South African Research units and funding scenarios

I have been holding back on this post for a while, because it touches on a very sensitive situation here in South Africa regarding the student protests about university fees (see #feesmustfall). In South Africa, many of our research and technology development units that are publicly funded are hosted by universities. These centres depend on students and particularly post graduate students to deliver services to industry. At the same time these centres depend on industry to commission research, prototypes and to also take up the graduates. With the massive shortage of funding in the education sector, many of these centres and their hosting universities are starved of funding.

In August, I was helping a leadership team think through their industry strategy. I realised that their strategy was dependent on two implicit assumptions. Firstly, that the student unrest about the fees would be contained and short lived, with government miraculously finding funding from somewhere to relieve the pressure in the system. Secondly, they assumed that the private sector would somehow remain keen to invest in R & D, problem solving and prototyping despite the political uncertainty and adverse business conditions that we have in South Africa at the moment.

I helped the team to develop a set of scenarios, and this is what this post is about. It was a spur of the moment idea at the end of a meeting.

A simple way to develop scenarios would be to take the two assumptions (we usually use uncertainties) and to construct a simple 2 x 2 matrix. I know a 2 x 2 matrix has many shortcomings, but this simple matrix was to allow a team to explore several topics they have been hesitant to consider collectively. This was about helping a group make sense so that they could develop some actions together. With the leadership team, we wrote an assumption about the stability at the university on the horizontal axis. On the left we have a stable political environment at the university, with some high uncertainty about how long the peace would last and how much public funding will be available. On the right hand side we wrote that the situation becomes both unstable and uncertain. This axis is all about the stability of the hosting university.

On the vertical axis we wrote at the top that business people remain optimistic and continues to draw on the facilities and the services of the research centres, while at the bottom we formulated the opposite.

This simple matrix gave us four quadrants which we numbered 1 to 4 clockwise.

Scenario_Matrix

The instruction to the team was to think of each of the quadrants in the extreme of the two assumptions of the quadrant if they both played out. I won’t repeat all that was said here, but will just briefly capture some ideas. In quadrant 1, the situation at the university was stable, while business people continued to draw on their resources. The group agreed that this was the preferred quadrant!

Then they consider quadrant two, where the university was in chaos, and industry had to find alternatives for their services, or they were stuck. Trust relations developed with industry over many years were harmed (again).

In the 3rd quadrant, industry is depressed or paralysed, while the university is unstable. Everybody loses. Good graduates can’t find work, good researchers and lecturers lose hope and possibly leave the system, while business slowly but surely falls behind because the instability is very local. Globally competitors are investing, expanding and growing because the world goes on.

In the 4th quadrant the industry is depressed, meaning that demand from industry is possibly suppressed. The stability at the university is uncertain, meaning little investment takes place. The university does not have the resources to build capability or offers that helps industry, while industry does not have the resources to expand their investment. The whole system just hangs there waiting for something to give.

Now I know that this little scenario exercise was done very fast (we spent an hour on this), and yes, I know it does not address the fundamental issues that the university and government (and politicians) have to sort out. But the leaders quickly realised that their whole strategy was based on a quadrant 1 scenario. In fact, the very academics that always complains about the short term focus of the private sector were now trapped in a short term survival mode themselves. No industry or society can increase its wealth, prospects or competitiveness by waiting, especially when global competitors are at the door, looking for opportunities! This quick exercise helped the team to realise they needed to expand their offerings to be ready for the very likely other quadrants. They also realised that they had to think of ways of adapting their strategy so that the small steps they could take with their existing resources would lay “platforms” or stepping stones for an as diverse as possible range of future alternatives. For instance, one of the technology centres decided to shift its focus from a product development to a process enhancement focus, because there was a strong interest from industry to find ways of improving operations, cutting costs and improving flexibility.

The scenario dialogue enabled several follow up meetings  where the team could draw in more people and together re-imagine their future alternatives. Everybody was relieved that they had some options, where before this meeting they felt trapped without many options.

What I tried to illustrate in this post is that a simple scenario exercise could be a great instrument to help a team realise that despite almost certain disruptions, they could still think in the short term and the longer term. They had some options, they could even create more. By anticipating the future they also felt more ready for the disruptions that we are all waiting for.

