It often challenges the status quo and can on certain occasions, potentially challenge the stated strategic goals as those ‘disruptive forces’ have not been addressed radically enough. Innovation often “asks” difficult questions of ourselves.

We keep asking a lot of innovators but consistently restrain them or starve them of essential resources, at the critical times they need them. We seem to get in the way of blocking innovation so it can’t be seen to align with the goals or vision of the organization.

We keep extorting innovators to raise their game, constantly trying to shape their work so it can fit. We are constantly encouraging innovators to abandon their personal judgments, open themselves up to different possibilities to try and make it “fit” with what we have got or already invested into.

We ask innovators to keep resolute and keep trying, keep pushing the boundaries, challenging and sometimes disrupting the established practices and processes, organizations like to keep in place but this is a very ‘uneasy’ and needs courage, belief but most of all alignment. Innovators need to feel confident they are fully supported and encouraged. They need empowering.

The innovator is constantly dealing with ambiguity, managing a far more dynamic process of knowledge learning and investigating. Often this is in direct conflict or tension with the majority of the organizations need to extract the most efficiencies and effectiveness out of the established systems and processes.

Strategic design often does not single out innovation as different, it expects it to comply. It is this lack of recognition that causes much of the misalignment, as it does not conform to the norm.

Yet strategy and innovation have much in common. They are both dealing with uncertainties, attempting to quantify uncertainties and unknowns, working towards a future state that advances the business by identifying and capturing new opportunities.

This is where cascading helps with alignment- consider a model

To achieve alignment, a cascade of better choices is needed that keeps mapping back to innovation activities and strategic need.

This calls for the need for a choice-cascade model where understanding flows through aligned cascading choices. Its aim is to empower firstly, by promoting and encouraging different levels of sound or best judgment, to enable individual choices, so as to allow for a ‘choice-maker’ to push this back upstream. Roger Martin and Hilary Austen have suggested “the art of integrative thinking”.

Choice options cascade down from the higher-order choices. These should set the context for and constrain (help in defining) lower-order choices.

Choices become inter-related and need to fit context and constraints from this higher-level. If there is difficulty in the fit, then the higher order needs urgently revisiting, hence the cascading effect is a constant, dynamic two-way flow.

Today, if we recognize change is a constant, flowing and rapidly changing part of how we do business, by having in place this choice cascading model you can unfreeze part of a strategy that is not ‘aligning’ with a changing world. It makes the decision-making process more dynamic and allows for greater contribution to strategic choices and the innovation process can equally respond and align on a far quicker, adaptive path.

Choice-cascade needs structure and operating principles

Choice makers within this model need to be explicit in the why:

1. Explain the choice that has been made and the explicit rationale behind it
2. Explicitly identify the next downstream choice to make it a joint venture
3. Assist in making the downstream choice happen explicitly
4. Commit to revisiting and modifying the choice based on explicit downstream feedback

To move towards choices that can outline desired outcomes and describe ways and means to achieve them allows for this alignment and flow of understanding.

A cascade must move in both directions

Water flows down but it is the  ‘pushing back’ provides this feedback cascade, where the real fate of change and realization resides is in recognition and ongoing dialogues. To cascade back, clarity or questioning needs a mechanism or process to return to the top. You gain alignment through this method of cascading both up and down organizations in deliberate ways. We are seeking this alignment constantly, it is the lightning rod that transmits the energy to gain fusion.

To encourage alignment, they need to be explicitly linked to key desired behaviors, determined by the needs of the individual organization. Alignment needs to equally map back to a high consistency in core values expected in practicing, as important. I would suggest a good innovation governance design significantly helps this. This is where building the innovation culture, the environment it works within and the climate that is encouraged prompts the dialogue, conversation, and engagement.

Underpinning this alignment within the Cascade’s design and identification, you equally build a ‘belief’ audit. Its aim is to uncover where alignment is achieved, misunderstood and equally highlights where it needs a better bridging mechanism and most importantly, where there is critical misalignment to be addressed at a higher level. This belief audit strengthens the choice-cascade model as it opens up the dialogue surrounding innovation and its strategic (or operational only) alignment.

How can innovation get squared away with strategy?

As I mentioned earlier it is getting innovation into this ‘choice mentality’ on where to play and what seems to be the real wins by providing as much understanding of the judgment of why it contributes to the strategic goals. You align it or ‘flag’ it. To get innovation to align you need to discuss a whole array of gaps. It needs dialogues, engagement and a clear, cohesive set of ‘shared’ objectives of what innovation can make a contribution and deliver a difference.

Clearly, if you lack this deep understanding of how the organization’s strategy was brought together, the thinking behind it, then innovation will often fall short in delivery, as it can’t have enough of the understanding to be aligned. Making hard choices is tied to aspirations of knowing where you want to place your bets, to win.

Often it is within the strategies lies the potential new spaces to play. Strategy informs innovation. It becomes the catalyst of where-to-play and how-to-win and with this, you are giving innovators a better chance to deliver back concepts for those hard choices to be made, designed around innovate concepts that align and feeds the strategic design with winning designs

Having a cascading model in place allows that essential ‘flow’ that connects innovation to strategy but more importantly becomes the connecting point for all within the organization to identify with and…..align too.

Contact me if you would like to learn more.

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The post Innovation has a hard job to align first appeared on Building Your Innovation & Ecosystem Intelligence.

We are caught in a real tug of war within much of what we do in business today; in our responses and reactions to many of the dramatic business conditions we are facing, many deteriorating or being challenged by greater global competition.

