Is your organisation positioned to embrace innovation?

In this article, we will delve into the common obstacles organizations face when striving to cultivate an innovation culture. We will also explore the multi-faceted nature of innovation and how its implementation varies across different organizational levels.

Our exploration of innovation induction will focus on three distinct levels:

1. Individual Job Level: We will examine how job design can encourage entrepreneurial behaviour and discuss strategies for integrating innovation into daily work routines.
2. Department Level: We will analyze how departments can create an environment that fosters innovation and collaboration.
3. Organization Level: We will discuss the broader organizational changes needed to create a culture that values and rewards innovation.

Individual Job Level: The Foundation of Innovation

At the individual level, innovation is often attributed to an individual's inherent motivation and creative problem-solving capabilities. However, it's important to recognize that innovation is not solely dependent on individual traits but can be significantly influenced by two key factors:

1. Job Design for Entrepreneurial Activities: Jobs that are designed to be more autonomous, offer greater decision-making authority, and encourage risk-taking can significantly enhance an employee's propensity for innovative thinking.
2. Integrating Innovation into Daily Processes: By making innovation a routine part of an employee's daily tasks, organizations can foster a mindset of continuous improvement. This can be achieved through initiatives such as encouraging employees to propose monthly process enhancements and recognizing and rewarding those who contribute valuable ideas.

By carefully considering these two factors, organizations can create an environment where employees are not only empowered to innovate but also rewarded for their contributions, ultimately driving a culture of innovation from the ground up.

Job design to push entrepreneurial activities

How your job has been designed can significantly impact how much effort it will demand you to be entrepreneurial in your approach.

Let us discuss each of the horizontal bars in detail:

• Span of Control: This reflects the range of resources (budget, personnel, tools, etc.) over which a manager has decision-making authority. Traditional jobs have a narrow span, while entrepreneurial roles expand it, allowing for greater autonomy and ownership of outcomes.
• Span of Accountability: This refers to the breadth of factors considered when evaluating a manager's performance. In traditional roles, it's often limited to narrow metrics. Entrepreneurial jobs broaden this span to include innovation, risk-taking, collaboration, and overall impact on the organization.
• Span of Influence: This represents the extent of the network an individual needs to engage to achieve their objectives. In traditional roles, it might be confined to immediate team members. Entrepreneurial jobs widen this span, encouraging cross-functional collaboration, stakeholder engagement, and building alliances across the organization.
• Span of Support: This signifies the amount and type of assistance available to an individual. In traditional roles, support might be limited to direct supervisors. Entrepreneurial jobs expand this span to include mentorship, coaching, access to resources, and a broader network of colleagues to provide guidance and expertise.

Making innovation a part of the daily process

Daily Innovation Activities:

Some companies have implemented specific daily activities to spark innovation:

• "One Improvement a Month" Challenge: Employees are encouraged to identify at least one improvement in their work process each month. This fosters a mindset of continuous improvement and empowers employees to make a difference.
• Recognition and Awards: The best improvements are recognized and rewarded, often through a company-wide announcement or a small prize. This not only motivates employees but also showcases the value of their contributions.
• Innovation Sharing Platforms: Creating online or offline platforms where employees can share their ideas and learn from others fosters a collaborative and innovative environment.
• The Impact on the "Last Level" Employees: Cultivating a culture of continuous improvement as they become proactive problem-solvers, constantly seeking ways to enhance their work.

Examples in Action:

Several companies have successfully integrated innovation into their daily routines. Google's famous "20% time" policy, where employees can dedicate a portion of their time to personal projects, has led to the development of groundbreaking products like Gmail and Google News. Toyota's "Kaizen" philosophy, which emphasizes continuous improvement, has become a cornerstone of its manufacturing processes.

Department Level

According to the latest article in Gartner and my interpretation combined with the value it offers on the real ground implementation, three things are most efficient on the department level.