For me it was also important to see how this team realised that their clients (industry) also faced huge uncertainties, and that if the research centre could offer services that reduce risks and costs while at the same time creating alternatives for market and technological development. Somehow shifting the focus from their own survival (and fears) towards the needs of industry and graduates looking to complete their research helped them move forward. Thus I could help the team consider how they could ensure their clients continue to innovate, which in turn helped the leadership to better understand how they themselves then have to be innovative.

Innovation was instigated!

 

 

 

How difficult it is to change an organization around a simple insight

In the last few months I have been going back to my change and organizational development roots. I have been on a journey to reconnect my more recent insights on systemic change and innovation systems with my earlier experience in process consulting, supporting organizations to change. I have rediscovered many old ideas that are still extremely valid and useful. I even have to wonder how I forgot some things that once were so important to me. Also, some things that did not seem all that important 10 years ago now seems far more important, but I digress.

Let me share an example of how a more recent insight about innovation became more powerful when I looked at it from an organizational development perspective. In my training work on innovation systems, I often lay a foundation with some simple concepts. One such building block is the idea that there are three kinds of innovation: product, process and business model. Product innovation is the easiest (you need to mainly be creative, know something about either a key technology or a key market), with process and business model innovation often being more difficult because you might need more abstract thinking capability, technical and others skills from beyond your organizations as well as a creative imagination. Easy enough, all the participants nod their heads in agreement and indicate that I can move on. Yet, back at the office this was not so simple.

I noticed that a few of my favorite technology and R & D centres here in South Africa were struggling with this very simple idea. They were mainly focused on product innovation, arguing that their behavior is shaped by the incentives created by public grants that supported them to develop products for wanna-be entrepreneurs (I wrote about the importance of technological capability here). It was convenient to blame the public grants for this incentive, and everybody knew that the results less than ideal (many of these wanna-be entrepreneurs did not stand a chance in the market as they lack technological capability and or business experience). Thus the Status Quo was maintained with everybody talking about changing but not really making the shift.  Until the easy funding became less easy. It was at this point that some management teams realized just how entrenched the culture of product innovation was, and how dependent these organizations have become on public grants.

So I had the task of coaching a team to think through this change process, to reduce their dependence on public funding by helping their team to shift to process innovation from a mainly product innovation focus. This meant that instead of designing, prototyping and manufacturing a particular product for a wanna-be entrepreneur, they shift their attention to helping existing companies or entrepreneurs with a track record improve, enhance or expand their process technologies so that they can themselves develop, prototype and manufacture new products.

Interestingly enough, the technological capabilities for product innovation and process innovation for this particular engineering group have a lot in common. It is mainly the internal processes, arrangements of teams, self assessment criteria (are we making progress?) and the identity of the organization that had to change to make this shift. This in itself meant some business model innovation was required. They also had to become better in forming partnerships with other technology providers. In complexity thinking language, the physical technologies and entrepreneurial technologies will remain largely the same, but many additional or different social technologies would be needed. For instance, some additional skillsets are needed that are more expensive and not typical to technology centre at universities. Lastly, this process focus shift would require far more work on the premises of the client, and also working with many other unknown technologies and sectoral requirements, which meant that concepts such as self-management, temporary work teams and many parallel projects also had to be tried out. It started sounding more and more like a completely new organization and a major disruption that this client could not afford. Starting over was simply not an option. And the individuals in the current team was a real asset.  If this team could not make this shift then very few would be able to make it.

It was agreed that we needed an adaptive process, a series of small experiments that allowed them to try some process innovation applications. The horizons of innovation provided a useful framework (Tim Kastelle inspired me about this model, recently Ralph-Christian took it further). We captured their current technological and market capabilities and agreed that this focus had to be maintained while we find ways to explore the adjacent technological and market spaces without breaking the bank. Tim Kastelle always say 70% of the focus should be on the current block (horizon 1). We did this by first looking which process innovations would be interesting to some of their existing markets (we found a few). The we looked at where their current technological capability could be used in new markets, but in a process innovation way. This could be done by investigating some economic sectors a little deeper.  Thus most of the energy of management remains on the current technological base and markets, with an additional focus on process innovations in an adjacent markets and technologies. We were all surprised that these ideas required very little additional funding (at first), with more specialized equipment and skills required if any of these ideas took hold.

The moral of the story is this. It sounds simple to say “shift attention from product innovation to process innovation”. People might actually agree this is important. But to make this shift requires many internal changes. A process of exploration and mental simulation using a simple framework was all it took to identify some areas where the current management team with its current resources could try several new ideas, without much change to the business plan or operations of the organization. I am very pleased with this outcome.

