Organizational Culture and the Emphasis on Innovation

Without the oxygen of support and applause, ideas often die in infancy. The creativity improvement program can be the foundation that enables all other company programs to be effective. There are a number of steps to ensure that the program encourages innovation. IBM whose motto is ‘Think,’ believes in ‘More intellect, less materials.’

Working with Wild Ideas

A germinal idea requires the sanctuary of a mindspace that is totally nurturing. It requires a space to grow so that its wildness is not nipped in the bud. Who knows what weed will become the coffee bush? Develop sanctuaries for wild ideas. Let the wilderness flourish in a totally non-threatening atmosphere. Let the ideas grow high and tall. Leave all pruning for later. New ideas need to play freely, like crawling, naked babies with no discipline. Suspend judgment, postpone reaction, extend effort. Hindustan Lever has its innovation centers. Cognizant has budgets for its mavericks and no stop signs within those budget allocations. Ask all participants to make an impossible wish – zero cost, zero rejections or doubling productivity. Then proceed to tame them bit by bit by using the innovation tools already learnt, like 6M. This process can be extended as you learn all the tools. So, go ahead and spend time setting impossible goals and developing wild ideas.

Idea generation

‘For every problem there is a solution that is simple, attractive... and wrong’. Beware of obvious solutions!’ Arthur Clarke It is worth remembering here, that the rules for thinking are totally different from the rules for doing. You can set up a 100 million dollar factory in your mind, study the mathematical implications and destroy it without losing a single dollar. However, as soon as the first brick is physically laid, or the first employee hired, you start losing money. Do not analyze your thoughts during idea generation. Remove all boundaries. Apply analysis only in the fourth stage of the creative thinking process. It is ideal to train trainers in the thinking tools and then encourage them to deliver training to the teams.

Product Development – in the marketplace

When you take the germinal product into a protected test market observe the way it is used by the customer. Try different versions of it, if possible. For example, Godrej are carrying out hands on experiments with customers in different retail formats whilst developing furniture that customers can accept as easily as the furniture made by the local carpenter. Use the following map to recreate your product. This map can help you identify key elements in product development. Use existing facilities to refine products in the market place. Once a new product idea germinates, it needs time and space to grow and develop that idea. Insist that unfamiliar, strange, unusual elements are developed. Support the Champion, tone down the attackers. Work on taking it to market fast on a small investment with the possibility of a profit. Don’t try to create the perfect product in the lab. The immediate reaction is often to remove all elements that make a product new and different. Most groups will rush to protect familiar aspects of the product and if it is wild idea there will be a concerted rush to domesticate it and retain its old and familiar attributes. Fiercely protect the wildness of the idea by enclosing it in a sanctuary. Allow it to roam free in the sanctuary for a few days. Don’t touch it. Remember if everyone loves an idea, it is probably 200 years old!

Test Product Specifications in the Competitive Marketplace

Let your teams use this map to help create an experiment in the market place. Carefully calibrate the product creating a careful balance between what the customer wants and what the competitive market will bear. On a new product, make small investments. Change and react to what happens in the market place. Like a potter uses his hands to shape wet clay, refine your product as it makes its way tentatively through the market place. Remember, a kite can only be tested when it flies. Don’t keep your product too long in the laboratory, launch it, test it and improve it as you go along. Be hungry for early profits. Let the product evolve to achieve customer delight.

Service is the differentiator

Whilst the product or service may be quite similar it is possible to differentiate your product by offering a unique service. Airlines may be the same, but Kingfisher Airlines differentiates itself with the way helpers take care of your luggage -- the way the passenger is treated as a ‘guest’. Hospitals may be the same, but ‘Our working is an offering to God’ motto at the Satya Sai Hospital in Whitefield Bangalore differentiates it from more commercial institutions. Use this diagram to revisit existing product service packages and explore how you can further differentiate your product or service. Action: Explore services that can make your product unique.

Relationships – Revisit, Review, Relate

Building relationships, with suppliers, customers, press and other stake holders, is key to the success of your innovation initiative. They cannot be built overnight, only when we need help. Relationships have to be a carefully nurtured 365 days a year exercise. The web of relationships creates the networking required for success in problem solving. Great relationships with your stake holders make the process of achieving ‘stretch’ goals interesting and exciting. So make this day for the 3 Rs - Revisit, Review, and Relate. Revisit the mission statement of your company and review the progress of the projects with special reference to building and enhancing relationships : • Within the commando teams • Between Innovation spirals • Between the steering committee and the spirals Make sure that there is no turf protection.

