wk3dis/talk

INWOVATlOr'i

Barriers to Innovation I n n o v a t o r s f a c e f i v e b i g o b s t a c l e s .

by Peter Andrews

ZJlWl"HETHER YOU'REtr)nng to lead your industry, create a

new market, or just do things more efticiently, innovation is difticult. Success begins with knowing what you are trying to achieve, the likely resistance, and planning. Still, five barriers repeatedly show up, but they don't need to stop your innovation:

1. Inadequate funding. Getting tlie funds for an innovation often means taking money away from another pro- gram. Getting the money at just the right time is also hard, since annual funding cycles don't match well witli real-world opportunities. Many excel- lent innovations need more than seed money to survive. Broader thinking on needs and resources can help inno- vators move their ideas along.

Questions to ask include: How far ca?i we get without money? Do we need money? How much? When? What sources are there? Do we have any partners? Who benefits and how?

Possible answers include: Use the resources of informal networks. Call in favors. Simplify the plan to create short-term successes. Do a creative inventory of available fund sources. Don't build everytliing from scratch: leverage other work or take advan- tage of "good enough" substitutes. Enlist those who might realize value as allies. Then sell them on the idea.

2. Risk avoidance. No progress is made without calculated risk-taking. Since innovation is risky, many people habitually look for things that could go wrong. Many classic responses ("We've never done this before" or "This failed when we tried it before") come as a reflex. Once risks are identi- fied, innovation is often stopped. But a dear-eyed view of risks balanced against benefits can create a cultiire where innovation is nurtured.

Questions to ask include: Do we use standard methods for measuring risks and benefits? Do we use appro- priate risk assessment measures? Do we measure the risks of not innovat- ing? Do we measure the benefits?

Possible answers include: Promote

effective risk assessment methods. Put the risk of innovation on the right per- son. Find and develop supporters. Anticipate objections and provide both logical replies and stories that create contexts for ideas. Test on a small scale and create protot\'pes. Dramatize ben- efits. Give people reasons to feel safe. Show you take seriously the safety of sponsors, participants and other stake- holders by mitigating their risks.

3. Siloing. Organizations seek to sus- tain and protect themselves. That's why they create boundaries, assign responsibilities, and put rules in place. No matter how artificial the divisions and processes are, they are usually defended. Innovations tend to cross bomidaries and create new categories. It's not unusual to ^ee competing

claims of ownorsiifp .iiui J about authority. Deals break down over who will run things and how protits will be divided. So, innovations are killed by groups that don't see their benefits or get a "fair share" of benefits. Seek to understand their concerns to better manage the conflicts.

Questions to ask include: Do all stakeholders benetit? Do all know how they will benefit? What are the mission statements of affected organizatioiis? What are their niles? Who are the deci- sion makers? How have innovations been handled in the past?

Possible answers include: Include all major stakeholders in the creation of the innovation and help ensure they are fairly rewarded. Create dear value propositions for all stakeholders. Keep stakeholders aligned and informed. Understand the concerns, interests, and boundaries of different organiza- tions. Know the people involved.

4. Time commitments. Time is scarce. One of management's jobs is to verify that minutes are productively filled. And while enlightened management will invest some of workers' on-the-job time in education, experimentation, relationships, personal growth and health, it's difticult to prove that such inveshnents pay off. But increasing the value and benefits of an innovation will tend to free up time for work on it.

Questions to ask include: Is the innovation worth the time of the peo- ple involved? What are the competing dainxs on time? What is the minimum time each participant must dedicate? What are the milestones? Where is there flexibility in the schedule?

Possible answers include: Do triage on assignment lists. Let others do more of the work. Reallocate benetits so the innovation can compete better for the time of key participants. Create small successes that encourage participants to free up more time.

5. incorrect measures. Many organi- zations only measure revenue, profits, and market share. These are easier to quantify than intangibles sudi as repu- tation, knowledge, attractiveness to tal- ent, leadership, and other assets tliat contribute true value. Most innova- tions are difficult to explain in terms of ROI. Even innovations that have the potential to disrupt or create new mar- kets may suffer by comparison when put up against more pedestrian pro- jects in a budgeting process. By includ- ing decision-makers in creating new measures, you avoid the ROI trap.

Questions to ask include: Can we expand our measures of success or have different measures for different investments? Possible answers include: Assess the value of possible measures. Measures tliat are compelling to all stakeholders can be developed in joint workshops. Enterprises that take a portfolio approach can establish differ- ent measures for different investments.

The most effective way to overcome barriers is to discuss with colleagues how they work through problems. Your most valuable asset for innova- tion is your network. Advice, com- plaints, mentoring, and "war stories" all strengthen relationships. Working together to solve common problems revitalizes these networks. Working on barriers with your network helps you to realize the potential of your idea, LE

Pfh-r Andivii.'s (s an innoiiUion itratepst in IBM Executive Riisincx!: liatfitutt'. cnU 1843) "33-6095, email pja^^'us.ibm.com or ini^ighhiii'iii.ibm.ivm or visit ibi'i.com/salcs/d'i.

ACTION: Overcome barriers to innovation.