Posts Tagged ‘Competitiveness’

Mapping the Future with Wardley Maps

How do you know when it’s time to reinvent your product, service or business model? If you add ten units of energy and you get less in return than last time, it’s time to work in new design space.  If improvement in customer goodness (e.g., miles per gallon in a car) has slowed or stopped, it’s time to seek a new fuel source.  If recent patent filings are trivial enhancements that can be measured only with a large sample sizes and statistical analysis, the party is over.

When there’s so many new things to work on, how do you choose the next project? When you’re lost, you look at a map. And when there is no map, you make one.  The first bit of work is defined by the holes in the first revision of your map.  And once the holes are filled and patched, the next work emerges from the map itself. And, in a self-similar way, the next work continually emerges from the previous work until the project finishes.

But with so much new territory, how do you choose the right new territory to map?  You don’t.  Before there’s a need to map new territory, you must map the current territory.  What you’ll learn is there are immature areas that, when made mature, will deliver new value to customers.  And you’ll also learn the mature areas that must be blown up and replaced with infant solutions that will ultimately create the next evolution of your business.  And as you run thought experiments on your map – projecting advancements on the various elements – the right new territory will emerge.  And here’s a hint – the right new solutions will be enabled by the newly matured elements of the map.

But how do you predict where the right new solutions will emerge?  I can’t tell you that.  You are the experts, not me.  All I can say is, make the maps and you’ll know.

And when I say maps, I mean Wardely Maps – here’s a short video (go to 4:13 for the juicy bits).

Image credit – Simon Wardley

Too Many Balls in the Air

In today’s world of continuous improvement, everything is seen as an opportunity for improvement. The good news is things are improving. But the bad news is without governance and good judgement, things can flip from “lots of opportunity for improvement” to “nothing is good enough.”  And when that happens people would rather hang their heads than stick out their necks.

When there’s an improvement goal is propose like this “We’ve got to improve the throughput of process A by 12% over the next three months.” a company that respects their people should want (and expect) responses like these:

As you know, the team is already working to improve processes C, D, and E and we’re behind on those improvement projects. Is improvement of process A more important than the other three? If so, which project do you want to stop so we can start work on process A? If not, can we wait until we finish one of the existing projects before we start a new one?  If not, why are you overloading us when we’re making it clear we already have too much work?

Are we missing customer ship dates on process A? If so, shouldn’t we move resources to process A right now to work off the backlog? If we have no extra resources, let’s authorize some overtime so we can catch up. If not, why is it okay to tolerate late shipments to our customers? Are you saying you want us to do more improvement work AND increase production without overtime?

That’s a pretty specific improvement goal. What are the top three root causes for reduced throughput? Well, if the first part of the improvement is to define the root causes, how do you know we can achieve 12% improvement in 3 months? We learned in our training that Deming said all targets are artificial. Are you trying to impose an artificial improvement target and set us up for failure?

Continuous improvement is infinitely good, but resources are finite.  Like it or not, continuous improvement work WILL be bound by the resources on hand. Might as well ask for continuous improvement work in a way that’s in line with the reality of the team’s capacity.

And one thing to remember for all projects – there’s no partial credit.  When you’re 80% done on ten projects, zero projects are done.  It’s infinitely better to be 100% done on a single project.

Image credit – Gabriel Rojas Hruska

Allocating resources as if people and planet mattered.

Business is about allocating resources to achieve business objectives.  And for that, the best place to start is to define the business objectives.

First – what is the timeframe of the business objectives? Well, there are three – short, medium and long.  Short is about making payroll, shipping this month’s orders and meeting this year’s sales objectives.  Long is about the existence of the company over the next decade and happiness of the people that do the work along the way. And medium – the toughest – is in-between.  It’s neither short nor long but bound by both.

Second – define business objectives within the three types: people, planet and profit.

