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OVO Views
Conversations about Innovation
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April 2008
- Vol 2, Issue 9
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In This Issue
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Quick Links
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Greetings!
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April has come and gone, and the taxman has
taken his fair share of my income once again.
Only two more months until I'm working just
for myself and not the IRS!
First up in this issue we look at the issues
of trying to tackle too much too soon. What
can happen if you seek disruptive ideas when
the culture and teams aren't ready?
Next, we'll look at the impact the workplace
has on innovation. Can your physical
surroundings inhibit or accelerate your
team's innovation capability? We think so.
Finally we'll look at the importance of
recognition and rewards for innovators. What
rewards or recognition is necessary, and
what's the best balance between recognition
and rewards?
Don't forget the Front End of Innovation
Conference will be held in Boston May 19-21.
Read more below about the conference and put
it on your calendar.
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Innovation as a goal
Many of our clients seek to create processes
and capabilities that sustain innovation
within their businesses. That is, they want
an ongoing, continuous business process to
generate, manage and evaluate ideas and
convert them into new products or services.
Often, many of these firms start out with few
existing processes or techniques, and the
people tasked don't come from an innovation
background.
If you've followed our newsletters and our
previous whitepapers, you'll know that we
believe cultural barriers can present the
biggest challenges to innovation. What often
happens is that the existing expectations and
cultural beliefs get in the way of generating
new ideas and implementing those ideas. The
cultural expectations form a framework that
limits ideation and new thinking.
Go Big Early
What can also happen is that the team swings
for the fences early, trying to make a big
splash and create some really interesting
game-changing ideas. These are admirable
goals, but can be difficult to achieve
initially because the culture and the
processes simply aren't ready to think about
drastic change. Frequently innovation and
the cultural change necessary haven't been
fully defined and expectations haven't been
changed, so it's hard to get people to wrap
their thinking around exceptionally new ideas
when the culture still seems to reward
incremental thinking. It can also be
difficult to generate disruptive new ideas
when there are a lot of incremental changes
that would dramatically impact the
performance of the business that haven't been
addressed.
Example
We witnessed these challenges in an early
ideation
session with a client. The innovation team
was trying to kickstart its innovation
process and was seeking ideas to
dramatically change the way it offered
services to specific customers. However, we
were early in the rollout and many people
were brought into the ideation without a
significant amount of communication.
Although the participants had received advanced
notice of the ideation, and had received
materials to outline our goals and
methodology, in the ideation they simply
weren't able to generate many game-changing or
disruptive ideas. They did generate a
significant number of very good
incremental ideas, many of which were later
implemented.
When we debriefed later and discussed the
lack of game-changing ideas, the team
returned several times to three themes:
- While management wanted disruptive ideas,
the team believed there were significant
incremental ideas that could have tremendous
impact
- The participants found it hard to
generate disruptive ideas when they were
aware of incremental changes that could
provide a lot of value that they felt were
overlooked.
- While the team "heard" the management
team wanted disruptive ideas, the program had
not been in place long enough to believe the
ideas would be implemented if they weren't
"practical"
Being "Ready"
The lesson here is that teams need
socialization and "permission" to think
disruptively, and often won't be able to get
to that level until they are confident the
management team is on board with the possible
solutions and that the near term or
incremental ideas have been addressed. Too
many times, if incremental ideas are possible
to identify and haven't been captured, the
teams will feel like disruptive ideas are
just a bridge too far.
The one proven method to overcome this
challenge is the proverbial "skunkworks".
While we don't generally advocate a
skunkworks, it is occasionally necessary to
examine very new or radical ideas.
Skunkworks can help in this regard because
they are created outside of the
infrastructure, limits and scope of the
existing business, and basically assume away
all of the current challenges and problems.
If you can start with the assumption that the
existing problems aren't your problems, then
you have more freedom to think about long
term solutions.
Alternatively you can have the participants
record and submit ideas before the session
starts. In this way they clear their minds
of the pressing, near term ideas and are more
open to disruptive thinking.
Long term thinking
Build your innovation muscles and get the
buy-in you need by solving the near term
problems and generating incremental ideas as
you build to disruptive thinking. Evidence
shows that reaching for disruptive ideas too
early or before near term opportunities or
problems have been resolved is difficult for
the average team.
