Business Adviser The place to start innovating is right in front of you By Inge Christensen Creative Expeditions Inc.

Despite a tremendous amount of discussion in the media, innovation is still unfamiliar waters to most business leaders. They hesitate to plunge in, even when “WWADI” (the Way We’ve Always Done It) is no longer delivering results and new thinking is urgently needed.

Hesitation is understandable. In my last article for KPMG Enterprise, I observed that fear can inhibit both employees and leaders from expressing and accepting new ideas. Creativity is personal and people decide how they will contribute ideas to their organization (or not) based on their feelings.

The pressure to make a big splash doesn’t make it any easier to get in the water. The media focuses on “game-changing” innovation and showcases the successes of giants such as Apple and icons such as the late Steve Jobs. That’s inspiring but also intimidating. 

Innovation doesn’t have to be a deep dive; you can wade in. The critical decisions are where and how.

Choose an single entry point

The best entry point is a small, self-contained pilot project based in incremental innovation i.e., improvements to existing products, services and processes. Look for challenges requiring genuinely new thinking vs. a practical fix within the realm of “WWADI” (the Way We’ve Always Done It).

There are innovation opportunities right in front of you; some are obvious. Build a full menu of options before you choose a pilot project.

Review the current business plan. There may be new challenges to execution. Maybe you have fewer resources. Maybe the competitive landscape is suddenly crowded. Maybe customer demands are greater. Either way, there is a call for new thinking.

Ask for feedback from customers, employees and suppliers. Customers will likely highlight unmet needs and opportunities to add marketable value to your current offering. The people who work “in the trenches” will likely point out things that can work better. An online survey will reveal the spectrum of possibilities. Clarify with interviews.

If your conclusion is far-reaching e.g., “we need to manufacture different products,” you’re beyond a self-facilitated pilot project – you need help from a specialist.

Wade in, step by step

The steps below are common sense. All of them address the fear factor inherent in innovation.

• Define a small pilot project. The goal of the pilot is two-fold: implement a valuable idea, and gauge how well your people adopt innovation behaviours and processes. Choose an opportunity aligned with your current strategic plan and set realistic goals for the pilot. Be specific about how value will be generated and measured. Identify potential risks and mitigate what you can without killing the freedom to try something new. (You can’t go swimming without getting wet!)
• Pick a pilot team. Focus on creating champions for the pilot as well as future innovation projects and include people willing to play devil’s advocate. Ensure the pilot leader has an open mind!
• Follow these 5 steps for idea development. Avoid skipping steps in a rush to get a result.
  1. Define the challenge. Figure out what you are trying to solve and then get consensus that it will create measurable value for the organization. If you can’t agree, it’s a sign you’re entering the water at the wrong spot or you’re not ready to take the plunge.
  2. Gather data. Cultivate fresh insights/ideas with various types of research. This step is about making thought-provoking connections from the known to the new, and from the new to the known.
  3. Generate ideas. Explore NEW ideas (go for quantity and variety) and defer evaluation.
  4. Refine ideas. Strengthen/select the most promising ideas using a matrix of relevant business criteria. Then translate ideas into viable solutions.
  5. Propose ideas. Make a strong business case to secure approval and resources for implementation.

Start swimming

Implement the winning idea. Pause to test it against success measures, and improve as needed.

Before you implement, communicate the goals and expectations for the pilot to the organization. Doing things differently requires support from all those affected. Use regular project updates to generate excitement and give credit to the team. Reveal what was learned from failures to reinforce that innovation is not sink or swim – ideas that don’t work often trigger ideas that DO work!

When the pilot is complete and the team reports on lessons learned, you will be more equipped to determine the role of innovation in your organization’s business strategy, processes and culture.

Business Adviser is published by KPMG Enterprise™ specifically for owners and executives of private companies. KPMG Enterprise is a network of professionals devoted exclusively to helping business owners and entrepreneurs build value and grow thriving enterprises. kpmg.ca/enterprise.

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