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.

Over the past several weeks and 10 posts on the Vistage Blog , we’ve reviewed key imperatives that formed “Robert’s Rules of Innovation” and that together create the foundation upon which to build, improve, sustain and grow an organization’s innovation mandate.

Consider this the closing chapter in an 11-step treatise on putting what you’ve read into action. First, a brief summary…

Consider the lesson on the first imperative – Inspire and Initiate – to realize the steps necessary. The power of inspiration cannot be over-estimated in the process of innovation. Inspire your people, and then hit the throttle.

With inspiration as the wind in your sails, next comes the realization that with No risk, there can be no innovation. Companies must be willing to take some risk to potentially realize the benefits of innovation.

We discovered how important innovation is to the New product development process it, and how Ownership across the organization – from the CEO to the rank-and-file employee – fuels buy-in to successful innovation.

Innovation, we learned, fuels Value creation, yet Accountability, Training and coaching, and Idea management bring value to the process and its individual elements. Finally, the mandate to Observe and measure every step of the process brings quantifiable metrics to the process, which – hopefully – delivers Net results / net rewards.

Together, these imperatives drive Innovation.

With these imperatives in place, now visualize the role they play in your organization and issue a call to action: Innovate to thrive.

How should you start? Here are three final tips to get you started…

• Just Do It. Like the Nike commercial, it’s all about execution. You can read books and blogs on innovation. You can write plans for your next innovative pursuit. Yet as the Chinese proverb says, “Every long journey begins with one small step.” With the plan in hand, work the plan.

• Communicate. This cannot be stressed enough. From the CEO to the Chief Innovation Officer to every team member involved in the process, communication is essential to relaying key information about goals, intent, progress (from the biggest success to the smallest setback), and lessons learned from any failure. Whether by email, IM, a collaborative whiteboard, or recurring meetings, communicate your milestones.

• Get committed. Personal involvement from the CEO means, “No Lip Service.” From the highest levels, there must be a hands-on presence in update meetings, project rankings, and troop motivation. You must set the example. You must walk the talk.

You’ve been given the tools and insights. Now, it’s time to implement an innovation initiative in your organization. You don’t have to start big; in fact, like so many first-time projects, a beta may be the best way to test the initiative without investing too much time, manpower or resources – only to later discover whether the concept was worthy of pursuing further.

The key, though, is to kick it off. Create a personal action plan, follow it through, get engaged with personal involvement, and be there.

Don’t hesitate to drop me a note if you need encouragement or want to relay news of your successes, robert@innovationcoach.com

For more information and useful content see “Robert’s Rules of Innovation“,

LOOK INSIDE for more chapters, insights and tips on Innovation.

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Robert Brands is a professional Speaker, 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 in March, 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.

In 1980, the Coca-Cola Company was struggling, and its market share was underperforming compared to its competitors. So at a worldwide management conference in 1981, CEO Roberto Críspulo Goizueta decided to refocus the entire organization on putting value creation first.

The company refined its marketing investment, expanded into new markets, and acquired new bottling companies and the intellectual property and patents they held. The company created new products, including Diet Coke. It embraced a global vision; to wit, some market researchers say the company became the world’s best-known brand.

This transformation of company and IP doubled the company’s market share in 15 years, and Goizueta reportedly created more shareholder wealth than any other CEO in U.S. history.

Much has been written about innovation – the imperatives that drive the process and the results borne from the exercise. The purpose of innovation ostensibly is value creation that translates to enhanced stakeholder value. Process-driven organizational innovation drives value creation that transforms ideas into vital intellectual property, IP into revenues, and revenues into increased stakeholder value.

In any for- and not-for-profit organization, “value creation” can be translated in many ways. It is

• Improved, silo-busting, team-building collaboration
• Amassed IP and new product development, which gives the company or organization a competitive edge on the market or competition
• Strengthened fiscal performance, which lures additional investment

This is why organizations invest the time, energy, creativity, research, planning, refining, modeling and retesting that it hopes will pay off in terms of improved process, better teamwork, a new business model, a refined brand – and black-ink results. These are assets that add value to the company, which is why it is absolutely crucial to protect these ideas.

Yet Intellectual Property will drive the future. As we move past the Industrial Age and the Age of Technology, the future era will focus on process that drives IP – and the real value it delivers. As much as teams and share, it is imperative to build and protect IP through the use of patents. Patents protect and define the innovation so they are the key step to commercialization and enhancing value.

It is essential for every company to keep a patented Intellectual Property portfolio. The IP portfolio of Airspray doubled in value because of the patented technology that turned liquid hand soap into foam. Airspray realized – and its fiscal results proved – that the regular and persistent renewing, refreshing and updating of patents was well worth the cost.

To this day, IP remains arguably the most powerful driver in innovation’s Value Creation.