Thanks to the team for trusting me to facilitate this process. You know who you are!

New series: Organisational knowledge and innovation

In the next few posts I will elaborate on the role of knowledge in enabling learning organisations. In a previous post (here), I have concentrated mainly on how knowledge for innovation is generated in organisations. The response from readers was very positive, and as I worked with management teams to strengthen their innovative culture I realised that there are some further concepts that I must elaborate on. It is not only about what workers do, it is also about the environment created by leaders.

The first post in this series will look at the difference between tacit and explicit knowledge, and how both are formed. The second post explores why explicit knowledge dominates organisations. The third post will discuss how leaders can embrace tacit knowledge and encourage their teams to create new knowledge together.

“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.” 
― Confucius

Unlocking knowledge in organisations

A favorite topic that I love to talk, think and write about is the knowledge that is lurking around in organisations, often untapped.

Last week, the University of Stellenbosch Business School, where I am a member of faculty in the Executive Development programme, published an article I wrote in its thought leader newsletter. It is titled “Unlocking knowledge in organisations to enable innovation”. What started off as a 1200 word article was reduced to 700 words by Linton Davies, the wordsmith that always helps me to better express my ideas when I write formal publications. I think this article as it stands now must be the most I have ever said in only 700 words!

I am really proud of this article in its current short form. It started off many years ago as a much a more complicated module in my innovation systems training session. Now it is a practical workshop format that I use often in organisations supporting innovation, but increasingly in businesses, government programmes and even NGOs.

It is informed by evolutionary and complexity thinking, and is thus in line with my current research and the principles that I now pursue and value. Of course, a lot of extremely important theory is left out in this form, but by helping managers become more aware of how the inhibit or promote knowledge generation in their organisations is for me already a great start.

 

Instigating innovation in traditional industries

Originally published in January 2016, revised in March 2018

The average manufacturer in a developing country often grapples with the notion of innovation. That is why such industries are often called “traditional“, although almost all industries will have one or two outliers. While governments, such as the South African government, offer incentives to stimulate innovation, most manufacturers do not identify with the term “innovation” the way governments use it. For instance, when governments use the word “innovation” they often mean “invention“, in other words something that can be protected, copyrighted and owned (see more about the differences between innovation and invention here). While I understand the argument for patenting and protection, I think this narrow definition of innovation is inhibiting many industries from increasing their productivity and competitiveness by copying what works elsewhere (this is just a process of catching up). It also fails to recognize that in many value chains the manufacturers themselves make components or sub-systems that go into overarching architectures (defined by standards, compliance, specifications), so their design authority is limited in scope.

Innovation_invention

Here is a list of synonyms from thesaurus.com for innovation that I have assessed to see how enterprises might understand or react to these words:

  • Modernization – many enterprises dream about this but often do not have the financial means nor the organizational capability to pull it off (one day, some other time)
  • Contraption – many innovations and most inventions result in one of these. You can see them standing in  corners in most factories
  • Mutation, addition, alteration, modification – this is what most innovations in traditional industry would look like. They are doing this all the time as their machines get older, but this behaviour is mostly not recognized nor speeded up.
  • Newness, departure, deviation – the bolder enterprises with more financial and organizational capability might try these, but it takes capital to maintain.

Most people understand innovation as an outcome, but the word is a noun that implies change and novelty. It is about a shift, even if it is often incremental. The reason why so many of our enterprises in South Africa are not regarded as innovative is because they struggle (or perhaps do not have the organizational capability) to manage several simultaneous change processes. As Tim Kastelle posted some years ago, change is simple but not easy. Although this is often described as a technology problem it is really a management problem (see some older posts here). I would go even further and state that in many industries the margins are so narrow that even those enterprises that have a reasonable management structure would struggle to finance many innovations at the same time.

However, in my experience of having visited more than 50 manufacturers every year since 2009, I am always stunned and awed by how ingenious these companies can be. They keep old machines running, often modifying them on the fly. They operate with a fluctuating and unreliable electricity supply, inconsistent water pressure and often hardly any technical support. What policy makers often do not realize is that in developing countries it takes a lot of management time and capacity just to keep the throughput going. The time and effort to go and explore “change” beyond what is necessary in the short to medium term is very costly. The costs of evaluating new ideas, new technologies, new markets and better suppliers are all far greater in developing countries than in developed countries. Yet at the heart of innovation is the ability to combine different inputs, different knowledge pools, and different supporting capabilities with different market possibilities.

