The best Fortune 100 companies see innovation as an ongoing capabilty, not a one time event. These companies work hard to build muscle around this capability so they can deploy it when they need it, where they need it, tackling their hardest problems. Companies do this to keep up with the ever changing landscape both inside and outside the firm. What does it mean to build innovation muscle? I think of it as the number of people trained, the frequency of using an innovation method, and the percentage of internal departments that have an innovation capabilty. Call it an Innovation Muscle Index: N (number of trained employees) x F (number of formal ideation events per year using a method) x P (percent of company departments with at least one employee trained in an effective innovation method. IMI = N x F x P
marketing or R&D? It's a trick question, of course. But it's a useful question for Fortune 100 companies to consider. Has your company made a conscious choice of how it "allocates" this leadership role?
Allocating innovation to one group over the other will yield a different business result. The approaches to innovation by marketing are dramatically different than approaches to innovation by R&D, so the outputs will be dramatically different. The question becomes: which group will outperform the other? Technical-driven innovation or marketing-driven innovation?
Companies should avoid the temptation to brand their innovation program. While it seems like a great way to bring excitement and focus to innovation, branding these programs does just the opposite. Employees become cynical, they wait it out, and they go right back to doing what they were doing before.
I liken this advice to that from Edwards Deming on quality. His 14 Key Principles are legendary in the quality movement worldwide. Principle Number 10 says:
"Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force."