How to get the most from your innovation resources

December 18, 2009

I argued in my last post that innovation should be treated like any other function and given the respect that its strategic value merits.

So what does that look like? (Note: I am assuming for the purpose of this series of posts that innovation is considered critical for a company. If the situation did not require innovation  – for example a true monopoly – then I would think differently.)

First of all, the Innovation Department is a standalone department. It is not part of R&D. It is not part of Marketing. It is it’s own entity. Of course the innovation people will work with those (and other) departments. But innovation is a skill and needs to be treated that way.

Second, this department must be resourced as robustly as any other.

Third, it must be staffed with the right people. Not re-treads from other departments. Not people with connections who want a plum assignment. Not even your stars from other departments. You can be a marketing whiz and still not be very good at innovation. I will write more about the talent requirements in a future post.

Fourth, the policies must be appropriate for the results you want to create. What do I mean? Well, all of the rules and systems must be geared towards attracting, enabling and retaining innovators. The dress code should be suitable for innovation work. No suits allowed! The compensation and reward system should be appropriate to the nature of the work. If you want people to take risks, then reward them for doing so. Don’t peg advancement to making a number like you do for other functions. The physical environment must be suitable. No drab grey or vomit colored cubicles or carpeting. Sunshine. Colors. You know, the stuff that makes you happy when you look at it.

I’m certain I’ve left out a lot. But you should get the point by now. If you really want innovation then you have got to take it seriously. Publicly. You have to respect the notion that innovation is a discipline the same way anything else is a discipline. Then go create a department with all the trimmings that reflects the value you place on innovation. Note: I’m not saying you must spend lavishly. I’m saying that the way you treat innovation must reflect the value you place on it and here’s the kicker – relative to other needs. Keep this in mind grasshopper! You must choose where to spend each dollar. Your choices will tell your employees, customers, vendors, investors and the world what you really value. So you don’t have to spend lavishly but the share of total spend must reflect your seriousness of purpose.

One last point: The reason I have titled this post the way I did, is that I believe if you don’t create departments like this, you will dilute your innovation efforts and they will not produce as efficiently as they might. Innovators like to be around other innovators. They need support and camaraderie like any other group of people. Burying them as solitary people within other departments or teams does not make them feel valued. And more importantly, without critical mass, the benefits that the innovator brings to the organization will be lost in the sea of non-innovativeness. Similarly, if you have innovators and you throw a heavy corporate yoke around their necks, you will either lose them or destroy the very souls that made them innovative.

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