Innovation management – so important, but so difficult!

Working on and dealing with innovations is currently experiencing a real high in companies – from SMEs to large corporations. But why is real innovation management so challenging and so often associated with failure?

 

Innovation as the staple of every organization

 

A single statistic shows why advancement and development should be a must-have for companies: an unbelievable 88% of the Fortune 500 companies from 1955 no longer existed in 2015. There are of course various reasons for this, such as mergers, takeovers, bankruptcies, technological developments, etc. But it is precisely these impressive figures that show how important it is as an organization to deal with new challenges at all levels and to make the necessary changes in order to stand up for arming future survival. Hardly any company is immune to a high level of uncertainty, constantly changing framework conditions and complexity!
Innovative, future-oriented action in order to develop new business models, products and services and to ensure growth and lasting profitability is a basic virtue of modern organizations – but what makes it so difficult? An attempt to shed a little light on 4 reasons or opportunities for this:

 

1. Corporate culture as an opponent of innovation

 

The greatest innovation potential often lies in the company itself. The innovation culture necessary to develop this potential must be exemplified and managers must (be able to) give their employees sufficient room for maneuver. The organizational culture that has grown and established over the years and decades and the innovation antibodies that work in it are the greatest hurdle for a successful implementation of innovation. Often a negative statement or only slight resistance to a new idea is enough and the idea giver can be impressed by it and put off by further initiative.
Deep-rooted mechanisms and pre-formed attitudes in organizations can only be changed slowly and with a great deal of commitment. The desired and aspired to cultural maturity also includes the freedom to fail on the way to an organizational culture with an affinity for innovation and to learn from it.

 

2. Leadership courage to take risks

 

According to the motto “Be a leader, not a boss!”, there is great potential for the innovation success of organizations in the leadership function and thus in the development of managers. As a rule, employees, colleagues and superiors do not perceive managers as drivers of ideas who drive innovation in their own organization with curiosity, courage, a willingness to take risks and a disruptive attitude. Managers should be encouraged, encouraged and also encouraged to show more courage to experiment themselves, to set the right framework conditions and to create freedom in order to be able to actively play the role of innovation driver in the company together with their employees.

 

Admittedly, this means a lot of (also personal) challenges for many responsible persons, which are associated with changes in attitudes and values. In implementation, this means, among other things, the courage to take risks instead of a zero-error strategy, cooperate instead of delegating and communicate on an equal footing instead of top-down.

 

Use innovation ecosystems as a pool of inspiration

 

Of course, there are a lot of very competent, motivated, innovative and intelligent people working in our own company. But no matter how big your own company is, there are still far more very competent, motivated, innovative and intelligent people working outside of your own company. Using even a small fraction of this external potential for your own success can make a small but subtle difference. However, innovations are often stifled because organizations are unable to interact in a broader network. The biggest obstacles are to share one’s own corporate culture or existing reservations, ideas or knowledge and data with one another. Participation in innovation ecosystems or co-creation offers companies collaboration with an expanded partner and supplier community. These enable added value beyond your own resources. Organizations are often aware of the added value of collaboration, but the implementation is unclear.

 

Innovation processes – agile and yet beautifully standardized

Innovation projects fail in the development phase. Even if agility, spontaneity and creativity are very important, it does not mean random chaos! A systematically planned process is required for the successful implementation of innovations. It must be structured and leanly organized in order to achieve the goal quickly and in a result-oriented manner. A scalable and repeatable process from the idea to the market launch is a decisive factor in generating new products, solutions, services or entire business models.
Being aware of the major challenges and not shrinking from accepting the uncertainty associated with innovations and devoting resources to these topics is the first step in the right direction. “We do something with innovation” as a pure marketing trickery can quickly and easily make your own company belong to the 88% who will not survive the next few years or decades. In this sense, the digital researcher Jay Walker means: “Innovation means: contradicting the old” and “it is time to innovate”.

