How to Plan the Process

Appoint a leader and team to take your projects on the journey.

Make sure your innovation structure is fixed before a project starts, and that all those involved are aware of the key stages. Planning for the process includes:

• Chart out a clear pathway along which innovation can proceed.
• Fix key stages: initial ideas, development, testing, launch.
• Allocate resources: money, time, skills, and knowledge.
• Appoint a leader and team to take your projects on the journey.
• Fix points to assess projects before granting more resources.

ACTION POINT: Know the guide posts for the innovation process to keep it on track.

Structuring the Process

All of these procedures require resources...

Managing an innovation through this process requires a well-defined structure, especially if you want to repeat the process and keep on generating and implementing new products, services, and processes.

Not only must you establish each stage of the journey in detail, and provide a support structure to make sure your idea continues to progress, but you must also establish procedures for reviewing the project at each stage -- and sometimes in between stages -- to ensure that it remains on track and is still worth further investment.

All of these procedures require resources, and your plan should include providing money, materials, and trained personnel to make innovations projects progress.

ACTION POINT: Use process and procedure to establish a structure for innovation.

Article 7.3 Employee Involvement and Teamwork

...working together to achieve common goals and will enhance the quality of life at work for each of us.

Employee involvement is a way of managing which emphasizes teamwork, the sharing of the information, creation of opportunities to contribute ideas and participate in problem solving.

Teamwork is defined as work done by a number of associates each doing a part but all subordinating personal prominence to the efficiency of the whole.

Employee involvement will enable all FSG employees to contribute their ideas an creative energies to support he continued growth of the corporation. It will also foster working together to achieve common goals and will enhance the quality of life at work for each of us.

ACTION POINT: Solicit, use and encourage the creative energies of your team to strengthen the organization.

Mapping the Route

A decision must be made as to whether the idea has the potential to benefit your organization,

There are four key stages that an idea must pass through before it enters the market or becomes a standard process. The first is the initial concept. A decision must be made as to whether the idea has the potential to benefit your organization, and whether the predicted costs merit further investment.

The second stage is a detailed exploration of the practicalities -- how the concept might work in practice, and, indeed, whether it is physically possible. At the same time, the concept must be developed so that you can discuss and share it with others, not least because along the way you'll have to convince some of them to provide funds, resources, and time to help you get it off the ground.

The third phase is testing, which may include building a prototype and researching how people in your target market (customers, clients, or coworkers) react to it. Finally, once testing is complete the product can be launched, but even after launch its performance must be monitored to ensure your innovation provides the promised benefits.

ACTION POINT: Valuable change must be tested, supported and deliver real benefits to the organization.

Making Innovation Happen

Only the very best ideas -- those that are most likely to succeed-- will ultimately make it into development.

Once your innovative idea has been conceived an selected as worth pursuing, it needs to go through stages of development to make it a reality. It is important for any organization to have a standard process for developing innovations, particularly if you intend to make regular changes.

The standard structure for the innovation process is to take your idea forward in stages. At each stage, the idea is reviewed to decide whether it is worth pursuing further. For every stage that it passes, an increasing amount of money, time, and resources must be dedicated to the project. This testing process is often described as a sort of funnel.

The mouth is wide, in that many ideas can begin the process, but more and more ideas will be rejected at each stage as they are show to be unworkable for one reason or another. Only the very best ideas -- those that are most likely to succeed-- will ultimately make it into development.

ACTION POINT: Establish a process for innovation to filter out everything but the best ideas.

Article 7.2 Work Ethics

We will strive always to be the best we can be.

We see work as a privilege. Our freedom to pursue with great aggression any endeavor, any way we see profitable can be a very rewarding experience. Diligent work is the way to a fat soul.

We will strive always to be the best we can be. We will judge ourselves not by what we have accomplished, but rather by what we should have accomplished with the abilities that we have. Remember where much is given, much will be expected.

It is mot important to enjoy our jobs, and the feeling of true accomplishment.

ACTION POINT: Work with vigor and joy.

Harnessing Creativity

Listening to customers to find out what innovations they want.


Creativity can often go off track. Some indicators of which track creativity may be on are:

Off Track:

• Failing to implement good ideas.
• Creating new technologies without first ensuring they will be beneficial.
• Missing out on breakthrough innovations not yet conceived.
• Neglecting ideas from outside the organization.
• Focusing on technology and missing out on innovations.

On Track:

• Supporting creativity across the organization.
• Investing in research and development.
• Listening to customers to find out what innovations they want.
• Building a strong internal innovation infrastructure.
• Using technology to solve product, process, and service problems

ACTION POINT: Look for the guideposts to stay on track with innovation.