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Constrained thinking
What's the impact of your workspace on your
ability to innovate? Can a workspace
influence your thinking and encourage or
limit creativity and innovation?
We believe the answer to both question is
yes, for a number of reasons.
Stimulation
Why is it that every preschool and elementary
school are full of bright colors and lots of
sunlight, and most workspaces are full of
muted light and acres and acres of beige or
gray walls and cubicles? School kids go to
school to learn and enjoy mental stimulation
in many of their activities. The entire
environment is meant to get then thinking and
engage all of their senses. In contrast, the
average office building seems to be little
more than an attempt to be as boring and
generic as absolutely possible, with few
colors, poor lighting and the feeling of
being trapped in the continuing sameness.
Few senses are stimulated and thinking is
constrained by the architecture, layout,
colors and textures. Need proof? Look no
further than your local creative agency, ad
agency or marcom firm. Many of these very
"creative" organizations have much more
interesting,
dynamic spaces. Why? Because they stimulate
more creativity and new ways of thinking. Do
these firms need that kind of thinking more
than your firm?
Contemplation
The average office building, full of rows and
rows of cubes, is anathema to quiet
contemplation and organized thought. In this
environment, it is difficult to find a quiet
space to think beyond the next phone call or
interruption from your friend in the next
cube. In response, many individuals who work
in cubes have taken to wearing noise
canceling headphones to isolate themselves
from the rest of the people within those
cubes. Everything that makes a cube valuable
for firms - its flexibility, space
management, ability for individuals to
quickly pop in and pop out, the ability for
managers to "manage by walking around" makes
it difficult to think creatively and
innovatively. Cubes do allow others to
overhear conversations and on occasion others
can pipe in with ideas, but often we simply
screen out the conversations of others. What
we need are quiet, open
workspaces where several people can
brainstorm or collaborate, then return to
spaces intended for contemplation and
evaluation of ideas. Most firms have too
many cubes and too few informal meeting
spaces for collaborative work.
Divergence
Everything in corporate American aims for
convergence. We seek to converge our
thinking and processes, and everything about
the workspace, from the layout to the
sameness to the focus on continuous
improvement reinforces convergence. However,
innovative thinking requires divergence, the
ability to think broadly and outside accepted
parameters about an opportunity or challenge.
When the corporate culture, processes and
architecture reinforce convergence and
sameness, how can the innovation team break
away and begin to think differently?
Why can't our office be like this?
We had the good fortune to sponsor some
brainstorming sessions in several purpose
built locations for innovation. A good
example of these is Catalyst Ranch, an
innovative meeting space meant to encourage
expansive thinking and innovation. The bare
brick walls, colorful artwork, crazy
paraphernalia on the walls is unlike most
people's regular work environment . I'm sure
they designed the space this way on
purpose. Many people often say they wish
their working environment would be more like
these spaces. In an era where creative
thinking is more important than conformity,
and innovation is at least as important as
operational excellence, is a small investment
in creating a more creative atmosphere in
your working environment valuable for your teams?
Conclusion
Walk around the office space of most large
corporations. Rows and rows of cubes, all
the same height, all the same color.
Certainly these cubes provide flexibility and
ensure no one feels that other individuals
have an advantage in floor space or
decoration.
Strangely, the most dynamic space in most
businesses is the lobby, where vendors,
customers and employees interact. Yet this
is not a location for innovators. Why do we
reinforce the "sameness" and convergence in
our work spaces when we seek divergent and
creative thinking? Why do so many innovation
teams seek to move "offsite" to do their
work? They seek creative working
environments to spawn new ideas and new
methods of working.
So, while most of the decisions are made in
your working environment for space planning,
cost savings and flexibility, they really
should be made based on creativity, divergent
thinking and stimulation. If your teams
want new and better ideas, why not create
environments more likely to help spawn them?
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Innovation Rewards and Recognition
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Rewarding Innovation
If living well is its own reward, what's the
reward for innovation? Rewarding and
recognizing the people who generate, manage and
evaluate ideas is a challenge every business
faces. In this article, we'll look at the
problems and challenges that innovation teams
face when they seek to recognize and reward
innovators.
Why reward innovation
One of the first questions that almost always
arises is the question of whether innovators
deserve rewards or recognition above the
kinds of rewards and recognitions that may
already exist and apply to other employees.
