Practical Innovation

Innovation is the process of making something
new and of value.
When we think of business innovation, two things
typically come to mind:

Research and development departments
bringing new products and services to consumers.
New systems
and processes stemming from business process reengineering.

Innovation doesn't have to be as complex as this. Innovation is
something that every one of us, at every level of an organization,
can participate in.
Innovation on a grand scale is what can allow
companies to excel. Look at some of the most influential businesses:
Apple, Microsoft, and 3M. How many people want an MP3 player other
than an iPod™? How many computer operating systems have
most people used, apart from Windows™? What do you call
those little pieces of colored paper that have sticky edges?
These companies are all examples of business
innovation at its finest. They've made it a strategic priority
to be groundbreaking and creative. At some level, though, all
organizations need to be innovative, and to evolve their processes
and products continuously.
Businesses that don't change risk being left
behind. To avoid that risk, put the power of innovation to work.
This could mean developing the next supertrend, or simply ensuring
that you're doing the best with what you have.
The benefits of successful innovation can include:

Increased competitiveness by gaining market share and increasing the value of your product or service in the marketplace.
Greater customer loyalty through building trust and developing a reputation as a preferred supplier.
Smoother operations through making better decisions, better monitoring of business processes, and progressive improvement of the way your business runs.
More effective employees through involving them with strategic decisions and empowering them to make a difference in your organization.

Inspiring Innovation
Deciding that you want to be innovative is easy. Figuring out HOW to innovate is another matter altogether.
A major barrier to innovative practice can be thinking that innovation needs to be "top down." The first thing you should understand is that the person working in your accounts receivable
department may be just as likely to come up with an innovative idea as the executive in charge of communications.

That's why innovation often starts and ends with corporate culture, and with the systems you put into place. From building a culture of innovation and creativity to focusing on what your customers need and want, it all starts with the right environment, support, and systems for your people.
Encouraging Innovation
Managing innovation is ultimately about generating, analyzing, and managing ideas – so you need a disciplined approach to doing this. Here are some effective practices you can use to
manage and maintain a steady flow of innovative ideas:

Create an employee suggestion system – Many companies use an employee "suggestion box" (even if this is, in reality, a database on the Intranet). This
can work very well and be adapted for a variety of situations.
Whatever method you use, it's important to follow through with
the suggestions received. Don't create a "black hole,"
where suggestions enter and are never seen or heard from again.
Best practices for suggestion programs include the following:

Creating a formal method for submitting ideas.
Making your system transparent. Clearly describe what happens to suggestions that are received.
Committing to following the system for each and every suggestion.
Providing structure for the ideas you seek. Link your requests to a specific strategic goal, and you'll likely get more relevant and practical ideas.


Make sure each suggestion receives a quick response. Even ideas that may appear silly or irrelevant deserve consideration and feedback. If the suggestion is made anonymously (you can decide whether or not to allow staff to submit ideas without giving their names), find a way to acknowledge it. To continue receiving suggestions, it helps to show that they're actually read and processed.


Use rewards and incentives – When
idea management systems are implemented, they often receive
lots of ideas at the start, but this can slowly decrease to
almost nothing after a while. To encourage continuous idea generation,
use monetary incentives, or use some other form of recognition
or acknowledgment. Ensure that the person making the suggestion
continues to play a role in the design and implementation of
the idea – this can motivate as well.
Implement creativity training – This
is becoming quite popular. Many people believe that they aren't
creative, or that they're somehow incapable of coming up with
innovative ideas. This usually isn't true. Almost everyone can
learn to be more creative, but they have to be open to creativity,
and then be given some specific strategies to look at a situation
with new eyes. Mind Tools has a Bite-Sized
Training session on creativity that includes some great
exercises for developing your own creativity.
Form problem solving teams – Make
a team responsible for assessing a specific issue, generating
a solution, and implementing a plan. Teach your staff that improvement
and change are good things. Give people an opportunity to narrow
down their ideas to one specific issue – this can help them
practice problem solving techniques that they can then use in
their day-to-day work responsibilities.
Design flexible jobs – Allow people
to share jobs and cross-train. This may help people understand
what makes your company successful, because they'll have a better
overview of the systems and processes you have in place. When
people see organizational functions from a variety of perspectives,
it's much easier for them to come up with innovative solutions.
Increase "why" training – The better people know why they're doing something, the more
likely they are to see ways to improve it. People can repeat
tasks, over and over again, until they do those tasks perfectly.
But once learned, they may never do the tasks any differently.
Take the time to help all staff understand how their work affects
the organization's success, and you may help them discover ways
to be more effective.
Establish self-managed work teams – Give staff some responsibility and control – this may provide
the incentive they need to make a project successful. The information
that's often shared within this type of team can bring a much
greater understanding of the issue at hand, which can cause
team members to look for new ways to do things. Such teams can
also provide lots of opportunity for leadership, which can motivate
people to think differently.

Bring managers and team
members together on a team. This can be a really effective
way to emphasize how the team's purpose is linked to organizational
strategy. It helps fill in the "why" aspect for
everyone involved, and it improves the chances of generating
innovative ideas. Non-management team members may also benefit
from knowing their ideas are heard directly, and they can
experience firsthand how ideas are developed and evaluated.



Key Points
Innovation is usually a function of how well you bring together
and manage ideas. It's not something that just happens in R&D or
in production-related departments – it can happen everywhere.
Develop human resources systems that support innovation, and you
can capture and control the creativity and innovation that's
present in everyone.