Step 1 – Strategic Alignment
In an article by Rowan Gibson (2009), he states that innovation strategy is not merely about the next product launch or patent registration. It is about exactly how your company intends to become or remain a world-class innovation champion. • To thrive, innovation must be an integral part of the business mentality; • A company has to be willing to recalibrate its whole organisational system around the paradigm of innovation; • Each employee must understand the link between their own individual performance and the attainment of the company’s strategic innovation goal; • Ensure that the innovation focus is clearly aligned to the strategic objectives of the business; • An innovation function without alignment is one doomed to fail; • The business needs to clearly understand the role of
innovation and the value that can be
derived from such a focus; • Making it easier for any business unit to achieve their objectives is key in getting the necessary buy-in for innovation; • Once the innovation function is aligned to the strategy of the business, every measure should be taken to ensure it becomes a line item at a corporate scorecard level as well as at a divisional and business unit level.
Step 2 – Leadership Commitment
Strong leadership from senior management is essential to achieving success in innovation. The late Steve Jobs of Apple, Bill Gates of Microsoft, A.G. Lafley of Procter & Gamble, and Jorma Ollila of Nokia are examples of CEOs who drive their management teams and their companies to the highest levels of innovation performance. The most important aspect of business
is people. Innovation management depends on leadership at the top.
• Strong leadership from senior management is essential to achieving success in innovation; • Never underestimate the importance of leadership commitment with respect to driving an innovation culture; • Great leaders have the ability to rally followers, they envision how things could be improved and refuse to accept failure; • It is essential that the right corporate culture exists for innovation to strive; • Central to an enabling environment is a culture in which individuals feel their opinions are valued and where they are encouraged to think; • The messaging from the leadership team must tie into the role of the innovation function, and the deliverables of the innovation function should be woven into the leadership team’s scorecard deliverables; • Common language on innovation, theory in action; • Drive innovation into business mentality through learning and change.
ONE OF THE MAIN CHALLENGES FACED BY THE INNOVATION FUNCTION IS BUDGET AND SUSTAINING A FINANCIAL COMMITMENT TOWARDS
INNOVATION. IF AN ORGANISATION IS ABLE TO ALIGN ITS INNOVATION
FUNCTION TO THE STRATEGY OF THE ORGANISATION, THEN BUDGETING FOR SUCH A FUNCTION BECOMES PART OF THE ORGANISATIONAL OPERATIONAL DELIVERABLES.
The Innovation Journal September 2012 | Management Today 39
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