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Cris Beswick, 21 Sep 2011
Building a culture of innovation is the hot topic at the moment and alongside how to drive growth is the stuff that’s keeping CEO’s up at night.
Getting the strategic execution right for these business essential components is imperative but they are often looked at as mutually exclusive. Having a culture of innovation is finally being seen as a fundamental imperative to success and a key contributor to market differentiation and growth. No longer can organisations rely on the traditional forms of competitive advantage, as there is no exclusivity of access to materials, technology, manufacturing etc. Meaning anything an organisation does its competitors can copy. However, the last sacred asset any organisation has is its culture. Your culture cannot be copied. It is unique!
I think next generation competitive advantage is now being driven not by 'what' an organisation does but by 'HOW' it does it. For me that means becoming absolutely exceptional at things like strategy, innovation, engagement and leadership regardless of what you sell or do so here's a few thoughts on how to mix things up a little!
Innovation is still the buzzword de jour but again traditional leaps forward branded as 'game-changing' innovations are rare for most organisations. Gone are the days when genuine innovation was around every corner. However, I think this is a blessing in disguise. This has watered down the criteria by which something is branded innovative and for me that means it's become more accessible to a wider audience. If smaller things, changes and tweaks are now deemed 'innovations' then I say fantastic! Why, because now 'innovation' is within the grasp and of every employee. Innovation is everyone's responsibility is a message every growth-hungry organisation has been trying to get across for some time.
This means we can now finally use 'innovation' as a form of engagement. We can use it to align people to the strategic direction and vision of an organisation in order to drive growth.
Changing organisations in order to maintain sustainability or to push forward is crucial but the transformation is often done as a fait accompli and without a purpose employees can relate to. With innovation now having a lower barrier to entry I suggest using it as the catalyst for changing your organisation. The quest to become more innovative gives organizational change a theme, a purpose beyond just having to change. When there is purpose, people can rationalise the need and the fear of the unknown is reduced. Reducing that fear is imperative if you want people to suggest ideas and/or take risk, a fundamental part of innovation.
Also, when there is a purpose to something it's far easier to engage people in the process and when you're building a culture, organisation-wide engagement is crucial. One of the other tips I have for engaging people through innovation is using emotion to help create the type of culture you want. I talk to organisations about my three main emotions of business, LOVE, DESIRE and ENVY. The first emotion, LOVE should focus internally on your people. They need to absolutely love what your organization does and 'HOW' you do it. Emotion number two, DESIRE should focus on your customers. Concentrate on building a brand and more importantly an experience, which becomes the 'no-brainer' choice in the market. Finally, ENVY. You and your people will gain enormous satisfaction knowing that your competitors are constantly scratching their heads trying to figure out 'HOW' the hell you do what you do!
The combination of all these factors is something I call 'Differentiated Innovation' as its about 'HOW' your organisation performs not your specific product or service. Don't get me wrong, this is no substitute for an inferior product or service because your competition is matching your products/services like for like and they'll never stop so you've got to be different.
Finally the trick to making this stick is this. Don't do the same old same old! Seek out a fresh approach to organisational change and mix it with the key drivers of engagement. Then add in the components for sustainable performance and stir gently because these are the ingredients for the 'holistic' cocktail required to make innovation part of 'HOW' you do what you do!
Cris Beswick (pictured), is a speaker on leadership and motivation
2 comments on this article |
Jaime Beckett 23 Sep 2011
Cris Beswick makes some strong arguments for creating more innovative organisations. However, I think that there are one or two key factors missing in his thesis: I agree that purpose is key, as reducing fear is key to innovation, but innovation is not a purpose and the fear that permeates most organisations is that failure is not an option, only good news is permitted and woe betide anyone who puts their head above the parapet. Going to board with a statement like, “well, that didn’t work out” tends to lead to career suicide. Why? Because we don’t create organisations that are capable of learning and I mean true learning of the sort that requires freedom to take risks, make mistakes, experiment and really learn. This goes directly against the target obsessed, budget prioritised, utilisation-focussed nature of senior executives and managers. All the innovative change programmes in the world won’t help create true improvement unless leaders believe and trust their people and demonstrate that belief clearly and constantly. The three aspects or “emotions of business” which are quoted - love, desire and envy - are really just outcomes and I don’t really buy them, even ‘how’ the organisation performs is again an outcome. Differentiated innovation is a result of ‘why’ an organisation does what it does, the “how” is just a means to an end. ‘Why’ is what will inspire people. If they are inspired, they will work on the ‘how’ and if management is able to work with them, support them, trust them, then the ‘how’ gets to be improved, with the result that products or services are improved. No-one will buy a poor product or service, but customers are smart enough to see through to the ‘why’ of an organisation because it is visible in every conversation with employees, in every interaction with the company and in the end product or service. It forms the lifeblood of the organisation and if strong, clear, constant and in alignment with individuals’ values then anything is possible. So, do you want to improve your organisation? Think about ‘why’ you exist, ‘why’ you do what you do, and what is really important to you. Do you know ‘why’ your customers might want to buy into your service or product? What matters to your customers? How might you find out? Creating clarity, alignment and purpose is a good place to start. If these are missing, it might explain why employees ask, “why should I get out of bed this morning?” rather than coming into work ready to learn, grow, and focus on doing what matters. Jaime Beckett, Principal Organisational Change Practitioner, ICE jaime.beckett@icecreates.com
Cris Beswick 03 Oct 2011
jaime Thanks for your comments. Just to respond for the benefit or anyone reading, I agree that 'innovation' unless it is clearly defined is perceived as risky by employees. That's why I've highlighted the fact that it's overuse and dilution now means it's less scary for employees to discuss. If I were to expand on the three emotions I talk about it would include your reference to things like leadership, belief and trust etc as by default, you don't achieve that kind of 'outcome' without clearly demonstrating those traits! I disagree with your point that HOW is a means to an end when market differentiation in terms of product and/or service is becoming ever more difficult! What now defines organisations is HOW they do what they do and its that which will underpin next gen competitive advantage. I agree with your 'WHY' and again if I were to expand on 'DESIRE' it would include things like beliefs, raison d'etre etc However, building an amazing organisation isn't just about having a great story, a great WHY! It's no panacea in the same way as innovation isn't which is why the focus of my article was on mixing things up and looking at more holistic approaches to changing organisations. Cheers Cris Beswick Strategic Advisor, Author & Speaker on Strategy, Leadership & Innovation cris@crisbeswick.com
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