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The Other Side of Innovation: Solving the Execution Challenge

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Can businesses really change the world?

Yes—but only if they adjust. In our new book, The Other Side of Innovation: Solving the Execution Challenge (Harvard Business Press), we argue: "Through innovation, business organizations can change the world. There is just one little problem. Business organizations are not built for innovation; they are built for efficiency."

In fact, we point out, organizations today are only modestly more prepared for the challenges of innovation than they were fifty years ago. While most companies have plenty of creativity and plenty of technology, they lack the managerial skills to convert ideas into reality.

We liken innovation to an ascent of Mount Rainier. Most climbers focus their energy and enthusiasm on attaining the summit, leaving very few resources for the less glamorous and more dangerous part of the expedition—the descent. Similarly, companies devote their energies only to reaching the innovation summit—that is, identifying, developing, and committing to a brilliant idea. "Getting to the summit can seem like the fulfillment of a dream, but it is not enough. After the summit comes the other side of innovation—the challenges beyond the idea. Execution. Like Rainier, it is the other side of the adventure that is actually more difficult." In short: There is too much emphasis on ideas, not nearly enough on execution.

We have spent the past decade studying innovation within established organizations. In the process we have compiled perhaps the most extensive library of innovation case studies in the world (many of which are summarized in the book). Our work has led us to the conclusion that established organizations should be capable of executing any innovation initiative.

In The Other Side of Innovation, we offer practical advice for senior executives, chief innovation officers, leaders of innovation initiatives, members of innovation teams, aspiring innovators, and all those who support innovation. The principles and recommendations in the book span the full spectrum of innovation initiatives—from small process improvements to high-risk new ventures.

A fundamental premise underlying the book is that each innovation initiative needs a special kind of team and a special kind of plan. Part I of The Other Side of Innovation focuses on the team; Part II focuses on the plan.

In Part I we explain the steps for building the project team:
• Divide the labor. Decide how responsibilities for executing the innovation initiative will be split between the two components of the project team: The Dedicated Team, which works exclusively on the initiative full time; and the Shared Staff, who work on the initiative part time while maintaining ongoing operations.

• Assemble the Dedicated Team. Determine who will serve on the Dedicated Team and how to define their roles and responsibilities.

• Manage the partnership. Establish clear expectations for each partner and mediate the inevitable conflicts that will arise between the two.

In Part II we examine three steps for planning an innovation initiative and evaluating its progress:
• Formalize the experiment. The basic principles for learning from experiments are familiar but hard to follow.

• Break down the hypothesis. All but the simplest innovation initiatives are really compound experiments. There are two or more uncertain conjectures.

• Seek the truth. Myriad pressures in organizations push people toward interpretations of results that are comfortable and convenient rather than analytical and dispassionate. These pressures must be understood and overcome.

Once the innovation initiative is deemed a success, the innovation leader may move on to positions of greater authority in which he or she supervises an initiative, chooses the supervising executive for an initiative, oversees a family of related initiatives, and helps shape a more innovative company from the top. We conclude The Other Side of Innovation by extending the principles of the book to address each of these challenges.

Chris and I hope you find The Other Side of Innovation useful.

A final thought:
"For more than a decade, innovation has been practically synonymous with the latest cool gadget. In the new era, innovation will not be about cool. It will be about profound change. . . In the new era, the word innovation will convey breakthrough solutions for a peak world population of nearly 10 billion people, all striving for a better life, all facing the realities of a crowded and constrained planet."

Let us know what you think.

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Comments

Just getting the green light for a valid idea can be a terrific challenge. As you say, most people in big organizations focus on what they have in hand and are reluctant to embrace the unknown. Further, the more resources the unknown requires to bring it about, and the more it threatens the status quo the less interested they are in pursuing it.

I’ve spoken with CEO’s and others at companies of various sizes and most of them like simple ideas, those that take very little to implement, but shun those with any degree of complexity, regardless of the potential rewards, and this in the best of times. Tweaking the design of a zippered bag that only requires a slight change in the shape of a die is much more exciting than developing a low cost automated bagging machine, even if the new bagging machine could sell an additional $20 million a year in bags.