We are facing a very uncertain future if we base our actions on past practices. We need a new management model, one where we are pushing to seek increasing new knowledge.

We actually are in urgent need of a new management operating model.

A new management model where we are pushing to seek increasing ‘fusion’ but still want degree’s of separation, we are seeking out ‘flows’ through new knowledge to break down barriers that restrict new insights so as to turn these into new value creation, and we are encouraged to seek out and establish a higher ‘fluidity’ in what we do and reduce the rigidity we presently have in place in our current organizations.

There are growing concerns centered around how we need to adapt our management practices to manage in a digital world, we are grappling with the consequences and we need to find new solutions and approaches. We face issues made up of increasing information overload, coming at us at increasing speed and failing in our abilities to fully interpret this. We lack the agility and flexibility to respond to what this all means in both its implications and potential, for sensing and seizing new value creation from understanding this.

We need a new management practice to deal with our digital world. One real need is for increasing knowledge and then being equipped in interpreting this in our learning, daily routines and activities is becoming paramount to break out of a declining performance cycle.

Applying the three horizon lens to develop new management practices

If you apply the three horizon lens we need to construct management and its performance approaches differently you begin to see the pathway for change.

Applying the three horizon lens to new management practices

The idea grew from picking up on Deloitte’s Shift Index that has come out ever year since its first release in 2009 I came across a way for me to frame this.

Our horizon one (extending business as usual) needs a deeper, yet strategic restructuring of firm economics to generate the maximum possible value from existing resources

For horizon three (the future need) we need to develop new management practices to be effectively catalyzing and participating in different knowledge flows, fusing what is gained into new value creation, reducing friction and barriers, constantly refreshing and extracting from the relevant knowledge flows that provide scalable learning pathways.

Our horizon two (transition from old to new) we need significant innovation, learning and experimentation to drive scalable participation in knowledge exploration and exploitation, a duality of fluidity and stability.

See here and here for a fuller explanation of the different approaches needed in three horizon approaches, if you are not familar with this framework approach, they will help.

Let me build this out in why we need to change the way we gain knowledge and translate this.

My three points of reference in researching and framing this post are, firstly, Deloitte’s ongoing work on the Shift Index, providing a longer-term set of indicators to how we can change performance through the flows of knowledge, capital, and talent (their second wave). This is coupled with my own studies and commentary on fluidity and thirdly, the “stock and flow” of knowledge and how we can harness it for our needed sustainability and this new value creation.

The future of managing will be through ecosystems and platforms

I am constantly drawn to ecosystems and platforms as the connecting mechanism that can drive each of the stages of the three horizon view taken here. It is going to be through greater collaboration, sharing and exchanging we can learn a new form of ’emerging’ management practice

In our past management practices, we have operated and exploited the linear world for ever-increasing efficiencies and effectiveness. This relied on stability, predictability and a willing end-user, ready to accept ‘our’ offer of product or service. All three of these conditions are increasingly absent from our world today and will increasingly be challenged in the future. Our increasing connectivity, brought about by our digital world is giving us increasing volume, richness at increasing speed. We are in a hyper-connected world, potentially global for all of us and increasingly we will operate in interdependent ecosystems that allow us to collaborate and share, driving up awareness and performance.

Classic models of management get broken down in any ecosystem approach, that is why it has such an exciting potential. You have to be open, prepared far more to share, to build trust and seek out increasing relationships and diversity of knowledge and much of that comes from external sources of new knowledge. Collaborating in collective ways helps break down complexity. To be ready to respond we must be ready to seek out unexpected outcomes, to be increasingly exposed to new opinions, experiences and learn from all those adjacencies and external connections help to  add and define new potential within our domain of expertise. What will be rewarded in this connecting world is agility to respond, the ability to absorb and learn quickly, and the nimbleness to translate and adapt new learning into insights and eventual outcomes, that build out our businesses, keeping them healthy, growing and sustainable.

Our world is shifting from scalable efficiency to scalable learning

In the work of John Hagel and John Seely Brown and their associates at Deloitte University Press, this scalable change from efficiency to learning is a central tenet of their work. Achieving scale is critical for all in business, be it the entrepreneur or start-up or the large institutions wanting to span the world. If you wanted to scale it had to be “efficient and effective” in our past approaches. Yet as the two John’s point out that is great in the stable, more predictable world or market conditions of the past but not when everything is evolving rapidly or changing before our eyes. The efficiency mantra often allows for applying the “lowest common denominator of need” and reduces the impact of ‘true’ innovation.

But we are now in a world that sees exponential change caused by digital technologies, this is making everything we do as uncertain. We arte experiencing consumers increasingly demanding personalized service and offerings, then the past standardizing approach is significantly under threat. We are seeing increasing friction, deteriorating trust and growing gaps in expectancy between “what we want and expect with what we receive” and institutions need to respond to these pressures. It cannot be the approach “business as usual” it needs a new recognition as outlined in my horizon one frame above.

We are recognizing “existing knowledge is depreciating at an accelerating rate”. To create new knowledge we have to step out of our silo of the one institution into a collaborative world, connecting with others where the physical, virtual and management of systems help accelerate learning. Increasingly these learnings will come through ecosystems and platforms where you can meet and exchange in systematic and holistic ways, building growing trusted relationships, sharing and exploring ‘collective’ knowledge to solve common problems.

You move from the need of conformity to be efficient, seeking out where you fit within a ‘given’ system you look for increasing the ‘flow’ of learning by encouraging increasing fluidity and being highly adaptive. Your role is not to fit as such, it becomes how you can separate, identify and deliver more value, to translate and learn faster, to rapidly connect understanding, ideas and potential outcomes for new value.

