How do you know if the efforts that your organization is investing in innovation are delivering the expected results? And what results were you actually expecting? The question of indicators and metrics is, in my experience, the biggest barrier that companies face when deciding to engage in an innovation effort, as well as one of the major causes of failure in these attempts.
The trouble starts with a reasonable assumption, i.e. that if you want to control a process and assess its results, you need to measure some aspects of it. But in the case of innovation it is not totally obvious what exactly should be measured, nor how.
Opinions differ widely, but all of them can be roughly placed on a scale running between two extreme views that we can call “business-is-business” and “just do it“.
Apocalyptic newspaper headlines cause panic. Panic induces paralysis. The media is overloading us with evermore information and commentaries about “the situation”: poorer quality of life, higher unemployment, pay cuts, zero real growth, etc. Most companies in the market usually react alike. Companies start operating on ‘automatic pilot,’ or, in the worst-case scenario, they act on impulse, adopting clichés which are not necessarily rational, like laying off workers, cutting wages, putting trainings on halt and such.
Inventive thought and innovation are usually seen as a prerogative reserved for markets in times of growth, while, in fact, during slowdowns and recessions, there are plenty of good reasons to be creative, to invest in innovation, develop innovative strategies and even launch new products.
Watch a short talk between Amnon Levav, SIT’s managing director, and Alexander Haig.
The show was televised on CNBC, Fox Business News, and local stations nationwide.
A few weeks ago I spoke to a high level manager in a financial institution. We talked about his (truly) impressive activities in the field of innovation, and then he surprised me somewhat by saying: “In 2009 we plan to freeze innovation activities.”
Since the company is not a client of ours, I wasn’t directly affected by this decision, but still, I was curious to understand what stood behind it. Another victim of “the Situation”, I said to myself, but to my surprise he went on to explain: “We have so many good ideas now that we need to pause with innovation and focus on implementation.”
This approach is, in my eyes, a symptom of one of the biggest and most common misconceptions in the field; that innovation is all about coming up with ideas of what to do (products, services, whatever it is you do). The corollary is, obviously, that once you have these ideas you don’t need to be bothered with innovation any longer, all you need is to “just” implement.
The recent cancellation of Columbia University’s planned December session of its Executive Education course, “INNOVATION AND MARKETING“, came as no surprise.It is common wisdom in the business world that in times of recession, one must first cut the Training budget and then the Innovation budget.So this course received a double-whammy.
This phenomenon is quite logical. Innovation’s ultimate goal in any organization is to spur growth.In a period when growth is pretty much out of the question, investment in innovation seems capricious.Companies need to become more insular, stop the bleeding, cut the “luxuries” they have become accustomed to in times of plenty, and weather the storm.Not to mention the shareholders breathing down the Board’s neck to show some sort of profit margin, even if it means letting go a few hundred or thousand “salaries” or “headcount” that they will inevitably rehire a few months later once the R-word has passed.
Last week I had a conversation with a VP of the local office of an international ad agency in Europe. The topic was, no surprise, “the situation”. We started with some obvious observations such as:
a. Everyone is worried
b. No one knows what will happen
c. Their CEO had just emailed to stop all expenses immediately so they don’t know if they will be allowed to engage in a project
d. Next year all their clients will probably advertise less, so they are afraid that billings will drop and they will have to fire people.
But then we moved on to some other points, some obvious as well and some less (to me, at least) about the opportunities (no cynicism, this time) inherent in the crisis: Continue reading ‘Innovation and “the situation”’
Ok, so I’m not looking for one just at the moment - but I’m pretty sure that in no less than three years, the job of innovation manager will be just as acceptable and desirable as that of marketing manager, product development manager and sales manager.
Even today, I personally know 15 innovation managers, working in a variety of companies and organizations – the title on their business cards actually reads “Innovation Manager”. It’s amazing, isn’t it?
So, how exactly are we killing ideas? Relax - We all carry the bug, and each of us has heard the voice of the naughty kid inside that pops up every time we hear a new idea and gets us to say: “What?! We’ve tried that idea already and it didn’t work!”
Even if we’re creative types, we sometimes can’t stop ourselves from uttering: “Yes, but it’ll never work.”
Even if we’re patient and open-minded managers, at some point we’re likely to find the following sentence escape from our mouths: “It doesn’t fit into our current set of priorities.”
We’re all murderers; okay, that’s not a nice word. We’re all idea-killers. Perhaps it’s better that way. Otherwise, we’d be drowning in a swamp of new ideas that don’t provide a sound basis from which we can progress .
How do you know if the efforts that your organization is investing in innovation are delivering the expected results? And what results were you actually expecting? The question of indicators and metrics is, in my experience, the biggest barrier that companies face when deciding to engage in an innovation effort, as well as one of the major causes of failure in these attempts.