There are two implications for innovation promotion practitioners.

  1. The process of instigating innovation must start with recognizing how companies are innovating NOW. How are they modifying their processes (and products), and how much does it cost? What are the risks that are keeping them from introducing more novelty? Perhaps they could use the Horizons of Innovation to create a portfolio of innovation (change) activities that can be identified at the enterprise or industry levels.
  2. It is hard if not impossible for different manufacturers in most countries to figure out what others are struggling to change at a technological level. Use your ability to move between enterprises to identify opportunities to turn individual company costs into public costs (this is often cheaper). Do not take the innovation away from enterprises, but use your meso level technology institutions to try and accelerate the learning or to reduce the costs of trying various alternatives. Be very open with the results to enable learning and dissemination of ideas.

The process of instigating innovation must start with recognizing where manufacturers are naturally trying to change, just as a change process in an organization must start with understanding current behaviour, culture and context. Somehow innovation has become so associated with contraptions and narrow views of technology that the body of knowledge of organizational development and management of change have been left behind.

Four functions of innovation and technology management

Originally published in November, 2015, revised in March 2018

I would like to continue the “Instigating Innovation” series (see opening post herewhere to start and the post about culture here). The idea behind this series is that I explain innovation management concepts that can be used by both enterprises and technology transfer and industry support institutions.

To recapitulate: I believe that many industries are struggling to modernise because their supporting institutions use completely different frameworks to manage innovation (or perhaps the supporting institutions make their choices as randomly as enterprises do). One of the first concepts that a tech transfer institute or industry support organisation should transfer to enterprises is “how to manage innovation and technology”. Just because there is an engineer or an MBA/PhD in a company does not guarantee effective or creative management of innovation and technology.

Today I shall focus on the four broad functions that must be managed strategically in every enterprise and supporting institution. Even if someone in the organisation has the job title of Innovation Manager or Technology Manager, these functions should still be visible throughout the organisation. In other words, this is not somebody’s job, but it helps if somebody coordinates these activities.

The four functions agreed by most scholars and innovation experts can be summarised roughly as:

  1. Searching and scanning for new ideas and technologies, both within and beyond the organisation. This includes looking at technologies that could affect the clients of the organisation, and technologies that could disrupt markets and industries.
  2. Comparingselecting and imagining how different technologies could impact the organisation, its markets and its own innovation agenda.
  3. Next comes integrating or deploying the technology or innovation into the organisation. This includes adjusting processes and systems, scaling up implementation, and project managing the whole change process.
  4. The last step is often overlooked, but new technology and innovation often make new ideas, innovations and improvements possible. I call this last step exploiting the benefits of a new technology or idea. This could involve leveraging some of the additional benefits or features of a technology, perhaps by creating a new business unit focused on an adjacent market or particular offering.

When I visit institutions, organisations and companies, I always ask “who is thinking about change taking place beyond your industry or key technology?”. I cannot tell you how often I hear that “the CEO” or “the production manager” are on top of new developments and will be attending a tech fair next year. How can this huge responsibility fall on the shoulders of one or two people, who are at the same time biased towards the current strategy which favours justifying past (sunk) investments? Or if you ask “How did you choose between two technologies?”  you will be surprised how little time was spent considering new business opportunities, or how few companies asked for on-site demonstrations or samples from their preferred technology providers.

I will refrain from being too critical of technology transfer institutions and industry-supporting organisations, except to say that these organisations should be a prime example to industry of how to scan, evaluate, compare and integrate new ideas and technologies. We don’t just want to see the shiny machines and neat facilities, we want to understand how you arrived at your decisions, and how you made the best of your investments after implementing the change. Furthermore, industry wants to know what’s next, or what’s beyond their vision and how it may affect their industry.

To bring it all together, the technological upgrading of industries is plagued by many different market failures. These failures include the tendency NOT to invest due to high research costs, due to fears about making the wrong choices, or because so many decisions and changes must be made at the same time – this while the business continues, markets fluctuate, and technologies change faster and faster. Companies (and institutions) cannot afford just to kick start innovation management immediately before making a change (or when forced by external forces to make a decision). These functions must be managed strategically on a continuous basis, both at the level of top management and within the different functions of the organisation. Both companies and their supporting institutions need to manage innovation and technology, not only from an operational perspective (striving for continuous improvement, etc.) but also from a strategic point of view.

