EDITOR’S NOTE: This article is the third 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.
In the first article of this series, we considered the “barriers” to innovation and how to remove them. In the second article, we considered how to define “risks” and work through them. This article focuses on the potential of building an innovative organization and promoting a vision to empower people.
Innovation is not just product development, but it should occur throughout an organization. All personnel should be actively involved in innovation and know how they can build and support the overall organization. Some organizations missed their chances to re-invent themselves and keep major share of their business segments (examples: Blockbuster Video, General Motors, Sears & Roebuck and Gaines Meal dog food). Recently, Mintel was quoted that “genuinely new” products were down in markets with the food market showing the biggest decrease. Paths to the consumer are changing and innovation is critical for entry and survival.
As a reminder, having an innovative organization isn’t just about products. It is how you drive business growth improving and expanding products while strategically adding singles, doubles, triples and occasional home runs. Persistence in innovation helps you maintain relevance in the marketplace. It challenges how you work with suppliers, manufacturers, distribution and logistics.
Innovative organizations should not be known for how they can’t do something, they should be known for how they get things done to succeed. There are always boundaries and impediments, but freedom should bring more opportunities. That organizational style and vision creates an ongoing desire to be part of that organization and to build its growth.
Basic terms related to innovation
What is creativity? This is an ability to transcend traditional ways of doing things (rules, patterns, relationships, boundaries) in order to create meaningful paths forward (new ideas, forms, methods).
What is ideation? This is the process of forming or entertaining ideas or conceiving them. Creativity and Ideation work with innovation.
What is innovation? Innovation is more than an ability or a process, it is actually doing it (i.e., creating something new or different). It results from study and research and starts something new. Innovation is more than the abilities or the process — it acts upon the idea.
This is where many limit innovation, as the barriers and aversion to risk stop innovation in its tracks, thus limiting the potential of the company or organization. Some only see innovation openness at some point of the year with an innovation meeting or a group called the innovation team. This is why you see some companies slot people into specific roles, removing them from having new ideas. All personnel are involved in the business in some capacity and all personnel should be free to offer ideas and challenge systems.
Innovation must be built into the culture.
Innovation can drive business growth by improving existing products while building new portfolios. It allows the business to be always relevant, persisting in the market. It fosters client connectivity by seeing needs and then fulfilling them. It builds excitement and empowers employees.
Where does innovation come from?
One myth is that it comes from ideas that no one has had before. Great ideas often are inspired by other great ideas. Apple did not invent MP3s — a team of engineers in 1995 designed the algorithm. In 2001, Apple created the first commercially viable way to distribute digital music. Amazon did create the first online bookstore, but focused on getting books delivered faster and cheaper using highly advanced distribution centers.
A second myth is that success requires big resources. Cisco spent relatively modest dollars to create many ideas while Bell Labs spent large dollars with fewer successes.
The truth is that successful “inventors” learn from failure. It is not always the quantity of the resources that guarantees success — it is the willingness to keep going. Learning should come regularly. I always ask: “What did you learn today?” There should be learning throughout your life. If you are not learning and growing, you are in Idle and need to put yourself in Drive.
A third myth is that innovation breakthroughs are always based upon technology. Discovery is driven by companies and organizations that focus and support innovation daily. Companies like eBay, Netflix, Wal-Mart, Starbucks and many others burst onto the scene to set new ways of doing business.
An innovative culture begins at the top. Leadership sets the mood of the organization. It points to the way forward and says, “Go do it.” Without this vision, there is confusion in the organization. Innovators within the ranks of a company often leave to find more fertile locations. You can quickly recognize organizations that are free to build versus companies that are bound by meetings, committees and bureaucracy. If you want to put your employees/team in a box, then have too many meetings with little discussion and freedom. The oxygen is sucked out of the room. You either create “in-the-box thinking” or “out-of-the-box thinking.”
In-the-box versus out-of-the-box thinking
In-the-box thinking uses only existing ingredients and processes. You must go through the hoop of “how we do things.” There are long approval processes with limited openness and encouragement. There is limited reward for taking risk or creation. Dialogue is often confidential and on a need-to-know basis. It makes me laugh when a supplier says, “You must sign my NDA before I’ll share information on what I’m trying to sell you.” That basically stops a client from using your product.
Out-of-the-box thinking actively seeks new applications — new inputs. It is always looking at how to make processes better and form simple, basic agreements. If assessments, agreements and preliminary trials take months to finish, then the process should be challenged. The process is challenging business growth. Open the dialogue. Visit suppliers. Build new ingredients. Do whatever is necessary to make something move forward.
Often, I see people put unrealistic timelines on projects. All this does is impede and frustrate everyone. Certainly, reasonable timelines can be agreed upon and adjusted if necessary. It takes a leader to encourage (not force) the project forward. Try leading a pig with gentle touch versus pushing a pig sometime! A good leader must see the bigger picture/process and then help teams to see what could be done. Unreasonable timelines are almost always felt by team members, but they do not have the freedom to object. Leadership can set the mood — set the vision and say, “follow me.”
It is equally important to build a process that fits the innovative style of your specific company or organization. Ideas must be received, encouraged and rewarded early and often. It is okay to put an idea on hold (in a parking lot) until the time is right, but do not ignore the effort. That speaks volumes to the person taking the risk of sharing their idea. Once the idea has been reviewed, there needs to be a process. In the last article, I want to examine mechanisms of evaluation and management plus the key steps in any project.
Briefly: Top 5 takeaways
All personnel should be actively involved in innovation and know how they can build and support the overall organization. Innovative organizations should not be known for how they can’t do something, they should be known for how they get things done to succeed.Innovation must be built into a company’s culture.An innovative culture begins at the top: Leadership sets the mood of the organization.Ideas must be received, encouraged and rewarded early and often.