INNOVATION, INNOVATION Innovation, innovation


Mike Faers, ex-McDonalds food chief explains how to future-proof your innovation


It sounds counter intuitive, but how can being successful be a risk to innovation? Well the answer is that all too often it does as companies get embroiled in what’s often called “the success trap”.


(products, process or service) they tend to focus on it and over invest in it in the short term and become even more successful (this is the trap). Weak leadership believes that this one thing is the


W


hen organisations become good and successful at one thing


key to the long term success and diverts resources and budgets away from “discretionary” areas of the business usually the two key drivers of business growth: R&D and Marketing.


The organisation typically then focuses on how to manufacture or sell that one thing, which in practice reduces flexibility and entrepreneurial skills which are no longer listened to or required in the new business model. The profits will increase until “disruptive change or innovation” happens in the market place that threatens the dominant leader for example:


“If we look at the behaviours of the successful long term organisations versus the failures there is one clear behaviour difference: ’business hibernation’.”


• Kodak and digital photography


• Nokia and the smart phone • Hoover and the Dyson • EMI/HMV and downloaded music I could go on but hopefully you see the point, the question is why didn’t these organisations see, acquire or invent the next evolution in their markets. If you took the Fortune 100 in 1966 and compared it to the Fortune 100 in 2006, 66 of those companies don’t exist anymore, 15 still exist but are not big enough to feature whilst 19 of them are still there. If we look at the behaviours of the successful long term organisations versus the failures there is one clear behaviour difference “business hibernation”. The dictionary definition of hibernation is “hibernation is an instinctual process of inactivity and reduced metabolism which allows hibernating animals to conserve energy during winter months when food is scarce”. If you think about it this is also the process that many organisations opt for in uncertain times. Companies sheltering from the


environment, conserving their energy by cutting the marketing and R&D budgets, shedding staff and not taking risks with innovation. The belief that once it blows over it can re-emerge into the world as they knew it and everything will be back to normal. There is one flaw in this approach and unfortunately it is a big one. The normal of yesterday is history and there is now a new normal and consumer behaviour has already changed. 


Mike Faers is the founder of agency Food Innovation Solutions helping businesses deliver profitable effective innovation. For more information visit


foodinnovationsolutions.com. FMCGNews.co.uk | FMCG News | 45


Top 10 tips for avoiding the trap


Keep an ambitious vision at the heart of you business culture – if your vision was to be number one, when you get there you must find an equally motivating one


1 2


3 4


5 6 7 8 9


Invest in your people and reward them for entrepreneurial


behaviour


Make sure your senior leadership structure reflects the voice of innovation and future long term strategy


Define jobs around innovation and make it a job prerequisite


Continually invest in listening to your current and future consumers


Complacency is the killer at all costs


Challenge everything regularly


Learn and persist when innovation is difficult by resisting compromise


Observe and question why


around innovation 10


If you can achieve these ten things you will build a culture of agility, creativity, and innovation and ensure you have a business that can find the courage to try, fail (sometimes), redo, and try again resulting in long term business success.


Ensure constant communication and ncouragement


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