Achieving Innovations Capability Coherence

Coherence 1Innovation often fails to align to the strategic needs. This is often not the fault of the innovator.

Many innovators are simply happily working away with no specific guidelines, apart from the general remit of “we need to be more innovative”, it lies in the boardroom that is not communicating the board’s needs clearly enough down the organization.

Building up our capacity to innovate does need to understand and reflect the organization’s business activities, as innovators need to grasp the value creation aspects that will deliver the necessary capital-efficient and profitable growth, and then ‘go in pursuit’ to achieve their contribution to these goals.

Even the basic questions often remain unclear, those of how are we looking to grow revenue, save costs, reduce working capital or improve our fixed capital? Managing our innovation activities can help in all of these. Actually if you ask I expect the CFO would say “all of them” but each does have implications on understanding of the fit and eventual role of innovation’s contribution.

Opening up our innovation to stay relevant

Staying RelevantOur whole understanding of innovation is changing; there are numerous shifts occurring.

We are opening up our thinking about where and with whom, to collaborate.

We are evaluating and changing our existing focus from closed (internal orientation) into one that is having a far more open stance. We are searching for more collaborative innovation (external orientation) combining external partners into more ‘collective thinking’.

The shifts taking place are offering us the promise of “extra acceleration” that is needed to improve our innovation performances from concept to market delivery. Or, we hope it is!

Collaborative innovation is also leading us to higher chances of achieving greater impact and success, as nearly all novel ideas lay are mostly outside the organization’s domain of understanding. We need to always bring the knowledge inside and build from it.

As we increasingly include the customer and their more exacting needs within our understanding, these multiple collaborations and dialogues are building this better internal understanding to align our innovation with specific opportunities, relevancy and needs.

Our inabilities to adapt needs changing.

TransformationErosion is everywhere, it just seems inevitable, we somehow get caught up in the process of time and our organizations seem to ‘freeze’ before our eyes, then simply age.

They become fixed, rigid and locked into their established ways, not adapting to the changes occurring around them. We often give up and leave, moving on to better places and challenges.

We seemingly are reluctant to undergo any transformation, experimentation or adjustment in our organizations until it becomes a matter of survival, then its often far too late.

Then it becomes a mad scramble to transform ourselves, often with damaging consequences of deteriorating performance, battling more competition that are sensing our weakness, never capable of returning to those previous highs.

We simply  hate adapting or adjusting, certainly on a constant basis, we resist any form of ‘greater’ transformation – why?

If we can’t adapt to changing times, we simply struggle to survive, that is the growing reality operating in today’s environment. Simply put companies ‘die’ due to their inability to adapt to change and transformation projects fail because the message somehow fails to register and never gets completed to the original objectives.

According to a survey by McKinsey in 2011, 72% of our transformation programs fail to deliver on their original targets. Also one out of every two of our top organizations in the Fortune 500 will be gone, history, dust, taken over in ten years, according to the OECD.

Unless we create a strategy to transform, how can we re-imagine our innovation processes?

The Three Horizons – Providing a Common Language in its Innovation Use

Forming a common view of 3H
Forming a common view of the Three Horizon for Innovation

As you may know, I have been writing significantly around the Three Horizons in relationship to innovation.

Initially drawing on the foundation within the McKinsey initial papers, updated here under their enduring ideas, and in particular based on by its original authors of the book “The Alchemy of Growth” by Mehrdad Baghai, Steve Coley, David White and Stephen ColeyThen I discovered the work of the International Futures Forum, based in Scotland, where a group of members have extended the 3H significantly, well beyond McK’s initial work from my perspective, into a broader, more robust methodology tackling complex problems.

It was this IFF work that excited me, it opened up my thinking to find better ways to deepen the innovation connections and framing that could be suggested in the use of this three horizon frame in exploring and expanding different techniques and approaches.

Connecting the innovation thinking dots

The Interplay in 3 Essential Change Points for Innovation

The Critical Interplay 2There is always a certain impact that innovation brings, it should change habits, alter perceptions, improve our lives or alter the way we work and think.

