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.
At least this introduction allows me to work in a few of my own contributions here. If you are interested in them, then click on the link, if not just carry on, simple as that, it is your choice.

Some of my contributions towards innovation understanding

I offered up the innovation pathway curve of understanding that has five learning curves for determining your innovation and the migration path to a different future. This suggests we need to break innovation down into its manageable parts. Innovation does not just have a time axis that the three horizons framework refers too but it has a complexity and scope axis in learning as well.

Then I offered up the “building an innovation framework that has real capabilities at its heart” which argues that a ‘given’ formula of SCA = II + OC + EE + MLC + RNE,  ‘suggests’ this formula as the combination of positive relationships between the following interrelated parts, so as to deliver a far superior innovation outcome. I have to admit I can’t let go of this one!

My third offering was a joint collaboration with Jeffrey Philips, over at Ovo. This is summarized in “Critical aspects of the Collaborative Innovation Framework”. This is also covered off in a dedicated site at http://cirf.pbworks.com.

Jeffrey and I picked up the baton again in a further collaboration on part of the innovation equation with an alignment view, we called this “the Executive Innovation Work Mat” and went into a significant open dialogue on this as we both judged it as critical and important to advance innovation.

I completed a whole series on this and its seven parts. This rumbles on and gathers recognition of its value to making innovation change. This was the piece of work dearest to my heart.

I think I have missed a few but it all depends on how you understand “equation”. Back in 2012 (oh it seems so long ago) I wrote a piece called “Two sides of an equation for shaping innovation” and this is where I want to focus upon within this post: “balancing our innovation understanding”

I really think we need to understand the two sides of the innovation balance sheet

When Jeffrey and I were working though the initial thinking behind the Executive Innovation Work Mat I saw these two sides really clearly.

Actually we captured it in the final framing, we clearly saw these two distinct sides to consider yet are so mutually dependent. My balance sheet thinking.

The left side of the innovation work mat or my balance sheet contains the soft side of innovation, far more the intangibles of culture, climate and environment, whereas the right side is more the hard aspects, the tangibles of process, design, governance, structure and function.

The middle is the place to build the common language of understanding, look for communicating, cascading and setting innovation in its rightful context to clarify how and why that ‘we’ set about the innovation activities in this particular way.

So is it two sides or made up of three? Well each of the sides, the intangibles more on the left and the tangibles, more determined on the right, make up the hard and soft factors and these all make up innovation that contributes into the middle, where the ‘innovation energy’ is confirmed.

The balance sheet construct delivers the equity equation you gain as the trade off or innovation catalyst, it needs presenting in different narratives and supportive actions . As you achieve a clarity of you ‘innovation energy’, based on your capabilities and capacities to innovate, you deliver the understanding and growing competencies, the required effort and contribution that can be achieved from the extraction from the two sides of the balance sheet.

That is why communicating, cascading, building a common language and the context is in the middle, central to extracting the best result from the two sides of this work mat.

At the time Jeffrey and I were looking at the informal mechanisms and formal mechanisms that contribute into these two sides of the innovation balance sheet.

Here is a list of the factors we felt were major contributors (far from exhaustive) to the soft side of our balance sheet that is made up of culture, climate and environment as our brainstorming to move us to the criteria that always lie under the top-level innovation balance sheet and then the ones that make up the harder side.

Some of course are inter-changeable or reliant on each other, but it gives a decent understanding of what makes up the balance sheet needs we all must have in place to have a thriving innovation organization.

Informal mechanisms (the contributors to the left side of our innovation balance sheet)

Those that are leading to improving the softer aspects of innovation or our left side of the innovation balance sheet) that would contribute to its build.

• Uncovering good and emerging practices in innovation
• The value of good leadership & distinct culture creating the linkages
• Targets and partner identification for relating and collaborating
• Skill of working together effectively – team building, encouraging diversity
• Integrating external parties to leverage through networks and relationships.
• Framing ambitions and plans of strategic targets and relating those to individuals
• Engaging the outer peripheries to capture insights and needs to drive engagement
• Exchanging expertise and seeking synergy in exchanges
• Story telling/ narratives- relating and explaining, sharing and extending
• More bottom-up engagement in formulation – sharing and informing
• Seeking individual insights, encouraging an open learning environment
• Developing the agility to quickly react to changes, effective and decisive intent
• Work on speed, external orientation and improvisation, flexible and adaptive
• To promote “doing more with the same”, less rework.
• The CEO acts as the central source of encouragement and determination
• Encourage informally at all levels in exchange

The formal mechanisms (the contributors to the right side of the innovation balance sheet)

Those that contribute to the make-up of the harder aspects of innovation or our right side of the innovation balance sheet that build this part.

