How can you manage resource conflicts between innovation projects and business priorities?

Managing conflicts between innovation projects and business priorities requires a strategic and collaborative approach. Start by clearly defining flexible goals that align innovation objectives seamlessly with broader business goals. Establish transparent communication channels among stakeholders to ensure a shared understanding of strategic objectives. This is crucial for dispelling the perception that innovative projects are luxuries, emphasizing their essential role in the overarching vision. I am underscore that effective communication is the linchpin here maintaining open and transparent channels is critical for the successful integration of innovation into the broader business strategy.

Define Business Priorities that are aligned with the company. Establish a Governance Structure, whether its concepts like make/buy boards, RIO’s, gates in a product creation system etc. Communications !!!! communicate, communicate !! Resource Forecasting and future needs !, the Gretzky principle, skate to where the puck is going to be !! Flexibility in Resource Allocation and dynamic teams, I don’t care what you want to call it, matrix etc just get used to the fact that NO company has all the resources it wants. Continuous Monitoring and Evaluation or the old fashioned PDCA.. Senior Leadership / C-Suite Support… if its not there, or understood, you won’t resolve conflict, align on goals or understand resource needs.

Resources in any organization are going to be limited. There is never enough time or money to do everything for everyone. However, one of the most important benefits of a good strategy is that it helps with resource allocation decisions. Any conflicts about priorities should be viewed through a strategic lens. Innovation projects and business needs are likely all important and meaningful, but only a portion of them can be accomplished. Let strategy be your guide - the initiatives that most closely align with overall strategy should be given priority. Think of it in terms of "gotta have" vs. "nice to have" to implement the overall strategic plan. With a true strategic orientation, resource allocation decisions become pretty clear.

Using a simple framework such as Objectives, Strategies, Tactics & Milestones (OSTM) should enable a team to ensure they are always focused on the business objectives that should be achieved if initiative is successful. This helps ensure that if the mapping of strategies tactics and milestones to objectives is not clear, then there's an opportunity to pivot and adjust strategies and tactics as necessary.

Aligning goals is critical, but to ensure perfect alignment, we need to go beyond; we need to invite the customer to have a seat at the table. Customer centricity isn't just a strategy; it's an inclusive approach. By actively listening to the voice of the customer, we not only align goals but also co-create solutions that truly resonate. It's the secret sauce for managing resource conflicts, harmonizing innovation projects, and ensuring business priorities reflect the needs of those we serve.

When prioritizing innovation and business projects, it's vital to maintain a comprehensive and flexible approach that accommodates changes. Determining priorities between innovative and business projects should be clear and adaptable, considering factors like resource allocation, project adaptability to changing circumstances, potential benefits, size and complexity, associated risks, and emphasizing prompt communication with stakeholders for feedback, understanding, and immediate acknowledgment of amendments is of utmost importance in this dynamic process.

The title of makes it seem like innovation projects and business priorities are separate. But this would be the core issue that causes there to be conflict in the first place. Everything that needs working on that’s new, needs an investment case, stack rank prio and agreement from stakeholders to provide the resourcing. Once the concept of having a portfolio mechanism is in place, it become very visible to the business if there are conflicts and then hard decisions need to take place! It’s a tried and true way to operate, that seems to be missing in the start-up world. There are always finite resources and companies need to start treating investment choices more carefully.

Apple’s decision to transition from Intel processors to its custom-designed M1 chips in Mac computers reflects a prioritization based on impact, urgency, feasibility, and alignment with goals. The M1 chip represents a significant performance and efficiency improvement, aligning with Apple's goal of delivering high-quality, innovative products. Traditional models like the Eisenhower matrix might not fully capture the agility needed in today's fast-paced business environment. Companies should adopt a more flexible approach to prioritization, regularly revisiting and adjusting their project priorities based on real-time market feedback and emerging trends.

I’m quite fond of the zoom lens metaphor. In scenarios such as this, it’s essential to pull back for a wider view to assess the projects and their collective influence on the organization. Often, there are synergistic opportunities across projects that can propel the company forward, be it through expansion or through learning and development initiatives. It’s crucial to align these efforts with the organization’s core values and mission. Having identified these priorities, we can then narrow our focus, zeroing in on the project that promises the most impactful results.

Prioritizing innovation projects is vital for strategic resource management. This process involves more than just ranking projects; it requires a nuanced understanding of each project's impact and alignment with organizational goals. Utilizing tools like the Eisenhower matrix or RICE score helps in assessing not just the urgency and feasibility but also the strategic value of each project. This approach ensures efficient resource allocation, focusing on projects with the most significant potential for impact and strategic advantage.

