Three Innovation Mistakes You Donâ€™t Want to Make
When was the last time your company came out with something really new? How long has it been since you totally reinvented a critical business process that resulted in significant cost savings or productivity increases? If you canâ€™t remember (or you can remember but itâ€™s been so long you donâ€™t want to admit it) you may be stuck on one or more of these common innovation mistakes.
1. Confusing creativity with innovation.
Creativity involves coming up with new ideas, connections, and ways of looking at the world. Innovation is the process of turning them into products, services, or ways of working that add value to one or more stakeholder groups. Too often, companies invest a lot of time and resources in coming up with new ideas, but then the process stalls. Nobody takes responsibility for continuing on with the second half of the process, and the ideas end up going nowhere.
Turning creativity into innovation requires accomplishing three important objectives:
- Getting focused. Companies that successfully innovate tend to focus on one or two really good ideas at a time. To select the best ideas, they have processes in place for discussing, testing, evaluating, and comparing ideas for their potential to add value to customers, generate new revenue streams, or accomplish a specific innovation goal.
- Making sure the innovation aligns with your strategy and organizational capabilities. If a potential innovation doesnâ€™t align with these, it could require more people, money, and resources than you have available. It could also confuse rather than amaze and delight your customers. Pushing the envelope is good, but not when it stretches you too thin or doesnâ€™t fit your market.
- Getting the new product or service to market in a timely and profitable manner. Once youâ€™ve zeroed in on one or two good ideas, senior management needs to step up to the plate and commit the time, money, and resources to make the innovation happen. This should be followed by close tracking of the business performance of the new product or service, as well as measuring the process used to develop the innovation and looking for ways to improve it.
2. Not failing (some of the time).
Like it or not, innovation requires a certain amount of risk â€“ and failure. If youâ€™re not failing some of the time, youâ€™re not pushing the envelope far enough to develop any meaningful innovation. The trick is learning how to manage and mitigate the risk so that one failure doesnâ€™t wipe out the company or deplete all the available resources. This requires a process for evaluating the risks and making measured decisions based on the projected return on investment.
Often, it also requires some serious self-examination by senior management. Are you more focused on protecting current assets than exploring new ways of adding value to your customers? Is the teamâ€™s mindset one of â€œplay not to loseâ€ rather than â€œplay to winâ€? Do you talk a good game in regards to controlled risk-taking but then punish those who fail? Encouraging failure doesnâ€™t mean to disregard risk or tolerate poorly planned disasters. But if all failure gets punished, any attempts at turning new ideas into reality will never get off the ground.
3. Treating innovation like a quick-fix add-on.
Remember way back in the â€˜90s when everyone rushed to jump on the quality/process improvement/six sigma bandwagon? What most forget is that not much happened until companies stopped treating quality as a bandaid approach and began making it a part of how they do business. Itâ€™s the same with innovation. If you want to innovate on a consistent basis, you have to make it part of who you are and what you do every day.
Start by explaining why innovation is important and how it will help your organization win. Then focus on building a culture that encourages, supports, and nourishes innovation. Paint a picture of what your organization will look like when innovation becomes a way of life and how it will benefit all key stakeholders. Teach people how to think differently. Encourage diversity and build teams with different skills, backgrounds, and analytical styles. Use language that encourages employees to contribute ideas and stay open to new possibilities. Link individual effort to the big picture. Make it safe to take risks and fail. Most of all, acknowledge and reward the behaviors that lead to successful innovation.
Obviously, thereâ€™s a lot more to innovation than not committing these mistakes. But avoiding them will put you much further down the road to successful innovation than companies that do.
Call to action: At your next management meeting, ask, â€œAre we committing any of these mistakes?â€
Holly is the CEO of THE HUMAN FACTOR, Inc. (www.TheHumanFactor.biz) and is a highly sought after and acclaimed speaker, business consultant, and author. Her unique approach to creating strategic agility, helping others go slow to go fast, will change your thinking.
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