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Social Innovation

Published date: June 7, 2008 в 11:05 am

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Web 2.0 social tools are swelling all around us, and the Fortune 100 are embracing them for two purposes – managing and engaging the internal employee base and managing and engaging the external customer base.  Wikis, blogs, mashups, and social networks will improve productivity, connectivity, knowledge transfer, and ultimately profitability if deployed correctly.
What about innovation?  Can the Web 2.0 environment increase, enable, accelerate, and deepen innovation within companies?  I am impressed with the emergence of tools such as Wridea and others that have taken on the challenge.  But I have yet to see one that works effectively.  I am trying to figure out why.  Are these applications using the wrong innovation tool or process?  Do they have an effective innovation process, but deploy it incorrectly?  Or, are people not using the application in an optimal way?
I experimented with online innovation about five years ago, about the time MySpace was introduced.  I used an online learning platform (eCollege 4.0) with a group of colleagues, and we tried to create new products within the health care space.  We used Systematic Inventive Thinking as the innovation process, and we structured the “event” over a four week period of time.  The goal was to invent new products without ever meeting face-to-face using asynchronous communications online.  I called it O.P.I.E for short – Online Product Innovation Exchange.
Here is how it worked.  Using simple threaded postings, a member of the group suggested an existing product as a starting point.  Another member took that product and listed the components of it.  Then, each member would select one of the components to work on.  Their job was to use one of the five templates of the S.I.T. method and create a virtual product.  They had to post these virtual products in a separate area of the online site.  Then, other members would review their suggested virtual products and use “Function Follows Form” to envision a viable use or benefit of the virtual product.  It was classic S.I.T. in an online, asynchronous environment.  The result?
O.P.I.E. was a miserable failure.  It generated few ideas, nothing really original, and it was frustrating for the participants.  I struggled with why for a long time.  Was it the wrong process, people, or platform?  As I have learned more about social media and Web 2.0 and how people really use and experience this environment, I am beginning to understand why.  All three aspects of O.P.I.E. – the process, people, and platform – needed some modification for this to work effectively.  Here is what I would do differently.
For social innovation to work, the platform has to be optimized for this purpose.  I had used a platform that was intended for traditional online learning, and it lacked the tools to properly facilitate the exchange and touchpoints needed for innovation.  The optimal platform needs to do a few things better.  For example, the site needs to notify other members when a virtual product has been posted.  With O.P.I.E., too much time elapsed in the asynchronous mode, and members were not sure when to login to check what was going on.  Other members would get frustrated because nothing seemed to be happening.  If members were notified, Twitter-like, that a new virtual product was available, they could engage the process more efficiently and all at once to create a flurry of ideas for discussion.  Secondly, the site needs to allow richer descriptions of virtual products.  This could be done either visually where participants somehow draw the virtual product, or audibly where participants leave a short, recorded description on the site for others to hear, either online or via their cell phone.  This would promote a richer response in the form of innovative uses and benefits of the virtual product.
What about the process and people?  I am still working on this, but I believe changes are needed in both.  The inherent flow of innovation is correct within the S.I.T. method, but I wonder if there are perhaps certain templates that are better suited for the online environment.  Also, there needs to be more work done in how the process is facilitated online and how expectations are set for the participants.  What components do they work on?  What virtual products do they respond to? How many ideas do they generate?  How many other ideas do they attempt to modify or improve?
Social innovation is promising.  It will reduce the cost of innovation and the time commitment allowing companies to innovate more often.  But the big win is the same as what many other Web 2.0 applications bring – it will greatly expand the numbers and diversity of participants.  This will yield more original ideas and innovations than ever before.

