Archive for January, 2010

RROI # 9: Observe and Measure

Monday, January 25th, 2010

Observation and measurement – in terms of the performance of the program implementation needs to be built-in as a recurring element :

  • What’s Measured, Is Treasured: And that’s just human nature, so be sure to check and recheck performance – monthly.  No exceptions, no excuses. What gets measured gets done.
  • What to Look For?: the key performance indicators and metrics include:
    • R&D spending as a percentage of sales
    • Total patents filed/pending/awarded/rejected
    • Total R&D head count
    • Current-year percentage of sales attributable to new products released in the past year/three years/five years
    • Number of new products released

For a recent survey on Innovation Measurements see:  http://www.innovationcoach.com/resources/survey/ “What do you measure?”

For more Tips see “Robert’s Rules of Innovation” by Wiley, March , 2010

Observe & Measure: When Validating Innovation, ‘What’s Measured Is Treasured’

Monday, January 25th, 2010

Innovation may be vital to creating competitive advantage.

But how costly is ineffective innovation? That is, if a company sets out on a new product or service development initiative – and that effort fails along the way for whatever reason – what has been lost? Investments in time, effort, capital – even reputation? Continue reading “Observe & Measure: When Validating Innovation, ‘What’s Measured Is Treasured’” »

Value Creation Tips

Tuesday, January 19th, 2010

In the discussion of optimizing sustainable Innovation programs, here is the key: Value Creation.  The real challenge is successfully managing the process and ensuring that the positive outcome results in superior return-on-investment (ROI).

  • A Means to an End: Think of Innovation as a process that uses intellectual capital to generate positive business results and, in the process, new findings – which spurs more Innovation, and leads to further financial returns, etc. etc.
  • The Customer is King: The value proposition is the key to successful Innovation.  Develop an Innovation with high perceived value to your customer, and strong sales will follow.
  • IP Protection: Part of the three-legged stool (technology – business acumen – law) I referenced earlier, IP and patent protection locks in your competitive advantage that supports the sales results and market share increases that result in overall stakeholder value.

Value Creation: The Ultimate Goal of Innovation

Tuesday, January 19th, 2010

Why innovate?

Some would argue that companies innovate to achieve a heightened competitive advantage, streamline the organization, or create intellectual property – including patents, trademarks and other protected property – that create value in the portfolio.

Continue reading “Value Creation: The Ultimate Goal of Innovation” »

‘Is This Yours?’ In The Innovation Process, The Answer Defines Ownership

Wednesday, January 13th, 2010

“Excuse me, is this yours?”

If someone asked members of your Innovation Team about “ownership” of a current initiative, would individuals reply, “Yes”?

Or would the people involved point to the team leader, the CEO or someone else – someone other than themselves? Would they reply, “No, that’s his”? Continue reading “‘Is This Yours?’ In The Innovation Process, The Answer Defines Ownership” »

Ownership Tips

Wednesday, January 13th, 2010

Everyone involved needs to feel truly part of the process and it’s incumbent upon the driver to knock down “us-versus-them” roadblocks in cross-divisional teams.  To wit:

  • Who’s Driving This Thing?: Your program for sustainable Innovation must have a champion, a true driver of the process.
  • Where’s the Passion?: Select associates who care and are truly passionate about the product and the effort.  Kick disbelievers off the bus – this is too important for naysayers to derail.
  • Different Strokes for Different Folks: Assign a specific task to a dedicated “owner” – this is critical to unleashing the best performance out of each member of the project team.

Business Week Column: Innovation Made Incarnate

Tuesday, January 12th, 2010

Much of Apple’s success relies on the inspiration CEO Steve Jobs has fostered in employees. Here are seven steps to turn inspiration into innovation

By Robert Brands

See: http://www.businessweek.com/innovate/content/jan2010/id2010017_541888.htm

When Apple (AAPL) unveils its iSlate in late January, the tablet computer will be just the latest wowing of the world by the pioneering computer company. With its iPhone, iPod, and MacBook laptops, plus the original Macintosh computer itself (and the “1984″ TV commercial that pitched it), Apple’s innovation has changed technology—and the people who use it.

Often overlooked in these rollouts, though, has been the inspiration behind the products. How does a man—CEO Steve Jobs, who co-founded Apple with Steve Wozniak—foster such an upwelling of inspiration? How does a leader motivate teams in the organization and transform consumers into loyalists? More importantly, how can you foster such inspiration in your organization?

Before you can answer these big questions, you need to start with another: How inspired is your organization? In a survey on InnovationCoach.com, a Web site I created with tools and resources for innovators, I asked, “Which elements of an innovation process and/or culture are in place today?” Half the respondents answered “inspiration.” The good news was that half realized the need for inspiration. The bad news was that just as many didn’t recognize its importance or hadn’t put a process in place.

I’ve worked in innovation for 25 years, and over a 10-year span, I was charged with delivering at least one new product a year. In my new book, Robert’s Rules of Innovation, I captured the imperatives of how to create and sustain innovation. In writing the book and creating InnovationCoach.com, I’ve sought to encourage the creative spark that ignites broader thinking and inspiration, which are vital to the continued growth of any organization. But you must first identify its source within your organization and channel that wellspring.

