The days when innovation was the sole responsibility of the chief innovation officer or corporate venturing group are over. Today companies are realizing they need to harness the innovative power of all their employees if they want to grow.
Gary Hamel, world-renowned innovation expert and author of innumerable books including Leading the Revolution and What Matters Now, offers six rules he believes your company must address if you really want to unleash the innovative potential of your people:
The only way to encourage people to search for breakthrough ideas is by setting expectations that require breakthrough thinking.
Instead, adopt a more flexible definition of the business you are in. Define yourself by a competency. Amazon, for example, isn’t in the retailing business. CEO Jeff Bezos once said “there is no physical analog to what Amazon.com is becoming.”
Rather than be in the business of being a business, as too many are, focus on a cause. Tesla is not out to sell electric cars but rather to solve the word’s energy problem. If your cause is clear you’ll do a better job of attracting and retaining revolutionaries, innovators, outthinkers.
Your company is wasting talent because your best and brightest people are being prevented from participating in the more innovative and risky projects. They fear the career risk of taking on a high-potential idea. Their managers don’t tell them about the new, juicy projects. You have to enable great talent to find great projects.
Related to the talent market is the fact that the risk of trying unconventional ideas is too high. Your company is probably designed to make big bets on full business plans. Instead they need to make small bets on lots of low-risk tests. They need to adopt lean startup approaches as we are seeing GE and a few other forward-thinking companies starting to do.
Your company’s top-down budgeting process is ineffective. It prevents capital from finding the highest return opportunities. Let capital go to building prototypes and testing unconventional ideas.
Put these rules together and we start to see a very different kind of corporation: a less structured organization and more of an agile, dynamic marketplace where talent and capital find each other to conquer bold missions through experimentation.