Innovation is a Leadership Issue

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Let's take a look into how we can ensure innovation

becomes a core element of our business. It will

take leadership focused on:

* Top level management accepting innovation can

be sourced from all levels of the organisation and

not just the top

* All people realising innovation doesn't generally

just happen. It must be a strategic objective with

energy directed to ensuring it occurs.

Leaders are encouraged to appreciate the value of

the 'two jobs' principle in the release and fostering

of corporate innovation. This simply references the

fact much innovation comes out of team effort, and

usually in a project management context. Teams

work best when leaders follow the advice of GE's

former boss, Jack Welsh, who insisted managers

give problems to teams and then get out of the way

and let the teams solve them. In the two jobs

approach, the manager gives an objective to a

team and expects the team to deliver results and

not excuses in solving the problem innovatively and

effectively. However, to the extent the manager's

input is required in getting to a solution, that

manager must regard himself or herself a member

of the team and subservient to the team or project

manager in terms of giving the required input in the

form required and in the time required. If the

manager refuses to do so, and many simply cannot

grasp the idea of being subservient in a team

situation to someone who might be their junior in

the hierarchical structure, it is no longer reasonable

for the manager to continue to expect the team to

deliver results and not excuses. It's as simple as

that.

I have written extensively in the past about the

techniques of replication, synthesis, extension and

novel thought to tap into our creativity to produce

innovative ideas. However, if innovation is to

become a core business principle, we must ensure

that the inspiration and motivation to apply these

techniques is ever present within our organisations.

The leader, of course, cannot motivate anyone but

himself or herself, as motivation is an internal force

which compels personal behaviour. However, the

leader is very much required to provide the

inspiration to people to choose to motivate

themselves, including towards being part of

innovative solutions.

Presuming you apply the 'two jobs' principle in your

organisation and your people are aware of the

techniques for tapping into creativity, I'd suggest

two approaches to fostering innovation as part of

your core business activity. Firstly, why not think

about establishing an incentive system for

innovative ideas that you apply in your business.

Don't restrict the rewards to just innovative product

ideas, but rather be open to any innovation that can

improve your business in any way. For example, a

suggestion concerning redecoration of the

reception area or, perhaps, the manner in which

your people answer incoming calls might be

rewarded with a company sponsored dinner for the

innovator and his or her partner.

There are a number of philosophies about reward

systems. Some say the reward should be focused

By Alan Patching Alan Patching & Associates www.alanpatching.com

Innovation is a Leadership Issue


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on personal recognition and does not need to

involve great expense. Others feel material rewards

are most appreciated. I see value in both positions

and suggest that you keep your mind open on the

issue. I've seen junior staff blossom from being

rewarded with greater authority and responsibility.

I'm also very much aware that the incentives

industry keeps many of the hotels and resorts in

Australia and around the world in business. The

decision is very much a matter of judgement for

individual leaders after consideration of various

issues including the personality style of the people

being rewarded, the value of the innovation gained,

the corporate attitude and policy regarding rewards,

whether it is to be a team or individual recognition

etc.

A couple of tips regarding rewards policy * Be sure to shape your incentives policy to fit the

nature and size of your business, the attitude of

your people, and your budget.

* Be sure not to apply negative incentives. The old

approach of "sackings will continue until morale

improves" never really was effective, and it certainly

won't cut the mustard with today's better educated

and more assertive employees.

It's important for leaders to educate their people

regarding the ways in which innovation can be

applied within the organisation. Avoid being

restrictive while attempting to make some business

sense of these potential applications. I find one

approach to be very effective. This involves

explaining how marketing cycles work and how

innovation can be applied to each phase of the

marketing cycle for each product or service that you

offer.

Begin by explaining that all products and services

go through a life-cycle of introduction, growth,

maturity, saturation and decline. Most people have

no trouble understanding the importance of

innovation in developing new products and services

for introduction to the market. There is often less

understanding of the importance of innovative

thinking in relation to the other phases of the

product life cycle. Innovative marketing can

significantly extend the period that a product

spends in each phase of the cycle. Minor innovative

changes to product design can have the same

effect. Combining innovative product changes and

innovative marketing can maintain some products

in the growth and maturity phases for what can

seem an age. Running shoes in the eighties and

mobile phones in the nineties stand testimony to

this.

As a 'future watch' tip, I suggest keeping an eye on

the marketing patterns for digital mobile phones as

satellite technology becomes more affordable. You

can be sure there will be innovative packaging and

advertising to stretch the market saturation and

decline periods of digital phones as the satellite

technology moves from its current introduction

period through growth and maturity phases. This

might be a while off but it will be interesting to

watch.

When our human capital becomes aware of the

wider range of application of innovative thinking

within the organisation and of its importance to

corporate growth (and, in turn, job security) they will

see innovation as a very meaningful pursuit in their

everyday work and the organisation will benefit.