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Transformation projects – fire & flame, and heaven or hell

There is currently hardly a company in the world that does not have one or the other (digital) transformation project in the planning or implementation phase. However, the experiences of most companies and those responsible for transformation or project managers do not differ from the experiences of many other projects in recent years and decades. Why is that? Was and is project management of transformation processes an (almost) unsolvable challenge? Even if many employees are on fire for transformation projects, it can feel like heaven or hell…

Blockages for development and transformation

What are the most stubborn blockages for development and transformation and what must be consciously overcome in order to get projects through?

The co-founder and long-time managing director of Haufe-umantis Hermann Arnold recorded four major obstacles to development and transformation in his book “We are boss – how an invisible revolution changes companies”. In the following, these 4 blockages are to be highlighted, enriched with personal experiences:

1. The clay layer

When the company management cannot lead

  • The top management makes this layer of clay (middle management levels) responsible for it
    • that employees cannot be led directly
    • that tools to make real change are very rare and
    • that changes take far too long and measures only take effect when they are almost out of date
  • Employees blame this layer of clay for this,
    • that their ideas and suggestions are not heard
    • that top management is far too far removed from day-to-day business and the real problems
    • that many of the decisions made “above” hinder rather than facilitate their work and
    • that constant change processes and reorganizations slow down internally and create no added value
  • The middle management is exactly in this layer of clay
    • with what feels like limited options for action
    • with increasing pressure from above and almost unattainable expectations from below
    • with more criticism than praise from all sides

Thus, top management, middle management and employees feel restricted and powerless by a system to really actively shape the future of the company. This can lead to broad resignation in the company despite a fire and flame attitude towards transformation projects – will, good intentions and ability.

2. The entrenchment

When silos are reinforced instead of broken down

  • Due to the increasing pressure, teams and units in a company concentrate on their own work, against the completion of which they are also measured, and see overarching projects or problem solutions for other teams as an obstacle to their own goal achievement
  • Increasing specializations lead to increasing alliances of like-minded people and failure to understand other teams of experts (sales, quality assurance, accounting, research & development, etc.)
  • The dynamic and unsafe environment increases the focus on Focus on one’s own work areas, in which one can still have the feeling of as much control and expertise as possible

Forming interdisciplinary teams and thus breaking down silo thinking are among the basic tasks of any project responsibility in the start-up phase of a project. The aforementioned blockage leads to an intensive start-up phase, which will, however, be decisive for the success of the entire project!

3. The agility trap

When the organization is too slow for the market environment

  • The pressure and urgency of the need for change lead established companies to try to implement new, successful organizational concepts as quickly as possible
  • Inspired by tech giants (Apple, Google, Facebook, etc.) or young companies, Agile, Scrum, Lean Start-Up, Holocracy, Co-Creation, etc. should be implemented
  • The inertia of established organizations and the day-to-day business, which must bring income and profit, as well as the lack of necessary skills usually prevent successful implementation

4. The innovation gap

When companies are left behind

  • Innovations outside of companies develop much faster and with a higher frequency than within companies
  • Employees often have better technologies, more professional tools and modern forms of organization in their private lives than in their own company
  • The courage to try new things, to use unusual methods, processes and tools and to work together across organizations is severely hampered by fear of failure and numerous regulations

In sum, all these factors mean that projects and transformation plans are always confronted with strong headwinds, even when using proven and / or new project management methods and instruments. In this context, parameters such as:

  • Recognizable meaningfulness in the work activity
  • Opportunities for further development
  • Design freedom and decision-making powers and fun at work

In order to achieve the goal, a conscious handling of blockages for development and transformation and an investment in the alternative accelerating factors are essential. This is a challenge for corporate executives and executives alike, based on the American manager Lee Iacocca: “Most executives hesitate to let their people run with the ball, but it’s amazing how fast an informed and motivated person can run“.

It is precisely this “letting go” that kickworkx supports with MATE, the Micro-Accelerator for Transformation and Employee Development. With the easy to use (start immediately from 1 idea) and inexpensive “as-a-service” tool, managers give their employees exactly the right mix of structure, inspiration and expert guidance to turn new ideas into results step by step – without neglecting their actual job.

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