People. Short term: pay them so they can eat, pay the mortgage and fund their retirement, provide healthcare, provide a safe workplace, give them work that fits their strengths and give them time to improve their community. Medium: pay them so they can provide for their family and fund their retirement, provide healthcare, provide a safer workplace, give them work that requires them to grow their strengths and give them time to become community leaders. Long: pay them so they can pay for their kids’ college and know they can safely retire, provide the safest workplace, let them choose their own work, and give them time to grow the next community leaders.  And make it easy.

Planet. Short term: teach Life Cycle Assessment,  Buddhist Economics and TRIZ and create business metrics for them to flourish. Medium: move from global sourcing to local sourcing, move to local production, move from business models based on non-renewable resources to renewable resources. Long: create new business models that are resource neutral. Longer: create business models that generate excess resources. Longest: teach others.

Profit. Short, medium and long – focus on people and planet and the profits will come. But also focus on creating new value for new customers.

For business objectives, here’s the trick on timeframe – always work short term, always work long term and prioritize medium term.

And for the three types of business objectives, focus on people, planet and creating new value for new customers.  Profits are a result.

Image credit – magnetismus

Additive Manufacturing’s Holy Grail

The holy grail of Additive Manufacturing (AM) is high volume manufacturing.  And the reason is profit. Here’s the governing equation:

(Price – Cost) x Volume = Profit

The idea is to sell products for more than the cost to make them and sell a lot of them.  It’s an intoxicatingly simple proposition. And as long as you look only at the volume – the number of products sold per year – life is good. Just sell more and profits increase.  But for a couple reasons, it’s not that simple. First, volume is a result. Customers buy products only when those products deliver goodness at a reasonable price.  And second, volume delivers profit only when the cost is less than the price.  And there’s the rub with AM.

Here’s a rule – as volume increases, the cost of AM is increasingly higher than traditional manufacturing. This is doubly bad news for AM. Not only is AM more expensive, its profit disadvantage is particularly troubling at high volumes. Here’s another rule – if you’re looking to AM to reduce the cost of a part, look elsewhere. AM is not a bottom-feeder technology.

If you want to create profits with AM, use it to increase price. Use it to develop products that do more and sell for more.  The magic of AM is that it can create novel shapes that cannot be made with traditional technologies. And these novel shapes can create products with increased function that demand a higher price. For example, AM can create parts with internal features like serpentine cooling channels with fine-scale turbulators to remove more heat and enable smaller products or products that weigh less.  Lighter automobiles get better fuel mileage and customers will pay more. And parts that reduce automobile weight are more valuable.  And real estate under the hood is at a premium, and a smaller part creates room for other parts (more function) or frees up design space for new styling, both of which demand a higher price.

Now, back to cost.  There’s one exception to cost rule.  AM can reduce total product cost if it is used to eliminate high cost parts or consolidate multiple parts into a single AM part.  This is difficult to do, but it can be done.  But it takes some non-trivial cost analysis to make the case.  And, because the technology is relatively new, there’s some aversion to adopting AM.  An AM conversion can require a lot of testing and a significant cost reduction to take the risk and make the change.

To win with AM, think more function AND consolidation.  More (or new) function to support a higher price (and increase volume) and reduced cost to increase profit per part. Don’t do one or the other. Do both. That’s what GE did with its AM fuel nozzle in their new aircraft engines. They combined 20 parts into a single unit which weighed 25 percent less than a traditional nozzle and was more than five times as durable. And it reduced fuel consumption (more function, higher price).

AM is well-established in prototyping and becoming more established in low-volume manufacturing.  The holy grail for AM – high volume manufacturing – will become a broad reality as engineers learn how to design products to take advantage of AM’s unique ability to make previously un-makeable shapes and learn to design for radical part consolidation.

More function AND radical part consolidation.  Do both.

Image credit – Les Haines

To improve productivity, it’s time to set limits.

The race for productivity is on. And to take productivity to the next level, set limits.

