Archive for October, 2011

Innovation Failure is a Learning Experience

Monday, October 24th, 2011

Nearly every attempt at success is met with failures along the way, and properly managing those failures can actually benefit the Innovation process. As an Innovation leader, do you celebrate failure and risk-taking in your organization? Doing so will broaden horizons and lead to more valuable ideas towards a culture of sustainable Innovation.

 

Innovation = Creativity x Risk-taking. And more likely than not, the bigger the innovation means the greater the chance of failure. In the pharmaceutical industry, 1 out of 1000 is considered a great success ratio. In the grocery business, the success rate for new product entries is 1 to 100.. Risk-taking will no doubt require failure management. In order to “manage failure,” an Innovation leader needs to define the risk and bandwidth that is OK to team members. Then if we fail, we make it a learning experience and praise people for it.

 

Failure management means never allowing an unsuccessful risk to hamper a team member’s opportunities and advancement. Let your people feel safe to fail, but empower them to do their best work. After all, failure is not what team members should be thinking about during the New Product Development process. Fear of failure can kill Innovation. Especially in a difficult economy where job security is in question, employees want to play it safe and are hesitant to take risks. In this type of environment the most important thing is to establish trust – so team members are willing to take the risks necessary to act, decide and move forward on the path to Innovation. An Innovation champion doesn’t just award successful ideas, but encourages a tolerance for failure and enthusiasm for risk-taking. Without risk, there can be no Innovation.

 

Here are a few tips for encouraging your team members.

1. Profiles in risk. Clearly communicate the risk profile you are asking your people to adopt and state why it is important to the organization’s success.

 

2. Key learnings process. Establish a formalized, non-accusatory process for harvesting key learnings from unsuccessful risks. Distribute these lessons learned.

 

3. Tools of the trade. Give your people the tools they need to help them improve their risk-taking decisions.

 

For more helpful tips, see “Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival.”

 

 

 

Customer Input Essential to Innovation

Tuesday, October 11th, 2011

Innovation is not a luxury to be placed on the back burner, but rather the lifeblood of any successful organization. Innovation builds brands, which leads to profitable growth and marketplace success. An important part of attaining that success is through creating value in the minds of customers. An example of a technological breakthrough that gained customer appeal is the Rexam Airspray mechanical foamer. Since the invention of bar soaps in the early 20th century and liquid soaps in the 70’s, nothing else had changed in the market for decades until the foaming hand soap offered customers an efficient, easy to use, drip-free medium: true value in the eyes of consumers.

A deep understanding of your customer needs, and providing ways to fulfill those needs, is ultimately what leads to profitable growth. The most consistent path to creativity is when an innovator gathers customer data and observes problems that need fixing, according to Karen Holtzblatt of InContext Enterprises. WordPerfect was developed when designers asked for input from their primary customers, office secretaries. eBay founder Pierre Omidyar conceived the idea for an online auction house when his wife required a setting to collect and trade PEZ dispensers. Today, eBay gathers customer feedback on a regular basis in order to add new features to the site every year.

It is essential to get customer input and feedback during the New Product Development process. Consider holding ideation sessions with your customers to gain valuable insight. Take into account customer input at numerous stages throughout your NPD process. Some questions to ask your customers include what features and benefits they would like to see, such as product and service ideas, or what they would like a product to do for them to solve any particular issues. Finally, there are entirely new breakthroughs that customers cannot conceive. But once the idea for a product or service is suggested, let customers give input on a radical new concept.

According to “A Little Book of f-Laws” by Russell Ackoff and Herbert Addison, “Consumers can discover what they want in products and services by designing them. It is in design that people find what they want. Furthermore, consumer involvement in product/service design almost always gets creative results.”

The key of it all is to make sure your products and services are not developed and designed in a vacuum, or only as technical solutions, because they rarely succeed. It is all about creating and adding value in a unique solution.