Balancing Creativity and Control

It is a balancing act

Another widespread myth is that innovation is solely about creativity -- that all that is needed is an environment in which bright ideas can be explored. This is not true: it does not matter how many interesting ideas are flying around the place if nothing useful comes of them. Managing innovation is not only about unleashing creativity, but also about harnessing and focusing it.

It is a balancing act -- on the one hand releasing the flow of ideas to create and sharpen up innovations, and on the other making sure the ideas are focused toward actually delivering results that benefits the organization, without taking forever or consuming a vast budget.

ACTION POINT: Managing innovation means balancing creativity with direction and control.

Developing an Invention

many innovations come a long way from the initial idea before they become successful.

Innovation is about ideas, but it is also about putting them into practice. While the inventor is a popular figure in marketing campaigns, in fact, many innovations come a long way from the initial idea before they become successful.

Your creativity may be an essential starting point, but your task as a manager is to direct it to areas of your organization where it will be actively useful.

ACTION POINT: Direct new ideas into the organization where they will have the biggest impact.

Innovation and Invention

innovation is mostly about incremental ("doing what we do better") rather than radical change, even the most basic ideas can be worth considering.

Innovation is often seen as simply coming up with a bright idea. The idea is certainly important, but by itself it is not sufficient. As an innovation manager you need to be able both to encourage new concepts and find ways to help make them happen.

If innovation is about applied ideas, then you need to make sure that you have a plentiful supply of ideas to draw upon. Many organizations make the mistake of thinking that only certain people are capable of producing innovative ideas, and place the development of innovation in an area far away form the rest of the workforce. In fact, anyone involved in a process at any level is likely to have ideas about how it can be changed and improved. And since innovation is mostly about incremental ("doing what we do better") rather than radical change, even the most basic ideas can be worth considering. You should not attempt to limit innovation to research labs or in marketing meetings -- it should be something to which everyone can contribute. Moreover, since innovation is is a long process of making ideas work, you can make use of this creativity at every stage of the journey.

ACTION POINT: Look in every corner of the organization for ideas on improvement.

Article 7.1 People

When all else becomes mundane or boring we can still cherish our good times, still enjoy the relationships we have developed.

Our greatest strength and asset is the quality and commitment of our people. Because the future of our company depends upon our people and their continued pride in and commitment to FSG, they must be valued above all.

This world is built on relationships. Our lives will only be meaningful because of these relationships. How we choose to react, and what we wish to give, will determine our fulfillment, happiness, even our joy.

Siding with good and never with evil is our desire. Our greatest possession would be a heart that would always be patient, always be kind, never jealous, never boastful, never self righteous, never rude, never self seeking, not easily angered, not holding grudges, never delighting in evil or oppression, always protecting, always hoping. This is our wish for everyone, and a surefire start to building strong meaningful relationships.

When all else becomes mundane or boring we can still cherish our good times, still enjoy the relationships we have developed. This commitment will ensure meaningful jobs, good working conditions, open two-way communication, fair compensation, opportunities for growth and career development, effective and supportive supervision, job satisfaction, recognition and reward for outstanding contributions, and equal opportunity for all.

The value of relationship is fundamental to a comfortable environment and to a valiant pursuit of any vision undertaken. We pray our actions will reflect our individual belief in this most important principle.

ACTION POINT: Build meaningful relationships.

Factors in Innovation Success II

Innovation requires strategic leadership -- having a vision and being able to share it.

Additional factors that foster successful innovation include:

• Planning: It depends on good project planning and management -- against a background of uncertainty.
• Teamwork: It needs effective project team working -- the ability to work with others under uncertain conditions.
• Leadership: Innovation requires strategic leadership -- having a vision and being able to share it.
• Learning skills: Successful innovators have learning skills -- the ability to analyze what works and why, and to use this knowledge to improve capability for the next time.

ACTION POINT: Focus on learning, planning, teamwork and leadership to encourage innovation.

Factors In Innovation Success I

These lie at the heart of this process.

There are several factors that play a role in the success of innovation. They include:

• Systematic and organized process: Innovation results from this process of managed change, turning new ideas into reality.
• Entrepreneurial skills: These lie at the heart of this process. But although "champions" who are passionate about change can make a lot happen, innovation is a team game, and managing it means involving people from across the organization.
• Creativity: This needs to be focused and directed.
• Understanding: Successful management of innovation needs a well-developed understanding of the process

ACTION POINT: Use the factors above to establish an environment of innovation.

Long-term Innovation Culture

It has spent a 100 years refining its approach to innovation -- and continues to succeed in doing so.