I agree and this could be one of the most challenging tasks of today’s leadership. Short term will always get on the way of the long term if you are not organized to deliver on your future strategies and commitments. In my experience, narrowing down the future pockets of growth, looking around the corner to anticipate issues and defining the “size of the prize” it’s a good way to start and calibrate how much effort and resources are needed, while comparing with existing base business to check sufficiency of your plans based on your organization, processes and decision-making structure. Additionally, as said, have a contingency plan.

The dilemma of building for the future versus managing the current is always a tough one. In my experience - the current always ends up getting priority, often not leaving resources with enough bandwidth to contribute their best to innovation projects. Here's what's helped us plan better over time: - while the company would have a clear long-term vision on the innovation projects, it helps to break it up into smaller short-term targets for the team: Quick, small, easy deliverables keep up the motivation & drive - irrespective of current business pressures, ensure a dedicated time slot each week to discuss progress on innovation projects: Consistency is key Finally, make sure the team knows it may be a slow burn, but it isn't a no-burn!

Companies typically look at business priorities as short term and innovation projects as medium and long term. Despite believing that it is not the best alternative, I see companies making many short-term decisions at this moment in the market. To have resources optimized in projects, the only way is to have good planning and have a contingency plan as surprises happen.

Google has dedicated AI research teams and allocates significant portions of its R&D budget to AI development, which in 2023 was reported to be billions of dollars.Google’s resource planning includes contingency measures for unexpected changes. The dynamic nature of AI development often leads to unforeseen challenges; Google addresses these through flexible resource allocation and iterative project management approaches. This strategy enables Google to optimize its resource utilization, ensuring that innovation in AI does not compromise other business priorities like search engine and advertising technology enhancement. Companies can leverage big data and predictive analytics to make more informed decisions about resource allocation.

Most insights for strategic planning come from the military framework. Simply put: we can’t run out of resources in the middle of a campaign or the consequences will be disastrous. To avoid that potential outcome, we shall better align our project deployment plans with available resources.

Working as a team is always a very important topic. The leader has a fundamental role in making the team well-united and directed towards the same goals. Communication is again a relevant item. This is where good solutions can be found among project participants, as long as they have an open mind to listen and not just talk. A united team is impossible not to have a good result.

Spotify has been known for its "Squad" model, where small, cross-functional teams (squads) are given autonomy over specific areas of the product. Each squad comprises members with various skills and expertise and is responsible for a distinct aspect of the Spotify experience. In 2023, Spotify expanded this model by integrating more AI and data analytics tools, empowering squads with advanced tools and support to innovate effectively. This strategy encouraged knowledge sharing and feedback loops, as seen in their integration of user data to enhance personalized music recommendations. It's beneficial to consider the role of digital collaboration tools in facilitating teamwork in innovation.

Since stubborness is a quality and a defect of entrepreneurs, to learn to collaborate with our team is key. If an entrepreneur is not stubborn enough, he/she will give up soon after realizing all the headwinds that will be facing before the desired accomplishments. In this case being stubborn is a virtue. However, stubbornness can be lethal since the wrong dose of it in the wrong moment will make us deaf. Since stubbornness is a paradox the solution is to learn to collaborate, and that begins by learning to listen. As Elon Musk famously said when addressing this issue: “...your goal is to be less wrong…”, and that is found listening. There are plenty of techniques for this, and my choice is the servant leadership principles.

In my experience, it's vital to facilitate open discussions that bring all stakeholders to the table. For example, I was in a situation where two projects were competing for the same technical resources. By initiating a cross-functional meeting, I was able to guide the team in openly assessing the business impact versus the innovation potential of both projects. We collaboratively developed a timeline that allowed for resource sharing, ensuring that both projects could move forward with minimal compromise. This approach fostered a culture of transparency and collective problem-solving, reinforcing the idea that team collaboration is the key to balancing immediate business needs with long-term innovative growth.

To seamlessly integrate innovation projects with business priorities, employing the principle of charity in team collaboration is paramount. Embracing a generous and open-minded interpretation of team members' ideas fosters a positive work environment. This approach ensures that diverse perspectives are understood and appreciated, facilitating the incorporation of varied viewpoints into the alignment of innovation and business strategy. By promoting open communication and valuing all stakeholders, the principle of charity nurtures a culture of trust and mutual respect. This mindset enables effective knowledge exchange and idea-sharing across teams, creating an environment where innovation effortlessly aligns with overarching business goals.