Balancing fluidity and stability

The world we live in is relentless, it is demanding and constantly changing. We begin to believe it is in a “continuously unstable state” yet it is this ongoing receiving of contradictions we can build a different, more fluid state that is adaptive, responsive and encourages different thinking to break through our bewilderment.

We need to build far more for countervailing functions and opinions, have greater understandings of pattern recognition and maintenance and be highly adaptive in our outcomes. We must start by establishing a different boundary building understanding (governance, risk-taking, ability to recognize managing exceptions are becoming the rule in individual consumer worlds), have a growing identity formation set of mechanisms and responses (in customer touch points, response alternatives, conflict skills to resolve issues early) and develop the problem-solving architecture to be constantly evolving (shared, reinforcing and breaking down present orthodoxies).

Ambidexterity and countervailing processes need developing and embedding. Achieving a constant duality to manage in our three horizons. It is the horizon two exploration and exploitation that allows this change in managing transit from the old (h1) to the new (h3). We need to re-enforce and extend (h2-), we need to ‘undo’, explore and redesign (h2+).

To become fluid we need to absorb and respond at faster rate and that comes from the increasing flow of new knowledge. We need to be highly adaptive to a constant, multi-faceted world of connections, systems and knowing where the different pieces need to be found, so we can then ‘pieced’ together into the ‘new whole’ you are needing to design, at individual or institutional design level.

To get to a point of being fluid we need to hone our navigation skills, we need to have more assignment driven work, not stuck in repeating work that can be automated far more effectively in today’s digital world.

We need to be more agile, iterative, to be encouraged to be experimenting and exploring. We need to believe and given trust to execute and drive our results into more value-add. We need to seek out empowerment, participate in collaborative endeavors, and most importantly grasp the makeup of value creation. To get to this point we need to build one of those boundary spanning guidelines of a sound conflict resolution pathway for ourselves, our customers and our institutions and these will be ‘living constantly evolving pathways‘ that feed on new learning.

To get to this ‘fluid state‘ we all must strive for authenticity, trust, and recognition. This only will come from a real willingness to seek out diversity in opinion, knowledge and experience, to be highly visible and understanding what that means in risk and reward, looking to constantly enter and exit projects where we can truly contribute to driving up our own confidence and belief, our personal satisfaction and contributing worth.

If we can design a framework that transforms us into being highly fluid and adaptive, we can move through horizon two and its conflicting challenges. We are seeking to balance stability with an ongoing need for dynamism and responsiveness, at agile and fast ‘reaction’ times from our ‘incoming learning’ and ‘outgoing value-added‘ outcome

Seeking out the relevant flows within new knowledge for increasing scalable learning, our new institutional state.

The stock of our existing knowledge is rapidly diminishing, we need to seek out the flow of new knowledge. Our fixed and enduring know-how and sets of experience are being diminished in their value inside organizations. What was once accumulated as ‘stock’ inside the organization was how organizations exploited this for profit. Yet this is under attack from multiple sides.

We are seeing a compression of time in life-cycles, we are not in stable markets but increasingly volatile. New generation replacements, driven along by digital solution power, are pushing innovation through the pipeline faster than before. We are failing to keep up with the knowledge you need. It simply can’t reside in one company, small teams or simply with one person, it requires a network of partners collaborating and contributing their expertise into exploring and exploiting new solutions, tapping into this inter-firm knowledge flow and experience with innovative solutions that are more aligned to customer needs, solving challenges and growing complexity.

The search for knowledge means a higher emphasis on tacit understanding (this link explains tacit knowledge)This understanding comes from relationships and exchanges, from personal stories, experiences, and personal connection. Our ability to tap into this tacit knowledge comes increasingly from these ecosystems and platforms set up to exchange, collaborate, and build a network of common understanding. A common understanding of a problem or challenge, through the diversity and power of the community that works together to find solutions and resolve the multiple issues.

I do think Deloitte’s view that we need to move to scalable learning is essential to achieve. This needs completely new practices to be effectively catalyzing and participating in different knowledge flows, fusing what is gained into new value creation, reducing friction and barriers, constantly refreshing and extracting from the relevant knowledge flows.

Knowledge intensity can risk fragmentation and inequality, it can lead to concentration of market power. It is finding more universal practices can level the playing field. Digital is part of this leveling. We equally have to learn how to create, disseminate and use knowledge differently.

Here I am a particular fan of absorptive capacity that pursues potential knowledge and extracts out its realized value through transformation and exploitation.

As more information comes towards us at increasing volume, we need to find ways to adapt and interpret this. There is a greater set of ‘forces of variation’ for innovation solution selection, all requiring this increased knowledge understanding. To codify and relate to this we need a structure to manage this knowledge flow, hence my belief in us needing to understand absorptive capacity.

In a future post, I will look more at knowledge and all its important components. We totally understate the value and importance of knowledge. It is managing the different types of knowledge that offer us the solutions in our digital age. We need to design a scalable learning approach (horizon 3 outcome) and recognizing all of what ‘makes-up’ knowledge is important to build into this h3 solution.

In summary

We need to harness the capacity of learning through the competencies for new knowledge acquiring. We need to replenish the internal diminishing stocks of knowledge with a constant flow of new knowledge. This comes from outside, it comes through networks, relationships and collaborations increasingly built on ecosystem and platforms.

