
Innovation Starts With A Senior Executive Risking Her Position
Most business functions in an organization are there to execute on a plan.
Since innovation is a high risk game, in a big organization it usually means risking one’s position. So the first step to implement an innovation strategy is to secure strong commitment from a senior executive to the nature and process of innovation strategy. It not only means risking money, it means risking a disruption to the company’s culture, morale, and ego of team members, junior and senior alike.
I was asked many times about best practices to complete this first step. I don’t think there’s a better answer than trust. That is why is established agencies are now building innovation practices – they are trusted to make high risk moves. For a new entrant to the space, there needs to be an initial investment of marketing air cover, building a reputation. That means playing for the long run while securing small early wins.
The Corporate Innovation Framework
So here is a rough plan to go about executing innovation framework in a large org. This is based on my practical experience and seeing what other have done in similar situations:
- Securing executive sponsor – educate the sponsor on the process, on the commitment, on the risks and guaranteed failures, on budget and org.
- Problem discovery, validation and focus – engage the executive’s team to list and prioritize problems. Conduct problem sizing and urgency metric. Validate with the exec sponsor. The end results should be:
- List of top 10 problems in the exec org ranked by value size, urgency and strategic importance.
- For the top 3 problems, the exec and team must commit to pending innovation of at least $300K per TBD solution. Final budget approval is only after solution proposal is reviewed and approve by exec and team.
- Flaring for solutions.
- Build foundation for internal innovation center of excellence using ideation workshops, idea collaboration tools and customer development interviews.
- Develop open innovation framework to solicit ideas from industry.
- Set criteria and process for idea selection
- Selecting:
- Develop business cases, timeline, fit with org culture and strategy
- Define feasible product & delivery team for each solution
- Define business owner if pilot is successful
- Commit Funding
- Delivering
- Prototype / beta development
- Testing and learning
- Data and analytics
- Evaluating
At the end of evaluation, do one of these:
- Kill project
-Increase funding for the specific project for another phase of testing and learning
-Hand off to business unit for scaling
This cycles repeats itself while improving processes, tools, methods, and metrics, and can grow in scope across departments.
Innovation Business Rhythm
Quarterly 2-hour meeting with executive sponsor and leadership team:
- Problem hypothesis review and approval (30 min)
- Selecting new ideas (60 min)
- Review status of ideas in pipeline (30 min)
Conduct bi-annual innovation impact meeting with the exec sponsor and her superior.
Ad-hoc rapid response to fires, red tape and politics via email, phone conferences.