Tough times force innovation, whether the resulting practices are for better or worse. Last week’s news included two examples of innovative reactions to high fuel prices, yet one was positive and the other was negative. The Toronto Star explained how the incidence of “gasoline "drive-offs" has jumped about 40 per cent – from 474 so far this year compared to 335 for the same period in 2007,” while the Environmental News Network ran a story covering the launch of the US Biofuels Exchange, through which individuals who make their own biofuel from waste vegetable oil can sell their finished product.

Certainly, innovation is on the mind of many business people today. Yet, according to a February 2008 Globe and Mail podcast, “innovation fails 96 per cent of the time.” Innovation strategist, Larry Keeley of Chicago based firm Doblin was interviewed for the podcast. Keeley considers that “good innovation is a discipline” and it can be taught. He suggests that innovators “consider how the world is changing” as a starting point. In Kelley's opinion, “curiosity, confidence and courage” are essential components of innovation. Throughout the podcast, the idea that the type of innovation that brings the most rewards does not involve the creation of a new product recurred. Similarly, Herman and Saltzman of Kenexa write “we are more likely to be presented with the opportunities to be creative in less extreme ways, such as the adaptation of a process or solving a problem.”

For a case study of how SAP created innovative ecosystems to facilitate knowledge sharing, see the BusinessWeek article referenced below. At the core of this innovation was the desire to meet the needs of the customer and the individual.

Both Herman and Saltzman’s paper and The Doblin Innovation Discipline Model contain suggestions around how to encourage innovation in the workplace. Herman and Saltzman recommend that innovation goals be set – a point that is explored further in Leading for Creativity. The same authors also write that “being creative is an effortful process that takes energy and time,” exactly what I have found to be the case with my blog writing. Often while I am formulating one blog idea, I am also working on a number of related ones. As a result, I may go a week having written no blogs and then finalize two or more within a few days. For me, the creative process is not steady or predictable, but it does require constant attention.

When innovation goals are set, proper goal management increases the chance of success. Goal management processes include a link to rewards and recognition, regular review and a link to strategic business objectives. Hills writes in BlessingWhite enews “given one-in-three employees are neither praised nor criticized for taking risks, clearly many leaders are not building cultures that can deliver on the innovation and creativity they seek” – a point that is well worth noting.

For additional information on innovation, Hills article contains a number of practical suggestions and an Internet search for the work of Clayton M. Christensen – Harvard Business School professor and author of many books including The Innovator’s Dilemma – will uncover a wealth of reading material on the topic.

How important is innovation to your organization during an economic downturn?

References:

Doblin Inc. “Ten Types of Innovation™” [www.doblin.com]. Obtained July 24, 2008.

Globe and Mail Update. Business Incubator. “Why most innovations fail and how to avoid it.” [www.theglobeandmail.com]. February 8, 2008.

Hagel, John and John Seely Brown. “How SAP Seeds Innovation.” BusinessWeek [www.businessweek.com]. July 23, 2008.

Herman, Anne E. and Jeffrey M. Saltzman. Recognizing the Value of Creativity and Innovation in Organizations: Recognition is Not Enough. Kenexa®, 2008.

Herman, Anne E. and Jeffrey A. Jolton. Leading for Creativity. Kenexa®, 2007.

Hills, Angela. “Leading Innovation Foster Creativity and Risk-Taking.” Blessing White enews [www.blessignwhite.com]. 2008.

Laundy, Peter et al. The Doblin Innovation Discipline Model. Chicago: Doblin Inc, 2006.

Stone, Laura. “Thefts at gas pumps up 40%: York Police.” TheStar.com [www.thestar.com]. July 18, 2008.

Van Engelen, Angelique. “New Exchange for Trading Home-Brewed Biofuels.” Environmental News Network, July 17, 2008.