why innovation programs fail

WHYINN VATIONPR GRAMSFAILFAIL

While external forces can hamper the performance of an Innovation Program...

WHY DO INNOVATION PROGRAMS FAIL?

The biggest obstacles to successful innovation programs come from within the organization.

THE 4 BIGGEST OBSTACLES TO SUCCESS

Difficulty Selecting the Best Ideas

Inability to Measure Performance

Risk Averse Culture Extensive Development Time

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RISK AVERSE CULTURE

A risk averse culture is a culture where new ideas sink to the bottom of organizational priorities.

Why does this happen?

Employees would rather throw their idea out than risk failure and jeopardize their career.

EMPLOYEES FEAR FAILURE

Employees would rather throw their idea out than risk failure and jeopardize their career.

“ A few companies are experimenting, counterintuitively, with switching the focus from success to failure, rewarding employees who dare to stick their necks out.”

EMPLOYEES FEAR FAILURE

hbr.org/2014/06/dont-offer-employees-big-rewards-for-innovation/

HBR, Don’t Offer Employees Big Rewards for Innovation

MANAGERS FEAR FAILUREManagers hesitate to put company resources on the line for new ideas.

“As leaders see their risks to current operations increase, and expected returns from planned investments decrease, it’s likely they’ll face larger growth gaps than they had expected.”

MANAGERS FEAR FAILUREManagers hesitate to put company resources on the line for new ideas.

hbr.org/2014/12/calculate-how-much-your-company-should-invest-in-innovation

HBR, How much Your Company Should Invest in Innovation

FUNCTIONAL UNITS CAUSE BARRIERSFunctional units build barriers to innovation because they are not aligned to the organization’s innovation goals.

FUNCTIONAL UNITS CAUSE BARRIERS

hbr.org/2005/10/the-office-of-strategy-management/ar/1

Functional units build barriers to innovation because they are not aligned to the organization’s innovation goals.

“On average, 95% of a company’s employees are unaware of, or do not understand, its strategy.”HBR, The Office of Strategy Management

Employees don’t pursue new ideas because they fear failureManagers don’t invest in new ideasThere are functional divides within the organization Allowing ideas to sink to the bottom

RISK AVERSE CULTURE MEANS THAT

EXTENSIVE DEVELOPMENT TIME

Delays decrease the probability of successLong implementation times results in missed opportunities in the form of cost savings and new growth

FINISH LINE

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YOU

1830The time to complete an idea is constantly being extended The longer it takes to deploy an ideas, the more likely the team will run out of energy before completing the idea

TIMELINES FOR IMPLEMENTING IDEAS CHANGE FREQUENTLY

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YOU

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forbes.com/sites/suwcharmananderson/2012/07/17/secrets-of-success-hidden-in-kickstarters-numbers/

The time to complete an idea is constantly being extended The longer it takes to deploy an ideas, the more likely the team will run out of energy before completing the idea

“ Pi and Mollick also confirmed other analyses which show that shorter funding periods are better than longer ones, and that large goals are harder to reach than small ones.”

TIMELINES FOR IMPLEMENTING IDEAS CHANGE FREQUENTLY

1832

Forbes. Secrets of Success Hidden in Kickstarter Numbers

The longer it takes to execute ideas, the more additional opportunities for cost saving and new growth will be missed.

MISSED OPPORTUNITIES FOR COST SAVINGS �AND NEW MARKET GROWTH YOUR COMPANY

YOUR COMPETITOR

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IDEA SELECTION

Leaders unable to prioritize which ideas to invest inLeaders are not aligned resulting in conflicting interests

IDEA SELECTION

Leaders find themselves buried under a mountain of ideas because they can’t decide which ones will yield the most impact.

INABILITY TO PRIORITIZE IDEAS

Leaders find themselves buried under a mountain of ideas because they can’t decide which ones will yield the most impact.

“High-powered incentives do produce a flood of ideas, but that’s not necessarily a good thing—a flood can be overwhelming, leaving companies unable to act on many of the ideas.”

INABILITY TO PRIORITIZE IDEAS

hbr.org/2014/06/dont-offer-employees-big-rewards-for-innovation/

HBR, Don’t Offer Employees Big Rewards for Innovation,

If leaders have different goals, they will fight over which ideas are more important.

LEADERS ARE NOT ALIGNED

If leaders have different goals, they will fight over which ideas are more important.

“Teams and departments struggle to find visibility with other teams and departments. This lack of visibility makes it nearly impossible for business leaders to get their arms around the work and projects that are being undertaken and prioritized. ”

LEADERS ARE NOT ALIGNED

Inc.com

inc.com/eric-morgan/why-companies-can-t-get-aligned-and-how-you-can.html

INABILITY TO MEASURE THE EFFECTIVENESS OF INNOVATION

Using the wrong metrics to evaluate innovation

Like measuring the weight of water with measuring tape, leaders often use the wrong metrics to measure innovation.

USING THE WRONG METRICS

Use these 8 essential metrics for measuring

the effectiveness of your innovation program

D O W N L O A D M E T R I C S

Like measuring the weight of water with measuring tape, leaders often use the wrong metrics to measure innovation.

“ Investments in different types of innovation affect economies (and companies) in very different ways—but are evaluated using the same (flawed) metrics.”

USING THE WRONG METRICS

HBR, The Capitalist’s Dilemma

hbr.org/2014/06/the-capitalists-dilemma

Use these 8 essential metrics for measuring

the effectiveness of your innovation program

D O W N L O A D M E T R I C S

Want to learn how to run a successful

innovation program?

Read 5 Key Elements for a Successful Innovation Program

E B O O K

D O W N L O A D E B O O K