In 2023, Amazon reported significant growth in its e-commerce and cloud computing segments. They achieved this by closely tracking revenue and market share metrics, which showed a steady increase. Additionally, Amazon consistently gathered and analyzed customer feedback to improve its services, evident in its high customer satisfaction scores. Furthermore, the company's investment in AI and logistics innovation was evaluated through specific innovation output metrics, such as the efficiency of its delivery systems and the performance of its AI algorithms. Modern businesses can use machine learning algorithms to predict trends and identify issues before they become significant problems.

After you set your goals, you’ll have to set up a tool to measure progress. The idea is that you A) Eliminate all subjectivity from the process, B) Do not waste time or focus working to reach your goals, and C) Realize that you’re actually making progress, and if not you can correct the course. For that purpose, there are a plethora of tools and best practices for each field. You just have to pick the one that suits your project best.

There is a well-known quote by William Edwards that says: “What cannot be measured, cannot be managed”. Having metrics for a project is essential for evaluating the progress of the project and, if necessary, making corrections to the routes of project activities. There are several tools on the market that can help, but with the advent of AI, there is nothing better than using and abusing this technology.

Innovation is a journey not a destination, it is a beautiful experience that will nurture and give meaning to our lives. Probably the most important lesson in the business management space recently, is to switch to improve by innovation and to avoid the old paradigm of competition. The competition framework ruled the 20st Century but now we’re moving out of the military ideology where it originated and learning collaborative and original ways to find success while really fulfilling customers demands.

Encourage a fail-fast culture that allows the business to pivot quickly and reallocate resources as needed. Drop initiatives which do not align with goals or are complex to execute. Benefits should be easy and fast to realise.

Additionally, regularly reassessing market dynamics and staying abreast of emerging trends will further empower your organization to stay agile and responsive in an ever-evolving business landscape.

Competing resources are common in organization. Resources are never enough because if it is enough it’s already too much. While we always know we need to be transparent with communication, there’s always miscom creeps in anyway, this is where there has to be respect of management lines & reporting. Bypassing all these boundaries in the name of innovation is equally damaging. It creates animosity, suspicions and hindrance to already blurry lines between innovation project vis a vis BAU priorities. Because innovation pounce on speed, in some organization innovation projects become the most preferred channel to get BAUs approval & signatures from the top management - because they are always around “there” than the BAUs.

Embrace the concept of ambidexterity and live it. Ambidextrous companies systematically combine exploration (innovation) with exploitation (business priorities). Decades of research shows that ambidextrous companies do better than firms focusing on either innovation or business priorities. Use the science and become ambidextrous.

In my view, innovation has evolved from occasional celebrations to a constant necessity for sustainable business growth. Integrating innovation seamlessly into traditional business initiatives acknowledges the dynamic nature of today's competitive landscape. Rather than treating it as a separate entity, innovation becomes an integral and intrinsic part of overall organizational strategy, woven into the fabric of business projects, this involves setting aside resources in each project to promote innovation, seamlessly integrating it into routine business activities. Embracing innovation as a continuous process nurtures adaptability, creativity, and forward-thinking, positioning organizations to thrive in an ever-evolving market.

One way to manage resource conflicts between innovation projects and business priorities is to consider innovation projects as exploratory. Whilst operational activities and strategy execution projects require full focus until completion, exploratory projects are a succession of loops, at the end of which there is a decision to continue or not. "Kill early" is a way to ensure that resources are not wasted in unnecessary activities and reassigned as fast as possible.

Limited resources (funding, time, people) is a reality for any business. What got you here may not keep you here, so innovation is essential. Innovation and business projects need not be mutually exclusive. Business projects should incorporate incremental improvements (innovation). However, step change innovation needs to be deliberated. Design thinking, customer centric design, data analytics, agile practices, and sound project governance is necessary to ensure the right innovation projects are approved for execution. An empowered team willing to learn and improvise in a collaborative manner will draw the best out of the team. Regular executive oversight will prevent a “blank cheque” mentality in the team.

Innovation isn't necessary a standalone initiative or activity. Rather, when people are immersed in a creative culture where new ideas (+ risk taking + experimentation) are not only encouraged but celebrated, innovation happens naturally. Start with small experiments when problem solving. Try a different approach or collaborate cross functionally. As an example, when HR collaborated with the Product and Customer Experience teams, they learned about aspects of product design and the customer journey and then applied design thinking principles to the Employee Experience (EX or the employee journey). This was an innovation that led to higher employee engagement and performance and, ultimately, improved customer experience (CX).