How do you balance risk and innovation in your strategic planning?

Use risk matrices to map out potential risks against their impact and likelihood. For an innovative product launch, assess risks like market acceptance, technological feasibility, and regulatory compliance. This involves evaluating the likelihood and impact of different risks.

Just don’t take too much time to analyze and decide…and thus miss your window of opportunity. Make sure your team is in agreement with the goals and corresponding strategies. Measure, assess and communicate.

I remember when the future of our non-profit growth depended highly on the Platform through which we reached our audience. Until this time we were on Facebook and researching all the available platforms that will give us the best value for our service offerings. A major consideration for us was the potential loss of followers that we will encounter during this transition. Risk is primarily an exposure to danger or loss. Innovation requires a certain measure of risk because you are about to deal with change that you may not completely understand. The hack lies balance informed by research and information. We did our due diligence and ported, we lost some followers and gained reach ultimately.

Balancing risk and innovation in strategic planning involves: Assessing potential risks and rewards of new initiatives. Encouraging a culture that embraces calculated risks. Setting clear objectives and risk tolerance levels. Implementing safeguards to mitigate potential downsides. Continuously monitoring and adapting strategies based on feedback and results.

Get the right team in place. People who excel at innovation are very unlikely to excel at risk. And vice versa. So make sure your team has both well represented.

O conceito de inovação na organização deve ser claro e objetivo, todos precisam saber o real propósito do negócio, para que, ao desenvolver novos produtos e processos, estes sejam totalmente alinhados com as diretrizes da organização. Uma boa prática é definir e esclarecer os temas e desafios onde queremos inovar, com o objetivo de guiar a busca por conhecimento.

Warning! Only do it if you can handle innovation in the organisation. Keeping the innovation culture intact while growing your team size is critical. As the hierarchies increase, the flow of ideas upstream reduces. A few things which I have seen working wonders in such an organisation. - Monthly hackathon - Innovation awards, for doing the same thing differently - Allocating X% of every team member's bandwidth for playing with creativity - Allowing people to take lead on innovative projects they suggest This shall bring a wave of innovation in your organisation.

When an organization recognized the need for a culture of innovation. In a previous client engagement, the organization aimed to foster innovation to stay ahead in a competitive market. They implemented strategies like idea pitching regardless of position, innovation challenges, and an internal recognition program. One employee's bold idea for a new product line was supported and successfully implemented, leading to long-term growth and a reinforced culture of innovation. Fostering innovation drives long-term success. #innovation #culture #success #strategicplanning

La innovación tiene que ser un pilar dentro de las empresas en estos tiempos de cambios a la velocidad de la luz. Ser parte de equipos de trabajo que apuestan por la frase "Siempre hay algo que mejorar", promueve a que los equipos desarrollen tecnicas de investigación con el apoyo de sus colaboradores, dando lugar a la creación de un producto más robusto y con mayor fundamento.

Dedicate a portion of your budget to exploratory projects with high innovation potential, while also investing in core business improvements that sustain current operations. Allocate resources strategically to balance between high-risk, high-reward projects and more stable, lower-risk initiatives. This ensures a diversified approach to innovation.

The organization sought to maintain stability and profitability while exploring new opportunities. To achieve this, a dual-track approach was implemented. Firstly, a portion of the budget was allocated to research and development (R&D) initiatives, allowing for the exploration of new ideas and technologies. Simultaneously, efforts were made to enhance existing products and services to ensure steady cash flow. By investing in both innovation and core business operations, the organization diversified its revenue streams and reduced dependence on a single product or market. This approach not only mitigated risks associated with innovation but also laid a strong financial foundation for future growth.

Develop decision-making frameworks that incorporate risk assessment and innovation potential. This helps in making informed choices that balance potential rewards with manageable risks. Use a decision matrix that weighs factors such as potential ROI, strategic alignment, risk level, and resource requirements. This can guide project prioritization and selection.

Na minha experiência, pude participar da construção e implementação de um fluxo para mapeamento de inovações, esse fluxo consistia em, captação e classificação das iniciativas. Nesse processo sempre utilizamos ferramentas de planejamento estratégico como SWOT e outras, mas principalmente selecionando iniciativas que fossem aderentes aos objetivos estratégicos das empresas, e que pudessem trazer os melhores resultados.

Trabalhei durante a pandemia como head de inovação de um grande grupo do setor de energia, nesse período formos forçados a implementar de imediato algumas inovações que estavam previstas a longo prazo. Apesar da pandemia ter sido o principal combustível pra agilizar estes projetos, sempre mantemos os olhos abertos às tendências do mercado, acompanhando o que players como AT Kearney e Gartner enxergavam para o setor. Em paralelo, foram realizadas rodadas de captação de projetos inovadores, utilizando dos recursos de P&D das distribuidoras de energia elétrica.

Consider partnerships and collaborations to share risks associated with innovation. This can involve co-developing products, sharing technology, or pooling resources. Collaborate with startups or other companies to co-develop new technologies. This can spread the risk and cost while combining expertise and resources for mutual benefit.

Actualmente en Sudamerica no se cuenta con una cultura de integración y colaboración con los socios estratégicos, lo que lleva a reducir la posibilidad de generar Cluster comerciales que gestionen riesgos compartidos. Es #recomendable establecer sociedades comerciales e industriales que contribuyan con el desarrollo de las ciudades y generar más empleos con especialidades multitask.

In my training with young entrepreneurs during strategy sessions, I always emphasize the readiness of the market for innovation. A great innovation could face serious market resistance not because the product or service is flawed but because the market is not ready for its adoption. It is key to always understand the market psychology towards a particular problem and solution. If you must due to a desire to lead that niche in the market, during your Strategic Planning, invest heavily in educating the market and building a psychology around your unique offering. You can learn a great deal from the market resistance faced by the Seiko Quartz Watch innovation of the 1960s and how they were able to overcome.

I believe that the team style plays a major role in balancing between risk and innovation. If the overall team style is highly cautious, analytical, and conservative (like C style in DiSC) then, the plan has to focus more in innovation and include more strategic initiatives in this direction. On the other hand, if the team style is open, optimistic, and inspiring (like I style in DiSC), then the plan should be more realistic and take into consideration the hidden risks associated with the proposed strategic initiatives.