Implementing innovation depends on a disciplined strategy customized to the needs, size and culture of an organization. First determine what type of innovation you hope to achieve with your organization. Innovation can be incremental, which features a new process or way of doing business, or it can be transformative, which debuts an entirely new way to deliver value. Transformative innovations are few and far in between. These true game changers open up new businesses and markets. Organizations tend to use 80% of their resources on incremental enhancements, according to a 2003 study by the London School of Business. However, be warned that companies that focus entirely on incremental innovations have difficulty keeping up with new competitors that enter the field.

Understanding what your organization needs is very important in the New Product Development process. Know your innovation status and areas for improvement by completing a short audit at www.innovationcoach.com/solutions/short-audit based on Robert’s Rules of Innovations.

Once you solidify the goals of your organization, it’s time to assemble your NPD team and begin the innovation process. Be sure to complete a few relatively easy wins with your team earlier on in the process. This will not only build equity for your  program, but also gain attention from the high-ups in the organization right away.

Each organization must create their own clearly defined stages and steps of the NPD process. Here are some tips and insights for best practices.

•           Do we go/no go? Set specific criteria for ideas that should be continued or dropped. Stick to the agreed upon criteria so poor projects can be sent back to the idea-hopper early on.
•          Lean, mean and scalable. During the NPD process, keep the system nimble and use flexible discretion over which activities are executed. You may want to develop multiple versions of your road map scaled to suit different types and risk levels of projects.
•         The rear-view mirror review. Organizations are doing launch post-mortems, with performance metrics in place, to measure project performance, establish team accountability, and build in improvements for the future. An examination of your last innovation process can gain some valuable key learnings. Foster a culture of continuous improvement in the innovation process.

For more tips and guidelines on developing the right implementation strategy, see  Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival.

What are effective methods of inspiring innovation? For starters, keep the idea highway open to all. Good ideas can come from anywhere within your company and from any level. Communicate your innovation goals to the organization and encourage everyone’s feedback. Setting regular monthly in-person NPD meetings will ensure that the innovation process doesn’t fall off course. Hold your team members accountable for attending on time and actively participating at each meeting. Monitor progress, make new decisions and set target goals for the next meeting to steer the innovation process along.

The best way to stimulate innovation is to take team members out of their regular comfort zones. Knock down silos in the organization so that groups who don’t typically interact can form cross-functional teams. Take innovation champions from marketing, operations, finance, sales, customer service – or any other department of your company – and communicate to them simply and clearly your innovation goals and how your vision will shape the future of the company. By working with other departments, team members can see how their position fits into the organization as a whole and how they can contribute their specialized knowledge.

Innovation is the lifeblood of any organization and in order to achieve it, CEOs and Management team should lead by example. Encourage, inspire and initiate your team to be creative and to make breakthroughs. Let them dare to take risks, and accept failure along the way as a minor setback for the price of Innovation. By openly communicating and providing ample support, your team members will trust in you as a leader who wants to inspire a culture of Innovation.

No matter if it’s a test score, sports game result or a sales figure, what we measure is what goes down in history. After all, “what’s measured is treasured.” It’s human nature to look back at past results as a basis for comparison and for improvement in the future. For this reason, it is absolutely essential to carefully observe and measure performance in the New Product Development process. In each of the different stages of the process, keep track of how much time is being spent so you know if you are ahead or behind schedule compared to past NPD cycles.

What gets measured is what gets done. Therefore, it’s necessary to set leading and lagging indicators for how the NPD process is going. Leading indicators such as the number of new ideas in the database, number of projects in the hopper, patents applied to, and amount of time and resources spent are all important information that give you insight on the NPD progress. Lagging indicators could include number of new products introduced, patents granted, new product sales in the first three years after launch, and how close your team is getting to the goal of introducing “at least one new product per year.”

By the way the traditional measurement of % of R&D spend is no guarantee for success!

Things will not always go as planned so now is the opportunity to make corrective actions. By measuring performance, you will be able to address your team on what’s working and what’s not for continuous improvement.

Success in product development is seen as one of the top indicators of the future performance of a company. To sustain Innovation, companies need to continuously improve their new product development capabilities. Quantitative and qualitative measurements of new product development will lend insights into a company’s strengths and weaknesses.

Measuring performance doesn’t stop after your product is launched. Now it’s time to measure the fruits of your labor. Some very important and telling information can be collected during the first three years after the launch of a product. In a survey of 200 companies that design and develop new products, they shared these key performance indicators.

1. Measure Research & Development spending as a percentage of your total sales.

2. Look at your total number of patents filed, pending, awarded and rejected.

3. Track your total R&D head count, hours or days spend.

4. Measure the current year percentage of sales due to new products released in the past year, past three years, and past five years.

