Economists cannot decide whether we are in a recession, a depression, recovery mode, or stagnant at this point, but there is no doubt the economy of 2008-2009 has been top of mind for most organizations.
That said, actually undertaking to work through the economic miasma is a step that relatively few have taken.
In a recently published survey from my firm on the topic of innovation management, respondents from over 180 companies indicated that 69 percent agree that current economic conditions have raised the need for managing innovation; yet only 24 percent have done anything specifically to manage innovation in the last two years.
While the more forward-thinking businesses of the past have typically relied on research and development or emerging technologies teams to provide the innovation brainpower to move forward, there appear to be multiple disconnects that organizations must address in order to "unstick" their innovation capabilities.
"Traditional" R&D is no longer enough, and the budget appears to have stalled out in those companies that have cut spending entirely across the board, without regard to the revenue-creating potential of innovation work.
Where to begin fixing broken innovation mechanics?
It’s time to start from the top
In an economic climate where employees fear for their jobs, it is increasingly unlikely that any single employee, particularly below the executive suite, is going to stick his or her neck out and try something "innovative" -- unless the corporate culture is strong enough that any attempt to instigate change is considered a positive move.
Nobody wants to be thought of as coming up with a "stupid idea" in the midst of economic meltdown, even though to do nothing to reset the business is clearly insane. While the economic growth pre-2008 may indeed return, it seems a wiser course of action to prepare as though the old assumptions of the business are no longer (entirely) true.
So if not "from the bottom," where should companies start to innovate? From the top, of course. Yet 51 percent of the organizations we surveyed do not have any formal leadership managing innovation.
Large, well run businesses have finances, human resources, manufacturing, sales, and marketing down to a science, all with leaders steering the ship, but where is the chief innovation officer?
While no large business these days would seriously consider not staffing a chief information officer or chief technology officer, or even a chief marketing officer, innovation as a management capability appears to be absent in just over half of the cases, according to this survey.
Reboot the innovation team
Innovation does not happen merely by thinking up new business models, potential new products, or services. It happens when thoughts are turned into actions and an entire team has been engaged to point the way.
A collective agreement must be reached to brace against any barriers thrown in the way -- it is particularly important to have executive support for any innovative ideas that are seen as being "not the way we have done things in the past."
Where does your organization stand with regard to innovation leadership? Are you among the haves or the have-nots? What are you doing to improve innovation in your business?
These questions and others will help turn up the issues across industries worldwide that can elevate discussions out of the holes they tend to be buried in at the moment.
— Dan Keldsen is a Principal and Strategic Advisor at Information Architected.
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