Promoting Innovations in Work place
Successful organizations are normally those that innovate new products, systems and processes ahead of competition thereby giving their customers better experience. Innovations can be radical or incremental. Radical innovations bring extra ordinary changes in the market place but they are sometimes difficult to commercialize. Most organizations thrive on very few radical innovations and more of incremental ones. Innovations disrupt product offerings as well as value chain systems giving the innovator competitive advantage. For example Toyota succeeds through good product design and excellent management of the value chain from inputs to output and after sales support. Apple wrestled market share from Nokia by formulating radical innovations in the operating system of mobile phones(iphones) and tablets (ipads). IOS operating system is far superior to competitor systems resulting in competitive advantage edge. As long as Apple continues to come up with superior innovations, competitors will struggle to catch up. At worst, competitors can be overpowered and made extinct.
Many organizations desire their staff to be innovative but they rarely do so. As a result I explore factors that promote innovations in the work place.
1. Strong Teams
Innovations rarely come from individuals but teams that complement and collaborate with each other. Self organizing teams can sustain high energy levels sharing information and knowledge to resolve work challenges or create new products. Innovations are usually combinatorial. You combine various innovations which can be simple and ordinary, but the aggregation could bring significance. Also an innovation in an unrelated field or system could bring breakthroughs in other departments. This is only possible if teams work together and strongly support each other.
2. Idea Markets
Innovative companies establish idea markets where good ideas and innovations are harnessed and financially supported. Anyone in the organization can come up with a new idea to improve products, processes or systems. An idea market is more than a suggestions box. It’s a culture and philosophy to harness knowledge from everybody regardless of age, gender, grade or other inhibitive factors. The best idea excels. The challenge of most organizations is believing innovation comes from a special breed. No! Innovation is everyone’s business. The lowest ranks can resolve big business challenges if they are given the right ear and support. New ideas thrive in an atmosphere of trust, risk taking and knowledge sharing.
3. Culture of Experimentation
Innovations bring something new to the organization or market place. By nature new things come through experimentation or trying new structures, designs, configurations or formulations. To promote innovations, organizations should allow their staff to be flexible enough experiment. Experimentation without being reckless should be encouraged all the time. Instead of punishing failure some organizations embrace it move forward with good lessons. Some organizations even celebrate failure. They do not want innovators to feel humiliated for taking a step backwards before the great leap forward. By nature innovations can succeed or fail. It’s part of the game. Therefore successful organizations fail a lot but once they succeed they can take enviable market positions.
4. Flat and flexible Structures
Hierarchy is good for administration and control but it stifles innovations. Bureaucratic organizations rarely innovate. New ideas die on their way to the top because there is normally a manager who believes the best answer to protect himself is to say No. Feedback also delays so competitors launch new products while you wait for feedback from bureaucrats. Therefore, flat and flexible structures enable fast movement of information and knowledge sharing thereby enabling innovations to be quickly developed and commercialized. If you want to increase innovations in your company rule of thumb is eliminate another management level.
5. Rewarding Innovators
It goes without saying that behaviour that is rewarded will be repeated. If you want to accelerate innovations in your company prepare meaningful rewards and give them transparently. There is no better way to invoke the competitive and innovative spirit in an employee, than to offer something over and above the normal salary. The reasoning of most company executives is that they employ everyone to innovate so there is no need for extra rewards. My usual question is are you happy with your innovation funnel? The large majority normally replies, No that’s why I recommend innovation specific rewards. Even public recognition or acknowledgement can be motivator to innovate. At least you have appreciated that someone has brought something you cherish.
The only way to overcome competition or to sustain your market position is to innovate new products and services. In today’s fast moving market environment yesterday’s levers of success cannot guarantee tomorrow’s success. Sustainable advantage is hinged on creativity and innovation of products and systems that deliver customer value. Organizations should do their best to promote the factors of innovations.
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