Friday 9 October 2015

Want to Drive Innovation? Focus on Cultural Nouse Not Technical Know-How

In all our firms we rely on staying innovative to beat our competitors and capture market share. But it's often assumed that it’s the application of science and technology per se that provides the `secret sauce` for differentiation and is the key driver of new product, process or service development success. This appears now not to be the case.

Recently, a research study conducted by the University of Maryland's Center for Excellence in Service at the Robert H. Smith School of Business and 3Pillar Global looked at the reasons for product development success in cutting-edge business.

Product Development Success Index
The research which focussed particularly on software product development – an industry where products are built using particular technology platforms so one would assume where technical expertise is at a premium - makes interesting reading.

Its startling findings, though, have profound implications for those involved in all sectors where product, process or service innovation keeps the wolf from the door. 
What was particularly thought-provoking about its findings was that it is culture, feedback, communication, staffing, collaboration and time/budget focus that drives  development success more than any other factors - including technical expertise.

Of these six factors it is culture that is most influential.  The implication of this being that organizations seeking to optimize product, process or service development should focus on creating a culture that fosters innovative thinking and strategy rather than on mastering and applying available technologies. Attitude rather than aptitude, if you will.

Six sense

The research names six characteristics that define an organization with an innovative culture. According to the research, these are

Making it clear that every employee's contributions are valued

It also ensures individuals throughout the organization and the ideas they come up with are respected regardless of from which function or level in the organization they arise. Within high performing organizations, there is a spirit of appreciation and a commitment to celebrating success. Leaders in these organizations are the biggest enthusiasts for this approach and `walk the talk` at all times.

Providing an opportunity for all team members to learn and grow

Team members at the most successful companies regularly participate in new projects, take on new responsibilities and try their hand at new skills. Google’s 80/20 rule is one well-known example of a company providing on-the-job freedom to work on something outside their normal day-to-day responsibilities.

Engaging with the idea of continuous improvement
High performance organizations are continually improving their products, processes and services. Innovative teams are not afraid to take intelligent, calculated risks.

They are comfortable with the idea that something can always be better. They release products, processes and services early and often and seek customer feedback to refine, reiterate and improve. They learn from mistakes and refine their performance over time.
Providing the flexibility to be creative

High-performance cultures provide the flexibility for people to approach things differently. Innovative teams respect the power of the individual and this provides teams with the opportunity to create new, differentiated approaches. They encourage free thinking and empower individuals to test new - even obscure - concepts.  They foster creative ideas.
Embracing cross-departmental collaboration

The best product development organizations tear down functional silos. They work collaboratively across the organization, communicating and, more importantly, engaging, through both informal and formal channels.
Within the most innovative organizations, cross-departmental collaboration is standard practice and part of everyday life. Cross-functional engagement is highly valued and rewarded.

In such organisations, for instance, technologists work closely with marketing. Marketers work closely with product management. Communication is constant and established as the norm.
Culture, not technology, is the driving factor behind innovative companies and products.

Organizations are more likely to succeed if their people truly believe that their contributions to the organizations are valued and feel as though they have room to grow without fear. Organizations are likely to be more innovative if they allow people the flexibility to take risks, be creative and challenge the status quo.
So there you have it. Some guidelines to compare your organization to if you are looking to step up your innovation game. As these findings clearly demonstrate, it is the soft skills, not the technical capabilities, which organizations need to develop if they want to become leaders in their industries and proficient at developing successful products, processes and services.