It is our increasing ability to participate in this growing formation of managing knowledge flows, harnessed through digital solutions, as they will move us to value creation. Ones that are increasingly  collaborative, between partners but also with customers, all increasingly contributing their knowledge, insights, and needs to finding joint solutions and resolving challenges.

To achieve better outcomes and to drive sustained growth we need different management practices. We require scalable participation (ecosystems) to relate too and generate new knowledge flows. We need to be increasingly responsive, adaptive and fluid in any design of structures and solutions.

Performance requires us to quickly learn and translate, that cannot come from the pursuit of efficiency, it comes from learning to be highly adaptive and responsive, to have a high level of fluidity to fuse all the flows of knowledge into new potential value creation.

We do need this new management model to adapt to the digital world and all the uncertainty of our prevailing conditions of more open competitive and challenging markets, more demanding customers and the constant waves of information and ‘forces of change’ raining down on us. We need a new way of working to counter this.

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The post Fusion, Flow and Fluidity are needed in our Management Practices first appeared on Building Your Innovation & Ecosystem Intelligence.

Innovation can drive change, change is required.  Without innovation, we progressively die, as we provide no option for change, no prospects of new, different growth. So why does it continually fail to happen?

We innovators certainly need a new model of change, for at least eight important reasons I can think of, that render what we have practiced in the past as obsolete:

1. As innovators we aren’t simply responding to external change, we are creating change, both for customers and for our companies and markets. (the inside, proactive change vs external, reactive impact). The ‘flood’ of data, of customer dialogues is offering us ‘signals’ to explore and seize opportunities by being agile, aware and alert to the new discovery of needs not being fulfilled.

2. External change is far more unpredictable, in global markets new threats emerge from anywhere, at any time and often delivered in totally unexpected ways, through new business models that totally cut through and disrupt the existing positions. They can render the existing obsolete in seemingly rapid time, irrespective of the efforts to respond as they have discovered the unmet need to deliver solutions to it.

3. The pace and nature of change is not slowing down but accelerating and will continue to accelerate at increasing pace, frequency and amplitude of change. Organizations need to pick up the pace, learn to accept a greater risk, experimentation and rapid adjustment on the new knowledge flowing in to build the final outcome to the needs of the market and customer.

4. Sudden rapidly evolving markets make everything needing to be ‘super’ responsive by existing players, to the sudden realization they have missed opportunities, Many existing organizations cannot cope and alter with this demand for agility, flexibility, and responsiveness. They need to (re)learn this and build it into their systems and often this realization comes too late ,they have fossilized.

5. As often demonstrated, most innovation has the potential to be business model innovation, which will require change. As more innovation becomes focused on business model innovation, this will create even more change and challenges.

6. We recognize that change is no longer an occasional threat but a constant companion, so we need to shift from the idea of change as a potential inhibitor into one of developing an ongoing change capacity as part of our unique competitive advantage, evolving and pushing boundaries.

7. The idea that companies can achieve a protected steady state where change won’t affect them doesn’t seem to apply anymore, as long periods of stasis, or standing still, is no longer possible, we must be able to learn to evolve constantly and reflect that more ‘dynamic’ condition.

8. We need to think of change as a capability that we constantly deploy, rather than a threat we typically avoid and fail to understand. We need to develop change as a capability, to build skills, reduce barriers, to extend our capacity and competencies through experimentation and discovery. We need to push out of our comfort zone constantly.

Are we asking ourselves do we recognize our need to change?

How can we focus the energy around the boardroom table on to this linking the future work to the shape and the organization’s needs, making the growing innovation debate as strategic as it can be? One where change becomes a constant, delivered through innovation.

How are we going to design our innovation capabilities, competencies or capacity unless we fully recognize the dramatic changes in business that are now underway and what this needs to be addressed, to allow for a more responsive, fluid, agile and adaptive culture, to flourish and respond so as to generate the better innovation of the future we need.

Recognizing differences

There are different traits, actions and activities to think through. Here are some of the needs:

* We need to build far more serendipity into what we do, also random connections, as well as purposeful discovery, by seeking out increasing connections and engaging in networks of learning and mutual exchange.

* We need ‘safe’ places where we are turning curiosity into reality and building our innovation mental abilities for growth, development, and accomplishment, opening up and having others being receptive and then jointly translating this into new innovation.

* We need to embed into our new innovation core new routines and thinking. It is determining the changes needed by those new combinations of fusion by seeking out the chemistry from all the connections and exchanges, pushing for creative collisions, positive tensions and dynamics to engage fully in innovation, so the culture, climate, and environment are vibrant, challenging and exciting.

* We need to constantly seek the new space from knowledge exploitation and exploration, redefining the organization edges, enlarging and enhancing our understanding.

* We need pushing constantly out, constantly evaluating, discovering and aligning growth options and then seeking out those outcomes that potentially offer the right return on innovation

* We need to place learning into the center, to allow our capability building, new competencies to grow and evolve.

* We need to focus on the constant wish to improve, so as to improve performance and capacities by focusing on both our mental and physical abilities to develop our position and function, to explore, expand and exploit. Each contributes to our ability to receive, hold and absorb new knowledge. We measure these by the increased volume and quality outcomes, others provide back to us.

* We need new structures, attitudes, investment and motivation to change, to focus on innovation building that needs being instilled, drive with a dedicated focus from the top, not just as a commitment that must happen but integrated and aligned with the strategic thinking and planning, worked through a clear pathway of change to achieve a different, core innovation capability.

* We need to determine the abilities to deliver in effective, focused, efficient and aligned ways. Knowing what is important, seeking out the actions to support and deliver the part needed to achieve the desired goals. Adjusting as we go, as we learn, ramping up what is working, dampening down what is clearly not.