1. The focus on the new idea
2. The stakeholders' commitment
3. The perceived impact of the innovation.

The focus on Innovation:

Departments must carefully assess where their innovation efforts should be directed. Is the focus on optimizing internal processes, enhancing the customer experience, or developing new products or services? While the specific needs may shift over time, a consistent understanding is that neglecting process improvement can hinder even the most innovative product, ultimately diminishing the customer experience and returns.

A balanced approach is essential, where process, customer, and product/service innovations are harmonized. This ensures a holistic approach to improvement, addressing both internal efficiencies and external market demands.

Stakeholder Engagement:

It is crucial to evaluate the level of commitment of the individuals championing change. Do they merely present ideas, or do they possess the motivation and ability to actively drive the implementation of these changes?

Departments should foster an environment where employees feel empowered to not only generate innovative ideas but also take ownership of their execution. This requires a supportive culture that values initiative and provides the necessary resources and authority to turn ideas into reality.

Impact Assessment:

The potential impact of the innovation must be carefully considered. Will the changes necessitate organization-wide adoption, or are they contained within the department's scope? Understanding the breadth of the impact is essential for effective planning and resource allocation.

For organization-wide initiatives, a comprehensive communication and change management strategy is necessary to ensure alignment and buy-in from all stakeholders. Conversely, for intra-departmental changes, a more focused approach can be adopted to minimize disruption and maximize efficiency.

Organisation Level

While we talk about the organisation, the impact of the changes will have an ever-lasting impact. The above framework is for assessing the degree of innovation within an organization, categorized across four key dimensions:

1. Novelty
2. Market impact
3. Timing
4. Scale.

Each dimension is represented as a spectrum, illustrating the varying levels of innovation a company might pursue:

1. Novelty: This dimension gauges the uniqueness of the innovation. It ranges from "something we haven't done" (internal novelty, like a new process or product for the company) to "something nobody in the world has done" (global novelty, a truly groundbreaking invention). Higher novelty typically involves greater risk but also potentially higher reward.
2. Market Impact: This dimension assesses the innovation's potential effect on the market. It spans from incremental product/service enhancements (improvements to existing offerings) to new products/services (entering new markets or customer segments) to entirely new business models (disrupting existing industries). Greater market impact often necessitates a deeper understanding of customer needs and market dynamics.
3. Timing: This dimension considers the time frame for realizing value from the innovation. It varies from "short time-to-value" (quick wins, like process optimizations) to "long time-to-value" (longer-term projects, like research and development initiatives). Balancing short-term gains with long-term investments is crucial for sustained innovation.
4. Scale: This dimension evaluates the magnitude of the innovation's impact. It ranges from "small/incremental" (minor adjustments or additions) to "large/radical/disruptive" (transformational changes that redefine industries). Larger-scale innovations typically require significant resources and risk tolerance.

Utilizing the Framework

This framework is a valuable tool for organizations seeking to become more innovation-focused. By analyzing their current and potential innovation initiatives across these four dimensions, companies can:

• Identify their innovation profile: Understand the types of innovation they excel at and where they have room for growth.
• Strategically allocate resources: Invest in initiatives that align with their risk tolerance and desired market impact.
• Set realistic expectations: Acknowledge that different types of innovation have varying timeframes for realizing value.
• Foster a balanced innovation portfolio: Pursue a mix of incremental and radical innovations to ensure both short-term wins and long-term growth.

This structured approach to innovation assessment empowers organizations to make informed decisions, align their innovation strategies with their overall business objectives, and cultivate a culture that values and rewards creativity and risk-taking at all levels.

As the organisation’s scope of work continues to evolve, organisations can no longer let necessity drive functional innovation. Instead, they must implement strategies that encourage and support innovation. This can be done by defining innovation’s benefits and value, embedding innovation networks, and establishing structured innovation processes. When an organisation employs these strategies, it creates a strategic and sustainable approach to position its employees and leaders to drive innovation and adapt to the increasing organizational demands of today’s workforce.