To reduce the time wasted by email, limit the number of emails a person can send to ten emails per day. Also, eliminate the cc function. If you send a single email to ten people, you’re done for the day.  This will radically reduce the time spent writing emails and reduce distraction as fewer emails will arrive. But most importantly, it will help people figure out which information is most important to communicate and create a natural distillation of information. Lastly, limit the number of word in an email to 100. This will shorten the amount of time to read emails and further increase the density of communications.

If that doesn’t eliminate enough waste, limit the number of emails a person can read to ten emails per day.  Provide the subject of the email and the sender, but no preview.  Use the subject and sender to decide which emails to read.  And, yes, responding to an email counts against your daily sending quota of ten.  The result is further distillation of communication. People will take more time to decide which emails to read, but they’ll become more productive through use of their good judgement.

Limit the number of meetings people can attend to two per day and cap the maximum meeting length to 30 minutes. The attendees can use the meeting agenda, meeting deliverables and decisions made at the meeting to decide which meetings to attend. This will cause the meeting organizers to write tight, compelling agendas and make decisions at meetings. Wasteful meetings will go away and productivity will increase.

To reduce waiting, limit the number of projects a person can work on to a single project.  Set the limit to one. That will force people to chase the information they need instead of waiting. And if they can’t get what they need, they must wait. But they must wait conspicuously so it’s clear to leaders that their people don’t have what they need to get the project done. The conspicuous waiting will help the leaders recognize the problem and take action.  There’s a huge productivity gain by preventing people from working on things just to look busy.

Though harsh, these limits won’t break the system. But they will have a magical influence on productivity. I’m not sure ten is the right number of emails or two is the right number of meetings, but you get the idea – set limits.  And it’s certainly possible to code these limits into your email system and meeting planning system.

Not only will productivity improve, happiness will improve because people will waste less time and get to use their judgement.

Everyone knows the systems are broken. Why not give people the limits they need and make the productivity improvements they crave?

Image credit –  XoMEoX

The Additive Manufacturing Maturity Model

Additive Manufacturing (AM) is technology/product space with ever-increasing performance and an ever-increasing collection of products. There are many different physical principles used to add material and there are a range of part sizes that can be made ranging from micrometers to tens of meters.  And there is an ever-increasing collection of materials that can be deposited from water soluble plastics to exotic metals to specialty ceramics.

But AM tools and technologies don’t deliver value on their own.  In order to deliver value, companies must deploy AM to solve problems and implement solutions.  But where to start? What to do next? And how do you know when you’ve arrived?

To help with your AM journey, below a maturity model for AM.  There are eight categories, each with descriptions of increasing levels of maturity.  To start, baseline your company in the eight categories and then, once positioned, look to the higher levels of maturity for suggestions on how to move forward.

For a more refined calibration, a formal on-site assessment is available as well as a facilitated process to create and deploy an AM build-out plan.  For information on on-site assessment and AM deployment, send me a note at mike@shipulski.com.

Execution

  1. Specify AM machine – There a many types of AM machines. Learn to choose the right machine.
  2. Justify AM machine – Define the problem to be solved and the benefit of solving it.
  3. Budget for AM machine – Find a budget and create a line item.
  4. Pay for machine –  Choose the supplier and payment method – buy it, rent to own, credit card.
  5. Install machine – Choose location, provide necessary inputs and connectivity
  6. Create shapes/add material – Choose the right CAD system for the job, make the parts.
  7. Create support/service systems – Administer the job queue, change the consumables, maintenance.
  8. Security – Create a system for CAD files and part files to move securely throughout the organization.
  9. Standardize – Once the first machines are installed, converge on a small set of standard machines.
  10. Teach/Train – Create training material for running AM machine and creating shapes.

 

Solution

  1. Copy/Replace – Download a shape from the web and make a copy or replace a broken part.
  2. Adapt/Improve – Add a new feature or function, change color, improve performance.
  3. Create/Learn – Create something new, show your team, show your customers.
  4. Sell Products/Services – Sell high volume AM-produced products for a profit. (Stretch goal.)

