Stefan Lindegaard and David Maister have just posted nine key points to drive innovation in an organization.
• The key difference between innovative and non-innovative firms is the level of accountability. This relates directly to the characteristics of the leaders and managers. Can they make people deliver when things have been agreed to be delivered? Can they enforce proper consequences when it does not happen? On this learning I really like David Maister’s quote: “Do or Do Not. There is No Try”.
• The billable system is the main reason for the low level of innovation among professional service firms. You need to find ways to compensate innovation projects that often have longer term perspectives than rewarded through the billable system.
• You need to pull, not push. At professional service firms, people tend to look out for themselves; not for the glory of the company. You need to get the organisation to help people succeed; not the other way around. David Maister also pointed out that the more important the decision is, the more people will not look at facts. It becomes emotional and about what it means to me.
• Messy, self-selected teams or networks are better at driving change and innovation than teams hand-picked by top management. On teams and networks, I can add that there is a tendency to keep them going forever. You need to dissolve when a mission is accomplished and then form new teams or networks for new missions.
• Innovation wins through its portfolio of experiments so you need to stimulate a large number of experiments. You also need to remember that innovation is about products, services and processes. Many professional service firms miss out on opportunities by focusing only on business development or sales activities.
• There are two types of innovation that really matters. Innovation that creates decisive advantages or innovation that neutralizes decisive advantages held by competitors.
• Innovation is situational. You need to address the specific needs of your company by gathering the proper insights and take action on these insights.
• Start out with small innovation projects and get the early wins. They will help change the culture and over time create a larger and longer-lasting impact.
• The long hanging fruits are related to improving the current business. There is no need to radically transform services and markets if you are not able to optimize your current business.