| Change Management – Create a Context for Innovation Can good ideas go bad? If a good idea fails to deliver, does that mean it was a bad idea? How many good ideas will be relevant to your business? Do they fit the context of your mission and the type of business and products or services you offer? How many ideas never get off the drawing board because they will require changes in the company? Is it possibly the result of a failure to execute? What would happen if no leader and champion for the idea emerged? Who would manage it with milestones and measurable results? What if the key stakeholders required to project manage the change weren’t engaged in the planning? What if key employees were not made aware of the change and its importance? What if employees do not stick their necks out for something that is a little different? Then you have a culture of fear and control in your organization. Creative people brainstorming in a room can produce a hundred and fifty new ideas, or more, in just a few hours. For brainstorming, or idea creation, to be most effective there must be no constraint on what makes an idea a good one. Selecting the best ideas and deciding which ones to explore comes after generating all the ideas. What makes a seemingly good idea worth pursuing? Which ideas will really be the best providers to productivity improvements in your business? Two basic elements drive the decision on whether to pursue a new idea: business context, and leadership commitment. The business context is the scope and structure in which an idea can develop. Ideas are the raw material needed for innovation to occur. Much as raw material fed into a factory to create new products, the business needs the right raw materials in the right quantities at the right time. The factory has a definite structure and strict requirements for the raw materials it needs. The business context makeup includes the purpose or mission, strategy (markets and customers, products and services), goal setting, leadership, change management, and communications. All of these combine to create both the filter for a valuable idea, and the support structure to execute the idea. Without a business purpose, or mission, a new idea is much like the result of a brainstorming session – a bunch of raw material that may or may not have any value. What is the difference between a good idea and an innovation? To produce any true value, an idea must be acted on and executed to completion. So what exactly is an innovation? In general, a business innovation is an idea that is developed and executed, resulting in a measurable improvement in performance. To qualify as an innovation, it will effectively perform one of three major functions: 1) it must address an as-yet unmet need in the marketplace, 2) it must improve an existing process or function, or 3) it must solve a problem by eliminating the challenges posed by that problem. Innovation means change. Generating the idea and the buildup of excitement about the idea is the fun part of the process. The real work begins in planning, developing, and executing the idea. Changes in policies and practices, new systems and technologies, and new products and markets all involve substantial change. Day-to- day work activities, behaviors, and performance expectations of every employee will also change. Many changes will take months or even years to execute completely. This is where leadership commitment comes in. Most business innovations that fail to deliver are the unfortunate victims of: • insufficient leadership commitment, • poor operational management, • lack of objective setting, • and, a general failure to communicate. Even with strong leadership commitment, if the business context makeup is also missing the idea is likely to go astray and the innovation never achieved. Without business context, the odds of selecting the best idea or executing it in the best way are low. It will be subject to the changing priorities of management, the market, customer, and your employees. It will become increasingly irrelevant. The process of creating the right business context and management process is simple. The challenge comes in maintaining your commitment as the leader over an extended period. Define your business purpose, or mission. Clarify your strategy. Personally commit to the idea as the champion. Develop expectations, outcomes, assign key people in roles, and then communicate regularly. Weave the new idea and the process for executing it into the operating processes of the company, and let the ideas begin to flow. One caution: Not all ideas will deliver the desired results or live up to expectations. These are tremendous learning opportunities about what will work and how it will work in your business. They serve to sharpen the focus on good ideas and they help to make your people more experienced at executing them effectively. Resist the urge to treat these ideas, and the key people involved, as failures that need to be eliminated. You will be throwing out the baby with the bath water. Do you want to turn your business into an innovation machine where process improvements, problem-solving and bold new product ideas become the norm? Create the business context structure and focus on the long-term leadership commitment and communication activities required to execute them. Only with this structure and repeatable processes for managing change can you make the process of innovation a habit, and not a special project. With the right context, leadership, and communication, your best ideas will win – again, and again. Patrick Smyth is a trusted business advisor and mentor. He improves business performance through effective change management, leadership, and marketing. His focus on business outcomes, growth, objective setting, team building, and communications builds sustainable productivity and growth. www.innovationhabitude.com |
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