Innovation Muscle

Published date: May 18, 2008 в 12:37 pm

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The best Fortune 100 companies see innovation as an ongoing capability, not a one time event.  These companies work hard to build muscle around this capability so they can deploy it when they need it, where they need it, tackling their hardest problems.  Companies do this to keep up with the ever changing landscape both inside and outside the firm.
What does it mean to build innovation muscle?  I think of it as the number of people trained, the frequency of using an innovation method, and the percentage of internal departments that have an innovation capability.  Call it an Innovation Muscle Index:  N (number of trained employees) x F (number of formal ideation events per year using a method) x P (percent of company departments with at least one employee trained in an effective innovation method).   IMI = N x F x P .
Building innovation muscle is not much different than building body muscle.  Let’s turn to an authority, http://www.muscleprogram.com/, and see how to build body muscle.  Here is an exact quote taken from that website.  Then I have overlaid my interpretation of it from an innovation point-of-view in parenthesis and in bold font.

“You need to decide what kind of (innovation) muscle form you’re looking to achieve. Drawing on examples nearly everyone is familiar with, you need to decide if you want to look like Arnold (GE) Schwarzenegger (bigger bulk) or Bruce (Apple) Lee (lean and toned). This decision will help you determine which kinds of exercises you do and how you do them.

Now, with all of that out of the way, let’s look at some things you can do to build your (innovation) muscles!
If you don’t already, start getting your body (company) used to working out. Start running (innovating) every day, not jogging (brainstorming) or walking (copying others), to help get your blood (growth) moving and your (innovation) muscles primed for building. You’re not running a race so you don’t need to be a speed demon. Instead, maintain a comfortable and steady pace, taking long and powerful strides (initiatives).
If you want to have the lean, Bruce (Apple) Lee appearance, you need to work with lighter weights and have a higher number of repetitions (innovation workshops) in each set. By doing this, you are toning and shaping your (innovation) muscles into longer and thinner forms. If you want the Arnold (GE) look, you need to work heavier weights (more departments using innovation) and do fewer repetitions. By doing this, you are toning and shaping your (innovation) muscles into short and thicker forms.
Ensure that you have a regular plan, focusing on specific (innovation) muscle groups, and stick to it. Don’t try to work every (innovation) muscle in your body every day of the week. At best, this will lead to burnout (budget crunch) and at worst it will lead to injury (downsizing). Your (innovation) muscles will be getting worked hard, so they need to have time to recuperate.
However, you should rotate your plan every month. For example, let’s say that you are working on your chest, shoulders and biceps (new products) on Monday; your abdomen, forearms and upper back (new services) on Wednesday; and your lower back and legs (new strategies) on Friday. Every four weeks, rotate one day so that you’ll be working on your lower back and legs on Monday; your chest, shoulders and biceps on Wednesday; and your abdomen, forearms and upper back on Friday. The following month, rotate one more day.
This will allow each of your (innovation) muscle groups to take advantage of the fact that you probably workout differently on each of those days. If you simply stick with the exact same schedule forever, then you’ll find yourself quickly running into what are known as “plateaus,” where you just can’t seem to build that (innovation) muscle group past a certain point. With a rotation schedule, you will avoid this problem by giving each (innovation) muscle group the benefit of your natural changing body (company) rhythm.
If you keep these general guidelines in mind and consistently work at your plan with passion and intensity, your body (company) will be more toned (competitive) and shaped (growing) than you ever imagined it could be. While it won’t happen overnight, it probably won’t take as long as you’re afraid it will.”

