EDITOR’S NOTE: This article is the fourth of four in a series on business innovation. Read Part 1, about removing barriers to innovation, in the June 2024 issue of Petfood Industry magazine. Read Part 2, about defining risks to innovation, in the July 2024 issue of Petfood Industry magazine. Read part 3, about building a vision, in the September 2024 issue of Petfood Industry magazine.
In this four-part series on innovation, Part 1 discussed the barriers to innovation and how to remove them. Part 2 defined risks and how to work through them. Part 3 focused on how to build a vision and empower people. This last article, Part 4, will focus on the importance of project planning and selecting between ideas.
The importance of a strategic plan
Every organization should have a strategic plan that directs it through opportunities and challenges. Individual projects and goals must be in sync with this overall plan. Often, we run into groups that have a good idea, but have not built the plan forward. If an organization builds a plan, there is a chance for success (nothing is guaranteed). If there is no plan, the chances of success are minimal at best. The more projects, the more there is a necessity for a strategic plan to pull them all together.
Projects need planning and are best seen through specific phases building upon each other. Some follow the business model of “fire-ready-aim” where there is no other step (phase) but “go-to-market.” The necessary steps to building innovative products are blinded by speed. Speed is incorrectly looked at as innovation. If there are unrealistic timelines, the project is stressed out of the gate. If you build the project brief with good input and discussion, the specific phases can move quickly. A good project brief helps a team act quickly, react quickly and handle challenges smoothly.
Some training suggests that projects have five, six or seven phases to make sure all the right actions are done well. I believe that there are seven distinct phases that build understanding and promote decisions to market. At the end of each phase, decisions should be made to stop, go forward or change course. These points of reflection-decision reduce the misfires/missteps.
Project phases
Phase 1: Ideation – Concept Innovation. The purpose is evaluating ideas based upon strategic research, market intelligence or various leads. At the end of this phase, there must be an agreement to a concept with funding for even exploratory research. The output is to develop project briefs that can be ready for further selection.
Phase 2: Justification – Selection. The purpose is to generate, develop and validate a concept to justify it to the company or decision team. There must be an agreement that it shows value to the organization. Multiple briefs should be ranked and agreed to. A team should be selected to initiate the project. The output should be a validated business concept with the scope of the business opportunity well-defined. This new purpose should include marketing specifications, action items, regulatory positions, resource planning, member communication and finally a signed and approved project.
Phase 3: Initiation. The purpose is to ensure that all required technology and operational groups support the concept and that the project represents a valid opportunity to the organization. Decisions should be made to confirm technical feasibility (including timelines), confirm business entry and opportunity, agree to funding for the project through Phases 3 and 4, and finally to choose a team leader who can communicate and organize well. The output should be a confirmation of prototypes that deliver against the goal of the brief. There should be developing technical specifications with completed safety and quality prototypes. Regulatory decisions should be clear. One large mistake is to wait to get a product approved by legal and regulatory as a final step. Additionally, there should be a preliminary marketing plan with a completed risk assessment. All projects within the organization should be clearly ranked.
Phase 4: Development and Optimization. The purpose of this phase is to optimize and establish the concept with a fully developed database to support products and claims. A decision should be made to approve the final products and the cost of goods. A launch date should be approved, and commitments should be made to fund Phase 5. The output should confirm market reward. Final product specifications/goals should be validated, as should the manufacturing process, strategy, formulation, packaging, promotions, advertising and sales direction. The final regulatory review should lead to approval. Key performance indicators should be distributed to all involved with a final financial assessment.
Phase 5: Commercialization. The purpose is to start up production and complete all actions necessary to build a successful product and introduction. There are decisions to be made. Product responsibility is transferred from the design team to manufacturing. If there are multiple countries to roll out to, these paths should be fully laid out in a new timeline. The product should be ready to market. Finally, this phase should bring the final regulatory review (not the first). Training of sales and manufacturing employees should be in full gear. Status of the brief should reach out to all employees. Final products and manufacturing process specifications should meet the agreed-upon standards. Action items should be reviewed. The product should be in the pipeline heading to the shelf.
Some groups might end their projects here, but there are two more important actions needed to continue to launch repeatedly.
Phase 6: Audit – Efficiency. This is an action step to evaluate performance of all previous phases and seek immediate improvement. Close the project out, release the team and create new projects. Ultimately, the output should be providing new solutions to issues to improve company efficiency.
Phase 7: Review. I do not think companies review much, nor do they celebrate as much as they should, so often employees do not hear those good acknowledgements and get encouraged. There should be one final review of the strengths and weaknesses of the project, team, resources, manufacturing and the company’s abilities. The company should decide if all project brief criteria are fully completed. The outcome is a written review on the project’s value and success with team member assessment. Celebration and reward should follow. Lastly, a new project list of suggestions should be submitted back to Phase 1.
Managing multiple, simultaneous projects
When there are multiple projects, pushing through these details is challenging. There must be a process within a company of choosing and ranking projects. It forces the proper allocation of resources and how they are being reviewed. Assuming there is a well-accepted, well-thought-through plan, then individual project briefs are necessary to set expectations, create targets and allocate resources. These projects should be ranked by a specific, consistent team that reviews the size of the price (reward), the probability for success, the durability of the competitive advantage, the inventive merit (is there expansion), the time-to-completion, the probability of technical/operational success and the R&D costs to completion plus any capital and marketing costs.
Once projects are chosen, there should be a steady flow of deliverables, often best put in specific delivery dates (e.g., 6 months, 6–12 months, 12–18 months and over 18 months).
Software packages exist to help organize the many details and actions necessary to keep each project on track. If it takes software to keep these details moving, then use it. But do not let the software bog groups down or direct the ship. Software is a tool to help organize. It should not encumber communication or slow it down. If the software drives the team toward making wise decisions, then that is a good addition to the oversight process. But if there is too much data entry and documentation, then simplify the software or the process.
Finally, innovation must be seen as a process, and it should be part of all organizations — not just product providers. It should be encouraged and nurtured. This should be true for associations, regulatory bodies, ingredient companies, universities and life. When you do not learn daily and act upon your learning to innovate, you potentially stop growing. I was told a long time ago that everyone knows that you stop producing new innovations when you hit your 50s. The opposite should be true. You should continue growing, adding experience, expertise and value to every organization you are involved with. Enjoy the ride!
Briefly: Top 5 takeaways
Every organization should have a strategic plan that directs it through opportunities and challenges. There are seven distinct phases that build understanding and promote decisions to market.At the end of each phase, decisions should be made to stop, go forward or change course.When there are multiple projects, there must be a process of choosing and ranking said projects.Innovation must be seen as a process, and it should be part of all organizations.