3M is a world class product innovator. Best known for products lie Post-it notes and Scotch tape, it has a history of innovation success in diverse fields: computer disks and tape, industrial coatings and abrasives, medical supplies and office products.

It began in 1901 as the Minnesota Mining and Manufacturing Corporation -- and its first attempts at establishing the business were not successful. But the company persisted, and build a business that today sets a goal of getting 30% of its revenues from products introduced in the past three years. It has spent a 100 years refining its approach to innovation -- and continues to succeed in doing so.

ACTION POINT: Set revenue goals tied to innovative products.

Innovating Successfully

Most organizations would own up to having problems with making innovation happen...

Any innovation project involves a degree of risk -- there is always the chance that it might fail. It is important for any organization undertaking innovation to be aware of the factors that make innovations more likely to succeed, and to be able to identify those that are likely to fail.

The history of product and process innovations is littered with examples of apparently good ideas that failed -- in some cases with spectacular consequences. Most organizations would own up to having problems with making innovation happen, including a fair proportion of ideas that are never realized, and new initiatives that flop more or less embarrassingly. However, a great deal of research has gone into identifying the key areas on which organizations can focus to promote successful innovation. It might not be possible to guarantee success every time, but paying attention to key aspects can stack the deck in your favor.

ACTION POINT: Innovation doesn't happen by accident, but by careful planning.

Article 7 FSG Values

They must be integrated into each and every day.

Our values are our opinions of what we consider to be good, bad, right, or wrong. They are the root of every decision.

The list of values here are good, moral, fundamental beliefs that we hold very dear. We believe they are critically important to our success as a company. Because we believe them to be what is good and what is right, we reserve the right to require all employees to adopt them as well. They must be integrated into each and every day.

These value statements should be reviewed from time to time to refresh our minds and to re-commit ourselves to do what is right and good for our company. These values are enduring and are meant to guide us through our daily work and our lives as we spend them together.

These values are:

• People
• Work Ethics
• Employee involvement and teamwork
• Envisioning the Future
• Quality
• Innovation
• Market Sensitivity
• Technology
• Profitability

ACTION POINT: Embrace and employ enduring values.

The Four Innovation Directions

Keep reviewing the performance of your organization in all four directions

Innovation can occur in four different directions. They are:

• Changing Methods: The process -- the way you create and deliver the product or service.
• Changing what is offered: The product or service -- what you offer to the world.
• Changing Business Context: The position -- who you offer it to in the market and the story you tell about it.
• Changing Business Model: The business model -- the way you think about what your organization does and for whom.

ACTION POINT: Consider all options. Keep reviewing the performance of your organization in all four directions, so you are always aware of the potential for innovation.

Markets and Models

they can prove extremely profitable

Changing your business model and the market in which you operate may be more difficult, as they can affect the structure of your organization. However, they can prove extremely profitable: cell phone makers at the turn of the century successfully transformed their product from a staid business tool into a mass-market fashion item with a strong youth market.

Similarly, luxury car makers such as Rolls Royce, unable to compete on price with cheaper car producers, changed their business model to supply the trappings of a luxury lifestyle -- vacations, watches, designer clothes -- rather than simply a mode of transportation.

ACTION POINT: Are there market or business model changes you should consider to make your organization more profitable?

Directing Innovation

Together with incremental and radical innovation, these give an idea of your "innovation space" and help you decide where to innovate.

In addition to incremental and radical changes, innovation can be defined by direction -- by what is being changed. An organization can innovate its product, its process, its market position, or its business model. Together with incremental and radical innovation, these give an idea of your "innovation space" and help you decide where to innovate.

The most obvious areas of innovation are in what your produce and how you produce it. Product or service innovation can mean improving existing models -- such as producing the latest CD player -- or introducing something new -- such as the first MP3 player. Process innovation can involve improving current processes -- reducing waste, increase efficiency -- or changing the way you operate -- such as switching from paper to digital correspondence.

ACTION POINT: Consider opportunities for innovating your products, processes, market position or business model.

How to Build an Innovation Portfolio

Pick out easy to implement and high-impact ideas to work on first.

Innovation can occur through incremental steps or as a result of a radical breakthrough in a technology or process. Identifying opportunities for innovation can be improved by the following process:

• List all the possible innovations you could make.
• Arrange them by impact area: product, service, process or market.
• Score each idea in terms of impact and ease of implementation.
• Plot on a chart with impact and implementation on the two axes.
• Pick out easy to implement and high-impact ideas to work on first.
• Look at other high-impact ideas that may be harder to implement.

ACTION POINT: Look for innovations that have a high-impact or that can be implemented easily.