Innovation Diagnostic

Professor Keith Sawyer makes a useful connection between innovation and learning when he writes, “What both innovation and learning have in common is adaptability and improvisationality.”  He connects this idea with authors Joaquín Alegre and Ricardo Chiva from the Sloan Management Review.  They identified five core features of high organizational learning capability (OLC) companies: experimentation, risk taking, interaction with the external environment, dialogue, and participative decision making.  Keith has found that these five characteristics also hold true of organizations that use the power of collaboration to generate innovation.  He believes that organizations high in learning ability are more likely to be innovative organizations.
I am inclined to agree.  The reality though for many organizations is that they may be missing one or more of these characteristics.  Yet they still must innovate to grow.  What would be truly useful is a rigorous innovation diagnostic based on these five characteristics.  This diagnostic could help a company identify where it is weak and where it needs to focus attention and resources.  Here is how it might work.
Experimentation:  The authors define this as the degree to which new ideas and suggestions are dealt with sympathetically by the organization.  Measure this in several ways: the budget dollars spent on designing and running experiements, the amount of new ideas generated, and the percentage of those ideas that challenge the established order as described by Alegre and Chiva.  My observation is that organizations see the value of experimenting more during the hard times than the good times.  Therefore, measuring this characteristic over time would be most useful.
Risk Taking:  Measure employees in terms of their tolerance for ambiguity using established testing methods.  Measure organizational risk-taking in terms of the internal rate of return of projects initiated and rejected.  My observation is that organizations take too little risk not because they cannot bear it from a portfolio point-of-view, but rather from an individual career risk point-of-view.  People, not organizations, are afraid to fail.  They play “not to lose.”
Interaction with the External Environment:  The authors define this as the scope of relationships with factors that are beyond the direct control or influence of the organization and include competitors, the economic system, the social system, the monetary system and the political/legal system.  Measure this by the amount of money spent on direct contact with these entities.  Also measure the resources spent to collect information about them.  What is the net aggregage spend on issues external to the firm?  My observation is that firms tend to be very good at observing and monitoring the external world, but few are excellent at interacting with it.  That is the key to leveraging it for innovation.
Dialogue:  Dialogue is a way of spreading information and skills throughout an organization, and it helps create multiple viewpoints.  Measure both the speed, volume, and fidelity of information as it spreads through the firm.  Do this by taking a new issue as it emerges and systematically studying its diffusion.  Identify the information pathways, both formal and informal.  My observation is that firms are improving here.  They see the value in teaching employees how to 1. establish their internal network, then 2. use systematic persuasion principles to influence and change the firm.
Participative Decision Making:  This refers to the level of influence employees have in the decision- making process.  Measure employee satisfaction, motivation, and degree to which they feel involved and engaged.  The Q12 Assessment might be an effective measurement tool in this area.  My observation is that firms have gotten pretty good at this because it correlates to other success factors, not just innovation.
Alegre and Chiva note that these five characteristics combine to create an excellent snapshot of an organization’s OLC. They suggest that an organization can use surveys and other internal metrics as a way of measuring its ability to learn and innovate. If an organization measures an improvement in its learning capability, it will very likely see a concurrent increase in innovation.

Innovation Behavior

Published date: April 20, 2008 в 1:05 pm

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Innovation is a skill, not a gift.  Top organizations drive growth by nurturing and investing in innovation as a competency.  One way organizations make it real is by including innovation within formal competency models.
Professor Rodney Rogers of Portland State University defines a competency as a persistent pattern of behavior resulting from a cluster of knowledge, skills, abilities, and motivations.  It is the persistence of those behaviors that matter most and help your organization succeed.
Competency models are a useful way to formalize that behavior and make it persistent.  They help describe the ideal patterns needed for exceptional performance.  They are a blueprint for the type of person needed for a specific job. And they help diagnose and evaluate employee performance.  It takes a lot of work to develop one, but it’s worth it.
My approach is to see innovation competencies at two distinct levels: The Innovator, and The Innovation Leader. Here is how to think about it.
The Innovator Competencies:

  • Generating Innovative Solutions – Systematically innovates using a model with proven efficacy; routinely innovates products, services, processes, and strategies; values and harnesses team diversity; reframes problems in a different light to find fresh approaches; entertains wide-ranging possibilities others may miss; takes advantage of difficult or unusual situations to develop unique approaches and useful solutions.
  • Seeing the Big Picture – Has broad knowledge and perspective; pieces together seemingly unrelated data to identify patterns and trends and to see a bigger picture; understands the pieces of a system as a whole and appreciates the consequences of actions on other parts of the system; possesses a big-picture view of the situation.

