What’s in your IP cupboard?

Progressive companies create innovation teams. They invest countless man-hours, dollars and other resources in investigating and pursuing innovation. Yet they often leave their intellectual property untouched, thereby failing to translate patents and other IP into revenue opportunities.

American industry and academia hold some two million current patents granted by the U.S. Patent and Trademark Office. Yet, the vast majority remain idle. In a tight economy – and even in the best of times, failure to exploit existing patents for profit means more than money’s being left on the table. New opportunities – and the possibilities they spawn in kind – are lost.

At a recent Intellectual Property Owners meeting in Atlanta, the importance of corporate innovation and IP governance were tied directly to the potential for value creation. The consensus was that this untapped resource represents a significant lost potential value and income generation.

The combined roles of innovation governance and IP management cannot be over-emphasized. While the roles of corporate IP governance, supervision and even leadership are critical, companies that have respectable IP portfolios must install an IP Officer on the innovation teams or new product development board. The intention would be for the IP Officer or team to…

• Manage the IP portfolio, keeping a keen eye on that place where consumer or market trends and the portfolio intersect.
• Present opportunities to the innovation or NPD teams. And
• Work with those teams to craft approaches to maximize potential monetization.

Even small businesses with no IP portfolio can maximize IP potential. For example, IP Teams can search IP auctions or licensing opportunities to see how patents available match with the company’s goals or vision. For example, some 40% of the two million patents held are “common patents” for such generic products as components or parts for automobiles and software elements for cell phones. The patent owners often work out licensing agreements to put the patent into use. It can be cumbersome, costly and time consuming to work out one on one deals. But it often can serve the buyer’s near- and long-term needs.

One such marketplace about to take off , IPX International seeks to work with corporate IP owners and market leaders to maximize intellectual asset management on an open market exchange. “Establishing a fair and reasonable price for IP, the Exchange provides companies with an economical opportunity to be both a corporate good citizen and an innovative leader.”

In the end, these seized opportunities can increase shareholder value.

At the IPO conference and around Innovation war rooms across the business landscape, smart organizations are realizing that IP exploitation is an enabler. It empowers companies to transform often idle holdings into a significant source of income generation and the mindset for continued innovative thinking.

Managing that place where innovation and the IP portfolio meet is not a one-off event. This process must be a habit, an ever-present line-item on the Innovation / NPD To-Do List. Only when it is emphasized and embraced internally will it ensure the contents of the cupboard become fuel for the bottom line.

By Robert Brands with Jeff Zbar

Robert Brands is the founder of InnovationCoach.com, and the author of “Robert’s Rules of Innovation“: A 10-Step Program for Corporate Survival, with Martin Kleinman, published Spring, 2010 by Wiley.

The last imperative of Robert’s Rules of Innovation is Net Results, Net Reward, meaning recognizing the people who contributed to the development of a new product. It’s important to reward actions with incentives for sustainable effort.

Rewards for a successful New Product Development process can be monetary – often the key stakeholders get a product launch reward or a percentage of sales from new products. But all members of the staff need to be rewarded, and motivation isn’t always about money. In fact, non-financial motivators can rise above other incentives. Praise from managers, the attention of leadership and the chance to lead projects are strong motivators that can top even monetary rewards. People mostly want to feel recognized and appreciated for their contributions. If those needs are met, employees stay engaged until after the new product launch and for more development processes to come. Rewards enhance an employee’s commitment to the company, boost workplace morale and motivate future efforts.

The fruits of your team’s labor benefit all. These successes must be rewarded – and in the appropriate manner. Here are some tips on why you should reward your employees and how:

• Innovation and ROI: True Innovation results in value creation for all stakeholders – in terms of financial return, increased market share and enhanced profitability; this is the ultimate goal of your sustainable Innovation program.
• The Right Rewards: Rewards and recognition systems can take many forms, from a bonus percentage based upon new product sales to peer acknowledgment and awards.
• Recognition: Pride…a thorny problem solved…the personal satisfaction of a job well-done – these are some of the intrinsic motivators that make creative people tick.

For more tips on Net Results, Net Reward and other Rules of Innovation Imperatives, see Robert’s Rules of Innovation™ by Robert F. Brands with Martin J. Kleinman published in March, 2010 by Wiley.

Every company culture needs accountability. Actually, for any company to succeed accountability is an imperative. Members of a corporate team need to feel responsible for their work – to meet deadlines and to deliver what was agreed upon. Holding others accountable begins with clear communication of what is expected of them and even getting the agreement in writing if necessary.

So to expect creativity in developing new products at your company, hold your team accountable. Schedule New Product Development meetings.  Set clear action items and expect follow-through to keep the program moving along. Team members need to feel responsible for delivery.

Now there’s the left brain/ right brain argument that creative people cannot be organized – that creation loves chaos and therefore creatives are not able to deliver on a set schedule. But for a group of creatives who feel responsible for the outcome of their project and accountability for what happens within the company, Robert Brands assures you that in his years of experience leading project development teams that he has seen plenty of people who are creative and competent in delivering work on schedule. If you struggle with accountability, monitor and have your team report on smaller, interim steps in between monthly meetings. These tips should be helpful in encouraging accountability in your organization…

-  Give Them Enough Rope To…: The natural tendency is to dictate terms – deadlines, methodologies, etc.  Let the team members decide upon the “how it’s going to get done” elements.  Should they go a bit off the track, you can always fine-tune.  Or, better yet, lead a discussion on how they can fine-tune.

-  It’s Expected: State clearly, from the outset, that the team members will be expected to develop the answers to work-related issues – it will be their responsibility.

For more tips, visit Robert’s Rules of Innovation’s Accountability page and click on “Tips“.

Ultimately, it’s about people knowing their roles and that there are limitless possibilities and positive rewards for jobs performed in an organization that insists on Accountability.

• Innovation and ROI: true Innovation results in value creation for all stakeholders – in terms of financial return, increased market share and enhanced profitability; this is the ultimate goal of your sustainable Innovation program.
• The Right Rewards: rewards and recognition systems can take many forms, from a bonus percentage based upon new product sales to peer acknowledgment and awards.
• Recognition: Pride…a thorny problem solved…the personal satisfaction of a job well-done – these are some of the intrinsic motivators that make creative people tick.

• 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

• 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.

• 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.

• 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

However, investing in innovation may be viewed by some organizations as too risky at a time when they are scrutinizing every expenditure, the Society for Human Resource Management (SHRM) notes in its 2009 Workplace Visions article, “Innovative Work Teams in a Challenging Business Environment.”

For organizations up to the challenge, though, the SHRM researchers point out, “it’s the kind of strategic investment that will pay dividends now in the years ahead.”

Motivating Innovation PDF

Posted/Reprinted with  permission of the Society for Human Resource Management (www.shrm.org), Alexandria, VA, publisher of HR Magazine. © SHRM

• Open Wide: Keep the idea funnels wide open.  As Stage-Gate’s Dr. Cooper advises, find and fill the product “white spaces” – untapped marketplace opportunities.

• Sharpen Those Teeth: Make sure your Go/No-Go decision checkpoints have “teeth.”

• Widen the Innovation Highway: Make the system lean, adaptive, flexible and scalable, in order that you can simultaneously process different types and risk levels of projects.

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