* We need to build innovation by working it continuously.  On making our environment into this more evolving, fluid and dynamic one, where the climate and culture of innovation thrive and grows from this constant feeding and attention.

Our innovation problem that never seems to change

Innovation requires increasing agility, flexibility and allowing creativity to flourish on a constant, evolving basis. Today, innovation often stays outside the mainstream system and operational structures, most often to the organization’s detriment, as we simply accept innovation work as something that does not fit the ‘norm’.

Innovation needs to be fluid, open, responsive, adaptive; sometimes reliant on the instinct, hunch or powerful insight that is never ‘predictable’ but suddenly emerges from a collision of events, or random thoughts that lead to a new insight, a game-changing one.

Of course it is really hard to turn this ‘randomness’ or serendipity found in innovation into a system but it is certainly not impossible, as the few who recognize the ‘power’ of innovation continually show in their capacities to innovate, as they recognize they have real growth as there need and innovation, however hard, delivers on this

This is today’s innovation problem, tackling the differences in managing innovation, so often we can’t bring innovation into the very core, it feeds the core but it just never becomes the ‘beating heart’, for many, it seems too hard and disturbs the “business as usual” needs until eventually they implode, wiped from existence, lost in a wistful world of “if only.”

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The post Is innovation really important to you? first appeared on Building Your Innovation & Ecosystem Intelligence.

A truly integrated innovation solution that sits in our organization to allow innovation to be fully leveraged and exploited.

We need to recognize innovation has many touchpoints and a myriad of dimensions that need to be aligned and integrated. I genuinely believe we need a solution provider, who takes a more holistic view of innovation management that can make a significant advancement on where we are today, in our processes and systems.

These need a total integrated solution as the approach. this has its complexities in the challenges but we do have the potential through technology deliveries, platform constructs, and using the flexibility and adaptability found in the cloud.

If we combine these technology enablers with our innovation management understanding, then we can begin to construct this systematically and thoughtfully. It is very achievable and necessary for our organization’s abilities to absorb and translate knowledge into innovative growth, something missing for many.

Innovation is certainly one of those in need of a real concerted effort to bring our approach to the management of innovation up to date within our enterprises, to make it more inclusive and that can I believe come far quicker through delivering it across the organization and all their partners by operating within the cloud.

An Enterprise Innovation Process (EIP) that is highly visible, agile and core to the organization’s future, seen by all, used by all and truly valued by all, as integrated and highly valuable to engage with.

The formal management of innovation is not resolved today, it is a collection of pieces.

To quote these statistics from an Innovation Leadership Study in March 2012 for example:
• *Only 30% of respondents agree they have an effective organisational structure for innovation.
• *45% do not have a well‐defined governance structure for innovation.
• *40% lack clear roles and responsibilities for innovation.
• *39% state they do not have an effective decision‐making process for innovation.
• * 54% of those surveyed indicate they do not have a formal KPI system for promoting innovation.
• *49% are not having a well‐defined process to prioritize and allocate time and funding to innovation projects.

If innovation management can be integrated into the organizations systems, I would suggest many of the current problems and frustrations we face today, in our innovating efforts, in barriers and issues surrounding innovation, might begin to melt away or change the existing unsatisfactory result game of today.

We need to strive towards making a more radical attempt at integrating innovation into our systems and structures. It is needed, as we need to all engage through innovation far more, to tackle growing issues and problems that are complex challenges that really need integrative thinking and connected processes.

Making the business case

Innovation management today is often standing outside any integration structure.  Some people, I am sure, would argue that it should do, yet I do often see and certainly feel innovation is often missing the critical top management line of sight and suffers accordingly.

Often this is in numerous resource constraints that ate becoming a real performance drag against expectations. To resolve this and many other issues innovation needs to be more central in core process thinking and managing throughout the entire organization.

• Often Innovation runs counter to repeatable processes; it needs to leverage this ambidexterity of having access to all that makes it adaptable‐ nimble, agile, constant change, and experimentation, prototyping tailored to explore incremental innovation in faster, more flexible ways.

• Alongside this to allow for more radical innovation that taps into greater needs for mobility, usability, elasticity and yet still be aligned to leverage, exploit and maximise opportunities needs to run in parallel.

We need not just a new innovation management system; we need to build this on a modern engagement platform. As constant change happens we will need to accommodate new technologies and its realization of enterprise value will need an even greater evolution than ERP, the present backbone of organizations.

We need a new outward-focused orientated system that can be delivered through this suggested Enterprise Innovation Planning (EIP) system.

As outlined earlier here, to achieve this I think we must go cloud‐based, agile, and moving towards having a more ambidextrous organization design for innovation.

This will help innovation to break out of the existing constraints and linear approach we have given it as its present straight jacket.

Integrating the innovation process and system is needed more today than ever.

We are in a really evolutionary period, with the explosion of change taking place in the post‐digital world of cloud, big data, social and interconnected devices. External insights and Intelligence will not become Enterprise knowledge that flows without real, deep integration.

Receiving the knowledge alone will not turn these into ‘higher scales, richer, more innovation business outcomes’ that have real growth value, unless we realize the massive ‘mismatch’ between digital flowing in and the physical attempting to cope with this.

The discovery of insights from all this embedded intelligence, social activity and data analytics is leading us to potentially manage a significant wave of new innovation opportunities from this growing digital knowledge and activity.