 

Volume

  1. Make one part – Make one part and be done with it.
  2. Make five parts – Make a small number of parts and learn support material is a challenge.
  3. Make fifty parts – Make more than a handful of parts. Filament runs out, machines clog and jam.
  4. Make parts with a complete manufacturing system – This topic deserves a post all its own.

 

Complexity

  1. Make a single piece – Make one part.
  2. Make a multi-part assembly – Make multiple parts and fasten them together.
  3. Make a building block assembly – Make blocks that join to form an assembly larger than the build area.
  4. Consolidate – Redesign an assembly to consolidate multiple parts into fewer.
  5. Simplify – Redesign the consolidated assembly to eliminate features and simplify it.

 

Material

  1. Plastic – Low temperature plastic, multicolor plastics, high performance plastics.
  2. Metal – Low melting temperature with low conductivity, higher melting temps, higher conductivity
  3. Ceramics – common materials with standard binders, crazy materials with crazy binders.
  4. Hybrid – multiple types of plastics in a single part, multiple metals in one part, custom metal alloy.
  5. Incompatible materials – Think oil and water.

 

Scale

  1. 50 mm – Not too large and not too small. Fits the build area of medium-sized machine.
  2. 500 mm – Larger than the build area of medium-sized machine.
  3. 5 m – Requires a large machine or joining multiple parts in a building block way.
  4. 0.5 mm – Tiny parts, tiny machines, superior motion control and material control.

 

Organizational Breadth

  1. Individuals – Early adopters operate in isolation.
  2. Teams – Teams of early adopters gang together and spread the word.
  3. Functions – Functional groups band together to advance their trade.
  4. Supply Chain – Suppliers and customers work together to solve joint problems.
  5. Business Units – Whole business units spread AM throughout the body of their work.
  6. Company – Whole company adopts AM and deploys it broadly.

 

Strategic Importance

  1. Novelty – Early adopters think it’s cool and learn what AM can do.
  2. Point Solution – AM solves an important problem.
  3. Speed – AM speeds up the work.
  4. Profitability – AM improves profitability.
  5. Initiative – AM becomes an initiative and benefits are broadly multiplied.
  6. Competitive Advantage – AM generates growth and delivers on Vital Business Objectives (VBOs).

Image credit – Cheryl

Leadership isn’t binary, and that’s why judgement is important.

100% of the people won’t like your new idea, even if it’s a really good one like the airplane, mayonnaise or air conditioning.

I don’t know the right amount of conflict, but I know it’s not 0% or 100%.

If 100% is good, 110% isn’t better. Percentages don’t work that way.

100% alignment is not the best thing. Great things aren’t built on the back of consensus.

100% of the problems shouldn’t be solved.  Sometimes it’s best to let the problem blossom into something that cannot be dismissed, denied or avoided.

Fitting in can be good, but not 100% of the time. Sometimes the people in power need to hear the truth, even if you know they’ll choke on it.

If the system is in the way, work the rule. Follow it 100%, follow it to the letter, follow it until it’s absurd. But, keep in mind the system isn’t in the way 100% of the time.

Following the process 100% eliminates intellectual diversity. And, as Darwin said, that leads to extinction.  I think he was onto something.

Trying to fix 100% of the problems leads to dilution. Solve one at a time until you’re done.

The best tool isn’t best 100% of the time. Here’s a rule: If the work’s new, try a new tool. You can’t cut a board with a hammer.

I don’t know how frequently to make mistakes, but I know it’s not 0% or 100% of the time.

As a sport, leadership isn’t binary. That’s why we’re paid to use our good judgement.

Image credit – Joe Dyer

The Three Rs of Innovation – Risk, Reward, and Resources

Is it innovation or continuous improvement or is it innovation? Is it regular innovation or disruptive innovation? Is it new enough or too new? These questions are worse than meaningless as they suck emotional energy from the organization and divert emotional energy from the business objective.