• Ingraining innovation as a corporate function
• Determining how you lead and manage this, how you develop this out in its parts
• Identify the constraints, articulate the resolutions, recognise the boundaries
• Optimizing the process and structures, constantly reviewing to improve
• Determining the allocation of funds to offer the balance needed to achieve the goals
• Innovation portfolio management designed
• Type of openness to innovation flows to encourage and drive outcomes
• Embedding technology and capacity for rapid experimentation, and discovery
• Rapid ideas, discard failing ones & triple investment on good ideas
• Distance from Customer – determining the importance and setting about the connecting
• Ingrain as a corporate functionality the need to always be conscious of greater alignment
• Determining how you lead and manage through governance and design.
• Identify the constraints and boundaries, pushing and probing
• Optimizing the process and structures on an ongoing basis
• Determining the allocation of funds into the different framing activities
• Innovation portfolio management, striving for value, impact and return
• Type of openness to innovation flows and external engagements needed
• Embedding technology and capacity for rapid results and early wins
• Rapid ideas, discard failing ones & triple investment on good ideas, experiment and explore
• Involvement from both Customer and other stakeholders within your innovation process

These were not an exhaustive list, (well they are in many ways) they were the framing or triggering points to relate to the different aspects that need to be balanced when you consider innovation.

The essential seven parts of innovation understanding

The whole reason we believed in the work mat construct was the make-up of its seven parts. The left side contains the essential aspects of designing the culture, the climate, the environment and how these contribute into the innovation equation. These are far more intangible, softer but vital to make innovation work as they are more people orientated.

The right side consists of the function, design, process, structures and governance that make up the harder aspects, those that facilitate innovation. These are the enablers that manage innovation.

Each side outlined here contributes to the context, the communication and cascading of innovation throughout the organization.

While the Strategic Alignment links all the innovation activities into the corporate agenda. Its goals, strategies and contributes to the need for investments and achievement timescales.

At the bottom of our work mat we have as our ‘flow through point’ – the motivational indicators and measures to gain and frame the outcomes we want to achieve.

For all this you do need this cascading, this common language and context and this is why it sits in the middle, it is the glue that holds all the work mat parts together, to make it identifiable, to complete our view of the innovation equation we need in place.

Deciding the innovation equation is appreciating the value underpinning the balance sheet.

For me, the equation you decide to follow has to be robust; it has to account for a more holistic view of innovation.

We are moving towards better framing techniques for innovation to advance, it is certainly going to be always be made up of part art and part science, yet by us having a clear balance sheet of understanding to think through, in this work mat thinking, this will offer the underpinning that the innovation equation requires, that is ‘sound’ and ‘solid’ to invest into.

The post Balancing Our Innovation Understanding first appeared on Building Your Innovation & Ecosystem Intelligence.

I often think of the parable of “The Elephant and the Blind Men” when I get into discussions about measuring innovation.

What are truths, what are the fallacies?  The parable implies that one’s often subjective experience can be true on your need, but not necessarily the other person’s view of their understanding of value.

You get, as the end result, a failure to account for other ‘beliefs’ or capture the real value and miss providing broader motivations to encourage the innovation elephant along.

Establishing the right metrics that motivate and yield the result you are looking for is sometimes a tough challenge. You should always start with the bigger picture, organizational needs and then design the metrics and cascade these throughout the organization.

This part of the series explores the Innovation Work Mat

In a series of articles I will be looking at each of the seven components within the executive innovation work mat to raise questions to probe and prompt the necessary thinking that needs to be made in organizations at different management levels determined to build a lasting innovation competence and structure.

Within this work mat series I’ve already offered some opening thoughts on the role of Governance and Innovation, and also the Environment for innovation matters to innovate followed by the innovating conditions for your Culture and Climate.

This is the fourth article aimed at deeper engagement and understanding of the connected parts within innovation management on Metrics and Motivations.

Raising some initial thoughts here.

We really struggle to describe, then measure and then find the right motivations and reward mechanisms and then achieve broad agreement, on something as important as innovation.

If we link metrics into the reward and compensation structure then we release all the energy, passion and anguish and these can serve in many contrary ways.

Linking compensation into all the competing motivations to manage and reward innovation activity is fraught with problems and can have many negative consequences.

Again my elephant comes back into view wandering around in your board room – it can disrupt everything as it charges after the results that it wants, trampling much that is good in its path.

Today’s particular trend of focusing on short-term performance can limit innovation significantly and has innovation consequences.

Let’s look at metrics and motivations with greater connected awareness.

