Do I Need To be Creative?

The answer to this question is ‘No’. Refer to the Innovation Equation and you will soon understand why. An Innovation System is desirable from the point of view of developing new products, services or processes but it takes a wide variety of skills to make such a system work effectively. The only real requirement is for you, and those around you to have an open mind and be open to the possibility that the way you have run your company up until now may not be the same as the way it needs to be run from now onwards. This applies even if you currently run a successful business.

So the answer is ‘No’ but what should you be aware of? Well you will need to take a look at the staff you have and see what their strengths are and fill any gaps. They may need to be reorganised, either logically or geographically. Employees may need some sort of training but they will almost certainly require your ‘permission’ to behave and think in new ways.

If you are not one of the creative people yourself then you might need to widen your leadership and management skills. How would you react to the following?

• Drastically changed working patterns


• Having you decisions questioned


• More testing and trialling


• The business not being ‘lean and mean’


• Requests to but things that are not core to your business

These are just a fraction of the things that could occur and which you will have to be ready for. Don’t panic, there will be other people in the same situation. The good thing is that by using tools such as the Innovation Equation, this whole process can be managed successfully and measured so that you have control over it.

Understanding The Innovation Equation

To see my innovation equation please take a look here where you will see the various components explained. This equation is both simple and profound. It states that innovation is simply a blend of creativity (coming up with new ideas), managing know how (the things we already know) and the frameworks that we put in place to help these processes along. Note that I have not mentioned Research and Development, High Technology, Science or any of the other keywords that both companies and governments like to use in their strategy documents. Cutting edge R & D is simply applied creativity with the emphasis on the ‘R’ whilst Product Development uses some Creativity but using existing ideas and Know How. Production is simply a physical manifestation of Know How. This may not suit those who have a drum to beat but it does keep things nice and simple.

This equation also helps to show that it takes a variety of different types of people to make innovation happen. We are talking about an innovation system rather than group of innovative people. After all, a truly creative person is the last person who you might want to look after your company accounts! On the other hand, just because your company accountant is logical, any system that you have for capturing and managing good ideas must not prevent them from making contributions.

The other main ideas to take away from the Innovation Equation are:

• Try to bulldoze changes through your company and output can go down


• The more mature and refined your innovation frameworks become, the greater the benefit you will derive from them


• Innovation is essentially about people not technology


• Innovation can be measured directly

Innovation - the people you need

How do you choose the right people who will support and nourish an innovation initiative? This article will attempt to provide you with a set of important roles together with some attributes of the people who should fill those roles. Here we are less concerned with titles or hierarchies and more concerned with getting the people who can help drive each critical role or task.

In reality, you will find people in your organization that will fit multiple roles; your goal is not to find an individual person for each role listed below, but rather to make sure your team covers each of the areas identified. Many times people can play multiple roles, especially in smaller organizations.

Connector Connectors have the ability to connect departments, organisations, and industries that normally would not be connected. Although they may be an expert in their own field, Connectors are generally people you'd describe as a mile wide and an inch deep. They know things about a variety of fields and industries and can connect them.

Collector The Collector holds the key position of collecting ideas and providing organised access to others who can help build the knowledge base and map what is already there.

Framer The Framer works with business functions and management to determine the appropriate evaluation schemes and frameworks teams should use to evaluate ideas fairly, transparently and consistently. The Framer can construct the evaluation frameworks which your team will use to evaluate your ideas, and ensure the evaluations are consistent and transparent.

Judge The Judge evaluates the ideas, using the Framer's framework. Generally speaking there are many "Judges" for any idea - often representing business functions (sales, marketing, R&D), regions or other business silos. Judges follow the evaluation criteria set by the Framers, who worked with all the entities involved in setting the evaluation framework.

Prototyper Many organisations are comfortable with their new product development (NPD) process. Once they know what to make or offer they are pretty efficient at producing it. The problem they have is how to capture ideas and evaluate them. The people identified above fulfill this need; however, a key person you must have is the Prototyper. Between evaluation and development there is an iterative process-the Prototyper is the master who makes rapid prototyping a reality.

Measurer You get what you measure. If you want your organisation to innovate, you have to establish what you will measure to make sure this happens. These metrics range from quantitative, such as time from idea submission to launch, to qualitative, such as what was learned from a failing.

Storyteller The Storyteller is one of the most valuable roles in the organization. The Storyteller's responsibility is to collect, keep, and tell stories about the organization. People respond to stories better than any other method of communication.

Lookout An important role in the identification of new trends and the analysis of those trends and the impacts they may have on your business is held by the Scout.
Scouts scan the future to understand how the industry is likely to change. What are the scenarios we might face? What technologies are in development that may affect our business? What might a competitor do that would upset our position in the market? What is hot in other industries that we might adapt?

The Innovator's Toolkit

This article came about as a result of a presentation made recently. The aim was to assist business people and entrepreneurs by telling them what would happen when they were innovating, what it would feel like, what the cost would be and what impact there would be on staff, family and friends. This is information not readily given out by consultants and business support organisations. The ideas are all captured in a document entitled ‘How Innovation Works’ which is currently available in PDF format on request.

So what is first? Well, rather like installing a new IKEA kitchen, you need a case for actually doing it. In the case of the kitchen it is simple – we have no room, it is a health hazard etc. In many businesses it is a case of ‘we do this or go bust’ but there are less extreme reasons. Ask yourself:

• Why do I want to do this?
• What will I achieve?
• Am I willing to take the risk?
• Are my stakeholders with me?
• Am I prepared to change?