With every initiative, there are risks, rewards, and resources. Risk generally tracks with newness, reward usually tracks with incremental customer goodness and resources are governed by the work.  Risk is about the probability of tackling the newness, reward is about the size of the prize and resources are about how the work is done. There is no best amount of risk as sometimes the right amount is none and other times it’s more than everyone prefers. And there’s no best amount of reward as it depends on the company’s goals. And there’s no right amount of resources because there’s no right scope.  For all three – risk, reward and resources – the right amount depends on the context.

For bottom line projects, it’s about maintaining product functionality while eliminating waste.  And while there’s no right amount of risk, reward and resources, three filters (people, process, tools) can help get everyone on the same page.

Here are the escalating categories for people – no new people, move people from group A to group B, hire more people like the ones we have, hire new people with skills we don’t have.  And for categories for process – no new processes, eliminate steps of existing processes, add steps to existing processes, create a process that’s new to the facility, create a process that’s new to the company, create process that’s new to the industry, create a process that’s new to the world.  And for tools – no new tools, modify existing tools, buy new tools, create new tools from scratch.

There are no right answers, but if you’ve got to hire people you’ve never hired, create processes that are new-to-world, and invent new tools, it’s clear to everyone the project is pushing the envelope. And if the reward is significant and resources are plentiful, it could be a good way to go.  And if there are no new hires, no new processes, and no new tools, don’t expect extravagant rewards. It’s not an exact science, but categorizing the newness in people, process, and tools and then comparing with the reward (payoff) makes clear any mismatches.  And when mismatches are clear they can be managed. Resources can be added, the scope can be reduced and reward can be revisited.

For top line projects, it’s about providing novel usefulness to customers at a reasonable cost.  And while risk, reward, and resources must be balanced, the filters are different.  For top line, the filters are breadth of applicability, competition, is/isn’t.

Here are the escalating categories for breadth of applicability – same customer in the same application, same customers in a new application, new customers in a new market, new customers in different industry, new customers in an industry created by the project. For competition – many competitors in the same industry, fewer competitors in the same industry, fewer competitors in a different industry, no competitors (compete with no one.) And for is/isn’t – improve what is, radically improve what is, create what isn’t.

Again, no right answers. But the plan is to sell to the same customers into markets with the same powerful competitors with only a slight improvement to the existing product, don’t expect radical rewards and don’t run a project that consumes significant resources. And, if the plan is to create a whole new industry where there are no competitors and it requires an entirely new service that doesn’t yet exist, the potential reward should be spectacular, expect to allocate a boatload of resources and prepare for the project to take longer than expected or to be cancelled before completion.

Balancing risk, reward and resources is not an exact science.  And the only way to get good at it is to calibrate new projects based on previous projects.  To start the calibration process, try the process on your most recent completed projects.  Categorize the projects with the relevant filters and define the resources consumed and the realized rewards.  And when planning the next project, categorize with the filters and define the resource plan and planned rewards and see how they compare with the completed projects.  And if there are mismatches, reconcile them with the realities of the previous projects.

Image credit – Ian Sane

Moving from Static to Dynamic

At some point, what worked last time won’t work this time. It’s not if the business model will go belly-up, it’s when. There are two choices. We can bury our heads in the sands of the status quo, or we can proactively observe the world in a forward-looking way and continually reorient ourselves as we analyze and synthesize what we see.

The world is dynamic, but we behave like it’s static. We have massive intellectual inertia around what works today.  In a rearward-looking way, we want to hold onto today’s mental models and we reject the natural dynamism swirling around us.  But the signals are clear. There’s cultural change, political change, climate change and population change. And a lower level, there’s customer change, competition change, technology change, coworker change, family change and personal change. And still, we cling to static mental models and static business models. But how to move from static to dynamic?

Continual observation and scanning is a good place to start. And since things become real when resources are allocated, allocating resources to continually observe and scan sends a strong message. We created this new position because things are changing quickly and we need to be more aware and more open minded to the dynamic nature of our world.  Sure, observation should be focused and there should be a good process to decide on focus areas, but that’s not the point. The point is things are changing and we will continually scan for storms brewing just over the horizon.  And, yes, there should be tools and templates to record and organize the observations, but the important point is we are actively looking for change in our environment.

