Posts Tagged ‘resource’

Allocate Time for Innovation

Wednesday, December 2nd, 2009

One of the commonest barriers to innovation is lack of time. People are just too busy doing their day job to spend time trying new things. The common assumption is that working hard and working long hours are good things and sufficient for success. The mantra is – ‘Focus on delivering this quarter’s results.’

It is as though we are so busy building rafts to cross the river that we never look up to consider building a bridge, or a tunnel or a dam or fording the river or building boats or planes or all the other things we could do. We just focus on producing those rafts.

If you want people to be creative then set the goal (e.g. crossing the river) and then challenge them to come up with ideas. Give them time and some resources to test their ideas – to build prototypes, or to investigate what people elsewhere are doing.

Google allows its people to spend one day a week on innovative ideas. Is this a wasteful luxury? No. It has led to remarkable innovations such as Google Earth, Froogle and Gmail. Genentech has a similar provision for its people. Most organizations could not afford to give up as much time as Google or Genentech but the same principle still applies – you have to create some slack time in which people can experiment. You do not get innovation for free – you have to allocate time, money and people.

For many years 3M has allowed its scientists and engineers to spend up to 15% of their time on any project that interests them. They do not have to ask their manager’s permission but they do have to keep them informed of what it is they are doing. This permission to be free has resulted in countless ideas and innovations for 3M which is regularly rated as one of the most innovative companies.

The message is clear. The leader has to free time for innovation in order to empower people to come with great ideas and to explore them. Whether it is one day a week or one day a quarter, time for innovation is critical.

Paul Sloane

  • Share/Bookmark

How Expensive is Innovation?

Tuesday, March 10th, 2009

I was asked last night how companies could afford to allocate scarce resources to innovation in these unprecedented times. When every extraneous expenditure is cut back to preserve cash flow how can it be justified to lavish money on experiments that might fail?

You do not get innovation for free – you have to allocate time, money and people to the search for new products, services, methods etc. However, innovation can lead to powerful cost savings, profitable new products and competitive advantage. Indeed right now the main benefit of innovation might be survival. If you just cut costs and don’t innovate you will be bypassed in the market by more agile competitors.

There are inexpensive ways to achieve innovation. Let’s divide activities into three categories.

1. It costs virtually nothing to…….

- communicate a vision of innovation

- set goals and objectives for ideas, prototypes and innovations

- ask your people for ideas

- ask customers for ideas

- ask suppliers for ideas

2. It costs very little to……

- run brainstorm meetings

- set up an intranet based suggestion scheme

- evaluate and select the best ideas

- build models and prototypes

- ask customers to evaluate your prototype products or services

- implement small incremental innovations in your products, services and methods

- empower people to try more initiatives in their areas

- investigate new collaborations and partnerships

3. It costs a lot of money to….

- roll out major new products or services

- try an entirely new business model

- re-engineer your IT systems

So you should do a lot of items from category 1. Generate many ideas from all sources – it costs very little. You should do a few things from category 2. Definitely move the best ideas to the prototype stage and evaluate them (but kill them if necessary). You should think carefully about items from category 3 but be prepared to allocate some of your scarce resource in this area.

Innovation involves making bets. Often these bets fail. But you have to stay in the game and keep making small bets until one or more come off. Innovation is not free but it can be done on slender means if you adopt this kind of approach.

Paul Sloane

  • Share/Bookmark