Innovation has become an increasingly important competency for executives and leaders at all levels in the company. A big word, innovation instills fear in some companies because they think it infers the permission of irresponsible risk-taking or massive investments. This is a short-sighted view because innovation is indeed only achieved through some risk and investment up front; but the outcome can present a huge cost savings long term.
Today’s economic climate is also driving companies to think and act differently, and change is even more constant than before. Speed-to-innovation will differentiate competitors and establish companies as leaders within their industry. Take Apple for example. They were the first to introduce the mp3 player through its iPod product. Today the terms iPod and mp3 are used synonymously. Apple’s iPhone is another example of a first-to-market product.
But products are not the only focus of innovation today. Business processes, models, services, and customer engagement are also getting attention. Accelerating the pace in which a company can change and adapt in order to “stay ahead of the game” requires that it operates and functions more efficiently; thus a need to be creative in how work is getting done (not only what is being produced).
A Culture of Innovation
To become truly innovative organizations have to develop and maintain a culture that:
Companies, like Intel, have redesigned their entire learning and development curriculum. Learning forums are the perfect platform for instilling company values and developing core competencies.
Some companies have instituted programs and other approaches that encourage, recognize and reward innovation, including Apple, Textron, Qualcomm, Lockheed Martin, Pfizer, Proctor & Gamble, and Microsoft.
Lockheed Martin's Center for Innovation is a powerful net-centric experimentation and analysis laboratory, which serves as a focal point for resourceful thinking and revolutionary technology.
Textron’s innovation program is described as follows:
Since 1999, the Chairman’s Award for Innovation has recognized individuals and teams within Textron whose exemplary innovations have led to significant improvements in products and technology or in the company’s business practices that have resulted in tangible gains in sales, profitability quality or competitive position.
The award winners come from all Textron businesses and cut across functional areas. Innovation awards are awarded in the categories of Product & Technology and Business Practice. A cross-business panel evaluates each nominee and selects the finalists and the winners.
Textron’s CEO presents the awards at an annual dinner. Winners receive a $5,000 cash award, a trophy and lapel pin, and inclusion on the Chairman’s Award for Innovation Wall of Fame at Textron’s World Headquarters.
Is your company innovative? What is your company doing to promote and reward innovation? I’d like to know. Send me an email at kim.lamoureux@bersin.com.