Observation has no value unless the observed information is used for orientation in the new normal.  For orientation, analysis and synthesis is required across many information sources to develop ways to deal with the unfamiliar and unforeseen. [1] It’s important to have mechanisms to analyze and synthesize, but the value comes when beliefs are revised and mental models are updated. Because the information cuts against history, tradition and culture, to make shift in thinking requires diversity of perspective, empathy and a give-and-take dialog. [1] It’s a nonlinear process that is ironed out as you go.  It’s messy and necessary.

It’s risky to embrace a new perspective, but it’s far riskier to hold onto what worked last time.

 

[1] Osinga, Frans, P.B. Science, Strategy and War, The strategic theory of John Boyd. New York: Routledge, 2007.

image credit – gabe popa

Companies don’t innovate, people do.

Big companies hold tightly to what they have until they feel threatened by upstarts, and not before. They mobilize only when they see their sales figures dip below the threshold of tolerability, and no sooner. And if they’re the market leaders, they delay their mobilization through rationalization.  The dip is due to general economic slowdown that is out of our control, the dip is due to temporary unrest from the power structure change in government, or the dip is due to some ethereal force we don’t yet fully understand. The strength of big companies is what they have, and they do what it takes only when what they have is threatened.  But once they’re threatened, watch out. But, the truth is, big companies don’t make change, people within big companies make change.

Start-ups want to change everything. They reject what they don’t have and threaten the status-quo at every turn.  And they’re always mobilized to grow sales.  Every new opportunity brings an opportunity to change the game. In a ready-fire-aim way, every phone call with a potential customer is an opportunity to dilute and defocus. Each new opportunity is an opportunity to create a mega business and each new customer segment is an opportunity to pivot. The strength of start-ups is what they don’t have. No loyalty to an existing business model, no shared history with other companies, and no NIH (not invented here). But, once they focus and decide to converge on an important market segment, watch out.  But, truth is, start-ups don’t make change, people within start-ups make change.

When you work in a big company, if your idea is any good the established business units will try to stomp it into oblivion because it threatens their status quo.  In that way, if your idea is dismissed out of hand or stomped on aggressively, you are likely onto something worth pursuing. If you’re told by the experts “It will never work.” that’s a sign from the gods that your idea has strong merit and deserves to be worked. And this is where it comes down to people. The person with the idea can either pack it in or push through the intellectual inertia of company success.  To be clear – it’s their choice. If they pack it in, the idea never sees the light of day. But if they decide, despite the fact they’re not given the tools, time, or training, to build a prototype and show it to company leadership, your company has a chance to reinvent itself. What causes and conditions have you put in place for your passionate innovators to choose to do the hard work of making a prototype?

When you work at a start-up the objective is to dismantle the status quo, and all ideas are good ideas. In that way, your idea will be praised and you’ll be urged to work on it. If you’re told by the experts “That could work.” it does not mean you should work on it. Since resources are precious, focus is mandatory. The person with the idea can either try to convert their idea into a prototype or respect the direction set by company leadership. To be clear – it’s their choice. If they work on their new idea they dilute the company’s best chance to grow. But if they decide, despite their excitement around their idea, to align with the direction set by the company, your startup has a chance to deliver on its aggressive promises. What causes and conditions have you put in place for your passionate innovators to choose to do the hard work of aligning with the agreed upon approach and direction?

When no one’s looking, do you want your people to try new ideas or focus on the ones you already have? When given a choice, do you want them to focus on existing priorities or blow them out of the water? And if you want to improve their ability to choose, what can you put in place to help them choose wisely?

