You can't talk about innovation now without talking about two things: digitization and new technologies.
Innovation professionals, obviously, get this.
The problem, according to Stefan Lindegaard: only about 10-15% of current executive teams get it, though that number is growing (slowly). Current executives have to attend to the core, the day-to-day business, but they also have to attend to the future - and that creates frustration.
As a global thought leader on corporate innovation management, Stefan advises executives and innovation teams around the world who want to get better results from their efforts. On stage during our recent Singapore event, he shared that executives often express their frustration this way: "I know what I do in my business. I've been doing it for 30 years, I'm very good at it, and it got me to the top. But this innovation thing? Digitization? New technologies? How do I even start making this happen?"
They need our help, and this is a huge opportunity for us as corporate innovators.
"If you have a strong understanding of innovation, digitization, and new technologies, and you have flair for leadership, you will skyrocket into high positions," Stefan says. "You will be senior VPs within the next 3-4 years if you play your cards well."
So what's the best way to play this hand we've been dealt? First, we need to understand what's been standing in our way.
Why do we lose the corporate innovation game?
According to Stefan, there are three main reasons we've failed at innovation in the past:
1. We don't have a BHAG.
What's a BHAG? It's a Big, Hairy, Audacious Goal. Too often, we become stuck in the day-to-day business ourselves, just trying to make everything come together. We need to focus our attentions on the bigger picture.
2. We focus on barriers, not on root causes.
In our work, we can easily find 10-12 different reasons why things are not working. These obstacles and barriers are usually the same across organizations, companies, and industries. To move forward, we need to uncover and solve the root causes. Are we lacking a sense of urgency around innovation? Are we doing all the right things...for the past? Are our leaders managing when they should be leading? Solve for root causes, and barriers will naturally fall away.
3. Middle managers halt innovation simply by doing their job.
According to Stefan, middle managers are usually our biggest obstacle - but they're not the ones to blame.
"Middle managers do what they've been told: they have objectives for the next two years, and they have to make it happen. That's how they get promotions and bonuses. Then you come in with your innovation projects, asking to borrow a few of their best people for awhile. They're going to ask themselves: what's in it for me?"
When this situation arises, it's proof that your projects have no organizational impact - and that's the fault of leadership. If they don't see that this structure is an issue and address it, innovation of any kind will remain stuck.
Making innovation happen - ready or not
Ready or not, we have to move innovation forward and embrace digitization and new technologies if we want our organizations to survive. So how do we make it happen, and help our executive teams catch up at the same time?
Stop talking about innovation culture.
In Stefan's view, the focus on creating an innovation culture is overrated.
"If you spend much time talking about how to build an innovation culture, you're missing the point. The culture you already have is there because of the organization's history - you're not going to be able to change it in a big way.
It's fine to be inspired by the Apples and Googles of the world, but you can't copy what these companies do for one simple reason: they were born like that. Like it or not, your company was not."
Instead, Stefan advises you focus on creating impact and building execution engines. So how do we do that?
Start with people.
You probably have project pools - but you also need people pools. To get to impact and execution, you need an established people process.
"When we talk about execution, we tend to forget the most important factor is people," says Stefan. "Whenever we do innovation,or business in general, we're in the people business."
People pools help you identify the people you need to execute on what you're trying to do to create impact. When you identify the right people, and match them with the right projects at the right time, you're on the right track for execution.
Forget committees.
Do you have an innovation committee? Scrap it.
"When I ask people to tell me about the results of their innovation committees, most of them shake their heads and say it was a waste of time," Stefan says. "Committees are usually 10-15 people - too many - and they're all talk talk talk."
Instead, assemble a core team of 6-8 people across the organization who set the strategy, clear the obstacles, and make things happen. Ideally this group should be led by top executives and include innovation managers, business unit leaders, and a few younger folks who understand digitization and new technologies.
Develop the "key triangle"
Once you have your core team in place, Stefan recommends you develop what he calls the "key triangle". One point is top executives; one point is your core team; the final point is HR.
"If you don't get HR involved and make innovation a people issue, you're going to be in trouble 3-5 years from now. Right now, HR doesn't have a clue about any of this. To be successful in the long run, you must focus on the people side of things, and create awareness about innovation in the HR function."
Assess and upgrade.
According to Stefan, the next big thing for innovation management - and maybe leadership in general - is human factors plus digital capabilities. "You need to understand what the business impact of merging technologies - and merging or brand new industries - is for your company. Decision intelligence, ecosystem management, blockchain, machine learning - how do these things affect you? How do you, or should you, use them? You need to know about these things, and upgrade yourselves."
Stefan uses what he calls a 7/5 challenge, where he asks innovation managers and executives to rate, on a scale from 1-10, their mindset, experience, toolbox, and network. His advice? Aim to be at about a 7, and for your executives to be at a 5.
Don't have a digital strategy. Have strategies for a digital world.
Finally, Stefan is adamant that there's not really such thing as a digital strategy - so you need to stop talking about it. Instead, you need to create and work with strategies for a world that's already digital.
"It kind of sounds the same, but the difference is profound," says Stefan. "It means you don't have a digital strategy plus a normal strategy. You just have your corporate strategy, adapted for a digital world." In this way, you'll make it easier for everyone in the organization to be thinking and planning around digitization and new technologies - and you'll be well prepared for the years ahead.
As Stefan puts it,"It's not a sprint. It's a marathon. Changes are going to happen fast, but you're going to be running for the next ten, twenty years. Your executives need your help - and you can get into a senior executive position yourself by helping your leadership, and your company, with this today."
