INNOVATION

THE CLASSIC TRAPS

HBR Article by: Rosabeth Moss Kanter

BACKGROUND

Never a fad, but always in or out of fashion, innovation

gets rediscovered as a growth enabler every half dozen years (that’s about the length of a managerial

generation)

4 MAJOR WAVES• Late 70’s to early 80’s = Global

Information Age

• Late 80’s = Pressure to Restructure

• 90’s era = Digital Mania

• Current wave = Global Recession

GLOBAL INFORMATION AGE

Evolution to

PRESSURE TO RESTRUCTURE…

1st computer reservations system

take over scare of the late 80’s

DIGITAL MANIA

vs

CURRENT WAVE

INNOVATION Here is a chance to collect some of what is

known about innovation traps and how we can avoid them

STRATEGY MISTAKES

Hurdles to high an scope to narrow

Execs seek the next blockbuster

Assuming that only new products count

Launching to many minor product extensions can confuse customers and increase internal complexity

STRATEGY REMEDIES

Widen the search

BROADEN THE SCOPE Focused Thinkin

g

Customer

Acuity

Technical

Capability

Inventors Ability

Take a few big bets that represent clear directions

The Innovation Pyramid

An Innovation strategy that includes incremental innovations

PROCESS MISTAKES

Controls to tight = strangle innovation

Subject to same budget metrics

Subject to same performance metrics

PROCESS REMEDYThe key is Flexible planning and control systems

Example: BBC biggest hit comedy “The Office” happened by accident when a new recruit too the initiative to use money originally allocated for a BBC Training film to make the pilot series

Introduce things like…

STRUCTURE MISTAKES

Poor connections between greenfield and mainstream business

Operating in silos, companies miss innovation opportunities

Example: CBS was once the world’s largest broadcaster owned by the largest recording company, yet failed to invent a music video channel…. This opportunity was done by MTV

Culture clashes Corp Citizens ($ makers) and Innovators (creators of the future)

STRUCTURE REMEDY

Facilitate close connections bet innovators & mainstream business

Loosen formal controls that would stifle innovations

Flexible organisational structures allows cross functions of teams

Example: Saatchi & Saatchi combined people across ad agency & technology groups to focus on customers and brands which in tuen brought about “ holistic communications” to the business

SKILLS MISTAKESLeadership too weak & Communication too poor

Undervaluing & underinvesting in human side of innovation

Teams convened without interpersonal skills can’t collaborate

Example: Seagate had seven different design centers working on innovations with lowest R&D productivity, a change of CEO & COO allowed for cross functional innovation and now create electronic devices for cellphones & iPods

SKILLS REMEDY Select for leadership & interpersonal skills

Surround innovators with a supportive culture of collaboration

Value relationships to help choose the right mix of innovation teams

Add cross company teams to help bridge the gaps between mainstream and innovation

WRAP UP

Innovation

involves

ideasCreate the futureLearn

from the past

Get the balance rightCollaborate!

FUTHER READING

In search of excellence– Tom Peters & Bob Watersmans

Intrapreneuring – Gifford Pinchot’s

Winning Through Innovation – Michael Tushman & Charles O’Reilly

The Innovator’s Dilemma – Clayton Chritensen

To innovate successfully, replace common mistakes with potent remedies

THANK YOU

Jenny Craig