You're navigating between innovation and strategic plans. How do you strike the perfect balance?

Your Innovation Strategy should align with your business strategy and your corporate strategy. Your innovation strategy involves: 1) establishing your innovation priorities and innovation portfolio; 2) choosing how you will organize for innovation (e.g. corporate innovation vehicles, your innovation system, etc.); and 3) choosing the appropriate innovation capabilities. Your innovation priorities should support the problem or opportunities you seek to address, your firm's strategic objectives, and how you will create and capture value.

It's interesting to note a couple of strange things in this whole article. Focusing on two: (1) I quote from the original text: "Imagine a seesaw with innovation and strategy at opposite ends" to be “balanced” Interesting! So innovation and strategy are opponents . Hmmm… (2) Fascinating to see a whole article about strategy and innovation and it (almost completely) avoids talking about the people in the very mechanistic system outlined in the largest of the article. Success of strategies and innovative changes in organizations are about fears, dreams, panic, hopes, inspiration, courage, loyalty of decisive individuals and teams. This is the dynamic that needs to be understood. Less the processes, KPI's, or complex innovation funnels … 😉

There is no such thing as "the perfect balance between Strategy and Innovation". Strategy is a set of activities in which an organization excels to create a sustainable difference / competitive advantage in the marketplace. In today's marketplace, regardless of the industry an organization is in, and regardless of its corporate structure or operating nature (NFP, FP, corporate, charity, etc...), if your Strategy does not involve some sort of a process to translate new and creative ideas to products/services that create value (innovation) -> you're org is, technically, not in the game. Therefore, I would argue that innovation should be a non-negotiable competency for almost any org to survive, mind you being part of its strategy to compete

With my background in market and customer research, I am firm believer in defining clear market/customer/user needs which are used to drive innovation. Defining a clear need can be used to both inspire and clearly direct engineering and innovation focused employees. In a way it provides focus and a challenge for the solution creators, while providing gard rails for innovation activities ensuring solutions are inline with business strategy and objectives.

I agree that a strategic plan provides direction, but I believe innovation should actively serve and support achieving the goals within that plan. Rather than just fitting into the framework, innovation should directly answer the question, 'How will this help us achieve our objectives (customer specific or organizational specific)?' This approach ensures that innovation is purposeful and aligned with strategic goals. In his book Clayton Christensen emphasize the importance of linking innovation with strategic direction to drive sustainable growth. We also understand from Gary P. Pisano in his HBR article that innovation must be tied to strategic priorities to be impactful and avoid wasted efforts.

It's challenging and interesting to find the sweet spot when balancing Innovation & Strategy. To stay ahead in a rapidly changing world, it's crucial to balance innovation with strategic planning. It cannot be either / or. We must endeavor to -- - Align new ideas with long-term goals - Prioritize high-impact initiatives - Embrace experimentation and learning Strategy and Innovation are like two tyres of a bicycle. We need to keep pedaling to find the balance and move ahead. This way, we can drive growth, fuel progress, and stay ahead of the curve. #innovation #strategy #leadership

Strategic frameworks are structured approaches that guide decision-making and help organizations achieve their long-term goals. These frameworks provide a clear roadmap by defining objectives, assessing resources, and identifying key areas of focus, such as market positioning, competitive advantage, and growth opportunities. Popular models like SWOT analysis, the Balanced Scorecard, and Porter’s Five Forces offer tools to analyze both internal and external factors influencing success. By aligning actions with these frameworks, businesses can make informed decisions, manage risks, and ensure that innovation and execution are consistently aligned with their overarching strategy.

Missing from this discussion is any mention of Change Management. If you are working inside a larger organization, innovation will be dead on arrival if you do not have a plan for organizational change management. I avoid using the obvious acronym here, because it always invokes various trademarked approaches. The approach doesn't matter, what matters is the intent. Also, you cannot create a strategic framework for an unknown or yet to be known innovation. The innovation itself will drive the needs for a strategic framework, not the other way around. Unless your innovations are so obvious that you can plan for them concretely (in which case they are NOT innovations - think about it!)

A strategic framework is a structured approach that guides an organization's decision-making and long-term goals. It includes defining the company’s vision, mission, core values, and objectives, ensuring that every action aligns with the broader purpose. This framework typically encompasses key elements like market analysis, competitive positioning, resource allocation, and performance measurement. By providing clarity and direction, a strategic framework helps businesses prioritize initiatives, adapt to changes, and achieve sustainable growth.

To further enhance the balance between innovation and strategic plans, consider adding: Flexibility in Execution: While it's important to have a strategic framework, allowing for flexibility within that structure can encourage creativity. Flexibility lets your team explore innovative ideas without feeling too constrained by rigid plans. Iterative Approach: Adopt an iterative mindset where innovation is tested in smaller, manageable stages. Cultural Alignment: Foster a company culture that values both innovation and strategic discipline. Encourage open discussions on how creative ideas can align with the company's mission and strategic objectives.