5. Count the number of new products released.

These metrics should be examined after every New Product Development cycle so you are clear on your spendings and ROI for each product. Look at your ratio of new product sales compared to total sales. Now you have a basis for comparison and can set a target goal for the next new product. This management by objectives style uses ongoing monitoring and is an effective method for keeping the NPD team focused on achieving goals. By looking at opportunities in the New Product Development process to increase ROI, companies are able to improve performance and ultimately, increase shareholder value.

Successful and sustainable Innovation cannot be achieved without proper training and coaching from the leaders of an organization. Employees should be given the basic tools in the form of knowledge in order to create and improve their skill set. Any business can be optimized with the right Innovation coach to motivate and mediate employees. The ideal coach possesses a superior skill set and experience, a deep understanding of the innovation program’s goals, and they must be self-disciplined and a great communicator in order to reach all members of an organization in both group and one-on-one settings. Complementing and supporting the CEO or Chief Innovation Officer. When all the criteria are met, the ideal innovation coach develops employees into future leaders – and that is what sustains Innovation.

The most important job of the innovation coach is to create a holistic innovative environment, of “total” innovation and a sense of curiosity and open-mindedness among employees. It is their duty to motivate and to create an atmosphere of camaraderie where ideas are welcome. By giving employees just the right amount of support and motivation, an innovation coach can push the team towards their maximum performance.

Think about the amount of time throughout the workday that employees spend on their day to day duties versus how much time they spend on brainstorming new concepts and perspectives. When a team member does think of a new idea, do they follow through, or is it lost in the shuffle? That is why choosing the ideal coach is so important as part of the new product development process. An Innovation coach can implement structured repeatable processes that a team needs to sustain innovation, as well as provide feedback and support to all members of the team. In order to accomplish that, here are some coaching tips.

Share the joy. As well as the frustrations – communicate what is working and not working with your team.

Newbies count. Ensure that newcomers to the team, as well as new managers, are included in all training/coaching programs. Keep everyone on the same page.

The one-on-one touch. Individual coaching provides the privacy and attention that breeds success. Generally, discussions about areas of improvement are much better received when done privately and away from the ears of co-workers. These private coaching sessions can be invaluable in developing future team leaders.

Choosing the right leader is critical for your organization, and will result in a pattern of sustainable Innovation. For more Tips, see Robert’s Rules of Innovation^TM by Robert F. Brands with Martin J. Kleinman, published in March 2010 by Wiley.

Innovation is successful when positive outcomes result in return on investment (ROI). That is why Value Creation is so important. Adding perceived value to a new product or service will drive ROI. The value proposition is the key to successful innovation. Develop an innovation with high perceived value to your customer, and strong sales will follow.

It’s all about understanding your customer and giving them what they want. Customer input and feedback is key. Look at Ford for example. The car manufacturer observed and listened to their large customer base on what they wanted in a car. They launched the “Your Ideas” initiative that invited people to make suggestions for improvement in all areas of comfort, convenience, connectivity, performance and safety. The result? Ford added iPod, MP3 player and USB connections, touch screens, voice activated communication systems, intelligent push-start buttons and more. Sales are soaring – not because of the traditional four wheels and performance but because of perceived value added features. Ford Motor Company now has the highest customer satisfaction rating among all major automakers.

When was the last time you tried or experienced your product or customer experience? Create value and not just onerous processes. Consumer input should be considered at multiple stages of your new product development process in order to increase perceived value. Enhanced product value means higher margins, greater returns, improved loyalty and increased stakeholder value.

Finally, when you find that delicate balance between cost, manufacturability and consumer perceived value, be sure to protect your intellectual property (IP) portfolio through patents. Invest the time and money into constantly updating patents and managing your product or service portfolio because it will lock in the value of your Innovation IP.

For more tips on Innovation and Value Creation, look for Robert’s Rules of Innovation. 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 by Wiley.

How do you treat ideas once they land in your organization’s “idea hopper”, and how wide is your idea funnel?

Answer these questions, and you’ve placed your finger on the pulse of how your organization embraces new product development.

NPD best blossoms in that place where creativity commingles with structure – where fresh thinking is fostered in a nursery of structured liberation. Think of ideas as if they were offspring: They should be free to roam and explore, but they need fences – structure – in their lives to ensure safe maturation in a controlled environment.

The same is true for NPD – regardless of whether products are widgets for sale or processes envisioned to improve the organization. A formalized new product development process will guide your organization towards Innovation through steps and “sub-steps” to help you make a Go / No-Go decision.

A carefully designed business process will take you through all the steps of new product development including idea generation, concept development, prototype development, and scale-up to launching and tracking. And remember that good “products” don’t all necessarily have to result in revenues; they can enhance processes, that in turn, can boost profitability.