Note at this stage you might not know what you are going to do but you will know why and that you have given yourself permission to carry on..

Rather like building that kitchen you will need some tools and a map. The first tool is a new brain! Not literally, but you will have to think differently.

“Hallo Rabbit,” he said, “is that you?” “Let’s pretend it isn’t,” said Rabbit, “and see what happens.” (Winnie-the-pooh)

Rather like Pooh and Rabbit we must adopt different modes of thinking. We will need to work with new tools, try out ideas, manage new staff and face new competition. The ideal model to follow is that of a modern terrorist organisation but without the flawed ideology. Think how they are managed and resourced, how they gather intelligence, how their networks are set up. You will need to consider one or all of the following:

• Team working
• Is management too hands on?
• Is there a desire to win?
• Do you know how to win?
• Do you look inwards or outwards?
• How do you manage external relationships?
• Do you have the appropriate culture?
• Do you get the best from your employees?

All of these things can be measured with our Innovation Toolkit.

Once you have the tools you will need some (metaphorical) space to work in. To create this consider:

• Strategic barriers
• Organisational culture and networks
• Corporate culture
• Learning ability
• Process and structure

Is it hard to do? Well if you consider that you will have to come up with ideas, transfer knowledge, think in half a dozen or so different modes simultaneously and ‘herd cats’ then you have some idea of the task ahead. It is all perfectly possible and many have travelled the path.

It is possible to define a methodology to follow and plan both innovation projects and continuous innovation. The ‘How Innovation Works’ document will shed more light on the topic if your are interested.

Key Innovation Indicators

When you make any changes to your business you will automatically be looking at certain indicators to make sure that any changes have had a beneficial effect (won’t you?). The trouble is that there may very well be a time lag between making the changes and noticing the (hopefully beneficial) effect.

If you have been trying to make your organisation more innovative then you might consider some sort of before and after measurements in the areas described below. Whilst not a definitive list of things to look for, they will help you decide what, if anything, is working.

Team Working – are people working as individuals or as single/multifunction teams? How much autonomy do these teams have and are their opinions and feedback listened to?

Management Style – how much interference is there by managers in every-day working and how prescriptive are they? What actions are taken when problems occur? Do managers take immediate control or do they trust the people working for them to resolve problems?

Desire To Win – is there evidence of this throughout the organisation? Even when there are insufficient resources to carry out a project or implement a plan, is there a 'yes and ..' culture rather than 'yes but...'. Good ideas should be kept for future use, not dismissed out of hand for lack of finances, time etc. Organisations with a desire to win will also appear to be less risk averse.

Knowing How To Win – a desire is one thing but do you know how to win? Organisations that know how to win are likely to have a thorough understanding of their marketplace and all of the factors that affect it such as the economy, legislation and technological breakthroughs. They are willing to exploit such factors and be first movers or early adopters.

Environmental Scanning - to be successful, organisations must be able to scan their environments and be aware of new competition, changes and spot trends and patterns. This information should then be used to determine key success factors within the marketplace and drive the building of strategic capabilities.

External Relationships - in order to maximise potential, it is necessary to nurture external relationships with both customers and suppliers. Is this being carried out regularly and effectively? Do organisations rely on single points of contact or do they interact at multiple levels, cementing ties? How well is information disseminated and vision, branding etc communicated to stakeholders?

Growing The Right Culture - a truly innovative culture relies heavily on intrinsic motivation. Employees need a clear idea of what they are expected to achieve and of the amount of support that they have. Transparency on the part of senior management and 'leading by example' will build trust and encourage buy-in to strategic objectives.

The Right Framework - when stretching individuals we must ensure that the right culture exists (see above). Such a culture includes, but is not necessarily restricted to such things as opportunities to develop skills, freedom to act on own initiative, work environment, acknowledgement of input, learning environment.

Getting The Best From People - when maximising potential it is often necessary to take employees out of their 'comfort zone'. To do this successfully there must be an effective framework for delivering the necessary training and development. Individuals should be encouraged to use their own initiative (subject to any safety or legal constraints), be responsible for their actions and learn from their mistakes. There must also be appropriate reward systems

All of these factors can be measured. Creative Business Solutions achieve this using their Innovation Toolkit. Click on the link or visit www.creative4business.co.uk for more information.

You can only manage what you can measure

There are many who say that you can only manage what you can measure. I tend to agree with that sentiment so how can I then suggest that Innovation can be managed successfully?

The answer is that Innovation can be measured. What's new I hear you ask? We have always been able to measure this using Key Performance Indicators. KPIs do not measure Innovation directly, they measure the result of Innovation. This is nit picking a little but imagine setting up an Innovation project, and the finding out from your KPIs that the number of widgets falling off your production line has doubled.

At first this seems good but ask yourself how many widgets could you actually produce? How will you know when your Innovation project really is producing the goods? Would it be nice to actually look at that process itself?

The Innovation Toolkit from Creative Business Solutions does just that. At a top level it provides some graphical output that gives you a feel for how you are doing and then provides some more concrete results so that you can a) see what you are currently doing well b) create an action plan to fix the things that are not doing so well.

All of this looks at 'soft factors' such as culture, leadership and management, desire to win, grasp of external factors etc.

To find out more about managing Innovation visit http://www.creative4business.co.uk/innovation.asp now.