Innovation is a very fascinating world. Innovation opens up the multi-dimension thinking process and gives us a joy of bringing count less ideas. But most important part is to align the innovative idea with associated risk. If as a manager you proceed with that idea and do not do the correct research or business case validation then the risk of loosing time and money will put a team in a deep risk. So right balance between innovation and correct strategy formations is required. It will keep everyone motivated and align with momentum to finish up the plan.

Risk Management must be thoughtful and integrated, however, while it is typically siloed in most organizations. It's critical to remember that incurring risk in pursuit of objectives is often worthy, but risks must be assessed properly. Many times, I have seen companies approach new products and markets with little understand of the correlation of the newly incurred with other risk in the enterprise. Are they inversely correlated with other existing risks in the portfolio? You may be able to be more aggressive with little impact. Conversely, is there positive correlation? Even worse, are the risk additive and non-linear at the same time? If so, you can have a cascade of problems, like the infamous "Black Swan." More attention needed!

Everybody has an appetite for risk and organisation should know where to draw the line innovation is good but not at the cost of sustaining the business and its needs innovation comes with the high price as there is no definitive timeline to the route come it is a natural process which keeps happening at the same time strategy should be clear that how much time and effort and commercial can I invest for the purpose of innovation it also refers to what the business stands for

Indeed it is challenging to maintain the balance between risk & continue innovating strategies with new ideas & solutions.Though it is case dependent but a detailed holistic strategic framework prepared ahead of time which includes all elements of predicting risks , making contingency plans can definitely help navigating thru such critical speed breakers. Having a risk appetite is certainly good to experiment new things but the risk has to be calculated one, weighing all pros and cons . When hit with such crucial decision making times, leader should always take data driven well informed decisions & not get swayed by emotional bends.Predictive analysis, evaluation of all dynamic factors impacting strategy, risk assessment helps to balance.

A lot of this is like a spell. With the right incantation, the right series of words, and the right questions, you'll unlock unlimited possibilities. This might sound crazy, but it's true. It's about understanding how to ask the right questions to get the right response.

Activate the right people on your team for key tasks, then let them do what they have the technical knowledge and skills to do best. Allow yourself and your team room for recalibration - because where there's innovation there's creative thinking, and where there's creative thought there are never-been-done-before things.

The ESG Challenge: Companies are challenged to divide their finite resources -time, money, and personnel- between immediate operational needs and long-term growth, all while adhering to ESG standards that are reshaping how companies are expected to operate. Businesses shall now focus on profitability and on their impact on environment, society, and governance practices. When allocating resources cut your purchasing department, reorient the expenses to maintenance of infrastructure, equipment, and other assets. It is not a cost center, it is an investment in the company’s future viability. In your budget, consider your ESG ratios as a new filter to guide your steps for sustainable value creation.

Resources are finite, so make every dollar, hour, and person count. Prioritize projects that align with your core strategy and have the highest impact potential. Don’t be afraid to cut what isn’t working. Lean teams, agile processes, and a focus on ROI can make a huge difference in keeping innovation moving forward.

Acredito ser útil e fundamental a realização de um inventário das etapas e dos recursos estimados para a execução até o objetivo final. Isso proporciona uma visão sobre os possíveis espaços descobertos e o que será minimamente necessário, ao menos para as primeiras fases ou fases essenciais. Há que se considerar, em uma abordagem ágil, a revisão sistemática da evolução, para considerar possíveis adaptações, ajustes de rota e validações, principalmente, se essa inovação segue relevante para seus usuários.

Striking the perfect balance between innovation and strategic plans requires a nuanced approach that ensures both elements complement each other rather than compete. Here’s how you can achieve this balance: 1. Align Innovation with Strategic Goals: Integrate Innovation into the Strategy: Ensure that innovation efforts are directly aligned with your company's strategic goals. 2. Create a Flexible Strategic Plan, Allow for Adaptability Iterative Planning 3. Empower a Culture of Innovation & Experimentation. 4. Measure and Monitor KPIs for Both Innovation and Strategy Balance Short-term and Long-term Goals 5. Leadership and Vision: Lead by Example: As a leader, you must champion both strategic discipline and a willingness to innovate.

Finally, both Sun Tzu and Jobs believed that agility and adaptability are the keys to long-term success. As Sun Tzu said, “Victory comes from finding opportunities in problems.” Jobs lived by the mantra that failure is just a stepping stone to success. Like a great general who adjusts based on the battlefield, balance is achieved by learning from innovation attempts, iterating, and refining your strategy. Stay adaptable, keep learning, and let every misstep inform your next strategic move. Continuous improvement, rooted in learning, is the essence of long-term success.

Being open to being wrong is key. Continuous learning leads to impactful and profitable innovation. Doing after action reviews with your team and customers allows you to discover new possibilities for deliverables. Remaining relevant requires learning from things that didn’t work and utilizing people’s strengths and abilities to contribute to create a desired outcome in which innovation is baked into the operations strategy of your organization. Every behavioral type on your team can build a lasting business if utilized for their strengths. Not everyone loves change. Some people on your team will be great at creating the processes the new creation will need to be successful while others will love to execute those processes.