At the end of the story on the elephant and the blind men, a wise man was passing; listened to all the different views of why no one could agree on what they thought the elephant was like. The wise man then replied “All of you are right; you were touching different parts of the elephant so the elephant has all the features as you all said”

Metrics and motivation can really make innovation happen

The value of the measures lies in resolving these eight different questions: 1) are they clear and simple 2) are they relevant to you and the central issues 3)are they timely in what can be achieved, 4)are they credible to the stakeholders involved 5) do they relate to the importance of the goals or trivial, 6) can we act upon them 7) are they consistent to the strategic message and aligned, and finally, 8) are all the investment in these measurements and motivators to capture and analyse, seem sensible and affordable, and lead to real impact in aiding innovation to achieve the goals required.

We do need to focus on the future innovating purpose surely?

The innovation links to any measurement system I would argue should point towards the organization’s strategic need and the innovation outcomes required. Within this there are broadly three parts: 1) knowing the organization’s future-orientated vision and the general direction that innovation needs to take, 2) along with the strategic carriers in types, priorities, functions, the indicated mix of innovation activities and then 3) the growth gap that exposes the organizations’ challenges, so as to bridge these knowledge and resource gaps.

These can build innovation capacity today for future innovating outcomes as they are focused on future work to be done.

For me the output intention of the Integrated Executive Innovation Work Mat should be driving the business case for how innovation contributes and offers the what, where, when, and why within the communications for others to be mobilized into actions and build out build upon this strategic working document.

Then we set about communicating it to the organization

I have written before about the cascading effect and communicating value that can support this. Then our metrics begin to cascade down to bring people, the process, and the innovative design of inputs and outputs turn into successful alignment outcomes can come into play. I’ll broaden out my thinking on this area in the next post.

It is within the leadership of organizations to become intimately involved in what is important in innovation for their organization, otherwise, we are back to the elephant and the blind men. All others simply believe they have the answer. Leadership needs to really engage in where it ‘expects’ innovation to yield its results and then ensures it links reward to this set of outcomes.

So what does success look like?

We should start with the ideals that our innovation activities should be pervasive, to be sustainable and we need to deliver clear business results mapped to known and potential unrecognised customer needs as our primary incentive points.

We need to layout the building blocks to ‘group’ management and employee identification with what is innovation success. It can begin to motivate all the stakeholders involved. This gives us the opportunity to evaluate appropriate resources, provide the workable benefits related to learning, encourage the identification of problems and encourage the identification of solutions and set about communicating to all involved the understanding of what success can look like.

Building the innovation metric and motivation scorecard there are hundreds of measures you could bring into anything; the skill is you need to find only the right few that focus upon the results you really need achieving. They need to somehow “talk to each other” so they are mutually reinforcing and all involved are pulling in a similar direction.

What gets measured should connect and matter – an example

I like one I came across some years back, by Cap Gemini, which firstly suggested you define what innovation was going to be about. Their example was “a robust creative process that turns out very distinct outputs with significant impact in the market place” and then worked on a scale for assessing the degree of innovativeness on a three-dimensional grid of Impact, Distinctiveness and Creative Process.

This then becomes the measuring and motivation barometer tied to the strategic need of an organization of what is expected out of innovation. That sort of complete picture can only come from the senior managements full committed to “wanting distinct outputs of significant impact in the market place”

I think Bain & Co offered also a really valuable performance measuring framework.

This framework offers a really good structure to begin to measure and link the organization. I think it can stimulate initial thinking well.

(click to enlarge)

There is a case for approaching measurement differently through the intangibles that make up most of our capital.

Measuring attempts need to take into account the many intangibles that make up innovation and make them tangible. Understanding the relationships within our intangibles allows groups to benchmark, diagnose, allocate resources, inform others and compensate employee’s efforts through their ongoing knowledge learning. The understanding of our intangibles is for me vital to crack.

Getting this right is increasingly important as the intellectual capitals are being recognized as the real value creation intersections. Establishing the metrics that focus on generating valuable innovation also helps extend ambition and future goals, pushing future innovation strategies as you grow in confidence and understanding of these dynamics.

To end we go back to avoid the story of the Elephant and the blind men.

By taking the integrated approach through the work mat, senior leaders can  offer strategic guidelines into the measures and motivations, by laying out their beliefs and expectations from innovation. They can’t afford to leave this open-ended, just being hopeful, innovation activities need essential alignment.

If we continue to allow the ‘blind men’ to offer their separate opinions and then decide in isolation of the bigger picture, they ‘see’ only their part of the elephant.

I believe if you put in place that critical strategic innovation document, wrestled out of engaging across all the work mat parts, the metrics and motivators can ‘form’ around this strategic intent. This can drive innovation performance.

Seeing the whole picture is the team sitting on (at) the top, directing the innovation elephant along its journey to the destination where they want it to go. Metrics and motivations follow as the path is clearer to measure and travel. We need those wise men to clarify this.

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