Insights and ideas will form a real log jam attempting to enter the innovation pipeline

As it stands I can see a potentially damaging build‐up, or a log jam of promising concepts all desperately trying to work themselves through the innovation funnel.

Either decisions or the existing disciplines have to be radically altered, where we take on a much higher risk profile to enable these to move from idea to finished product or new service, or we accept the consequences of different failures, growing frustrations or variable revenue metrics against the cost invested.

The innovation pipeline today is very manual; it will always need human intervention, in decisions, in inputs, in what is communicated, and what is approved or dropped. Yet innovation often gets far too weighed down by the wrong type of human intervention.

What changes are needed, who will be willing to invest in this radical redesign of the innovation system?

It is through searching for and seeking engagement in the ‘wider’ world we will begin to make greater connections and receive potentially enormous amounts of (raw) data, about interactions, performance, possible issues and connecting that previously fragmented and dispersed information, through analytics so it can be turned this into emerging valuable knowledge.

Innovation needs a radical redesign and update to accommodate the changes occurring in the present digital evolution of mobility, social and big data.

• We will need to transform much within our systems but more importantly to orientate our skills to receive, translate and diffuse new knowledge, in significantly different ways.

• It is through this combination of people and ‘things’ connecting into our businesses that we will be able to extract new observations, to give us insights that can lead to completely different innovation opportunities.

• Market trends are changing faster and becoming shorter, so opportunity windows are narrowing. Risks of missing out are constantly increasing for those who are not focusing intently on that critical ‘time to market’ and not constantly streaming their innovation system, looking to automate it where ever they can.

Today we are still too reliant on manual systems for much of our innovation work.

What is needed is to push the thinking on how to automate the innovation process even more.

We need to think about our innovation system designs a whole lot deeper to allow these new digital technologies and the insights to be worked through the innovation process.

Speed is becoming ever more important, for new solutions to be turned out to the other end as new innovations.

We need to design a complete innovation system otherwise we will be investing in a front-loaded area alone, limiting digital impact and that will not deliver the power of actual growth expected or needed from our innovation activities so as to deliver new valuable outcomes.

Approaching the innovation process holistically would certainly help instead of bolting further onto our present ways as our innovation challenges become even more complex.

Offering an Enterprise integrated solution would really offer innovation and its management a real opportunity to become fully embedded within our organizations.

Innovation gains a real line of sight and across organizational engagement to move closer to its promise of delivering sustained growth, new business and impact.

So it would be a real achievement if we saw real hard physical evidence that innovation was moving towards this integrated system in 2015, so our Enterprises can leverage all the knowledge and insights that can be harnessed into new innovation growth.

The post My innovation wish for 2015 first appeared on Building Your Innovation & Ecosystem Intelligence.

If you ever look at high performance in sport it is in the consistent, hour-upon-hour, day-upon-day of dedicated practice, hard work and consistent honing that gets you to that performance point. You seek to reduce deviance; you look to achieve a certain consistency.

Business Organizations will like that approach, it ‘plays’ to the efficiency and effectiveness message, it offers up predictability and reliability that allows for dedicated planning and ‘predicting’ solid performance and certainly. This is ideal for those investors looking for consistency in results and dividends and the Executive Board yearns for.

Today uncertainly asks for a different performance

Today, we face a different type of performance – one that is not ‘just’ dependable but one that is often unpredictable, one that seems perhaps more suited to innovation that outsmarts others in unique ways.

We need to be predictable in performance but we need to deliver unpredictable innovation that wows our customers and the markets to achieve this. To do this you have to run today’s organizations faster, better, in more active and engaged ways to extract the best from it but to allow it to exploit options consistently and with clear purpose.

This engagement needs a different honing than most organizations are certainly not capable of delivering, without thinking long and hard about the way they must undertake a more transformational pathway. One that can connect and deliver a consistent and coherent innovating performance across the organization.

With so much around us, of unprecedented levels of disruption and uncertainly, unrelenting competitive pressure, fickle markets and customers, it creates either a ‘freezing at the top’, a paralysis-effect focusing just on short-term incremental measures or the “going for it” with huge ‘big bets’ that risk losing the whole farm. There must be better ways to manage in these times of uncertainty without having to choose one end of the spectrum or the other?

Managing innovation well is this middle way.

Innovation requires careful managing. I like to put the emphasis of innovation behind both efficiency in innovation and effectiveness in innovation. Innovation may never be simply predictable but it can be well-managed, to extract and leverage its best performance but to achieve this it needs a highly focused top management engagement. Often we are not seeing this in many organizations today.

You simply can’t delegate innovation down the organization. Innovation needs to be as aligned, as honed to strategy, to extracting from its available resources as anything else in organizations. It needs connecting, it needs articulating, it needs framing, it needs cascading throughout the organization.

We need to cascade innovation down the organization.

I believe there is an essential gap within the way we set about innovation today. There is a need for a well-articulated and well-communicated innovation strategy that can be delivered in an organizing framework that has been called the Executive Innovation Work Mat. Over a series of articles and blog posts I have laid out the Value Proposition for this.

In obtaining the right innovation engagement at the top of our organizations, well communicated throughout the entire company, we reduce distance and bridge many current disconnects surrounding innovation. We consistently raise performance.

Triggering the cascade-effect is seeking out broad adoption.

How do we achieve firstly, a change in performance that is both rapid but also one that works on consistently looking for improving performance over the longer-term? We need to think ‘velocity’ not only down organizations; we need to encourage this sense of movement in multiple directions, flowing back up organizations in knowledge and understanding with the ‘result’ of going out performing in greater successful innovations, time and again.