The Innovation Leader competencies are different.  It is not necessarily the innovation leader who must generate new ideas; rather, they must understand how to instill innovation according to Penn State researcher, Dr. David G. Gliddon“Commitment to innovation as a culture is prevalent in organizations as it is commonly woven directly into mission statements. However, leaders still lack the ability to plan, measure and implement innovative programs, products and services.  These challenges are enhanced by the pressure to juggle several different and often conflicting roles.” said Gliddon.  In a three-year study, Gliddon identified the competencies that underpinned these roles and developed a competency model of innovation leaders.  The competency model can be tailored to any organization as part of a competency-based human resource development initiative.
An innovation leader collaboratively interacts with their employees and supports high levels of teamwork, providing opportunities to share innovations.  Once an innovation has been shared, employees should be empowered to then adopt the innovation if it is useful.  Employees can then support the innovation leader by initially adopting the innovation, and encourage the diffusion of the innovation throughout organization’s social system, Gliddon says.  Innovation leaders must also take personal responsibility for and be dedicated to projects that require innovations.  Therefore, innovation leaders must establish a trust culture and maintain relationships based on trust.  They must display initiative, set challenging project goals, and link those goals to the needs of the customer, department, and enterprise, according to his study.
Persistent innovation behavior by the leader and innovator is a recipe for growth.

Innovation through Co-opetition

How do you innovate a business model?   You can create new products and services within the current business model to drive growth.  Or you can create a new business model and open up a whole new world of possibilities for the firm.  Either innovate within the current game, or change the game.  But how?
Several books address this, from Clayton Christensen’s “The Innovator’s Dilemma,” to a more recent offering, “Innovation to the Core: A Blueprint for Transforming How Your Company Innovates”  by Peter Skarczynski and Rowan Gibson.  When Professor Christensen presented his disruptive innovation model to our company several years ago, I remarked that what is needed is NOT so much a disruptive product, but rather a disruptive business model.  His book is a good historical account of a few industries that suggest disrupting (innovating) the business model is what really counts.  While these books and others do a good job of exposing the issue, neither give a prescriptive “how to.”  The most recent book suggests a holistic approach.  “To build a breakthrough business model that rivals cannot easily emulate, you’ll need to integrate a whole series of complementary, value creating components so the effect is cumulative,” the authors note.  Fine, but there are no step-by-step processes how to do it once you have unpacked the original business model.
My answer comes from combining two existing concepts (a Medici Effect as described by Frans Johansson).  Those two existing concepts are Systematic Inventive Thinking (S.I.T.) and Co-opetiton.  S.I.T. is a proven process for generating innovation on demand.  Co-opetition is an idea described by Barry Nalebuff and Adam Brandenburger in their book called, “Co-opetition.”  It means cooperative competition, and it is a way to see your industry not as a zero sum game, but rather as a group of participants that can behave in a certain way that benefits all.  They coopetate rather than compete (legally, of course).  I met with Professor Nalebuff and had him “school” me on the concept.
The trick is to apply S.I.T. templates to the Value Net model of co-opetition.  Here’s how.  List the activities of each Value Net participant (Company, Supplier, Customer, Complementors, Competitor).  Rotate each specific company in the Value Net model so that each takes a new role (competitors become suppliers, suppliers become complementors, etc).  Use each S.I.T. template on the new list of activities, starting with Task Unification.  Using Function Follows Form, envision how the new role and role player can benefit YOUR company.  Here is an example, using Nintendo as the company of focus:

Now imagine each player rotates clockwise one position.  Applying S.I.T. Task Unification, we ask what roles could Atari perform as a customer to Nintendo that would be beneficial to both.  (For example, could Atari and Nintendo cross license software code to each other, perhaps making some features of their games work on the other’s game box?)  Apply all five templates systematically to each role and each player within the context of their new role.  This will generate many new, innovative business model components and themes.
Disruption doesn’t have to be uncooperative.

