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.
Six sense
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.
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.
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.