We often see innovation as significant advances in technology or major capital investments. Take, for example, the production of wings for the Airbus A380 in Wales or the Dyson bagless vacuum. However, innovation can (and, in my opinion, should) be embraced at many other levels.
At its core, innovation is about solving problems
Innovation can simply be a different or improved way of using or implementing a process. As a business leader or owner, if you can adopt a customer-centric view of innovation, you are already on the way to enhancing your competitive advantage. Exploring new ideas is a highly effective way to increase your productivity and improve your goods and services at the same time.
Innovation can be broadly split into two areas:
- Product innovation
- Market innovation
Product innovation is all about improving your product. By improving the goods or services you provide, you can better serve your existing customers and open up opportunities with new customers.
Market innovation concerns new or different markets your business could move or pivot into. These may not immediately seem applicable or even possible, but with some innovative thinking, you might uncover more opportunities than you expected.
Facing innovation head-on as a team can be extremely insightful and productive
There are many ways to approach it. The concept of ideation is a great way to explore new ideas with a team. I am also a big fan of Strategyzer, Alex Osterwalder, and his team’s work. The ‘Business Model Canvas‘ created by Alex and the team is an excellent framework for exploring business ideas and changes in the business model. Unlike a business plan, a business model can be flexible and more agile, updated to accommodate new external changes in the world businesses operate in.
Approaching innovation with a growth mindset rather than a fixed mindset is critical
This can be difficult, especially when operating in such a complex and uncertain world. However, it’s important to take a moment to sense-check and establish what might not be an insurmountable barrier (something we can’t do) but instead a challenge to resolve (something we can’t do yet). This approach allows you to draw on resourcefulness and find a way forward, even in the most testing situations. I highly recommend watching Carol Dweck’s TED talk on growth mindset to find out more:
Being agile is also essential for embracing innovation
I mean being agile in the broadest sense – in both theory and practice: theory in developing a plan to make changes, and practice in how you implement those changes. Approach change with an agile mindset, and don’t be afraid to continuously adapt in a changing environment.
Try the TOTE model:
- TEST
- OPERATE
- TEST
- EXIT
This embodies the agile approach, being open and willing to adapt the course and plan along the way rather than being fixed to a chosen trajectory. If things don’t turn out as expected, re-evaluate, adapt and try something different.
Psychological safety is the bedrock of a culture of innovation
Before approaching any issue or discussing it, it’s vital that everyone in the team feels that they can contribute to the debate. Writing notes on Post-it notes and then discussing them in turn can be helpful. This practice can also be described as ‘vote first, discuss second’ (Marquet, 2020). It ensures that everyone is included, drawing on everyone’s thoughts and ideas rather than focusing on one or two options or dimensions (or those that shout the loudest). I have seen first-hand that problem-solving as a team leads to better outcomes and enables everyone to buy into the plan, feeling motivated to succeed.
Above all, remain curious
By being curious and listening, we can gain a better understanding of what’s really going on. It is easy to be coloured by our own bias. But if we develop our natural curiosity about people and the world around us, we can reduce the impact of that bias. Think about how many questions two and three-year-olds ask. They are fascinated by the world around them. By connecting with that natural curiosity, you’ll find it easier to challenge the status quo and embrace the power of innovation.
If you would like to chat further about innovation, ideation and business culture, please get in touch. I would be happy to share the techniques I have learned and used over the years and how they might help you in your business.