Know the customer: Face to Face

Knowing the customer is a long term process. Keeping your finger on the pulse of customer trends can ensure consistent profits. Here are some of the systems that could help build and understand lifetime relationships with the customer. Encourage the teams to go out and meet customers. Let them get a hands on experience of how customers really think. Let them organize in-house interviews and focus groups with customers. Interviews and focus groups can give a lot of information. They can help customer’s participate in reinventing processes and products. Management by walking about (MBWA) is the hands on way to find out what the customer feels day to day. Research and surveys give you information. But customer aspirations and fashions change. Those who are not in close touch with their customers may be too late to react to new trends. Barrack Obama became President of the United States by contacting 5 million people on the internet. He collected far more funding than powerful old timers like Senator Mc Cain and Hillary Clinton. Raw data needs to be interpreted in terms of customer needs. The way McDonald’s responded to change in the attitude to health and concerns about obesity by providing low fat and salad meals shows a proactive attitude to change in customer needs and tastes. This naturally leads to protecting profits. The concern for the environment is another issue where the auto industry has to take customer focused decisions. During an economic down turn does a big gas guzzling car become almost vulgar? Are people ready for electric cars? Is the Rs. 1 lakh Tata Nano poised to grab world markets? Study the needs hierarchy. Is it true that on the brink of the economic precipice, people are more concerned about surviving, than about impressing the neighbours? There is a whole new economics of recession. Study the emerging trends and get advice from experts. Reflect on your findings. Study broad demographic changes and question where a global major should invest? In India with its largest number of young people or China with its aging population? How should Indian companies change their strategies to deal with the explosive youth power? Will inexpensive luxuries become more popular?

Focus on markets ignored by others

‘Empowering people is the most effective way to create profitable companies’ says Mr. Thyagarajan, legendary founder of the Shriram Group of Companies in Chennai. He brought workers into management, spent a lot of face time with them. ‘They made it happen,’ he says. His methods are simple.  Cut out all non value added activities  Engage each one of the workers, including the contract labour, by uniting them for a common cause. ‘How can you solve the problem with the same tools that caused them?’ He brought in a good CEO and made him accountable. The strategy worked and profits began to flow in. ‘I always found people who could do things. Then I empowered them and left them alone!’ Shriram Chit Funds was started in 1974 with 4 chit fund companies focusing on truck operators. Now, its volume of business is Rs.27,000 crores. They have 1,000 offices dealing with all areas of finance. Mr Thyagarajan proudly states ‘We have an emotional bond with 20 lakh customers over the years.’ When asked why he started with 4 companies at a time when Small Business Units (SBUs) were not popular, he explains, ’Each area had a CEO who had total freedom. Growth was faster, because each CEO felt more energized. We, south Indians are suspicious of anyone who grows too fast. This strategy also kept the company out of envy’s radar. I was able to call forth a “Start-up” attitude. Once I was sure of the leadership, I maintained an attitude of tolerance towards mistakes’. The SBUs worked very well and grew quickly.

Keep in touch with Customers

Customer creativity enables the company to negotiate new products with customers. It is the kind of process that reinvents the future. For instance, customers were not even aware of the possibility of a Walkman. Only an intense negotiation between top management, manufacturing and customers could have created it. Customer interaction can be induced by the following: • Management by Walking About (MBWA) is the most appropriate way to ensure that the customer’s voice is built into products and processes. • Advisory committees of opinion leaders can be an effective method of keeping one’s finger on the pulse of public opinion. • Focus group interviews to enable customers to explore ideas with skilled facilitators, trained to go below the surface of suggestions and complaints.

Innovation mind bytes

 Be willing to test ideas in the market and correct them in the market place. Don’t wait for perfection on the drawing board. An idea is like a kite. Fly it, to test it in the wind.  Keep a low key. As the Zen thinkers say, be like an underground stream, not like a rocky mountain face. Competitors are alerted and more likely to attack a mountain.  Co-operate instead of confronting.  Keep initial budgets small.  Reach out for low hanging fruits. Be hungry for results.  Be impatient for profits.  Learn in the ruthless university of the marketplace.  Reach for the untouched and the unreached. As first mover, make full use of your advantage.  Be patient with teething problems. De-bug as you go along.  Good is the enemy of Better.