Making Agility Compatible For You

Learning Agility 2Is Agility compatible for many working in established businesses?

“To be agile” is often a badge of honor.

It conveys your flexibility, nimbleness and your ability to be adaptive.

Agility is today going far beyond just being responsive,it goes into constantly adjusting and being versatile, modifying to meet rapidly changing conditions.

Yet this often seems the very opposite within many of our organizations and the very people employed within them. They seem rigid, inflexible and determined to stay ‘resolute’ to the established ways and routines built up over years.

They love stability, it is their bedrock but equally, they do need a greater fluidity to their performance and structures as well.

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.

Seeking fresh winds and new directions

the_winds_of_changeAnyone who has felt the ‘full force of the wind’ will know the feeling of how hard it is to keep on your feet, to stay determined to stay upright and true, to hold the course, whatever happens.
When you feel the force of change running through the organization, you tend to have that same sensation, to resist the force with all your energy.
It is often really hard to let go, the environment was something you had become used to, you accepted and become resigned to its weaknesses and constantly exploited its possibilities or even possibly the other way round.

Ignoring the power of choice within change is dangerous

Constructing a climate for any transformation is hard. Our cultures are deep-rooted; we resist those winds blowing into us “full-on,” well beyond being reasonable or smart enough to avoid them before they confront us. The Chinese proverb below gives us a clear choice: “to build walls or build windmills”

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

Fluidity – the growing need of organizations today.

fluidy 9Organizations are facing increasing a dilemma in how they organize and manage within their systems and structures.

They are being forced to deal in increasingly complexity and environmental turbulence and ‘adapting the appropriate response’  remains increasingly a difficult one to master, within the existing regime and structures.

On the one hand the value in stability is still essential, working within specific routines and practices gives a clear ‘path dependence.’

This allows for efficiency and effectiveness to be constantly at practice, constantly building the problem-solving processes, so as to master tasks in complex environments to resolve ‘known’ problems in ‘given’ ways.

We need to become increasingly fluid but how and why?

A new innovation perspective – change to fluidity

Fluidity 5Today most innovation is focused on creating new products or services.

These new innovations frequently change or modify operating models and business models, often not by deliberate design.

We’d stipulate that most innovation should be focused on updating and changing business models constantly and with increasing focus. With this focus new products and services become by-products or outcomes that support or sustain new business models for driving greater lasting sustaining competitive advantage.

In short, most innovation should be focused on creating new business models, with new products or services serving as enablers to intentional business model innovation, rather than the other way round. This is what we mean by flipping perspectives.

Critically we have to become far more comfortable with constant, ongoing change and align this into new innovations and business models. This move to positive change is discussed here, recommending a movement that allows the changes we need within our organizations to become more fluid in their adaption, for leveraging and exploiting innovation in new, far more compelling ways.

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 "C" change within innovation

Change and InnovationWe all want innovation but often we take a ‘selected’ focus on the changes we are bringing about.

It is either in the external market place in new products, services and even new business models, yet we often ignore the amount of change we should be considering within our own organization.

As we ‘learn’ to innovate we ourselves change but often we are poor at recognizing these changes and the greater impact this might have on on all that is around us.

We miss opportunities to alter our processes, systems, structures or methods. We often fail to ‘advance’ in all the positive change innovation can bring.

We tend to ignore the change part of innovation
I believe we need to rethink this and evaluate the significant changes that should be taking place within our internal organizations as we expand our innovation activities.

Art and Science Combines for Innovation

Art and Science
Image source: www.business2community.com

So do Art and Science combine for innovation?

First of all, what we do does come from us as humans, in our actions and needs,these are also the starting point for innovation, pushing for something new; it is linked to experiences and questioning, seeking out and wanting to explore “all things possible”.

The powerful combination of designing and providing something that pushes our existing knowledge, our boundaries, understanding or expectations and capturing it in thought, in explanation or detailing out the discovery makes up the art and science of innovation.

We just need to find even-better and consistent ways to combine them continuously.

Science chases progress, Art really does not. Art just looks to make a change, sometimes evolving, sometimes in powerful new ways and it does this from the evolving multiple perspectives and studies of much that is existing, both physical and within the mind to express this to others.

Sometimes, Science is often constrained by a far too linear approach and this needs somehow change where we need to think in less rigid, structured ways today.

The challenge for the CIO is the fusion of business and IT.

Field guide Practicial IT Deloittes 1
Taken from the Field Guide for Practical IT by Deloittes

In the past twelve months or even more, I think there have been some exceptional reports and thinking coming out of Deliotte’s group   on business issues

These have been from their dedicated practice centers, their University Press and the Deliotte Consulting LLP, mainly from the US practice.

I would regard their thought leadership as close to the top or even at the very top of any of the big consulting firms.

I’ve certainly gained some richer understanding as I am sure many others have and for me Deloitte deserve significant praise for investing in their thought leadership thinking.