by Vita Merlott; President, Avalon LLC; Communications Chair ACE ‘10
During difficult times the normal reaction is to tighten the “company belt” on all fronts – including investments in the future. After all, we have to survive today to ensure there is a tomorrow. What if you find that companies that have successfully negotiated difficult periods in their history – economic and otherwise - always maintained an eye toward innovation? No matter how difficult the challenge in doing so? All innovative companies have business horizons that are positive, horizons that are challenged and elements in the world they simply cannot control. Innovation does not suggest that life is simple or easy by any means. What true innovation does suggest is that positive economic periods can be capitalized on to a greater level, and difficult periods can be sustained with less negative impact to revenue & profits, morale and continued investment in future growth (even if modest).
Based on a number of studies in market there are tenets for companies that have proven themselves innovative based on hard metrics like revenue & profit growth, views from peers & industry analysts and based on feedback from customers & consumers. They are applied differently dependent on industry and the “right mix” is something that each organization must determine on its own. However, they are tenets that are valuable regardless of one’s industry or size, and ideas that are not difficult to embrace, although somewhat elusive in terms of rigor and practice – its about leadership from the top, commitment at all times and a true belief that the future cannot be ignored, no matter how difficult today may be. Whether you are bootstrapping or experiencing high growth, innovation as a standing part of culture is critical to longevity and sustainability.
Innovation is not necessarily a single idea or a “big bang” idea – innovation is about incremental and modest change across strategies, business models and technologies on an ongoing basis.
It’s about selecting the right ideas and executing them flawlessly and fully. “B” ideas executed at an “A” level have been proven to outperform “A” ideas executed in “B” form. Sound execution and oversight are as critical as the idea itself.
Given the pace of change in the marketplace, consumer demands and technology, it’s imperative that a company is “organized at the center” and that coordination occurs from the center. “Fast and consistent innovators have organized their center to drive growth.” This does not suggest that all of the ideas come from the center, it does suggest that there is a center “team” or responsible party to ensure ideas are delivered, resources are available, and learning is a natural part of go-forward decisions.
The most innovative companies seek up to 50% of their ideas from the outside. The historical view of “designed or grown here” is not valuable on its own given the pace of change today. The only way to balance the pace and to consider alternate best practices is to consider knowledge from within AND externally. Stepping outside of your industry knowledge base is a valuable means to consider “out-of-the-box” options. Advisory boards, networking and network contacts are an important consideration for success in this regard.
It’s about asking the right questions and seeking ideas, and this normally means collaborative environments that go well beyond the standard day-to-day. It’s about specific, process driven methodologies that bring colleagues & partners together regularly to discuss new revenue streams, idea gathering and productive face-to-face communication.
As an entrepreneur you may assume that you and your team are innovative by nature and innovation isn’t something you need to worry about? The most successful entrepreneurs would also admit however that success is many times achieved by ‘putting one’s head down,’ squeezing 28-hours out of each day and at times, neglecting networking events, learning options, valuable industry contacts and general movements in market. Innovation is something must be nurtured, considered, and monitored no matter how entrepreneurial one may be. It is as much art as it is science and as such, requires a great deal of care on a daily basis.