes, and set some goals for the coming weeks.