The Dream Catalog

Published date: March 30, 2008 в 3:31 pm

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For many companies, the catalog of products is the strongest statement of brand positioning a company can make.  It is your arsenal of commercialization.  So imagine you could peek into the future and see a copy of your company’s product catalog five years from now.  What would it look like?  What if you could design it now?  What would you put into it?  These are the questions that confront you when you use a clever innovation tool called the Dream Catalog.
The Dream Catalog is a hypothetical company catalog from the future…well into the future, beyond the next business cycle.  It is far into the future so that it captures the innovative thinking and imagination of today’s managers.  It stretches a company’s thinking about its future, and it provokes a healthy discussion about possible company direction.  A good Dream Catalog causes tension.
A Dream Catalog helps a company in several ways.  It sets direction.  It suggests how the company is going to add and remove products from the line over time.  It forces the marketing team to reconcile product line strategy.  It provides placeholders for new discoveries, inventions, and even acquisitions.  It provides a sense of prioritization of what should be developed and in what order.  It can even help forecast revenues.
Best of all – it rewards and encourages innovation.  The Dream Catalog serves as the focal point for company-wide innovation efforts.  Employees strive to come up with product and service ideas that “make it” into the Dream Catalog.  As the catalog takes shape, employees see how their future is taking shape.  It guides their innovation efforts even more.  Leaders can use the catalog as a motivational tool.  “Let’s turn this dream into reality…for our customers and our future.”  A good Dream Catalog creates excitement and a sense of purpose.
I teach MBA students how to create a Dream Catalog in a full credit course called “Applied Marketing Innovation.” Here is a quick snapshot of how to do it.  Create a slew of new product embodiments over your current product line as well as products in your industry you wish you had.  Do this using an efficient method such as Systematic Inventive Thinking.  Mix the ideas together with your current product line.  Put yourself five or ten years out and envision what product offering would make your company the most amazing market leader in your industry.  Using your “palette” of ideas, pull in those that, taken together, create that kind of company.  Strive for product line coherence.  Strive for differentiation.  Strive for a customer centric solution.  Then, make an actual catalog with product photos, prices, features, and benefits.  Make it seem real.
Stanley_tools_newHere is a neat trick.  Take all of your company’s catalogs as far back as you can and lay them side-by-side chronologically.  Study the product offerings each year and note the changes over time.  Note the new products, deleted products, and changed products.  Do you see an evolutionary theme?  Revolutionary?  Stagnant?  Now place your Dream Catalog five or ten spots ahead of the most recent catalog.  Where will your Dream Catalog take you?  How far, how fast, how cool?
Think about Fortune 100 companies that might have a Dream Catalog of sorts.  Think about former Fortune 100 companies that have since perished.  Did they have a Dream Catalog?  Would you buy stock in a company if it did not have a Dream Catalog?
Dream on.

People Innovation

Published date: March 24, 2008 в 3:49 pm

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Human Resource departments often find themselves tasked with creating a more innovative climate for their firms.  That can make sense given that innovation is a people activity.  It’s a skill, not a gift, and it can be taught and learned like any other business skill.  And it is usually team-based.
My advice to HR leaders?  Experience innovation close to home first.  Use innovation tools on actual people or HR systems before venturing out to the broader organization.  This has the effect of making true believers out of the HR team, it gives them a handy reference point for other departments to benchmark, and it yields creative new approaches to traditional HR processes.  How?
Using the five templates of Systematic Inventive Thinking, here are examples of pre-inventive forms within the HR realm.  The key is to envision the pre-inventive form, then find a useful role or benefit for it.

  • SUBTRACTION: Your training programs have no faculty.  Why?  What would be beneficial about it?
  • TASK UNIFICATION:  Offer letters to new hires have an important additional role during the first year of employment?  What is that role, and how could it help the organization?
  • MULTIPLICATION:  Employees receive two paychecks each payday, but they are different in some way.  How are they different?  What would be the benefit?
  • ATTRIBUTE DEPENDENCY:  Year-end bonuses do NOT change based on performance or other factors.  Why?  How could it motivate employees?
  • DIVISION:  New employees are hired first, THEN recruited into the organization?  How would this work and why would it be useful?

