Managing innovation realistically

Because innovation may involve dealing with ideas that have not been tried or tested before, it requires organisations to accept – and even expect – failure. To mitigate the risk of failure, organisations should diversify their innovation investments, both in terms of effort and resources. For instance, the Three Horizons framework has helped corporate innovators think critically about their innovation strategy by categorising initiatives based on time frames of varying lengths. Ultimately, organisations should consider their overall risk appetite in pursuing innovation.

Part of managing corporate innovation is continuous monitoring and evaluation of ongoing initiatives to decide which ones should be retained to achieve goals set by management. Due to the scale of day-to-day operations in corporations, change would need to be anticipated to minimise disruptions to business as usual. As with any other business initiatives, the tone for innovation is set at the top. Leadership should consider innovation in the creation of operating models, to ensure the success of innovation programmes.

A common dilemma plagues corporate innovators across organisations: the need to justify returns on investment (ROI) in innovation, while navigating uncharted waters. It is no surprise that corporate leadership demands accountability: large organisations have more stringent governance practices, with various checks and balances in place. Therefore, measuring the rewards from innovation requires corporate innovators to work together with leadership to identify the right metrics that model ROI, providing management with the reassurance they seek.

When considering the adoption of new technology, organisations should think about their people and process implications, such as the nature of the task that needs to be accomplished, the way decision making works on the platform, and the flow and accessibility of information. Ultimately, the job of the corporate innovator is to consider technology on two fronts: as part of the innovation management process, as well as of the innovation outcomes. Only then can organisations select the right digital solutions for the purpose that they are intended to fulfil: to enable new ways of working that are more efficient, effective and convenient for all.

Change management lies at the heart of every corporate innovator’s job. Resistance to change is a real challenge to creating a consistent and widespread culture of innovation within organisations. Overcoming it calls for involving individuals who will be affected throughout the process, from understanding their concerns to communicating milestones and progress regularly. Yet, despite one’s best change management efforts, not everyone may be on board. Corporate innovators should not let this stop their innovation agenda, and should instead focus on areas where they can drive forward initiatives that create real impact.