Finally, is your organization prepared to measure the results – not of the NP, but of the process itself? Do you have a system in place to gather, measure and share both the success and the stumbling blocks? Are you prepared to ask yourself, how did the process work?

The truth is, future success can be closely tied into past accomplishments – if you’re willing to ask the right questions, create the right environment, and learn along the way.

For more ideas read “Roberts Rules of Innovation” (Wiley) available since March 2010 or visit www.InnovationCoach.com.

Accountability is an obligation or willingness to accept responsibility for one’s actions. After all, as the leader of a New Product Development team in any organization, how do you expect your team members to deliver satisfactory results within the desired timeframe? Make it clear from the beginning exactly what is expected of each team member and that they are held accountable for their work. Let your team know that, as members of the organization and members of the NPD team, it is their responsibility to contribute, to pull their own weight and to hold firm to deadlines. Otherwise, deadlines can slip with no real improvements made, and the end result may lead to finger pointing for who’s responsible. Don’t let that happen to your NPD process.

Is it clear to specific individuals and groups what their responsibilities are? Do you define action items at the end of each product development review meeting? These are key steps to implement for a good foundation to achieving Innovation.

If you struggle with Accountability, try interim reporting of steps so that when the due date comes the task is completed. Say you want a new design of a product in 30 days at the next NPD meeting, ask for an interim report on sketches a week later, a drawing the week following and a status of prototype build the week before the due date. No surprises…

When you successfully establish Accountability, it leads to great benefits for you such as being able to trust in your team, freeing up time for you to concentrate on strategy, and getting to lead a team that is confident, motivated and ready to take on the next “big thing”.

For more tips and insight visit: http://www.robertsrulesofinnovation.com/tips/accountability/accountability-tips.html

The success rate when it comes to innovation is very slim. In fact, just 1 in 100 new product entries succeed in the grocery business, according to a study by allbusiness.com. For every innovative product that comes out of the NPD process, there are plenty of ideas that don’t work out – deemed as failures. What’s important is that companies have a tolerance for failure and encourage risk taking.  Fear of failure can kill Innovation. Never punish for failed ideas. Instead, learn from them how to improve in the future. Establish a level of trust so your team won’t be afraid to think outside the box. To build a successful culture of Innovation, encourage everyone on your New Product Development team to take risks!

“Robert’s Rules of Innovation” gives five simple steps for encouraging initiative and Innovation. Here are some tips:

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.   Failure Management: Never allow an unsuccessful risk to hamper a team member’s opportunities and advancement.

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

For more, see “Robert’s Rules of Innovation” by Wiley, Spring 2010.

Inspiration for companies comes from the leaders, so it is the leader’s responsibility to initiate and drive the innovation program. For the program to be taken seriously and incorporated as part of the company’s culture itself, the CEO or designated leader must set a schedule of regular meetings. Regular, in-person meetings are the only way for team members to accept the serious non-wavering intentions, recognize the goals and deadlines of the project and ensure that the innovation program will not just fall off the map. It’s easy to instruct team members to be conscientious of Innovation, but new products will not come to fruition unless members feel a sense of accountability and urgency for the NPD process.

At New Product Development meetings, take action steps to ensure progress is made:

• Address issues and concerns.
• Share research and results.
• Recalibrate priorities.
• Make new decisions.
• Set objectives and action items to be completed for the next meeting.
• Request progress reports.

The leader’s inspiration and commitment sets the tone for the rest of the organization. By setting a standard of expectations, others see the NPD process as a priority and an indispensible part of the company corporate culture.

Think about the most innovative companies and you”ll find a charismatic, involved, hands-on leader – be it Steve Jobs of Apple, Herb Kohler of the Kohler company or any small innovative trendsetting company for that matter.

Here are some Inspire Tips from Robert’s Rules of Innovation to help you get started. There are three key steps to achieve the type of Innovation culture that inspires and creates intra-organization cohesion:

1. Lead by Example: It all starts at the top. Management buy-in and support of innovation and ideation is critical. And by support, I mean both material and emotional. It needs to not only endorse, but proactively push for Innovation. It’s the only way for your team to get the motivation to take time from their “day jobs” to make Innovation happen.

2. Over-Communicate, Under-Promise: Talk up overarching Innovation visions, successes (and failures), without hyperbole or pie-in-the-sky verbiage. Keep it simple. Keep it focused. Keep it real. Internal and external communications enhances group buy-in to Innovation goals. It’s important to articulate your grand vision and provide the compelling case for change.

3. Silo Demolition: Knock down the barriers that keep silos apart by creating cross-functional teams between groups that don’t typically interact. This keeps the flame of cooperation – and Innovation – burning brightly. “Silo-itis” can smother buy-in for innovation.

For more tips, see “Robert’s Rules of Innovation ™” by Wiley, Spring, 2010.

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.