The real trick in using this method correctly is to envision a pre-inventive form that doesn’t seem to make sense at first.  Then, using a cross-functional team, you outline specific benefits that could be derived for the HR department, the company at large, or some other entity.  Ask yourself: is it feasible?  How could the idea be modified to make it even more beneficial or feasible?
Another approach is to use innovation templates on specific employees – create ideas that innovate their life or career.  Here are five more examples of pre-inventive forms at the individual level:

  • SUBTRACTION: The employee no longer has a budget but still has to accomplish their goals.  Why?  What would be beneficial about it?
  • TASK UNIFICATION:  The employee’s office space now performs an additional role.  What is that role, and how could it help the organization?
  • MULTIPLICATION:  The employee has two bosses, but they are different in some way.  How are they different?  What would be the benefit?
  • ATTRIBUTE DEPENDENCY:  The employee works fewer hours the more she produces?  How would this work?  What would be the benefit?
  • DIVISION:  The employee no longer works from 8 to 5, but has to work at different times.  Why?   How could this be useful?

Re-invent others by re-inventing yourself first.

Choosing Innovation Consultants

Published date: March 16, 2008 в 2:18 pm

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Choosing an innovation consultant is challenging for two reasons: the client is not always clear what type of innovation they want, or they are not sure what type of innovation a consultant offers.  Here are three factors to consider when choosing an innovation consultant:  1.  TYPE of consultant, 2.  METHOD used, and 3.  ROLE of the consultant.

The innovation space has become so crowded that I group them into four types (I-D-E-A):

INVENTION:  These are consultants that help you create new-to-the-world ideas.  They have a particular expertise in creativity methods or idea generation tools.  Their main focus is generation of many new product or service ideas.

DESIGN:  These are consultants that take an existing product, service, or idea and put some new, innovative form to it.  They have a particular expertise in industrial design or human factors design.  Their main focus is transforming the way a product is used or experienced.

ENGINEERING:  These are consultants that help you make the new idea work in practice.  They have a particular expertise in technology, science, research, and problem solving.  Their main focus is building it.

ACTUALIZATION:  These are consultants that help you get the innovation into the marketplace.  They have a particular expertise in marketing processes, brand, or commercial launch of a product or service.  Their main focus is selling it.

The challenge is many consultants claim to be all of these.  While true for some, my sense is that all firms started off as one type and then expanded to cover the others.  The question to ask yourself is: would you be better off matching your need to their original core expertise, or would you be better off going to a one-stop shop…a firm that can do it all even though their core expertise is, say, design.  How do you know what type the firm really is?  Study the biography of their founder.  What was the founder’s education, experience, work background, interests, etc.  The founder is where the core orientation of the firm begins.  The other practice types get bolted on later.

Step Two is understanding their method.  The first question I ask consultants is, “Do you know how to innovate?”  The second question is, “How?”  I want to understand their method of innovation, and I want to be able to explain it to other people.  I want to know the efficacy.  Has it worked in the past and will it work on my project?  Show me the data.

Step Three is understanding the role of the innovation consultant.  Is this a DIY (do-it-yourself) approach where you are given some software or other resource to create innovation on your own?  Is this a DIWY (do-it-with-you) approach where the consultant leads and facilitates groups of your employees to innovate together?  Is this a DIFY (do-it-for-you) approach where the consultant takes your problem specification and comes back with their recommended solutions?  Or, is this training?  All of these roles are valid depending your need.

I am impressed with the talent and variety of the consultants in the innovation space today.  It becomes even more impressive when you select the right one for the job.

