Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

9 Indicators That Prove That Your Innovation Programme Will Fail

8,713 views

Published on

On the basis of our experience with corporate clients, we collected 9 indicators that signal that something is going wrong + 13 clear actions to take!

https://www.boardofinnovation.com/blog/2017/05/29/9-indicators-that-prove-your-innovation-program-is-failing/

Published in: Business

9 Indicators That Prove That Your Innovation Programme Will Fail

  1. 1. and 13 actions to make it successful today. curated by @arnevbalen 9 INDICATORS that prove that your Innovation Program IS FAILING
  2. 2. 9 out of 10 Corporate Innovation Programs fail. So bad.
  3. 3. 9 sentences you should never hear 13 solutions you can apply today in this slideshow in a Corporate Innovation Program to make it successful
  4. 4. “Our Dev/Engineers have no direct contact with clients”. Huston says: 1/ * * The image is a search result from an image archive. Reality may differ.
  5. 5. Sales and customer service departments are specialized in solving client problems with off-the-shelf solutions. Coming up with an experiment doesn’t fit their job description and will have a negative effect on their performance review. Product development and engineers expect sales and marketing departments to deliver them client insights to design more relevant products and services. The innovative solution doesn’t match customer expectations. Oh man, another unhappy customer. “Our Dev/Engineers have no direct contact with clients”.
  6. 6. Go Agile Buddy up an internal project manager with a sales rep and evaluate them as a team like agile organizations do. what you can do“Our Dev/Engineers have no direct contact with clients”.
  7. 7. “The KPIs in our BU are linked to Investment and Return”. Huston says: 2/
  8. 8. Managers have their own KPI’s and growth objectives. If Manager X decides to invest in an innovation program (e.g. Innovation Accelerator) to create new disruptive revenue streams for his Business unit, the ideas will be created around those objectives. Now imagine one of the accelerator teams realizing that they should pivot away from the original scope to keep a viable idea relevant for the company as a whole. Few managers will allow the team to pivot in a way that another business unit takes all the revenues.
  9. 9. Choose cross- departmental funds Finance uncertain projects with a cross- departmental-fund (e.g. by CEO office) to maximize pivot possibilities (and potential value for the company). what you can do“The KPIs in our BU are linked to Investment and Return”.
  10. 10. Thomson Reuters Catalyst Fund funds 30 projects every year and supports them with lean startup coaching and best practices. best practice
  11. 11. “Our governance slows down (or kills) every new initiatives”. Huston says: 3/
  12. 12. Imagine having 7 management layers between an employee with a brilliant idea and the director that needs to allocate the budget to make it happen. Each manager will shape the idea to different KPI’s and personal preferences. All interesting and differentiating factors, that make the idea brilliant, will be gone by the time an implementation decision can be made.
  13. 13. Micro-finance ideas, no string attached. Give your employees some funds they can invest as they wish. They’ll find the way to make the most of them to improve their own way of working, or to initiate new projects. And in the end, regardless the results, this also incentivizes some healthy intraneurship in the company. what you can do“Our governance slows down (or kills) every new initiatives”.
  14. 14. best practice At Board of Innovation , all employees have an experiment budget (€50/month) to be used without questions asked.
  15. 15. With its Adobe Kickbox, Adobe gives their innovation teams a $1000 prepaid credit card to enable and accelerate intrapreneurs. best practice
  16. 16. “Let’s go on, we already spent 100k in this project”. Huston says: 4/
  17. 17. Killing projects is an hard thing to do for both managers and project teams. Why? Firstly, it transforms all investments in the project into costs. Secondly, all people involved will have to accept that they failed and let go of the project. Lastly, it’s a challenge to know when a team tried everything possible to make a project work. “Let’s go on, we already spent 100k in this project”.
  18. 18. Create a Lab environment where failure is part of the game. Create sidetracks for innovation projects (e.g. Labs, Accelerators, Boot-Camps, Pressure cookers, Hackathons, etc.) that allow intrapreneurs to pitch their results and call to action directly to key decision makers, possibly top-management. what you can do“Let’s go on, we already spent 100k in this project”.
  19. 19. Make the Excel sheet decide for you. Lean startup uses evidence-based to proof if a project can or will not work. Many teams entering our corporate accelerator programs are working on never-ending-money-draining projects, often kept alive by internal politics. Using lean startup principles in a safe environment is a perfect way to either kill or define first implementable steps for the project. what you can do“Let’s go on, we already spent 100k in this project”.
  20. 20. Call it Incremental Budget. Would you ever give your children the whole 1-year pocket money, regardless their future behaviour? Decrease the budget allocated to new projects, increase the number of budget rounds and make the governance for budget requests lighter. This will lower the risk of losing a big investment and management has more chances to re- evaluate (e.g. kill a project if necessary). what you can do“Let’s go on, we already spent 100k in this project”.
  21. 21. “ROI is my best KPI for investments”. Huston says: 5/
  22. 22. Everyone knows that uncertain projects need more time to reach their payback time. Most projects (90%) don’t even reach break-even. If they do, though, chances are that the ROI will be multiples of your ‘low hanging fruits’. “ROI is my best KPI for investments”. Proj 1 Proj 2 Proj 3 Proj 4 Proj 5Proj 1 Proj 2 Proj 3 Proj 4 Proj 5 ROI in regular departments ROI in Innovation departments
  23. 23. Innovation has its own accounting system. Have a look at innovation accounting and see how to measure innovation practices on different levels. what you can do“ROI is my best KPI for investments”.
