Wither Innovation? Even the Board and Top Management Don't Have It In Their Radar!

Because the purpose of business is to create customers, there are only two main organizational function of a business - marketing and innovation, the rests are all cost; quoted by Peter Drucker in 1954.

After spending some time in the last 1 year attending and "networking" in a number of management events, I learned that about 90% of the time innovation is actually not in the Boards and Top Management radar! In some places, there is no innovation pieces on the "board" to be looked at.

When I brought up why innovation is not discussed in Board meetings, they quipped;

1. "We don't have time to discuss something that is a luxury to have."
2. "The focus currently is trimming down the waste, we'll look at innovation when it's needed."
3. "We don't have the expertise, look around most of us are accountants and lawyers."
4. "We already a matured company, we just need market access to grow."
5. "We bring in new technology and digital focus for our customers, that's innovation lah."
6. "Now is the time for sustainability & ESG especially compliance and governance."

In short, innovation is so poorly understood and explored even at the top. Curtly put, "What?? Innovation?? No need.". If this is it, how to bring about and foster innovation culture for the rest of organization?

Innovation has bring about humanity from subsistence to prosperity, how did we deviate so far away?

Although there are some thinking to bring up innovation in the discussion, they were quickly brushed off by the Chairman and other more dominant Board members. The CEOs too are "afraid" to bring up innovation because all they see is money spending instead of investment to bullet proof the future.

Could this be also one of the reasons why Malaysia innovation ranking scores trending lower over the years? Although the ranking number looks promising. I prefer to look into the general trends and do not wish to dwell on the statistics, nonetheless.

But then, how come Drucker observed it in 1954 that innovation is important? What considered as innovation? Could it be these organizations are working on innovation but they understood it differently?

Now, assuming you want to look into innovation, what are those?

Let's look at the seven sources of innovation opportunities proposed by Drucker:

Do you noticed many things that organizations do actually are some form of innovation? Why don't call it innovation? Because of many generations previously believe that innovation is only for the engineers, R&D folks, techies and the selected genius. Those people in those generations now heading our organizations.

It turns out the busy-ness of many organization today (customers, business process, digital, artificial intelligence, cyber security product development, sustainability, corporate governance, talent management etc..) is about innovation but "is not innovation". Change that and you will be inviting the right conversation and trigger culture change.

It's like a folk tales that everybody believe and get passed on without question nor reconsideration. The funny thing about folk tale, as you will attest, it gets scarier doesn't it? Have you seen some version of the sly wolf in Little Red Riding Hood? Innovation is that sly wolf.

Take no offense, we need to exclusively refresh the conversation on innovation with the top brass. Take stock of what are we doing actually on this? Because without we will be drifted away and some day our organizations no longer creating new customers or serving the existing customers. We are busy "attending to this and that" but innovation. That means our business is no longer have a reason to exist.

THE CONVERSATION - BUILDING OWN INNOVATION NARRATIVE.

The Board and Top Management can start by addressing the "innovation narrative". An organization can't be doing all things under the innovation banner, but it needs a reason and that reason is innovation.

The Innovation Narrative consists of the exclusive discussion on this but not limited to:

1. Who is our customer/s? This question alone will take at least 1 hour to define.
2. What is their problem/s and challenge/s? Apparently many Board don't even ask this, it is assumed the Management is "working" on it.
3. What is innovation to us? Use the Drucker 7 sources to identify them.
4. What activities we do in innovation? What we shouldn't? List down key projects. If more than 50% of your projects in the Difficult / Costly, no wonder your people are lethargic and tired.
5. What is our business opportunity? Solving customer's problem is an opportunity
6. Do we have the right people & culture for it? Corporate culture is dead, build innovation culture instead.

In conclusion, just like in a dry spell, innovation withers without nurturing. With some mindful people around and thoughtful conversations, it awakens.

"Innovation has commercial objectives, creativity doesn't." Don't mistaken one for the other.

Reach out to us DT LEADERSHIP to assist your workforce in developing productive innovation habits, change to innovation mindset, develop innovation culture, use innovation as catalyst to incite new ideas, augment learning organization and facilitate boards and top management to discuss strategic innovation.

https://linktr.ee/dtleadership

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