Inspiration from Everywhere

Inspiration goes beyond the thinking that brought us various Apple products. Inspiration is the creative spark that drives individuals or organizations to consider and create new products, services, or internal processes. It’s how people think, collaborate, and then put new ideas into motion. Inspiration comes from anyone and everyone. It reaches from the chief executive to the customer-service help desk, from the factory floor to the retail showroom, from the longest-tenured employee to the newest hire as well as the customer hitting the Web site and submitting ideas via a “suggestions” box or a phone call. Savvy innovators even welcome partners, suppliers, and vendors into the process. No one gets a pass from thinking creatively about how to improve the company, its products, or its processes.

Back in the 1990s, I ran a company called Airspray. The category-killer we created and patented was an inexpensive mechanical pump that created instant foam. With it, we transformed liquid soap into a foamy cleanser. We began with a model for the hair-care industry and then added products for skin care, hand soap, and eventually body wash. This progression met my mandate for a new product each year.

But it all began with inspiration. I led the innovation team that came up with the original ideas. At the table were representatives from across the organization—finance, R&D, sales and marketing, customer service. I empowered them to think creatively by breaking down the barriers between my C-suite status to become “one of them” in the creativity process. I was still a leader, of course, but one who welcomed ideas from all corners, whether that meant engineers or consumers. Our efforts paid off. We sold Airspray in 2006 for $187 million, or 13 times Ebitda.

While thoughtful leadership has fueled other businesses, inspiration remains the spark that drives the creative process.

How can your organization inspire innovation? Try these seven tips:

• Make inspiration an imperative. In Robert’s Rules of Innovation, I write that successful innovation in an organization is fueled by 10 imperatives, including leadership, ownership, accountability, risk and reward, and value creation. None is more important, though, than inspiration. An inspired leader, organization, and process engage the team, welcome them into the act of innovative, and heighten chances for success.

• Install and empower a chief innovation officer, or CIO. Inspiration and innovation need a champion, someone who helps develop ideas, fosters an environment that encourages creative camaraderie, and steers the organization toward greatness. In small or midsize companies, this could be the owner or CEO. In large organizations with an especially thoughtful or charismatic leader (like Jobs), the CEO can serve this role as well. But generally big organizations need a CIO empowered by the CEO to push projects along the various pipelines.

• Set goals and create enthusiasm to meet them. Where do you want your organization to go today and tomorrow? Does the company need one new product this year, or a new process-management or workflow initiative? Although the CIO is the leader (after the CEO or other top exec), the team must embrace the challenge as a shared goal to be met together. Buy-in comes with small wins that need to be recognized and failures that must be tolerated. Measure achievements and use a reward system of monetary or recognition awards. You’ll find sometimes recognition is reward enough to keep troops engaged and motivated.

• Create the right culture. Inspiration is bigger than individuals—it must permeate the organization. This is more than hanging motivational posters on the walls. Host regular brainstorming sessions to welcome new ideas. Hold team-building exercises, where inspiration is the focus. Inspiration must transcend hierarchy and silos. Together, the team enjoys success and learns from the lessons of failure.

• Imbue inspiration as a start-to-finish endeavor. On its album Dark Side of the Moon, Pink Floyd laments, “plans that either come to naught or half a page of scribbled lines.” Life and business are littered with uncompleted tasks. Set deadlines, and again, use rewards to help ensure they’re met. See projects through. Strive for the completed task.

• Observe, measure, and know. Inspiration—like innovation itself—doesn’t happen in a vacuum. It must be measured to gauge performance and ensure a chance at success. Each project team must have a leader in charge of shepherding projects to their respective waypoints and end goals. Set up processes and milestones. Establish checkpoints to weigh accomplishments.

• Never relent. Inspiration is about the journey, not the destination. Herb Kohler, the bearded, 70-year-old chairman of the plumbing fixture company that bears his name, still heads Kohler’s monthly new-product development meetings—that is, when he’s not collaborating with legendary golf course designer Pete Dye on a new development or leading the company’s acquisition of Scotland’s famed Hamilton Hall in St. Andrews. At a time when his contemporaries are content just to hit the links, Kohler remains committed to product innovation—and helping to provide the inspiration behind it.

Inspiration sparks, propels, and steers innovation, which, in turn, fosters creative thinking and new business development. It motivates teams, encourages shared goals, and ultimately drives value to the bottom line.

Robert Brands is the founder of InnovationCoach.com, and the author of Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival, which will be published in March.

Training and Coaching Tips

Tuesday, January 5th, 2010

Effective training and coaching is one of the pillars of success to any sustainable Innovation program.  These tips will help the process go as smoothly as possible:

  • Share the Joy: As well as the frustrations – communicate what is working and not working.
  • Pick the Right Coaches: Not everyone has the psychological make up to be the coach.  Knowledge is key, obviously.  But the coach needs to be able to motivate, mediate, create camaraderie and a sense of selflessness.
  • The One-On-One Touch: Individual coaching provides the privacy and attention that breeds success.  I’ve found that discussions regarding areas for improvement are received and acting upon much better in a private session, away from peers, listening-in.  This can be especially critical with new employees and/or team members.
  • Basics First: Make certain project management basics are taught, applied, and re-taught.

For more Tips see the book

Innovation: Training & Coaching, Business Overlooked Imperative

Tuesday, January 5th, 2010

Smart companies often pride themselves on training programs that introduce or enhance employees’ knowledge of corporate business practices. They promote mentoring initiatives that pair seasoned execs with rising talent. They create booklets or PDFs on corporate policy – and implore staff to read them.

Continue reading “Innovation: Training & Coaching, Business Overlooked Imperative” »