Eliminating innovation unknowns - definitions
06:30Yesterday
I wrote a post about the need for executives to eliminate the
"unknowns" when they want their teams to innovate. If we call on
people to improve their day to day routines, there are few unknowns. They
simply need to work more efficiently on the activities and processes that are
familiar to them. But when we call on people to innovate, there are a host of
unknowns and uncertainties. For example: how much should we invest? How do we
gain the skills? How do we prioritize existing projects and new innovation
work? How much risk and uncertainty will be tolerated? These and other
unknowns will haunt the team, and unless they are resolved quickly and
effectively by a manager or executive, the teams will resolve them by reverting
to existing norms and past experiences.
Perhaps
one of the simplest, and yet most important unknown to address is a definition
of innovation. We at OVO often demand that our clients develop a consistent
definition of innovation that can be communicated to teams within the
organization. This may seem somewhat pedantic or even silly, but until there is
a common understanding of the definition of innovation, trying to understand
what is "meant" by innovation and trying to deliver on that uncertain request is
difficult. Clearing up this first and perhaps most important unknown is
important.
Thanks
to UNC
Thanks
to UNC we can see just how loose and distributed the definition of innovation is
for senior executives. One of their executive MBA programs has recently asked
senior leaders from a range of different companies to provide their definition
of innovation. You can see those different definitions by
clicking here. I hope you'll read these definitions, because they
are instructive in several ways.
Note
that I don't believe it's appropriate for each executive to provide exactly the
same definition of innovation. Circumstances, budgets and competitive realities
are different across firms and industries, so the definitions will vary. But
note the range of definitions. Some speak of improving the status quo. Some
speak of greater efficiency. Some address customer experience. Some are
impossibly subjective. Imagine trying to convey some of these definitions to an
internal team!
There's
plenty of definition out there
Whether
executives want to recognize it or not, there are plenty of examples of
definition of innovation out there. Our general definition of innovation is:
people putting ideas into valuable action. But we don't think you should stop
there, because this is only a general definition. It needs to be enhanced and
qualified.
We
can thank a number of different experts and agencies for helping us continue to
evolve and improve a definition and establish scope. But for some reason this
good thinking is typically missed by corporations. For example, we believe that
a good definition should include the acceptable range of outcomes. Doblin has
helpfully established their "ten types" of innovation: product, service,
business model, customer experience, channel and so forth. Whether you like
this taxonomy or not is unimportant. What does matter is that in your
communications and definition you provide some definition as to what outcomes
are valuable, because in the absence of any definition, all innovation is
product innovation, and product innovation may not be necessary or even valuable
to consumers. When no definition is provided, past experience guides decisions,
and that may not be the best framework.
Other
analysts have provided us with the "three horizons" to help determine the amount
of change we hope to accomplish with innovation. So, we can say for example
that in this project we are seeking incremental change to existing products, or
in that project we want disruptive change. Again, in the absence of clarity and
communication, all innovation becomes incremental.
Next,
we can consider the anticipated constraints. Since innovation is a new and
unusual activity, most teams will make assumptions about the resource and time
investment. They'll believe that the project should be accomplished as quickly
as possible, with the lowest possible investment. In following that train of
thought they are likely to miss unmet needs and rely too heavily on existing
processes, tools and decision making criteria. We need to define and
communicate how much risk, uncertainty and change we are willing to bear, and
corresponding to that request, how much discovery, time and investment we are
willing to commit. In the absence of this communication, it will be assumed
that any innovation activity, like Hobbes's definition of human life, will be
nasty, brutish and short.
Delegating
scope and decision making
When
an executive asks for innovation but fails to provide definitions and context,
it is as if he or she is simply delegating all of the strategic thinking to the
team. While a handful of people are likely to welcome this outcome, the vast
majority of corporate teams are left in a state of confusion. They are experts
at executing clearly defined plans that follow past models. They are not
comfortable or experienced working with a nebulous scope to uncertain outcomes.
When confronted with this possibility the most likely response is to complete a
project based on existing rules, templates and tools, which results in outcomes
that look very similar to existing products and services.
In
no other activity do senior leaders fail to provide clear goals, definitions and
communication more readily or more often than in an innovation setting. The
reason why this is true is relatively obvious - the vast majority of the time
executives and senior leaders don't have to be very exacting with definitions
and anticipated outcomes because the vast majority of the work is replicating
existing products for existing customers in existing markets. In other words,
the team already knows what is expected. It's gaining an understanding that
innovation requires new definitions, new scope and better communication that
will accelerate the pace of new products and services. This is the first, and
quite possibly, the most important unknown that innovators must address.
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