 

If the culture cannot change then the business cannot change

Originally published in August 2015, revised in January 2018

I received many comments and tweets about the previous post. Thank you for ideas and comments

Some agreed that innovation is the result of culture. Some said that culture is not only created by management, but also by staff. For instance, the admin pool in a traditional engineering company can be very innovative (and creative) even if the rest of the business is stuck in the 1980s.

Somebody told me that creating an innovative culture is in itself a chicken-egg (low equilibrium) situation, because for a leader to create (or enable) an innovative culture takes innovation in itself. You can see where this is going.

Then I discovered a recent cartoon in my inbox by Hugh Macleod of Gapingvoid fame. This cartoon says it all.

An organization that cannot change its culture (due to too rigid systems, due to lack of management capability, due to its people) has become trapped in time. While some organizations may exist like this due to sheer momentum, due to protection (by law), by continuous funding, or for whatever reason, will struggle to adapt to external change. These organizations are not resilient and they are at the mercy of external supporters (a.k.a clients, benefactors, funders or shareholders).

I was also asked how some organizations can still innovative despite a poor innovation culture. Again, it is of course possible to replace a machine, or for a few people in an organization to design something brilliant, or for a new process to emerge. Of course it is possible. But it takes much more energy, determination of a few, and some really tenacity to be innovative in an un-innovative (what is the right word here?) culture.

I am sure more comments will come.

Cheers, Shawn

I appreciated the comments received by e-mail, but wonder why people are not posting comments to this article? Is the WordPress registration process to difficult? Please let me know. And keep those comments coming!

Innovation as cultural as opposed to innovation as a technique or function

Originally published in August 2015, revised in January 2018

Reflecting on the correspondence I have received after my previous post and recent training sessions with manufacturers, I have come to realise that people are looking for tools and tricks to encourage innovation in their workplaces. Sometimes it is actually not even about innovation, but about making up for poor past decisions, such as not investing in technology or market development when they should have. Others think of innovation as a function or as a management tool that can be standardised into a job description or an area of responsibility. While this is possible in some contexts, I don’t find this approach to innovation of much use in the smaller and medium-sized manufacturing firms and the research/technology institution space in which I am working.

For me, innovation is firstly a value, a perspective of how organisations should be. When management says, “We are an innovative organisation “or” We want an innovative culture “or” Our reputation is that we are innovative”, then we can move to tools, portfolios, tricks and tweaks (those things that people in innovation functions must attend to). Many textbooks, articles and blog sites on innovation and technology management are then useful. Actually the challenge is to decide which of the bucket loads of advice to use, and consultants such as I typically help organisations to choose a few tools and provide guidance on how to use them fully and consistently. I would dare to say that it is relatively easy to help companies that are already innovative to become more innovative.

 

What really intrigues me is those organisations that do not think of themselves as being innovative, or that are from industries considered to be traditional and not innovative. Perhaps they used to be innovative, or perhaps they are innovative in some areas but not in others. Perhaps they had one or two tricks in the past that have now become irrelevant. These could be extremely competent organisations, such as a university department, a manufacturer of highly specialised industrial equipment or an organisation that simply designs and manufacturers exactly what its customers order. Even if the outputs of these organisations can be described as ‘innovative’, they do not necessarily have innovative cultures that are constantly creating novel ideas, processes and markets. In my experience these organisations have brilliant technical people, but management is often not able to harness the genius, experience or creativity of its people. The main reason for this is not a lack of technique, tools or tricks, but the lack of an innovative culture, leading to a lack of innovative purpose.

These organisations are trapped. They are equipped for the past, and they are paralysed by all the choices they have to make for the future. For management, it feels as though everything it has in place is inadequate and needs equal attention, ranging from attracting staff with better or different qualifications to finding new markets, developing new technological capability, sorting out cash flow and capital expenditure, and addressing succession planning.

Improving the innovation culture of an organisation is a complex issue. It is not about tasks, functions or tools, but about changing relations between people within and beyond the boundaries of the organisation. Innovation in these organisations is a sideshow, a project, whereas it really needs to be central to the business strategy, a different way of looking at the world.

