Innovation in the 21st Century

The majority of top executives agree that innovation is a huge driver in a company’s success. This concept has become even more important in a 21st century business environment as the landscape transforms to an increasingly global marketplace. Keeping your pipeline full of innovative ideas, backed with powerful execution, can yield excellent results.

Employees are the Untapped Drivers of Innovation
Attracting and retaining talented employees isn’t always an easy task. But when you create a team of innovative people, your ability to generate powerful ideas increases.

The key is to create an environment that fosters communication. This will allow employees to feel comfortable sharing their ideas. Some of the best ideas come from employees that work on the front lines, but getting them to share isn’t always easy.

Bridge the Gap Between Employees and Senior Management
Employees need to be included in the decision-making tasks. This will foster a culture of innovation and make employees feel more connected to the company. Bridging the gap between senior managers and employees will open communication lines and promote innovation.

Make Innovation a Permanent Fixture on the Management Agenda
Although most senior managers agree that innovation is a leading driver of success, sometimes it doesn’t always make an appearance on the management agenda. Innovation should be a discussion point at every senior management meeting. Implementing this change will shift more focus on developing innovative ideas.

Introduce Innovation Accountability
Since innovation is a primary growth factor, senior management should be held accountable for results. This component should be managed, tracked and measured. One strategy of accomplishing this goal is to determine a percentage of the total revenue that should be produced by new innovative products. You can also drive employee innovation by setting a percentage goal for generating internal ideas. Having goals to execute and measure will drive results and ultimately revenue.

Create a Team Dedicated to Generating Ideas
Marketing experts aren’t the only people that can generate great ideas. You need a broad network of individuals from a variety of backgrounds. For example, you may have employees that are great at brainstorming ideas, while others are stronger in analytical tasks. These team members can be responsible for conducting research on new innovative ideas. You also need producers that can successfully implement the idea. Having a mix of strengths will foster a seamless innovation strategy.

Transform Managers into Innovation Leaders
Every innovation team needs a strong leader. Identify and recruit key leaders that have the track record and ability to implement change. These leaders should be talented in identifying team member’s strengths to form a cohesive productive group.

Little Steps to Big Success
Once you have a solid list of ideas, it’s important not to go overboard with enthusiasm. Hand pick your strongest ideas to successfully implement. Measure the results carefully and spend some time analyzing the processes. You can then have the tools needed to perfect your innovation strategy.

Resource:
Joanna Barsh, Marla M. Capozzi and Jonathan Davidson. “Leadership and Innovation.” The McKinsey Quarterly 2008.

Mark Jordan is the Managing Principal of VERCOR, an investment bank that creates liquidity for middle market business owners. He is the author of “Selling Your Business the Easy Way”, “Enhancing Your Business Value…The Climb to the Top” and co-author of “The Business Sale…A Business Owner’s Most Perilous Expedition.” For more information, contact him at 770.399.9512 or email him.