After
all, we have high expectations of employees
and our colleagues. Is what innovators do so
different from the rest of us that they
deserve something special? In a word,
yes.
Innovation usually requires changes to the
way people think about their business. It
introduces risk and the possibility of
failure. Innovation is usually not a
person's "day job" but is tacked on top of an
already busy schedule. So, when we add it
up, many people who participate in innovation
initiatives are already engaged in important
businesses which need to keep operating and
are being asked to run counter to the "way
things are normally done", introducing risk
and change into the business. If we can't
find a way to recognize and reward these
folks, why would they even step out on that
plank? Clearly we need the ability to
recognize and reward people who are working
on critical projects that run counter to the
prevailing culture and logic of the business.
Creating the right incentives
Obviously, however, the opportunity for wrong
incentives is fairly high. If we provide
rewards that are beyond a reasonable amount,
suddenly
everyone wants to participate and none of the
"day jobs" get accomplished. Additionally,
the higher the reward or incentive, the more
likely the individuals are to "hoard" ideas
rather than collaborate, so innovation
becomes more like a game show than a business
process.
Clearly we need enough incentives to
encourage people to participate in
innovation, without creating artificial
incentives that distract from the day to day
workings of the company or create
disincentives for collaboration. Most
organizations seek to recognize participation
within the program in addition to recognizing
the person who submitted the "winning" idea.
Since there are many people who collaborate
to generate and manage the ideas,
participation in the process is just as
important as being the original submitter of
an idea.
Innovative people like to, well, innovate.
One great reward or incentive is to give
people time to innovate and be creative. For
many innovators the "fun" is in the process -
reward them with more time and your team and
firm will benefit as well.
Recognition
For some innovators, receiving a cash payment
or other reward for innovating is a
disincentive. They enjoy the thrill of
generating ideas and having their ideas put
into practice. For many of these innovators,
peer recognition is more important than the
reward or cash payout. As you build your
rewards and recognition program, be sure to
include a recognition programs that allows
committed innovators to gain recognition for
their participation and ideas. This could
take the form of a new title or even a
specific status as an innovator gains new
skills - akin to a "Green belt" or Black Belt
within Six Sigma programs.
Conclusion
For an innovation program to succeed, the
people working on generating and managing
ideas need to understand the potential
rewards available to them, especially if the
innovation program is new and is introducing
change or risk into the business. While some
truly dedicated people may be willing to take
on an innovation initiative without further
inducement, most will want to understand the
potential "upside", since they recognize that
developing an innovation program will require
challenging the existing thinking and
processes.
As innovation leaders, your job is to create
the cultural attitudes to make the innovation
programs more acceptable, and understand the
balance between "rewards" and recognition for
the innovation teams so that collaboration
does not suffer, and people receive the
reward or recognition that motivates them.
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Mix and Mingle
As we noted previously, the Front End of
Innovation is probably one of the largest
innovation events held each year. A wide
array of people will be attending this year,
and the list of speakers looks very
promising.
The conference will be held on May 19-21 in
Boston, and you can register to attend if you
haven't already by clicking this link.
What's the rationale?
What can you expect to gain if you attend?
Every year there are hundreds of people just
like you who are interested in improving the
innovation capability or processes within
their firms. Approximately 30 consulting
firms, market research firms and software
firms will present their capabilities and
solutions to assist you in your innovation
efforts. You have the opportunity to learn
from your peers, experts in the innovation
space, and build networks that can help you
as you tackle this challenge internally. I
can't think of a good reason not to attend if
you have any interest or involvement in
innovation.
Stop by and say hello
If you attend the Front End event, please
stop by and say hello to us in booth 14.
We'll be unveiling a new software version to
help capture and manage ideas, and we'll have
signed copies of Make us more Innovative
available.
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A shameless plug
My recently published book - Make us more
Innovative - has received some great kudos
and feedback from industry analysts,
customers and prospects. One recent prospect
said he felt it was the best book on the
market to define how to build an innovation
capability (Thanks Dad!).
Widely Available
The book, which is about the steps required
to build a sustainable, repeatable innovation
capability in a business, is available at a
number of online bookstores and in several
media - as a paperback, an e-book and even in
Kindle format.
Take a minute to explore the website we've
constructed for the book and the other white
papers and information about innovation on
the Make
us more Innovative site.
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