Innovative companies need People to steer growth and create value
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
??Over the next five years, technology-enabled companies are expected to grow close to ten times faster than those in traditional markets.
Reflecting the way competition is evolving, innovation is now a top priority for close to 80% of the companies and a small group is succeeding through innovation, focusing on key areas of future readiness. Innovation leaders use a number of specific enablers to inspire a level of growth that separates them from innovation laggards and among them many of them are related to employees. The best of innovators deliver superior short-term and long-term financial results and companies that are innovation leaders outperform others by consistently delivering new products, entering new markets, and establishing new revenue streams, while innovation laggards struggle to make headway beyond incremental improvements, according to a new interesting research published by 波士顿谘询公司 using data from among 725 executives at companies that have undertaken digital transformations and supported more than 100 BCG-supported digital transformations. The combined data set covers all geographic regions, industry sectors, and types of digital transformation.
?Definition of Innovation
Researchers discovered that innovation leaders differentiate their capabilities in AI and environmental, social, and governance practices.
They also noted that the skill at incorporating innovation in and beyond the core separates them from other enterprises as well. They build innovation muscle within operations and the operational value chain, customer experience, and organizational culture. Beyond the core, they innovate through new products, services, and businesses.
?Drivers of Innovation Success.?
Researchers discovered that innovation leaders use a number of specific enablers - which are tied to their employees - to inspire a level of growth that separates them from innovation laggards :
?? Empowered management
?? Focused teams
?? Entrepreneurial culture
?? Meeting employees’ intrinsic needs
?? Collaboration and knowledge sharing
?? Recognition of growth and expertise over tenure
?? A culture that values and rewards innovation
Innovation enablers extend to people, collaboration, risk taking, and invention.
Researchers defined six attributes serve as the best descriptors for leading companies:
??Aligning leadership with a powerful purpose;
??Developing a clear people advantage;
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?? Instituting an operating model to enable agility,
?? Resilience;
?? Establishing an innovation-driven culture; migrating to modernized tech platforms;
?? Embedding AI for value in the organization
?? Researchers noticed that companies need to implement capabilities and ways of working that maximize ROI so they need to empower expert teams to work collaboratively like the 2 below actions:
? Adopt cross-functional perspectives to set strategy and make portfolio decisions
? Encourage teams to adopt a shared ethos and growth mindset
?Critical actions for a successful innovation:
Finally, researchers found that to overcome barriers that could stand in the way of successful innovation, companies must focus on 3 critical actions:
1?? Strategize.?Develop a clear ambition of what successful innovation looks like by linking goals to strategy; prioritize efforts in areas relevant to commercial and customer success; and take a portfolio approach to investments.
2?? Create and scale.?Develop a portfolio of ideas that deliver business value; build and test minimum viable products to test the concepts and refine functions and market fit; and use top talent to launch, operate, and quickly scale the most successful ones into full businesses.
3?? Accelerate.?Use technology, people, and governance to expand innovation-related capabilities and ways of working in a way that maximizes ROI.
?Purpose essential to any Transformation journey
Also a recent research published by BCG BrightHouse and 波士顿谘询公司 found that leaders see clear purpose as essential to transformation success and among top 3 success factors along transformation, transformation leaders rated a clear purpose as #1.
Thank you?? 波士顿谘询公司 ?researchers team for these insightful findings: Beth Viner Amy MacDougall (Hurwitz), Ph.D. ? Justin Manly Michael Ward Michael Ringel Konstantinos Apostolatos Ryoji Kimura
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Founder & CEO @ Lever Talent | Host of The Lever Show | Helping leaders develop talent strategies that leverage a tech-empowered future.
1 年Inspiring data, Nicolas. The word that comes to mind for me here is VISION. So many companies confuse mission and vision together. Your mission is evergreen and unwavering. It's your company's reason for being. It's quite broad and sweeping. It's inspiring, but if you were to make decisions solely on the mission, it would be hard to keep teams pointed in one direction. A company vision on the other hand, sets the scope for what the company hopes to become in the next 10-20 years. Companies' vision statements often fall short... I think of vision like an umbrella; if you don't open it enough, your company is crammed together with no room to move around. It's uninspiring, they must rely on a team lead to push everyone in the right direction. If you open it too wide, then it's essentially your mission (too broad). The best vision statements provide clarity for the future, they cover what the company will be remembered for, how it will differentiate itself, and what technological accomplishments it will make. This is an umbrella opened just right, empowering employees to make decisions and move around a bit (this is where innovation happens!).
Lead consultant in HR Strategy & Value Management. Enhancing Value through Human Performance. Delivery of Equality, Diversity & Inclusion Training. Lecturer and International Speaker on HRM and Value Management.
1 年Great post Nicolas. I am going to pick up on the two actions that you have outlined. Wherever there is a change in one area of an organisation, it will almost always create change in other areas (departments) and so the adoption of cross-functional collaboration is essential if change is to be successful. Totally agree with the need to adopt a shared ethos. However, a growth mindset requires the development of people coupled with the freedom to experiment and to learn from their successes and failures. As I have stated before, the value received by all stakeholders will depend the quality of staff development (in addition to the actions highlighted by Dave Ulrich). Staff Development (through communication and collaboration) = Organisational Development (through innovation and creativity) = Growth (for employee and the organisation) = Value (to all stakeholders) = Brand. However, staff development needs to be cross-functional if innovation and creativity is to come to the fore.
Speaker, Author, Professor, Thought Partner on Human Capability (talent, leadership, organization, HR)
1 年Nicolas BEHBAHANI Thanks for sharing this thoughtful work from Boston Consulting Group (BCG) I like the focus on innovation as a key capability for organization reinvention. I also like the list of innovation enablers. I have posted and shared research on the importance of "human capability" (talent + leadership + organization + HR) as a typology for shaping HR's future. This research offers insights into each of these dimensions: ? Talent:?meeting employee needs, growth over tenure, people advantage, resilience, organization: focused teams, entrepreneurial culture, collaboration, culture, ecosystem integration, next generation technology, innovation metrics, agility, AI/technology, ? leadership: empowered management, ? HR: ?not much listed on the role of the HR function to deliver innovation This human capability framework helps organize these good ideas into the four domains and then offers 38 initiatives that might be identified to drive the innovation outcome. One thing I like about this current research is that the "organization" pathway gets more attention which is consistent with our findings.https://www.dhirubhai.net/pulse/more-effective-hr-make-whole-than-parts-dave-ulrich/