When working with organisations that must improve their innovative culture, interventions like motivational speeches and optimistic visions of the future are not useful and could in fact deepen the crises facing management. Nurturing a culture of innovation goes far beyond establishing or refining innovation management functions. It is a strategic issue that is initiated by top management, but that will soon spill over into every area of the organisation, hence it cannot be driven by a management function called ‘innovation’.

Improving the innovation culture process starts with connecting management back with its people. It starts in the present, the now, not with future scenarios, not with using innovation techniques and better analytical tools, and in most cases not with some or other management fad. It goes beyond trying to improve products, processes or business areas, beyond gaps in management’s capability. It must look at the relations between people, between what people know and can do now (or knew and could do in the recent past), and the potential people see to make small improvements. It is essentially about many dialogues happening throughout and even beyond the organisation. After cultivating dialogue, management needs to empower the organisation’s people to allocate resources to activities that strengthen the learning culture, that turn even small improvement projects into processes that broaden thinking, deepen learning and motivate people to think beyond just their specific tasks.

When management has the courage to decide to improve its culture of innovation it starts a process that cannot be described as incremental improvement, as that sounds too directed. It is rather like a deepening, or an awakening, where employees are inspired to contribute, and management is more aware of what it can do to enable its employees to become more innovative on all fronts. Of course, management faces the risk that outdated management approaches that do not seek to empower employees to be creative will be exposed, and some tough decisions will have to be made.

To nurture an innovative culture requires innovation in itself. It requires management at different levels to rethink its roles from being directive to being enabling, from being top down to being more engaged with its teams.

Instigating innovation: Where to start

Originally published in 2015, revised in February 2018

I am currently focused on strengthening the manufacturing sector. I am speaking more and more at meetings and events, in boardrooms and to post-graduate students about innovation. In this increasingly engineering-minded world people frequently ask me for tips on how to get innovation going.

Some of the ideas people put forward are:

“How about an idea box?”
“How about canvassing ideas for a new product design from our customers?”
“How about rewarding our engineers with a profit share if they design a new product?”

However, the truth is that many manufacturing enterprises, especially the smaller ones, are too narrowly sliced into specific functions. They are mimicking large organisations and by doing so are giving up any flexibility and resilience that they might have had. Designers design, manufacturers manufacture and salesmen sell. This functional division of their hierarchy makes information flows about potential improvements, new market opportunities and some old tricks that could become useful again very difficult. The cost of coordination in these enterprises is very high. In these silo-based organisations the cost of finding information, new signals and new ideas from outside the organisations is extremely high, and in general they struggle to learn. Why I mention them is that innovation is something that most organisations are already doing, they just do not recognise it as such. Innovation is lost within functions, or is overlooked because a project is focusing on addressing some or other need. Every improvement project could also be used to change or improve the culture of innovation, to deepen the use of knowledge and to increase capabilities and options for an uncertain future.

A second problem is that most smaller manufacturers are mainly focused on product innovation. Which does not mean being focused on knocking the socks off their customers with frequent improvements or brilliant designs. Unfortunately, many of the more traditional manufacturers are focused on how to reduce the price or how to sort out quality issues. This is actually a kind of process improvement, but a very narrow one. The limitation of this incremental approach is that you can at best only grow and develop as fast as your customers can articulate what they want. Competitors or substitutes can also upset market relations by coming up with novel solutions that an incremental approach struggles to generate.

A third problem is that innovation is only carried out when customers demand it. It is passive. It functions in bursts to get things right, and then it settles into a problem-solving mode until the next customer makes some unreasonable demands. One should be grateful when clients give you a piece of their mind, but this is still far too passive to my way of thinking.

What many manufacturers lack, especially those in the more traditional sectors such as metals and engineering, is a focused effort by top management to build a culture of innovation that is actively trying to find product, process and business model improvements. The effort must be focused internally in order to constantly rethink the business and its core processes, and at the same time it must be focused externally on what customers and competitors are doing. The really good companies are also looking beyond current markets and competitors at new technologies and how they might shape the future.

Thus far I have addressed the business perspective. However, research organisations, technology transfer centres and industry support centres can also become trapped in a low-innovation culture.

I am currently working with a few industry groups and research and technology centres to find out how these organisations can move beyond the “catching up” and responding to change modes towards anticipating what will come next. This sounds perfectly simple, but by merely mobilising more and more people in the organization to search for what’s next has already yielded amazing results in a short time. Perhaps I am being over-optimistic, but I can already sense the innovation culture change in these organisations as more and more people become involved in searching for possibilities.

