Strategic Innovation

There is something valuable about every idea. But that doesn’t mean that every idea is valuable for your business. In fact, a limited number of ideas will ever get you where you need to go. That’s why companies and organizations that attempt to encourage everyone to be innovative struggle so mightily. 

To increase the likelihood that you and your colleagues come up with the right new ideas and innovations, you need to be as strategic as possible. That means linking innovation directly to your strategy, so it helps you to remain relevant and valuable in a world changing super fast. In fact, it isn’t a bad idea to have an “innovation strategy” as a key component of your overall strategy. 

It turns out that focus is the most important aid we can give to our people and our enterprises. Having a clear and “strategic” focus enables us to concentrate on the types of ideas and opportunities for innovation that can really move the dial. 

Think of strategy as the right combination of five things:

• Having the right customers and understanding their needs.
• Having the right offerings that are brilliant at meeting those needs.
• Having a clear, meaningful, and unique value proposition that sets us apart from our competitors. 
• Having the right business model to deliver on our value proposition and, in essence, the promise we make to our customers.
• Setting a limited set of priorities, measuring our success along the way, and making changes as the market and the world dictate.

Now think of how innovation can enable us to be more successful in addressing each of these five things, with special attention to our unique value proposition and business model. For example, if the key to your success is providing a more compelling customer experience, you are far more likely to succeed by innovating around the way you provide service to a changing customer base. Think about the rather “old” definition of service perfected by companies like Nordstrom and The Peninsula Hotels. In this model, the focus was on sticking to the customer and doing whatever it took to meet their needs. Today’s customers want service that is less in your face and way more intuitive—using technology to make some interactions much simpler and easier. And if service is what brought them to the dance, they need to continually think about innovations in service that will keep them relevant and dancing.

Or think of Amazon.com or Chewy.com as great places to buy pet supplies. Their business models are based on ease of use in accessing a broader array of products. From a strategic innovation standpoint, it seems wise for them to focus on new ideas that create even greater value in terms of what they offer and how easy it is to buy it. Think of two-day delivery that has become next-day delivery and even, in some cases, same-day delivery. And think about a growing array of products of interest to their customers.

The right strategy can enhance business success and growth in fast-changing times. It can also provide a canvas for improving the results of our innovation efforts. 

A Book Worth Reading…

Looking to stretch your thinking about diversity, inclusion, unlocking the potential in everyone, and the cost of failing to unlock everyone’s potential? If so, Heather McGhee’s remarkable book The Sum of Us: What Racism Costs Everyone and How We Can Prosper Together will challenge you to think in new ways. At the heart of her research and writing is the powerful notion that life and enterprise do not have to be “zero-sum” games and that we can all succeed by working together to solve important problems and create new opportunities. This is a book by a real scholar who is passionate and hopeful about how we can all benefit from being part of a multiracial society. It should also help you to think about business and diversity in a new and more meaningful light.

A Quote Worth Thinking About…

I could probably fill all my newsletters with a quote from Albert Einstein. He was a very smart person keenly focused on the importance of innovation. Here is one of my favorites:

“The true sign of intelligence is not knowledge but imagination.”

In a world changing superfast, where new knowledge is created continually, the folks who imagine the future are much more likely to be the ones who create it.