What are the red flags that innovation in a company is set up to fail? Wouldn’t it be great to have a checklist on this? Unfortunately, innovation is too complicated and company-specific for one standard rule.
It is possible, however, to become better at spotting the signs of failure.
Here’s a list (in no particular order) of the red flags I look for when I talk with executives and innovation leaders trying to get an understanding of their corporate innovation capabilities.
Executives and innovation leaders have failed to link innovation with overall corporate strategy. As a result, the innovation efforts have no clear direction, and there is not the necessary mix of incremental and radical innovation. No strategy, no focused effort, no results.
Innovation means different things to different people. Every company should develop its own definition that fits its situation and should use this definition to build a common language for innovation initiatives.
The future of innovation is open and global. Who will understand this first? You? Or your competitors?
Yes, you need to go open, but open innovation is not the Holy Grail. A key to innovation success is the ability to combine internal and external resources and be in a position to act on opportunities.
If you cannot make innovation happen across your own business units and functions, how could you possibly expect your innovation to sing beyond your company borders?
People and processes matter more than ideas. Yet too few companies establish programs in which they can identify and develop the right people and match these people with the right ideas at the right time.
Although executives might acknowledge the value of relationships, they often undervalue the importance of a strong innovation culture. People can figure this out by themselves, they say. Not true. Executives need to establish networking strategies and employees need training that fits those strategies, along with the time to build and nurture relationships.
Most companies do not work with innovation models, such as the Ten Types of Innovation developed by consultancy Doblin. In that instance, executives are led to focus on innovation within four main categories; finance, process, offering, and delivery. This can help employees and external partners view innovation in a more holistic way.
Innovation champions and other elite units can work, but the setup of such departments often sends the signal that those guys will take care of it. Other employees might think they do not need to get involved. Sure, everyone should not work with innovation at the same time, but programs or platforms that give everyone opportunities to get involved need to be put in place, too.
Just look at open innovation, where the race is on for all companies, large and small, to become the preferred partner of choice. That way, they can claim the best positions, begin to build strong, stable ecosystems, and win a short-term race that brings long-term value. Things are changing fast, and executives need to move equally fast to claim their position. Yet too many companies have not even begun thinking about open innovation yet. That could prove costly in the long run.
Those are my 10 signs that an innovation initiative is doomed. What do you think? What others can you add?