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We must remember our innovative products and

services must meet market demand. We are faced

with a business dilemma. Do we attempt to set

trends with our new products and services and to

then convince the market that they need to

consume these products, or do we research the

market to identify needs that we can satisfy with an

innovative product response?

That question can only be answered by each

individual business. Setting trends where no

apparent demand exists is a risky business, but if

the market responds positively the risks are

generally very well rewarded. Let's look at a couple

of examples of this.

Who would have believed that the 'Teenage Mutant

Ninja Turtles" concept of a decade ago would have

paid dividends. There would have been many a

nervous executive involved in the decision making

on that idea. Yet the amazing market response

soon saw merchandising and movie spin offs being

produced. On the other hand, the concept went

from introduction to decline in a relatively short

space of time.

Another similar idea was the Japanese electronic

pet/friend. One paid a greatly inflated price for

these devices that were carried around in one's

pocket and had to be electronically nurtured or they

would 'die'. This idea also relatively quickly

progressed from introduction to decline. That is not

to say it was not successful. Quite the contrary. It

sold in the millions worldwide, and still is, fuelled by

a veritable bonanza of free advertising as the news

channels of the world broadcast the success story

of the improbable sounding devices. Spin off

business like cemeteries for the devices quickly

cashed in on the deal.

This is a great example of innovation that deserved

its rewards, in my opinion.

Readers from smaller organisations might be more

risk averse than the intrepid manufacturers of the

devices discussed above. Small business is more

likely to focus on the identification of growing

market needs and to respond to these with

products and services that provide innovative

solutions. Perhaps the ideal lies in the middle

ground, where organisations might identify a need

and expand on it a little in the product response.

For example, in the late nineteen nineties,

companies like Australia's StrathAyr and many from

overseas, have responded to the market needs in

respect to arena design in modern stadia. Their

market sensitive responses have been appreciated

and it is rare indeed to see a 'standard' or non-

reinforced turf system being installed in modern

world-class stadia. Imagine the market domination

that would have resulted if the response could have

been broadened to include a grass that would

thrive without high sunlight levels.

Keep in mind innovation to which the market does

not respond can lead not only to the demise of the

product, but could also to the demise of the

organisation that produced it.

Rather than single out any unfortunate organisation

which has suffered this fate of acting in good

innovation faith but gaining far from the wanted

response from the target audience, allow me to

demonstrate the point in abstraction, and from a


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personal rather than business experience. I once

went with my wife, after presenting at a large

convention in Singapore, to the silver service Grill

Restaurant in Raffles Hotel. Annie was not aware of

the reason for the extravagance, which was to

ensure an appropriate environment in which to

present her with a diamond eternity ring. I had

planned the occasion in detail, and had earlier

visited the Maitre D to arrange his involvement in

the evening. He was enthralled with the idea I had

presented and most excited about being part of this

special evening.

After the main course, right on cue, I could sense a

silence pervading the room, and feel every eye

present focused on the entrance. From there, five

immaculately tailed and bow tied waiters strode

with practiced purpose towards our table with silver

domed platters on their shoulders.

A pin dropping would have sounded like an

earthquake as all eyes stared at five silver platters

being placed on our table. The domes were lifted to

reveal magnificent desserts and crystal glasses of

fine French dessert wine.

At this point I have to tell you that this was very

much in excess of what I had arranged with the

Maitre D.

Finally the man himself raised the last dome,

beaming a "Donnie Osmond' smile as he said, 'Mrs.

Patching, we have a very special dessert for you.'

Beneath the dome was a silver caviar dish. On cue,

Annie rolled back the semi spherical lid. Where the

caviar dish would normally sit in the sparkling

crushed ice, stood the diamond ring.

The silence was broken by numerous 'oohs' and

'aahs' from the women in the audience while one or

two of the men shot me looks that could kill (largely

because one woman advised her husband quite

audibly that 'George, you should learn from this

man' and many other women gave their partners

endorsing looks). Despite the threat, I felt just about

the most romantic man in the world.

Just about this time, Annie reached across and said

'I'm so embarrassed. Do you realise that everyone

in this restaurant is staring at me?'

It seems my Maitre D friend had delivered in

excess of the customer's expectations, and my

innovation backfired. I learned a message for life

and business from the experience and I hope you

can as well.

By the way we visited the same restaurant the

following year. This time I arranged for a single

waiter to deliver a single silver platter. No one took

notice as Annie raised the dome to reveal a small

chocolate with a note that said 'You don't get lucky

two years in a row!'

She loved it.

Another lesson, innovation does not have to be

expensive and grand to be effective. Good luck with

your own innovation, both in business and home

life.

-------------------------------------------------------------------- © Alan Patching

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Innovation is a Leadership Issue