05 November, 2010

Are you encouraging innovation in your company?

Yesterday my friend Shiva texted me the following joke:

Teacher: What is half of 8?
Student: Depends sir, if  cut horizontally into half, then its '0' and if vertically it is '8'!
The teacher fainted.

Researchers at the Wolverhampton University looking for the world's oldest jokes have found that jokes ancient and modern shared “a willingness to deal with taboos and a degree of rebellion.” Much the way the student did - no wonder the teacher fainted! 

Innovation like jokes, also requires a willingness to deal with taboos (out-of-the-box thinking) and a streak of rebellion (an ability to take risk). However, no innovation can be called an innovation unless its implemented because, as the graphic below shows, Implementation = Profits and Profits fuel Innovation. An unimplemented innovation remains a mere idea generating zero profit, instead it reduces the time spent on generating and vetting it as cost to the company.


Recently, I happened to facilitate a team of key managers from an engineering company which was one of the oldest in its line of business, but getting battered by the competition. The MD wanted me to help them change their way of doing things. At one of the sessions the MD observed that one of the reasons the company was lagging behind was that few, if any, innovations were happening in the company. Based on this observation, we decided to form a cross-functional team that would work exclusively on innovation projects. However, a few months into the project, the MD suddenly decided that  as it was nearing the end of the sales year, all innovation projects were to be shelved and everyone was to focus only on completing the target. The Innovation projects went out of the window, and the last I knew, they have not been revived either.

The MD may have had his reasons for doing what he did, but imagine the consequences of his decision on his team. If  innovation was be a priority for the company, then the leader should have been communicating this message to his team in all possible ways. In this case, by taking a so called break on the innovation projects, he had sent a message to his team that the projects weren't important enough, generating sales was.

Change management requires several tasks to be done simultaneously. It is therefore very important that leaders drill into their managers that all change management tasks need to be done in addition to their day-to-day tasks. Not in exclusion, or one instead of another.

As the graphic above shows, successful implementation of innovation projects need to be powered by management. By taking his eyes off the "innovation ball", the MD had sent a silent message to his team about where his priorities lay.

PS If you are interested in creativity and innovation, you will find Jeffrey Baumgartner's website http://www.jpb.com//index.php very useful:

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