Innovation - who needs people?

The chances are that you do! Innovation is viewed as a “soft” science, hard to measure and hard to define. Other business functions such as purchasing, finance and manufacturing are easier to define and seem much more established and “concrete”. Purchasing, finance and manufacturing are accepted business functions with hierarchies and responsibilities. When we talk about innovation, however, the measurements, metrics and operations are less obvious. Few firms have an “innovation department” and even less have metrics around innovation or systems and processes to support innovation.

That’s why people are so important in an innovation initiative. Much of the work of innovation is at the “fuzzy front end” where there may not be as many clear cut milestones or metrics, and traditional transactional systems can’t provide much value. It is this ambiguity that is handled so well by people. In business as in life , the important things boil down to people.

I ask you to go to the cinema to watch a film and you say “who’s in it?” If you are browsing in a bookshop you will read the jacket notes to see who has recommended it and what the critics say about it. If you join a new company, project or team, you will ask “who is the boss, what are they like?” and “who else is working on this?” A venture capitalist’s main concern is the management team—who will be making this venture (and my money) work? The focus is always on people.

Innovation is an outgrowth of the people and the culture of the firm. If people are encouraged to innovate and compensated and motivated appropriately, the culture and processes will follow. If they are not motivated or compensated to be innovative, no amount of systems or processes will drive an innovation initiative. The people are the key to the success of innovation.

Why focus on people? Success in any endeavor is based on having the right people doing the right things the right way at the right time. If you want to implement a successful innovation initiative, you need the right people in place to succeed. People are going to implement the processes and systems to make things work. You need to identify those people. Additionally, different people bring different skill sets and viewpoints to any project, so exposing ideas and innovations to a broad team within your firm can improve the chances of success with new ideas. Finally, a few people who truly believe in an idea can overcome many barriers and management hurdles.

Just as Meredith Belbin defined his Team Roles, so there are a number of people that you need to make your innovation initiative work. The second part of this article – Innovation, the people you need describes the characteristics of these people.

Making use of the oddballs

Many organisations have an oddball character who sits in the corner of the office and does things in their own unique way. These people may very well be the cleverest and most valuable people in the company. You of course would dispute that wouldn’t you?

So how does your organisation work? Of course, you are the star and the place simply could not function without you. In your inner circle are a few highly driven and well motivated individuals who carry the whole business along. Some of your colleagues do an ok job, some are plainly not motivated and a waste of space and then there are the oddballs, the nutters who dress differently, crochet incessantly and go on caravanning holidays. What do they do apart from create endless piles of paper and tap on their calculators all day?

Just because these people use methods different from yours, it does not mean they are wrong. There ways of solving problems could be more effective than yours. What if they actually were doing a better job than you?

Jerry Sternin, former dean of Harvard Business School has labelled these people as positive deviants (PDs) and the process by which their activities are brought from the fringes of a group into the mainstream is termed positive deviance.

Sternin, has many case studies and examples of these types but his principle is that PDs should be used to change the behaviour of their peers so that improved practices are taken on and owned by the wider group, by a proves he calls ‘making the group the guru’. This is more effective than simply calling in outside experts and blindly following their instructions.

The beauty of this method is that it works in social as well as business environments. To see of you have a positive deviant in your office that can help you solve a particular problem, use Sternin’s 4 Ds:

1. Define the problem that you wish to solve.e.g. salesmen are not selling enough widgets


2. Determine if there are any deviants who exhibit the required behaviour e.g salesmen who are outselling their peers


3. Discover what uncommon practices or strategies these people use to succeed e.g. less sales visits but explaining the marvels of widgets to customers


4. Design an intervention that would enable others in the group to grasp the positive deviant behaviour e.g. allow salesmen to shadow deviants or get deviants to demonstrate their methods

Note this is not dissimilar to spreading best practice, the one huge difference is that positive deviance is not imposed from outside.

Innovating well - what to look for

The areas that should be looked at are outlined below. Some of the conditions for innovation may seem 'idealistic' and it is extremely unlikely that the perfect organisation exists. All of the key areas are important and it is useful to identify how effective organisations are and whether any aspects of the organisation are being neglected. This only gives a broad overview. To get a detailed picture it is necessry to look at how creativity and knowledge are used and manged.

Team Work

Within this area of focus we are interested in whether people work as individuals or in teams, how effective they are, and whether or not they are multi/single function. Another important factor is the degree of autonomy and whether bottom up communication is effective.

Hands-on Management

Here we look at how much interference there is by managers in every-day working and how prescriptive managers are. Also we are looking for 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

Within this are of focus we look for evidence of a desire to win, to beat the competition. Even though there may be insufficient resources to carry out a project or implement a plan there should be a 'yes and ..' culture rather than 'yes but...'. Good ideas can be kept for future use, not dismissed out of hand for lack of finances, time etc. There should also be evidence of doing everything that can be done to secure even the smallest advantage such as protecting Intellectual Property and seeking external help. Ideas should be welcomed from all sources and winning organisations are likely to be less risk averse.

Knowing How To Win

Organisations that know how to win will have a thorough understanding of their marketplace and all of the factors that affect it such as the economy and relevant legislation. They are willing to exploit these 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 will 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 must have 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. Motivation and morale should generally be high with little or no evidence of stress present.

Stretching To Achieve

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.

Getting The Best From People

In order to get the best from employees it is necessary to involve everybody. Not only does this improve the culture but it maximises the resources that are available for generating ideas, capturing and storing knowledge. The greater the variety of sources, the greater the potential for innovation. It is also helpful if there is mutual support between employees, managers, colleagues and peers, especially where risk taking is encouraged. Another important factor is the reward systems that are in place. These need not necessarily be monetary rewards but should recognise team rather than individual contributions.

See how the above can be measured using the Innovation Toolkit.