You may recall I conducted a workshop titled Insight, Intuition, and Innovation in Bangalore and Mumbai in July this year. At the centre of the workshop was the question - What spurs innovation in organisations? Two glaring misconceptions emerged from the discussion. Misconceptions Some felt it is creative people. They offered the example of advertising agencies. You have to recruit and retain creative types to produce work that helps sell clients’ products. Others pointed out it was leaders like Steve Jobs who carry the firm on their broad creative shoulders. If only a company could nurture and build a leader like Jobs, the organisation would prosper on the back of a series of breakthrough products.

1. September 2016
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What spurs innovation in organisations?
You may recall I conducted a workshop tled Insight, Intui on, and
Innovation in Bangalore and Mumbai in July this year. At the centre of the
workshop was the ques on - What spurs innova on in organisa ons?
Two glaring misconceptions emerged from the discussion.
Misconceptions
Some felt it is crea ve people. They offered the example of adver sing
agencies. You have to recruit and retain crea ve types to produce work
that helps sell clients’ products. Others pointed out it was leaders like
Steve Jobs who carry the firm on their broad crea ve shoulders. If only a
company could nurture and build a leader like Jobs, the organisa on
would prosper on the back of a series of breakthrough products.
Creative people theory
It is true that naturally crea ve people can and do contribute to a firm’s
output. However, if it is a special talent that only a few have, not every
organisa on can avail their services. Does it mean less fortunate firms are
handicapped forever?
The fallacy of the crea ve people
argument lies in the fact that everyone
is and can be innova ve. They need
appropriate resources, training,
experience, and above all a conducive
environment.
Indian Space Research Organisa on
(ISRO) is not known for hiring specially
gi ed people. Yet it has blazed a
remarkable trail. The Mars Orbiter
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mission was accomplished on the very first a empt at a frac on of the
cost US and Russia incurred. No other country had succeeded in the first
try. Ordinary people have driven innova on in companies like Asian
Paints, Starbucks, Sigma Aldrich over decades and contributed to their
leadership.
Humble leadership and innovation culture
The argument against finding an innova on engine like Steve Jobs is even
more compelling. We know how he, seemingly single handed, drove
Apple's remarkable innovations. But we scarcely know the names of CEOs
of companies like 3M, Procter & Gamble (P&G), and Toyota. They may
not have been larger-than-life but their firms have sustained innova on
for many years.

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Their secret lies in culture - their unique pa erns of behaviour and ways
of crea ve problem solving. Curiously, they seem to share the belief that
encouraging curiosity and gaining insight is important for innova on to
take root and blossom.
Practices at the root
Toyota has a well established prac ce - genchi genbutsu. It means Go
See. Engineers and managers are expected to find out the root cause of a
problem by observing the process, the machine, or customer behaviour
wherever the problem is occurring. Toyota’s famous car the Lexus LS 400
was designed and built a er extended and deep study of target
customers' aspirations, lifestyle and behaviour.
P&G’s Living It program, prac sed since 2002, requires managers and
product developers to live in the homes of consumers for several days at
a me. They observe how customers shop, eat, do laundry and dishes,
and manage their homes and families. They come to appreciate what
housewives and families take pride in and difficul es they face in doing
household chores.
The program directly led to P&G developing Downy Single Rinse, laundry
detergent and so ener. The product cut the six-step washing cycle to
three and sharply reduced water consump on. Women in low income
households in Mexico loved it.
Innovation culture
Toyota and Procter & Gamble, to name just two, encourage gaining and
prolifera ng insight – the source of crea ve ideas – by immersive
observa on. Their prac ces and programs encourage a pa ern of
behaviour and build a culture that spurs innova on. Both, and many like
them, lay great store by seeding and embedding an innovative culture.
The impact of innova on culture in P&G has been drama c. Success rate
of new brands more than tripled and R&D spend fell from 4.5% to 2.8%
of sales in the first decade of the new millennium. The Toyota
organisa on implements one million, yes One Million new ideas every
year. 30% of 3M's revenue comes from new products introduced in the
previous four years. The reason they have sustained innova on is their
emphasis on culture, not focus on creative people.
You can reach me at vn@vnbhattacharya.com or +91-80-2539 2300 / +91-98450 58034
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