I’ve previously written on the cascading effect needed for innovation success looking at two-way flows and the value of closer alignment.

I want to go one step further in THREE VISUAL CASCADING steps

We need to achieve alignment, all sorts of alignment. We need to convey throughout the organization and encourage a closer alignment on not just what to do but also to support the how to do it as well as the where to do it.

We need to leverage across the entire ecosystem that makes up the organizations place where we consciously work on immediate impact points in this year’s innovation outcomes but also what is going to give us this longer-term transformational effect.

This requires a huge emphasis on collaborative efforts, on promoting behaviours and matching understanding within a greater transparent organization climate and culture.

We need to find more fluid and flexible organizations that respond through searching for innovation consistency. They need to have a ‘flow’ of knowledge, of clarity, of a sense of scale in their learning and dialogues that promotes greater successful innovation outcomes as the sense of on-going mission.

We need to align, offer clear vision and purpose and this needs orchestrating from the top of the organization to the bottom. Organizations need an integrated innovation strategic framework that can deliver commonality in understanding, in purpose, in language. We need to cascade.

What we are looking for is a cascade of better choices to achieve the desired innovation outcomes that only an integrated innovation design can achieve. This is where the engagement from the top of the organization becomes pivotal. They ‘frame’ the design; they offer the alignment and integrated approach I believe the Executive Innovation Work Mat methodology can provide.

The work mats aim is to engage the top of our organizations to lay out the conditions and result impact they expected from innovation. Then it needs to be cascaded throughout the organization.

Through this cascading-effect you move closer to better choices that can get so much closer to the desired innovation outcomes all involved want to seek out.

A performance that reflects a team’s or organizations best efforts to be best at what they do; the outstanding innovation performance consistent to the needs and growth expectations demanded in today’s constantly changing world.

Where consistency needs to be fluid, flexible, aligned and agile in innovation – that’s the new target performance standard needed.

The post A Cascade of Better Choices for Greater Innovation Outcomes first appeared on Building Your Innovation & Ecosystem Intelligence.

Not just in researching it, in debating it but in eventually constructing a sound framework, that is visual, easy to connect too and for hopefully many to become involved and engaged with, brings this work together into a realization that is really rewarding.

For Jeffrey Phillips and me, we believe we are offering something that makes sense through our framework, which we call the Executive Innovation Work Mat, with a link to the short introductory series, published in September 2012.

In our initial White Paper there is the outlines of our thinking behind this Executive Innovation Work Mat.  The important message is that we want to deliver the message into the boardrooms of as many business organizations as we can, with this message of intent which can be simply summed up as:

“we believe we have a framework that will help the leadership of organizations to identify with, understand their role in this and in this strategic participation and framing innovation intent, so advance the contribution of innovation within their organizations and beyond.”

Let me lay out the overarching proposition for this.

We believe there is an essential gap within the way we set about innovation today. There is a need for a well-articulated and well-communicated innovation strategy that can be delivered in an organizing framework that we have called the Executive Innovation Work Mat.

The work mats aim is to engage the top of our organizations to lay out the conditions and result impact they expected from innovation.

This framework provides the guidance through its seven innovation domains that combine to move towards an explicit innovation strategy, that is looking to align far more to the organization’s growth goals and strategic intent than most organizations deem to achieve today.

In obtaining the right innovation engagement at the top of our organizations, well communicated, we reduce distance and bridge many current disconnects surrounding innovation.

The end result is we gain identification and we believe improve organizational responsiveness through this involvement. It can deliver the essential alignment that innovation requires to support an organizations strategy and goals.

The framework provides both formal and informal mechanisms, it combine the intrinsic with the extrinsic, so as to make up a more effective way for decision-making and creating innovation to take place. This combination effect provides the necessary support to the efforts involved in discovering, exploring and executing innovation and a significant contributor to the strategic and tactical linkage needed within the organization.

In summary let me articulate the potential this work mat can offer:

Key implications
Innovation is not an isolated event; it is not made up of islands of knowledge. Innovation requires a “pulling together” and needs this overarching organizing framework, that provides the deep, enduring commitment to its constituent parts from the top of organizations in the support and the understanding required to make this happen. The framework provides the innovation leadership, it lays out the “conditions”  for innovation through the work mat methodology.

The leadership have the underlying responsibility to establish it, leverage it and effectively work it fully through, using this framework as the mechanism for sustaining the innovation focus in a well-structured way.

This gains a real organizational value as it provides the top-level understanding of the seven essential domains needed to support innovation that covers the structure, design and process, governance, motivation and metrics and the conditions to strengthen the climate and environment to bring this to life.

Points of emphasis
This framework provides a uniforming and growing cohesion required for innovation to be focused, it seeks greater alignment in activities and engagement around innovation; it actively works at reducing barriers and many of today’s uncertainties through its constant engagement, communication and dialogues prompted by its construct.

The framework becomes the document of the leaderships commitment and engagement, it raises innovations visibility in a structured thoughtful way, it seeks to encourage and draw in the organization for them to gather around.

Eventually we can see this framework becoming a sort of innovation mechanism for the “collecting house in meaningful exchange on innovation” where the essential strategic activities are captured and where the actions can be recognized, measured and valued. It triggers engagement and provides the motivations to delve even deeper into generating greater innovation outcomes as the end result around its framing ability.

The essential Common Language
Eventually, it forms a significant part of the required innovation ecosystem. A place where a common language forms, a clear explicit place where context connects with the work going on and the value of this is how the people involved in innovation work, connect and engage.

