avatar
0 0 votes

The Paradox of Business Innovation


Paradox (yes, I double-checked the definition) is defined at Webster’s as a –noun
1. a statement or proposition that seems self-contradictory or absurd but in reality expresses a possible truth.

A post by Dr. Jim Anderson, Can CIOs Drive Innovation and Boost Quality at the Same Time, got me thinking about this paradox of business innovation.

The paradox of business innovation is:

  • How does business maximize profits with a relentless focus on executing one idea to drive operating efficiencies and routines with the resulting increase in cash-flows... while at the same time... nurturing, developing a culture best described as creative, open, ever-changing...
  • How does a business pursue mastering the rules of six sigma an approach to business that makes use of constant measurement and analysis in order to continue to optimize business operations... while at the same time... allowing a free-flow of ideas with less regard for their measurement and analysis as measuring and analyzing ideas at an early stage is tantamount to burying ideas. Can be, anyway.
  • How does a business pursue order and routine, consistency and stability when new ideas, ideas that push them out in front of their competitors (albeit briefly) are seen as disruptions, distractions, unrealistic ‘given our current operating systems’?
  • How does a business allow new ideas to develop when their efficient processes and their measurement and analysis require their full attention? And, failing that, their cash-flows suffer and so does their control of their destiny.
  • How does a business in the middle-world, more mature than a startup but not big enough to dominate a market... maximize their operations to deliver their cool, innovative product, that their customers love... and at the same time... find the resources to return back to their startup culture and create another one or two.

Any suggestions?

Small companies typically cannot justify the expense of a CIO, whether it's Chief Information or Chief Innovation Officer. The CEO/Founder/President... adds that hat to their stack.

And, typically they cannot afford an expert consultant who can show them how to bring a little bit of order to the chaos of innovation’s processes while at the same time... shading or hedging their relentless focus on operational efficiencies. (Ultimately, you’re hoping any lost operational efficiencies during the process of innovation are more than offset by the results. But, how? Ah... there lies the rub...)

But, small business and its ability to generate jobs is dependent on its ability to innovate, find and bring to market new ideas faster than their dinosaur competitors with six sigma efficiencies.

Add another paradox for business and innovation.

I’m not a fan of one-size fits all solutions. Nor am I fan of x tips for y solutions. And here’s the paradox, I’m going to list some tips to start you on your way to creating your own innovative culture.

  • Talk. Listen. If you’re a leader, then listen. Get your members to talk with each other.
  • Break down the silos. Functional silos and the false sense of control and prestige exist in any sized company. Innovation doesn’t happen in one silo. It happens when two silos collide. Taking that first step, getting people to talk, is the first step to insuring these collisions are gentle.
  • Connect with their world. Your innovation initiative needs to answer these three questions* for everyone in your organization, from their perspective:
  • what’s in it for me
  • why should I care?
  • why should I believe?
The answers to those questions include your organization’s purpose and vision, as well as meaningful rewards (cash is well down this list, recognition is high up on this list) for your members.
  • Get comfortable with failure. An organization that prides itself on operational efficiencies, and is rewarded for them, will have a difficult time accepting the high rate of failures common within innovation processes. You will set the tone for this change in attitude. Get comfortable with failure.
But, the key step is the first one: Listen, get them to talk. Do that, then let’s hear what you have to say.

* Credit these three questions to Verne Harnish, CEO and founder of Gazelles. I attended a Small Business Growth Summit in 2006 where I heard these three questions for the first time. They've stuck. They're simple, clear and obvious. Read his blog.


Link to original post