Each change brought about by innovation does have different impact effects upon three important market constituents: customers, the markets and the industries themselves but also and often totally under-appreciated, internally on the innovator driving the change.

We need to understand the broader scope of our innovation

Until we understand the scope and impact of innovation we can’t fully grasp the nature and amount of change that innovation can unleash. It can alter businesses, shift markets and challenge customers to move away from their existing thinking into adopt this new product or service.

The Interplay Surrounding Innovation

The Interplay Surrounding InnovationInnovation should be the primary source of real change. Often when exciting new innovations occur they have the power to significantly change our habits, and choice of product, preferences and ways we set about our daily lives.

Yet why is it we often ignore the power of change when we design innovation?

We often fail to fully appreciate the changes that are occurring from the innovation we produce, it often seems an afterthought, there is this lead and lag effect and needs, firstly recognition and then addressing in how we manage innovation going forward.

In a recent series introduced initially and given a feature of the week prime spot on www.innovationexcellence.com on June 7, 2015, we discussed the importance of the emerging interplays.

This series will be re-produced here as it is an important concept to consider all the aspects within any innovation interplay.

The emerging concept of “interplays”

The ongoing challenge is making change our constant

Change is a constant 2Thinking about the managing of change has been occupying my mind in recent weeks. It will continue into the next few weeks as Jeffrey Phillips of OVO Innovation and I have co-authored a White Paper called “the critical interplay among innovation, business models and change” as it rolls out.

In this we provide a foundation document that highlights the important interplay between innovation, business models and change. To launch this, we have kicked off our thinking with a feature of the week on Innovation Excellence introducing the themes that have multiple interplays we often fail to exploit when it comes to innovation.

The opening post is entitled “the interplay surrounding innovation”. Please take a read

Our opening argument revolves around the recognition of change as part of an interplay

We argue that we are failing to manage the different and multiple interplays that are constantly taking place when innovation occurs. We are often ignoring them and failing to extract the best or optimal value out of the innovation we are introducing. The change effect is often being ignored.

Delivering the innovation core: building capability, capacity and competency.

Building capabilities 4Each organization needs to understand its strategic resources to build continuously innovation, so as to sustain and grow the organization; otherwise, it will eventually die, starved of what is vital to sustaining itself.

The resources provide the lungs that give oxygen; they need to constantly be nurtured, too breathe and pump new life into the existing.

For innovation the same applies, we need to consistently build our innovative resources, they give delivery of the healthy living cells to promote and sustain us in new value potential.

The problem is we often are not very good at maintaining our resources and innovation activity. We just simply do not sustain our efforts, we tend to allow them to drift along or become lopsided from one individual team’s efforts, while the others simply ‘wallow’

Balancing Our Innovation Understanding

Balancing the equationRecently I have been hearing a lot about different innovation equations that will deliver value on the efforts you put in.

I think the activity behind all of this is actually very encouraging, it shows the current dissatisfaction with what we have and the quest for providing a formula for overcoming this ‘present state’.

I think they are all contributing to a promising future. Yet we need to consider the balance within any innovation understanding or equation to derive its real value.

Walkabouts are needed for learning and testing ourselves

Walkabout picture
photo credit: Walkabout (1971) film by Nicolas Roeg

How often do you pause for thought, testing yourself, questioning even simply for ‘just those few minutes,’  to allow yourself to openly challenge where you are and what you are attempting to do?

We keep relentlessly moving on, like a wandering herd of buffalo, always looking for fresh pasture, those new feeding grounds. It’s not good.

Of course, I often get caught up in this restless pursuit of gathering more, when I spend a growing amount of my time researching innovation. I keep coming across so many things that ‘trigger’ the thinking, pushing me on.

Do you let them go, ignore them, quickly pass over them, or attempt to capture the issue as something well worth investigating further at a later stage, or just get them simply behind you in the here and now.