Profound, world changing ideas typically require a lot of faith and stamina from the the originator, and or from a champion within a company who believes in the idea. Sure we can imagine Post-It notes and similar simple ideas coming to fruition almost effortlessly, and it does happen occasionally, but it usually takes a good deal of persistence to get an idea through the innovation stage and into the hands of consumers. The story of Edison testing thousands of filaments for his light bulb comes to mind, but most people forget the additional effort that was put into sending out salesmen with generators at night to show rural Americans the benefits of the lightbulb over candles and kerosene lanterns they were then using. Not to mention the subsequent effort that went into electrification of rural America. That kind of effort takes relentless dedication and investment of resources to the vision.

I hope you are correct in your assessment that, “ In the new era, the word innovation will convey breakthrough solutions ...” However, I expect gadgets and gimmicks will continue to be confused with real innovation. Unfortunately, cool gadgets and gimmicks, unless a part of a greater overall plan, can be distractions that discourage those on the sometimes arduous path of bringing about profound change in the world

I appreciate your final thought, though I wonder why not state it at the start and refocus attention to this a few times throughout your piece? It’s pretty clear the path mankind is on is unsustainable. I don’t know of anyone who wouldn’t agree we are heading toward a cliff, with the only saving grace being we aren’t going at full speed, thanks to the recession. (Maybe the guiding hand of fate, in this instance, is a foot on the brake pedal?)

Surely innovative efforts would be best put into those profound changes that steer us all clear of the cliff? Isn’t it true this is where the greatest opportunities and rewards will be found?

Implementing ideas, turning them into innovations, requires in every instance an expansion of one’s domain, a stretching of the comfort zone. You cannot grow and remain the same, and we know change is inevitable. Change is the over-riding constant. Those who best implement and manage change, be they incremental, or dramatic and profound, are those who will lead the way. Their motto may very well be “Change or be changed”. They don’t just go with the flow, they create and guide the flow.

It may be said that visionaries see where the moving ball is now, and where it’s heading. Now a visionary may or may not be a leader or be in a position to implement a vision. If not, then it is their job to communicate this vision to leaders who are open to listening to visionaries. (Finding a leader willing to listen to a visionary can be quite a challenge in itself!) If a leader is able to recognize the value of and willing to commit to a vision, then the real work can begin. However, as is often the case, a leader may see the vision as a threat to their existing business or way of doing things.

I recently gave a presentation of a new product design to key executives of a $127M business. I was told by one person in the company my designs were radical and would revolutionize their industry. During the presentation one exec leaned over to another and said: “You realize this will park a lot of our products”.

The product I speak of will bring ‘High Performance Gardening’ to global markets, enabling people everywhere to set them up in their backyard, grow hundreds of pounds of fruit, vegetables, flowers, etc. using less than 1/10th the amount of water conventional gardening uses, with complete plant food, (not supplemental like most fertilizers), and will pay for itself in as little as one year. It is aimed at both residential and commercial applications. As an example of what is possible with High Performance Gardening, I harvested over 150 pounds of tomatoes from a single plant that grew in the open air in my backyard using no pesticides. This uses no soil and thus requires no tilling and no weeding. It has automatic watering saving 90% of the water of conventional gardening, and uses total plant food. It can be used to grow a wide variety of plants.

Even though this product presents profound change, or perhaps because of it, it was rejected by this rapidly growing company. It is a radical departure from what they now sell. It will make much of their existing line obsolete, and therefore is seen as a threat.

It appears irresponsible to say the least to push this change aside, especially if you consider the prospects of being broadsided by it when it comes out in the hands of another company. Surely managing such a radical change would be far better than having someone else manage it without your best interests at heart. Imagine having 6 or 7 warehouses full of inventory that could suddenly become largely obsolete and compare that prospect with gradually reducing that inventory prior to release of the radical new technology.

The actual scenario was a little more complex than I’ve presented it, theirs is a warehouse distribution business catering to individual and small chain stores while my product is ideal for 2 tier distribution to places like Lowe’s and Home Depot, but the crux of it remains the same. Welcome and manage change, or you may find yourself resisting the inevitable.

~ S

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