Constructing the innovation mandate

So often innovation struggles to be recognized for what it is. Innovation is a critical source of future competitive advantage. It is our ability to consistently capture, build and develop new ideas within organizations or in open collaborations with others that have a direct effect on revenue growth and the ability to provide future sustainability. So why is it not more central within an organization’s core?

This is part one of a two-part post around the construction of an innovation mandate.

We need to understand successful innovation actually touches all aspects of a business, by contributing to improving business processes, identifying new, often imaginative, ways to reduce costs, building out existing business models into new directions and value and discovering new ways and positioning into markets. To get to a consistent performance of innovation and creativity within organizations you do need to rely on a process, structure and the consistent ability to foster a culture of innovation.

The innovation mandate is often overlooked or undervalued.

An innovation mandate is a critical tool for defining the scope and direction of innovation and the underlying values, commitment and resources placed behind it. Normally this innovation mandate comes in the form of a document, generally build up by a small team of senior leaders, innovation experts and subject matter experts. That group should possess a deep understanding of the existing organization’s strategy, business models, operations and culture and a wider appreciation of the innovation landscape, the “fields of opportunity” and the emerging practices of innovation management.

What should be in a “typical” innovation mandate?

They are different due to the circumstances and needs of each organization, but let me provide a suggested one to get the thinking you might have a need to validate or a need to revisit yours if you have one and begin to revise it. The basic needs of an innovation mandate should include:

Innovation Mandate for [XXXX Organization Name]– an example

Vision and Objectives: Our vision is to be a leader in innovation, delivering breakthrough solutions that create value for our customers, employees, and shareholders. To achieve this, our innovation program will focus on the following objectives:

• Developing new products and services that meet evolving customer needs and preferences
• Improving business processes to enhance efficiency, reduce costs, and increase agility
• Creating new business models that drive growth and profitability
• Building a culture of innovation that fosters creativity, collaboration, and continuous learning
• Leveraging emerging technologies to transform our business and create new opportunities
• Look for emerging opportunities to improve, advance or encourage ways to improve our process, reevaluate costs in imaginative ways
• To invest in human ingenuity through the management of ideas, being outwardly aware and fostering a culture of identification, engagement, alignment and sense of identity with our priorities

Scope: Our innovation program will encompass all areas of the organization, including research and development, marketing, sales, operations, and customer service. We will focus on both incremental and distinctive innovation outcomes and ones that have the potential for disruptive or breakthrough innovation, that are exploring new technologies, markets, and new business models to drive growth and create value.

Resources: We will allocate [amount] of funding to our innovation program annually, and will dedicate a team of [number] full-time employees to manage and execute innovation initiatives. We will also invest in training and development programs to build innovation capabilities across the organization.

Leadership: Our innovation program will be led by the [position] of Innovation, who will report to the CEO and work closely with senior leaders across the organization. The innovation team will consist of experts in various fields, including technology, design, marketing, and finance but will not be mutually exclusive but open, encouraging and seeking consistent engagement and alignment across the organization and beyond.

Culture: We will foster a culture of innovation by:

• Encouraging experimentation and risk-taking
• Celebrating successes and learning from failures
• Promoting cross-functional collaboration and knowledge-sharing
• Recognizing and rewarding innovative ideas and contributions
• Providing employees with the tools, resources, and support they need to innovate

Partnerships: We will seek partnerships with external organizations, including startups, research institutions, and industry associations, to access new ideas, technologies, and expertise. We will also collaborate with customers and suppliers to co-create new solutions and enhance existing products and services. Future collaborations will build on a network of relationships and an ecosystem of design and thinking.

Intellectual Property: We will establish clear policies and procedures for protecting our intellectual property and managing any potential conflicts with partners or competitors. We will also seek to maximize the value of our intellectual property through licensing and commercialization opportunities.

Overall, providing the innovation mandate clarifies a strategic priority for any organization and confirms the commitment to investing in and driving innovation to achieve the vision and objectives.

Why I believe a robust “living” innovation mandate is important.

In my opinion, an innovation mandate should go deeper and provide different insights, experiences or reference points, Innovation evolves, expands and gains momentum. Keeping the innovation mandate fresh and up-to-date is essential, it shows constant commitment and focus.

For instance, explaining why having and sharing the innovation mandates is important offers the ability to gain:

1. Alignment: An innovation mandate helps to align the organization’s innovation initiatives with its overall business strategy, ensuring that innovation efforts are focused on areas that are most likely to create value for the organization.
2. Clarity: An innovation mandate provides clarity around the organization’s innovation goals and objectives, which helps to ensure that all stakeholders are working towards a common purpose.
3. Prioritization: An innovation mandate helps to prioritize innovation initiatives and allocate resources accordingly, ensuring that the most promising projects are given the necessary support and funding.
4. Accountability: An innovation mandate establishes clear roles and responsibilities for innovation, ensuring that everyone in the organization knows who is responsible for driving innovation initiatives forward.
5. Culture: An innovation mandate can help to foster a culture of innovation within the organization, encouraging creativity, risk-taking, and experimentation.

The mandate as a valuable tool: it can be a valuable tool for those that build out their innovation identities, recognizing innovation as a strategic priority and ensuring that it is integrated into their overall business strategy this document can be constantly referred to this for consistently improving in its value, transparency, guidelines and guardrails as the building block of clarifications.

In summary– part one

The Innovation Mandate is actually a vital strategic and operational document, essential for understanding, interpreting and identifying where the role of innovation fits across the entire organization and beyond

Part two goes deeper into different aspects of the innovation mandate that build a more tailored document built from the experience, inputs and needs of each organization.