A dream, no, it can be a reality. We need to provide increasing clarity and purpose to each persons daily work, to their innovation activities, so all draw meaning and value from the connections across the framework, they recognize the boundaries and push beyond in confidence, not fear. They need the appropriate “signal” and guidance from the top to gain encouragement to push the boundaries of potential but set within this overarching frame.

Risk is identified through dialogue and governance on what any actions mean and the understanding of these for any impact, negative or positive, on our innovation ecology can be evaluated. This pushes innovation beyond the normal incremental approach often found today, as leaders become more aware and can “frame” issues and understand opportunities better through their strategic lens.

Achievement Goals
The leader’s role is to provide guidance, strategic and sometimes tactical guidance, as well as to offer inspiration and clarity of purpose. They need to “draw out” the essence of an organization’s desire to innovation. By both articulating and nurturing innovation through this framework then innovation is driven and directed, then surely we are headed in the right direction.

An organizational framework for innovation draws people in, it achieves connection and engagement. If innovation can “resonate” throughout the organization it gains the “required attention”. It becomes embedded as the “force” essential for growth and over time part of our “natural”  daily occurrence.

Motivation to innovate
We need to cultivate innovation. It is the primary source of new wealth creation, of sustaining a healthy future, of securing that future.
Each of us needs to personally understand how innovation happens, what are the ‘multiple’ connecting points, all the intersections and cross-over points needed to make it work, and work well repeatedly. Innovation cannot be delegated, it needs to be mastered, it needs to be shared.

We all need to become “innovating conscious”. Everyone needs to “get it” not just a few selected people today.

Shared understanding and consistent follow-up
What the executive team does, in what it communicates in its actions and behaviours, in its participation and its resource funding of innovation, becomes vital. Innovation runs counter to many of the existing (accepted) processes and faces stronger “headwinds” and resistance because it challenges many of the existing practices and processes honed and established over many years. It needs executive leadership to manage these tensions and dynamics. To show innovation leadership.

This framework becomes the “glue” that connects across the seven domains essential to innovation and re-enforce a consistent need to challenge, overcome yet equally maintain performance.

Changing Behaviors

People make or break innovation. Innovation is an inherently social activity that needs relationships, networks, structures and supporting systems. People need to belong, belong in an environment that nurtures and encourages innovation, in a community that balances risk and learning, a place to generate and execute. A place to experiment and learn.

From the top to the bottom of the organization requires active engagement, growing identification and understanding and knowing that the skills, exposure to competencies and building capabilities is an ongoing process that feeds off a climate of trust, mutual respect and ever-evolving partnerships to achieve the work that is needed can be done.

Real Value Points
For engagement in the Executive Innovation Framework, the work invested in this work mat exercise offers as real value benefits:

1. The framework can create cohesion and consistency of innovation purpose that will reduce many existing barriers and uncertainties around innovation
2. As the leadership does become engaged this will demonstrate a significant commitment and promise that will certainly increases the visibility of innovation, lowers risks, encourages more involvement and generation of better ideas.
3. The framework itself will generate work flows that link, become more dynamic to explore and promote the innovation skills, capabilities and competencies needed. They become more cohesive, coordinated and focused. It seeks to reduce tension and increase the dynamics within innovation.
4. As the framework connects, in its understanding and as its impact grows, we certainly believe, confidence builds. Both formal and informal areas are addressed in parallel, growing all-round identification and alignment.
5. You begin to align compensation and incentives into your abilities to generate the innovation activities that provide the impact the organization is looking for.

While CEOs or other senior leaders responsible for innovation they don’t need to dominate innovation activities but they do need to fill this critical role to ensure:

• linking of innovation activities to corporate strategies,
• communicating the importance of innovation consistently and demonstrating their personal engagement,
• aligning the corporate culture and compensation programs to innovation goals and activities
• creating innovation governance frameworks and providing the environment to allow innovation to function and thrive.

The essential role that leadership plays in innovation
While few executives will conceive the ideas that become best-selling products and services, executives must orchestrate and lead the rest of the organization, in building a culture that embraces innovation and provide the leadership and guidance innovation demands.

Leadership is certainly seeking more innovation in their business models, more distinctiveness in their innovation offerings, a wish to explore different options. To meet this, they need to become more involved in all aspects of innovation to achieve this innovation improvement and reduce uncertainties that lies often within their own minds. I would suggest it is through this framework that it becomes the focal point and offers the mechanism to provide these necessary conditions and can set the “pulse”that enables the innovation juices to flow.

The competitive pace today and for a sustaining future requires innovation engagement from the top. Executives who understand their role in shaping innovation frameworks and activities, and, more importantly, increasing opportunities and engagement for the entire organization, that can be “driven” through this framework, will deliver better and more sustained innovation outcomes by its engagement effect.

Innovation needs to be seen coming from the top as compelling.

There are some very compelling arguments why the leadership of our organizations do need to become fully involved in providing and guiding the innovation design. Organizations need an overarching strategic design for innovation and this must come from the top.

Here are two series of short papers laying out the business case for the engagement of the top of our organizations within innovation, based initially upon turning the buzzword of innovation into the imperative and a further set of papers based on leaders need to engage and drive their innovation needs to achieve the strategic growth they believe is achievable.

We need to reduce this present gap of poor innovation leadership; we believe the Executive Innovation Work Mat approach can definitely help towards this goal, it has real value to investigate, construct and implement as an overarching framework for innovation alignment within organizations.

The post The Overarching Proposition for the Executive Innovation Work Mat first appeared on Building Your Innovation & Ecosystem Intelligence.