  24. 24. Time-To-Market is the new ROI. Comparing projects based on projected on ROI doesn’t make sense once the time to market differs too much as ROI of long-term projects is far more uncertain. Check out this insightful article . what you can do“ROI is my best KPI for investments”.
  25. 25. “We don’t assign a budget without clear deliverables”. Huston says: 6/
  26. 26. This investment strategy has been great for heavy IT implementations, but it doesn’t work for projects without a clear outcome yet. The push for control and short term return (often driven by shareholders) makes it impossible for uncertain projects to change direction when needed. This increases the chance of failure and premature project murder. “We don’t assign a budget without clear deliverables”.
  27. 27. The progressive marketing department of Cartamundi, a European board game manufacturer, gives 10% of their marketing budget to Pull The Trigger , a growth hacking agency started by a former Board of Innovation employee, to challenge their way of working towards the same goals. This 10% can be seen as a rule of thumb for experiment budgets and time investment. It will decrease costs on the long term. best practice
  28. 28. ForestPlastics by Sappi and other corporate startups that we support have budget cycles of 3 months to realign budget with deliverables. best practice
  29. 29. Bart Remmerie , a former HR manager of Elia Group, allocated part of his own budget allowance to an initiative called the ‘After Hours Guerrilla Club’ . The goal of the concept was to enable and motivate intrapreneurs to test new ideas and launch them from the bottom of the company, rather than the other way around. A great way to enforce an innovation culture in the company. best practice
  30. 30. “We have a prototype for our new service but we’re scared to spoil our reputation”. Huston says: 7/
  31. 31. Don’t get us wrong here. It takes decades to build a good company reputation and it should be protected! What we want to tackle is how risk managers and corporate communication departments flag any type of experiment with clients involved. The main issue is the difference in both mindset and context understanding of lean startup type experiments. Both risk manager and intrapreneur will have to meet in the middle.
  32. 32. If it’s a Beta, say it out loud! Framing the context of experiments and immature services is key. You won’t disappoint your current customers, and you’ll make the early adopters amazingly happy. what you can do“We have a prototype for our new service but we’re scared to spoil our reputation”.
  33. 33. New Android releases are prelaunched in beta communities (a group of clients that want to test new products, search for bugs and give feedback). Beta (or even Alpha) launch should be all over the place. best practice
  34. 34. Give the new service a distinct brand. You’ll get two advantages: not only to bring the attention away from the parent company when experimenting new services, but also to diversify your target. what you can do“We have a prototype for our new service but we’re scared to spoil our reputation”.
  35. 35. BNP Paribas launched a new bank (Hello Bank) targeting only early adopters of regular banking services to pilot new products & services. best practice
  36. 36. Ask for a maximal liability. Intrapreneurs can use the principle of ‘maximal liability’ when asking for permission to execute a client experiment. It is the maximal amount of monetary risk linked to an experiment. Risk managers aware of this concept can also suggest ways to decrease maximal liability, rather than saying “NO” to any experiment with a risk higher than X. what you can do“We have a prototype for our new service but we’re scared to spoil our reputation”.
  37. 37. “Apple invented the smartphone”. Huston says: 8/
  38. 38. What we hear in every second innovation session: “We will educate the market, like Apple did in 2007 when they launched the first smartphone”. Well, nice to be challenged as an innovation facilitator, but let’s face the facts: in the early 90’s, IBM launched the Simon Personal Communicator. Next to calling, the device was able to send and receive faxes and emails. IBM didn’t succeed, but it sounds like a smartphone to me . “Apple invented the smartphone”.
  39. 39. Most successful products launched by big companies are smart copies of what others are doing.
  40. 40. Taking inspiration is not copying. Don’t see smart copying as ‘stealing’; see it as being inspired by others. The more you copy what works, the better your offering will be. If you like this idea, feel free to download our analogy cards for free and start copying business concepts like an artist. what you can do“Apple invented the smartphone”.
  41. 41. “Coming up with innovative solutions is always on top of the job”. Huston says: 9/
  42. 42. “Coming up with innovative solutions is always on top of the job”. …and “Innovation is only for new projects” are quotes that we hear when we have an innovation workshop with non-innovation professionals.
  43. 43. …and “Innovation is only for new projects” are quotes that we hear when we have an innovation workshop with non-innovation professionals. “Coming up with innovative solutions is always on top of the job”. “What new innovation? Can’t you see I’m too busy?!”
  44. 44. Put innovation in your daily routine. Dear companies, if you really want to be innovative, you better start experimenting in existing projects. Start small and create a culture of trying new ways that question the status quo. what you can do“Coming up with innovative solutions is always on top of the job”.
  45. 45. ING recently launched “PACE every day” , their program to support all employees with everyday initiatives to use PACE principles. PACE is ING’s uniform language to support innovation and creative thinking. It’s a mix of lean startup, design thinking, and agile development principles. best practice
  46. 46. VRT, a national public-service broadcaster in Belgium, organises bi-weekly meetups to tackle new topics in broadly aimed open masterclasses. Next to that, they created ‘challenge’ cards for anyone to come up with ideas on user-centered challenges that were uncovered by the innovation team. best practice
  47. 47. Did we miss anything? Send your tips to arne@boardofinnovation.com That’s all Folks! www.boardofinnovation.com

×