To be clear, a formal set of decision criteria and a standardized decision-making process won’t cut it here. But that’s not to say decisions should be unregulated and unguided. The only thing that’s flexible and powerful enough to put things right is the good judgment of the middle managers who do the work.  “Middle managers” is not the best words to describe who I’m talking about. I’m talking about the people you call when the wheels fall off and you need them put back on in a hurry. You know who I’m talking about.  In start-ups or big companies, these people have a deep understanding of what the company is trying to achieve, they know how to do the work and know when to say “give it a try” and when to say “not now.” When people with ideas come to them for advice, it’s their calibrated judgement that makes the difference.

Calibrated judgement of respected leaders is not usually called out as a make-or-break element of innovation, growth and corporate longevity, but is just that.  But good judgement around new ideas are the key to all three.  And it comes down to a choice – do those ideas die in the trenches or are they kindly nurtured until they can stand on their own?

No getting around it, it’s a judgment call whether an idea is politely put on hold or accelerated aggressively. And no getting around it, those decisions make all the difference.

Image credit Mark Strozier

The WHY and HOW of Innovation

Innovation is difficult because it demands new work. But, at a more basic level, it’s difficult because it requires an admission that the way you’ve done things is no longer viable. And, without public admission the old way won’t carry the day, innovation cannot move forward. After the admission there’s no innovation, but it’s one step closer.

After a public admission things must change, a cultural shift must happen for innovation to take hold. And for that, new governance processes are put in place, new processes are created to set new directions and new mechanisms are established to make sure the new work gets done.  Those high-level processes are good, but at a more basic level, the objectives of those process areto choose new projects, manage new projects and allocate resources differently. That’s all that’s needed to start innovation work.

But how to choose projects to move the company toward innovation? What are the decision criteria? What is the system to collect the data needed for the decisions? All these questions must be answered and the answers are unique to each company. But for every company, everything starts with a top line growth objective, which narrows to an approach based on an industry, geography or product line, which then further necks down to a new set of projects. Still no innovation, but there are new projects to work on.

The objective of the new projects is to deliver new usefulness to the customer, which requires new technologies, new products and, possibly, new business models. And with all this newness comes increased uncertainty, and that’s the rub. The new uncertainty requires a different approach to project management, where the main focus moves from execution of standard tasks to fast learning loops. Still no innovation, but there’s recognition the projects must be run differently.

Resources must be allocated to new projects. To free up resources for the innovation work, traditional projects must be stopped so their resources can flow to the innovation work. (Innovation work cannot wait to hire a new set of innovation resources.)  Stopping existing projects, especially pet projects, is a major organizational stumbling block, but can be overcome with a good process. And once resources are allocated to new projects, to make sure the resources remain allocated, a separate budget is created for the innovation work. (There’s no other way.) Still no innovation, but there are people to do the innovation work.

The only thing left to do is the hardest part – to start the innovation work itself. And to start, I recommend the IBE (Innovation Burst Event). The IBE starts with a customer need that is translated into a set of design challenges which are solved by a cross-functional team.  In a two-day IBE, several novel concepts are created, each with a one page plan that defines next steps.  At the report-out at the end of the second day, the leaders responsible for allocating the commercialization resources review the concepts and plans and decide on next steps. After the first IBE, innovation has started.

There’s a lot of work to help the organization understand why innovation must be done. And there’s a lot of work to get the organization ready to do innovation. Old habits must be changed and old recipes must be abandoned. And once the battle for hearts and minds is won, there’s an equal amount of work to teach the organization how to do the new innovation work.

It’s important for the organization to understand why innovation is needed, but no customer value is delivered and no increased sales are booked until the organization delivers a commercialized solution.

Some companies start innovation work without doing the work to help the organization understand why innovation work is needed. And some companies do a great job of communicating the need for innovation and putting in place the governance processes, but fail to train the organization on how to do the innovation work.

Truth is, you’ve got to do both. If you spend time to convince the organization why innovation is important, why not get some return from your investment and teach them how to do the work? And if you train the organization how to do innovation work, why not develop the up-front why so everyone rallies behind the work?

Why isn’t enough and how isn’t enough. Don’t do one without the other.

Image credit — Sam Ryan

Mike Shipulski Mike Shipulski
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