Article 7.9 Profitability

Therefore, it has the right and the responsibility to make a fair return.

An unprofitable corporation does nobody good, not society, not its employees, not itself; Therefore, it has the right and the responsibility to make a fair return.

The use of our profitability will be for re-investment in our company, return to its valued employees, and to support charities.

ACTION POINT: Pursue profitability at every level.

Making Real Time Decisions

To make a decision and then commit all of your resources to it without having the option of changing plans midway is risky.

Innovation is about uncertainty, and so the ability to review and change your decisions over time is crucial. To make a decision and then commit all of your resources to it without having the option of changing plans midway is risky. The longer a project goes on, the more resources are put at risk if it fails.

Smart organizations know that turning an idea into reality is a learning process. As you move through the project you discover new things about the technology, about the market you thought existed, about your competitors. So it makes sense to view the journey in stages, and to increase resources allocated at each stage , from outline concept through to the eventual launch of the product.

ACTION POINT: Recognize that there will be things you must learn along the way toward any innovative change.

Building a Good Business Case

Who wants it, why do they need it, and why don't they have it yet?

A good business case is necessary for promoting any new idea. Some features of a good business case include:

• Outline your idea - A short and simple explanation of your idea -- how it is new and what it will do. Remember it is not what you think but how "they" see it, so try and present it in terms of what it will do for them.
• Market Analysis - Who is it targeted at? Who wants it, why do they need it, and why don't they have it yet? How big is the market? Is it growing, declining, or static?
• Competitors - Who else is out thee, what do they offer, how will this idea get ahead of them, how might they react, and how do you protect yourself from that?
• Why it will work - What do you know, and what prior knowledge, skills, experience, and networks can you bring to the table?
• Rewards - What will you get if you succeed -- money, market share, customer satisfaction -- and how long will you have to wait until you get them?
• Costs - How much will it cost, and what do you need to make it happen?
• Risk Factors - What might pose problems and how will you get around them?
• Project Management - Who will take this forward and how? What reassurances can you offer that you can do it?

ACTION POINT: Use the features above to build a business case for innovation projects.

Covering all the Angles

Decisions will not get made on the basis of personality and passion alone...

Making a compelling business case is at the heart of innovation. Decisions will not get made on the basis of personality and passion alone -- you need to be able to convince decision-makers to spend resources on a project that will work.

Is there a market, will the technology work, can you protect the idea, what will it cost, and what are the likely benefits? Showing that you have thought the project through and have answers to any difficult questions they might throw at you will enhance your chances off a successful pitch.

ACTION POINT: Understand the business case for any innovation being considered.

Gaining Support

Do you have the answers to questions they might ask you?

Organizations need to innovate, but they cannot do everything. They need to explore options and then make tough decisions about which ideas they will back and why. You can influence these decisions to your advantage -- if you know your organization is trying to put together a portfolio of projects that balance risk and reward, you can try and make them include yours in the mix.

But you need to present your idea in such a way that its merits are clear. Ask yourself how you can engage them -- can you show them a prototype so they can add their comments? Do you have the answers to questions they might ask you? And do you come across as being passionate about the projects -- will they believe in you?

ACTION POINT: Examine innovation projects to determine their merit and benefit to the organization.