Here’s an apt quote attributed to William Gibson: “The future is already here – it’s just not evenly distributed”.

The first kind of search is to get more people involved in searching for what is already present within the organisation, but is not recognised or is not being used to transform the organisation. The second kind of search is to go beyond the organisation in related and unrelated markets and technologies. Take trends such as the global shift to automation, or the new developments in artificial intelligence and play with these within your organisation. Wonder out loud with your people about what this might mean for the organisation, for clients, for suppliers. How might these technologies or trends influence their investment decisions, their viability or their business models? Use these vague concepts to rethink the organisation, its networks, its technologies and systems.

That is what I call instigating innovation, when the dialogue led by the leadership mobilises more and more people within and outside the organisations to start thinking creatively, connectedly and in new ways about the future and the present. Lay a strong foundation for innovation by getting more people to think, imagine, connect ideas and improve.

New series: Instigating Innovation

I have been developing a new capacity building method and training approach that brings together my work in innovation systems promotion  and my work on improving technology and innovation management. I call it “Instigating Innovation”.

I chose “instigating” because it has a more positive ring to it than provocation or incitement. While it is a noun with mainly a positive tone, it is a bit more aggressive than support, enable or encourage or even stimulating. I have been referred to in my past as an instigator of change so I thought this was a good idea.

Why was this effort firstly necessary and secondary so rewarding?

My work on innovation systems is mainly aimed at assisting meso-organizations such as technology transfer centres, research centres and universities to be more responsive to the needs of the private sector. While it only takes a few interviews by a senior decision maker from one of these institutions to a few leading enterprises to get the organization to improve its offering to the private sector, it does not solve the problem that these institutions often needs a continuous process of innovation itself. So while they can respond to the needs of the enterprises (for instance by launching a new service, or making a key technology available, etc), they often are not able to innovate constantly in order to anticipate what they private sector might need in the future.

With my other hat on, working in the private sector to improve the management of technology and innovation is focused on helping individual and on rare occasions, groups or networks of enterprises to formalize or improve their management of innovation. Here my challenge is that most enterprises innovate by accident, or have elements of an innovation management approach in place without knowing it. But it is not systematic nor is it consistent.

So both supporting institutions and enterprises lack some very basic frameworks to focus their existing development and learning processes to ensure not only short term results (new products & services, process improvements, cost reduction, etc) but to also ensure longer term success (playing in the right markets, selecting the right technologies, investing in the right kind of knowledge, partnering with the right people, etc). Furthermore, most enterprises and supporting institutions have something else in common: they often face resource constraints with the most versatile of their staff being involved in problem solving and not thinking about the future and what may be possible sometime down the line.

I set aside most of March and had great fun reading through my collection of articles, books, reports of past missions, and speaking to entrepreneurs and development practitioners I trust. Based on this investigation I decided on the following criteria for instruments to include in the Instigating Innovation module:

  1. Each instrument or concept must be relevant to both enterprises and meso-level organizations05 building innovative capacity small
  2. Each instrument must provide a very simple framework that can be illustrated on a flipchart
  3. The simple framework must be usable as a workshop format that allows people to reorganize or explore their current and future practices
  4. The frameworks must be scalable, both in depth (allowing pointers for a deep dive into an issue) and in width (useable for a product, issue, portfolio or the strategy of the organization as a whole).
  5. Lastly, I did not want to be the consultant with a project, I want to be the facilitator that enables change and that builds long term sustainability into the organizations that I work with.

This was a very rewarding exercise. Not only do I love reading about innovation, change and technology, I love finding better ways to explain these concepts. It was also great to find a way to connect my work on innovation systems, which often seems abstract, with the tough decisions that the enterprises that I work with must confront and address. I tend to work in the more technical domains dominated by academics, engineers, scientists and manufacturers, so finding a simple yet convincing way to add value to what these clever people do was important.

I will in the next few posts reveal a little bit more of the tools I selected and how it can be used.

Thank you for the EDA team in Bosnia and Herzegovina who motivated me to turn this idea into a capacity building format and who agreed that I try “Instigating Innovation” on their team during my visit to Banja Luka in May 2015!

Instigating Innovation in Banja Luka with the team from EDA
Instigating Innovation in Banja Luka with the team from EDA