Gender Role in Innovation

Published date: March 9, 2008 в 2:05 pm

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Optimal innovation occurs when there is an equal mix of men and women using a systematic process.  I have always believed this through my observation of many innovation exercises.  When a predominately male group tries to innovate, results are less impressive.  When a predominately female group tries to innovate, results are less impressive.  Put them together and the results are amazing.
Research in this area may have some suggestions why.  Lynne Millward and Helen Freeman tested several hypothesis and reported the results in their article, “Role Expectations as Constraints to Innovation:  The Case of Female Managers.”  The essence of the research is that, while men and women are equally innovative, their gender role within the context of an organization can affect how they are perceived and how they behave when innovating and sharing ideas.  Men are perceived as more innovative and risk-taking, and women are perceived as more adaptive and risk-adverse.  “Thus, gender roles may interact with the role of the manager to inhibit (in the case of women) or facilitate (in the case of men) the likelihood of innovative behavior.”
They tested several hypothesis.  People perceive innovative solutions to be more likely to come from a male manager, and they perceive adaptive solutions to be more likely to come from a female manager.  They also found that innovative solutions were perceived to be more likely to be implemented if they were suggested by a male manager.
Innovation carries with it different levels of risk for men than for women.  Men are expected to take more risks when innovating and sharing ideas.  Failure is less damaging to men because that’s what’s expected of them.  Women are expected to be less risky, and this appears to limit or constrain both their degree of innovation and their willingness to share it.  Failure is more damaging for women so they behave more adaptively in innovation exercises.
As a practitioner, I believe there is both a negative and a positive side to this.  On the one hand, innovation workshops need a process to assure that women feel they can innovate “bigger” and share those ideas with the group.  If, as the research suggests, women are more likely to hold back, then the facilitation approach has to break through it.  Otherwise, you lose the inherent value of the (equal) innovation talent they bring to the table.
On the positive side, these differences can be beneficial.  I believe this more adaptive behavior in women and more risk-taking behavior in men provides a certain balance or harmony during innovation.  What I observe is a complementary effect that seems to yield better results.  Why?  I’m not sure, but my sense is that each partner holds the other accountable for ideas that are, at the same time, novel but adoptable.  Working in pairs, men and women also do a better job of expressing jointly-developed new ideas that may help overcome risks that women may be feeling.  Workshop processes that pair men and women up to take advantage of this are going to be more fruitful.

Innovation Competency

Published date: March 4, 2008 в 12:12 pm

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Tug_2Jeffrey Phillips outlines a sound approach to the age-old question, who owns innovation?  Where does it sit on the organizational chart:

There’s not a wrong way to organize, but there are benefits to developing a central team to ensure consistent methodology, language and culture and the use of consistent tools and frameworks. Eventually, most ideas if adopted will be implemented in a specific business unit or product team, so the central team acts as a facilitator, coach and sponsor, usually without implementing the ideas.

There is support for this view.  IBM asked 765 CEO’s this question in their 2006 Global CEO Survey, and reported the following on the question of who has responsibility for innovation leadership:  the CEO – 27%, No Owner – 27%, Functional Managers – 24%, and Division Managers – 14%.

The wide range of responses tells me there is no consensus.  But the question still makes me a little nervous.  Why does someone have to “own” innovation?  Do we think about leadership the same way?  Does someone own leadership in a company?  No one asks that question.

I get hopeful when I see that 27% of CEO’s ascribe no owner to innovation.  My sense is that creating an innovation champion or assigning it to one department could shut down others from innovating.  With strong, central ownership of innovation, others might be reluctant to initiate anything that looks like a competing approach.  When I see a company with an innovation champion (think “owner”), I expect to find innovation subversives, too.

The question is not who owns innovation, but rather who owns innovation competency development.  I see more companies moving in this direction.  Some place this within a process excellence group while others move it right into a functional department such as marketing or R&D.  Still others have dedicated resources such as GE and Diageo, two members of the MSI Innovation Roundtable.

Build innovation competency and the question of who owns innovation becomes moot.

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