How do you balance innovation and standardization in business process improvement?

🤔 How do you support both innovation and standardization with Business Process Improvement Initiatives? You CAN establish innovative standards. Innovation and standardization are not at odds with one another. When an employee finds a creative new way of delivering an outcome that is more effective and efficient that your current standard and that of your competitors. This is when the 'magic' (competitive advantage) comes to life. Your employees who manage & support your processes are subject matter experts. They know their processes intimately - how they work & how they don't. Observe your processes in action & listen to your employee's ideas ... the answers you seek are likely right under your nose! 👍 Like to support this

Lack of innovation can lead to a business becoming stagnant and irrelevant. If you want to keep up with modern business, then you have to be innovative. Doing things because "that's how it's always been done" is detrimental. Through innovation, you can improve existing methods, workflows, and even standardization itself. Technology is always evolving; therefore, I believe innovation and standardization can go hand in hand. I have built tools that were innovative while also improving data standardization.

To strike the right balance, standardize as abstract as possible, focusing on principles over 'step-by-step' instruction level standards. Innovation fills in the blanks and grows within the principles, supporting the business goals.

Standardization is good for quality control and measurements but can easily be transformed into being the “only” or “best” way, leaving out possibilities of continuous improvement. Innovation is necessary even with the most trusted standards to ensure optimization.

Innovation brings fresh ideas that can improve efficiency and adaptability, while standardization ensures consistency and quality. Balancing both in business process improvement is essential for long-term success. In one project, we standardized our reporting process to ensure accuracy across departments. However, we allowed teams to innovate within their workflows, testing new tools that enhanced speed without compromising on quality. This balance ensures that you maintain control and reliability while still encouraging creativity and growth in areas where improvements are possible.

Sometimes innovation yields standardization. For example, rebates are a common incentive structure between trading partners, but there are countless cycles wasted trying to track and agree payouts. Innovating rebates and special pricing agreements by standardizing on a common platform (like @Enable — shameless plug) delivers innovation by standardization.

I appreciate this viewpoint in that it includes both perspectives and adds nimbleness - if we favor innovation, we also add a bit of risk, if we favor consistency, then we need to be a bit less innovative. The question perhaps becomes when and how much innovation to infuse - rather than approaching this topic as black and white thinking only.

Balancing innovation and standardization in Business Process Improvement (BPI) can be challenging. Innovation encourages creativity and new ideas, while standardization ensures consistency and efficiency. In my experience, I once worked with a team that tried to innovate without clear guidelines. This led to confusion and inconsistent results, as everyone had different approaches. We learned that having a standardized framework allowed for innovative ideas to flourish within defined boundaries. To manage this balance, establish core standards that maintain consistency while allowing room for innovative practices. This ensures that improvements are effective and sustainable without stifling creativity.

There is a common misconception that innovation always equals more or different. Simplifying a process can also be innovative. The longer a process has been around, its likely that more and more has been added to it over time based on new requirements, consumers or use cases. Its easy to add but also more painful in the long run. Identifying fluff in a process and finding ways to remove it will undoubtedly result in improvement and more satisfied users of the process.

To balance innovation and standardization in Business Process Improvement (BPI), start by creating a clear framework that outlines essential standards while encouraging creative thinking. This framework should define key processes but also leave space for experimentation and new ideas. In one project I managed, we established guidelines for our core processes but encouraged team members to propose innovative solutions within those guidelines. This approach led to creative improvements that enhanced our efficiency without compromising quality. Additionally, regularly review and update standards based on feedback and successful innovations.

Balancing innovation and standardization can be seen in various industries. For instance, Toyota uses standardized processes in manufacturing while encouraging continuous improvement through the Kaizen philosophy. This approach allows employees to suggest innovative changes to improve efficiency while adhering to essential production standards. In the tech industry, companies like Google implement standardized practices for project management while fostering a culture of innovation through "20% time," where employees can spend a portion of their workweek on personal projects. These examples show that establishing core standards while promoting creativity can lead to significant improvements and maintain quality.