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Net Result, Net Reward: These two succinct yet powerful phrases define the last imperative of Robert’s Rules of Innovation. The principle is essential; dynamic innovation will yield a profitable return on investment (ROI) measured as a favorable direct correlation of innovative ideas and net profits earned. Below is the fundamental framework of Robert’s Rules of I.N.N.O.V.A.T.I.O.N, designed as a structured and repeatable process to attain consistent results.
- No Risk, No Innovation
- New Product Development Process
- Value Creation
- Training and Coaching
- Idea Management
- Observe and Measure
- Net Result, Net Reward
Long lasting success is possible when these Rules of Innovation are utilized continually without regard to sales performance. Apply these rules every day for every member of your organization and you will create a sustainable growth strategy.
New Product Development
The primary objective of New Product Development (NPD) turns new or improved ideas into money. Effective NPD coupled with Net Rewards creates a win-win situation for everyone: consumers purchase new products and features, company stocks increase in value and employees are motivated and individually engaged in the success of a company as a whole. Each and every member of your organization needs to be properly motivated to stimulate profitable growth and forward momentum.
Global business solutions powerhouse, IBM awards new product development with new product development. The IBM Solution Accelerator Incentive Rewards Program offers eligible IBM business partners new IBM software products when they sell new IBM servers and online storage solutions. Clients want more value from their IT investments. Why the two separate rewards? Selling hardware and a software solution from the same company, “…will accelerate the design, development and deployment of key business solutions, addressing the needs of clients faster as well as enabling IBM with its Business Partners to reach new markets and exploit new business models”, as reported by IBM Partner World.
Discover the Right Rewards for Your Company
In Robert’s Rules of Innovation, the core of “Net Result, Net Reward” is about inspiring your people with meaningful incentives. Motivation does not necessarily mean rewarding with money; praise and recognition for a job well done is paramount to overall job satisfaction for many employees. Offer incentives to promote innovative ideas. Here are some ideas for non-financial incentives:
- Award superior performance with unique employment opportunities such as project management, team leadership or conference attendance.
- The presentation of an award bestows recognition upon an employee for outstanding performance.
- Reward an innovation champion with a client introduction, invite them to lunch with an executive of the organization or schedule face time for them with the boss.
- A little praise goes a long way in boosting the morale of an employee, team or entire company! People like to know that their success was noticed by the head of the company.
Goodyear Tire and Rubber Company has been studying incentives as motivation for almost twenty years. In one of its most critical yet simple tests, one retail district was divided into two groups of equal historical performance. Group 1 was offered a cash incentive for the sales of a new tire line while Group 2 was offered a tangible reward of equal cash value for the sales of the same new tire line. Group 2 reported 46% more sales than Group 1 gave management the information needed to determine what rewards to offer organization members. The positive reinforcement of rewards can benefit an organization for everyone involved and equates to Innovation ROI. Cash or non-cash rewards can:
- Fortify employees’ commitment to the organization
- Boost morale
- Motivate future efforts
- Reinforce positive outcomes
- Encourage repeat performances
- Help to keep employees’ “eye on the ball”
- It also strengthens the connection between strategy and results
When trying to determine if your organization’s practices are optimized for Net Results, Net Rewards; use the following 5 questions as a baseline to determine how your company creates and maintains sustainability:
- Do you track new product sales objectives?
- Is your NPD pipeline as robust as you’d like it to be?
- Do you reward people who contribute good ideas to your organization?
- Do you have a reward system in place for creativity?
- Do you recognize staff for creativity and accomplishments in your NPD?
Net Results can yield profitable Net Rewards. Effective NPD, innovative ideas and incentives are the tools you need to create consistent profitability and continued growth. Robert’s Rules of Innovation will empower the reader with a pathway to create sustainable innovation that maximizes a company’s ROI.