Sunday, July 5, 2015

Innovation Paradigm


I have always wondered how it was for the losing civilization when two civilizations at opposite side of the cusp of technological innovation collided. How did the Stone Age tribe cope with the first conflict it had with a tribe that had moved to Bronze Age? How did the Bronze Age kingdom cope with the first conflict it had with a kingdom that had moved to Iron Age? I had the ring side view of it as I completed a book ‘By Right of Conquest’ - by G.A. Henty. It is a historical fiction woven around Spanish conquest of Aztecs in 16th century. Few hundred Spanish equipped with superior modern armaments like canons, guns, chain mail armour and cavalry overwhelmed multitude of Aztecs who were armed with wooden clubs, bows/arrows and spears and saddled with a dogmatic emperor.

My first reaction as I finished the book was to thank god that our civilization no longer faces such situation. But a moment later, a wave of realization hit me. A realization that this conflict is becoming more “continuous” with passage of time. Such battles are being fought more often, and are more secular in their impact and the only thing that has changed is the rapidity at which these battles are coming our way; thereby, reducing the reaction time of participants and the fact that they may have turned bloodless but the outcome is the same – Merciless decimation!!!

Few years back Blockbuster video rental chain had successfully transitioned to DVD era, Motorola and Nokia in succession used to be the king of hill as far as mobile handset were concerned, Sun Microsystems was an acronym for innovation and Yahoo was pioneer in web search and file sharing.

Look around, all of them have lost ground badly and have either vanished or naysayers are having field day predicting their doom. What went wrong for these organizations? How did they lose the plot?

The answer is simple, they could not innovate and keep step with the changing times. So next million dollar question is why these organizations failed to innovate? Was it because leadership of these organizations was any less focused on innovation? I do not think so, the leadership of these organizations wanted innovation as much as any other organizations but it did not happen for them. And the issue lies in the existing model of innovation and quite frankly pervades most of the organizations.

Notwithstanding the pep talk it receives from leaders, innovation has remained preserve of select few. Because they have earned their stripes, select senior leaders or Product Managers decide the focus areas, priorities and funding for most of the organizations. But are they best placed/equipped to make right calls? The pace at which demand, competitive and technological landscape is changing; the person making these calls should have her ears to the ground, eyes on customer and competitors. If this is right criteria, then frontline employees dealing with customers who are closest to the changes in technology will be my bet to drive innovation agenda of any organization.

But it takes a great deal of humility, courage and leap of faith for a senior leader to acknowledge that what worked for him in past is not the winning trick anymore and a frontline employee may be having the key now. Once that psychological chasm is crossed the next challenge is to equip the frontline employee with paraphernalia to innovate and that is where leaders need to put the money where their mouth is.

With the maddening focus on improving utilization, most of the frontline employees find it difficult to make time to sit back, and analyze if there is a better way to solve the business problem.  Select few, who come up with an innovative idea have only Line manager to turn to for maturing the idea and more often than not, for line manager, today’s deliverables are bigger priority than tomorrow. Few ideas that survive the random selection filters of Line managers and leadership, get executed.

Successful leaders democratize the model of innovation, devote organizational resources (read time and incubators) and establish a market place of ideas to ensure survival of fittest and align compensation philosophy to support this democratized model.

This democratization can be achieved by -

1.       Allowing employees to devote chunk of their time to develop an idea they believe in,

2.       Setting  up innovation labs that would help employees mature the ideas without scrutiny of line managers,

3.       Establishing market places for ideas where ideas could get listed and employees could support these ideas by investing their time (by working on ideas generated by others). Ideas that receive poor response would die a natural death.

This democratization of innovation model would ensure improved engagement of employees, larger supply of ideas and better selection methodology with a robust incubation of ideas that are backed not by executives but by people who are closer to the tide of technology and demand.