BQF Innovation Blog » process http://www.bqf.org.uk/innovation The BQF is the community for every business seeking excellent insights, tools and experiences to improve itself. Fri, 10 Feb 2012 14:11:30 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Streamline your Innovation Approval Process http://www.bqf.org.uk/innovation/2011/05/09/streamline-your-innovation-approval-process/?utm_source=rss&utm_medium=rss&utm_campaign=streamline-your-innovation-approval-process http://www.bqf.org.uk/innovation/2011/05/09/streamline-your-innovation-approval-process/#comments Mon, 09 May 2011 08:56:50 +0000 Paul Sloane http://www.bqf.org.uk/innovation/?p=838
Try this exercise.  Draw a flow chart diagram of your organisation’s approval process for innovations. Pick an example for a theoretical new idea. Suppose it is a good idea to improve customers’ satisfaction that would involve significant spending and the co-operation of several departments. What levels of approval and authority would it need to see the light of day? Who are the key stakeholders in the approval process? Who has the right of veto? What levels of planning or business case development are needed to get it through the system?
 
Draw as detailed a flow chart as you can showing the go/no go decision points and the feedback loops where ideas are sent back for reconsideration. Now ask some questions. Is this process fit for purpose? Is it over-engineered? Do we have too many hurdles for new proposals to jump? Often when this exercise is done we find that the approval process has been designed for significant new product initiatives but it is unwieldy for smaller developments or process improvement proposals that still have to jump through all the hoops.
 
 The National Audit Office in the UK examined innovation in the government sector and found that approval processes were inappropriate and deterred innovation. It was recommended that  Government departments and agencies should ensure that:
 
1.  Their review processes are purposeful and proportionate for the risks that the innovations pose. 

2.  Pilots are appropriately scaled for projects and analysed. 

3.  Reversible innovations can be tested speedily and at small scale before being rolled out more widely.

 4.  Decision-making processes take appropriate account of the opportunity costs of delays, especially the foregoing of expected financial savings.
 
These recommendations apply to large and small organisations everywhere. Make more decisions faster.  This will lead to more failures but if you fail often and fail inexpensively then you will also find winners sooner.
Paul Sloane

Share

]]> http://www.bqf.org.uk/innovation/2011/05/09/streamline-your-innovation-approval-process/feed/ 0 Innovation Metrics – which are the best ones? http://www.bqf.org.uk/innovation/2008/06/09/innovation-metrics-which-are-the-best-ones/?utm_source=rss&utm_medium=rss&utm_campaign=innovation-metrics-which-are-the-best-ones http://www.bqf.org.uk/innovation/2008/06/09/innovation-metrics-which-are-the-best-ones/#comments Mon, 09 Jun 2008 09:57:07 +0000 Paul Sloane http://www.bqf.org.uk/innovation/?p=98 Last week I ran a session for GBPA corporate members where we discussed innovation metrics.  We reviewed the Boston Consulting Group 2007 research on the subject and the results of my innovation metrics web survey.  It was agreed that most organisations find it difficult to measure innovation in any satisfactory way.  The most common measurements [...]]]> Last week I ran a session for GBPA corporate members where we discussed innovation metrics.  We reviewed the Boston Consulting Group 2007 research on the subject and the results of my innovation metrics web survey.  It was agreed that most organisations find it difficult to measure innovation in any satisfactory way.  The most common measurements are backward looking – e.g. % of revenue from products released in the last two years.  The BCG report recommends that you select a small number of metrics appropriate for your business and have some for inputs, process and outputs.  At the meeting we discussed which were the best metrics to use and here are some of our choices:

Input metrics:

  • Number of ideas generated
  • Resources allocated to innovation – people and budget

Process Metrics

  • Average time from idea approval to implementation
  • Number of ideas approved and number implemented
  • Stage-gate pass rates
  • Value of the innovation pipeline

Output metrics

  • Number of new products or services launched
  • Revenue from new products or services
  • ROI on innovation spend
  • Market Perception
  • Number of new customers

We also found it useful to draw flow-chart diagrams of the innovation approval and pipeline processes and ask some searching questions about this.  Are we getting enough ideas coming in?  Is it taking too long for good ideas to be implemented?  Are we getting enough innovations out of the process?  Are our approval processes too complicated or too difficult?

It was agreed that everyone should have targets or objectives for innovation.  In collaborative ventures it is particularly important to agree goals, expectations and metrics for innovation at the outset.

There are no perfect measurements for innovation.  All the metrics are limited in value.  But that does not mean that you should not use them.  By choosing and applying a small number of metrics appropriate for your business you can add innovation to your balanced scorecard and give it the high level attention that it needs if you are to succeed.

Paul Sloane

Share

]]> http://www.bqf.org.uk/innovation/2008/06/09/innovation-metrics-which-are-the-best-ones/feed/ 2