Andrew shares an experience he had with an organization in the attempt to explain how sometimes slowing down actually helps organizations in the long run.
As a follow-up to my recent post, where I mentioned that organizations that formally manage innovation are more successful, I wanted to probe further into the question “How do we know if our innovation process is successful?”
For one thing, instead of focusing on the number of new products and services you bring to market, measure the percentage of revenue those new products and services represent. An innovation can only be successful if it has commercial viability, otherwise why innovate? An organization can only say that it has a culture of innovation if a large percentage of its’ revenues come from products and services that didn’t exist three or four years ago.
If you want to know whether or not your organization is successful at creating innovation, look at the breakdown of your revenue. How much of that revenue is represented by products and services that did not exist five years ago? If the answer is less than 30% then you are not an innovative company. You may be a successful company (and there’s nothing wrong with that), but you’re not an innovative company.
How will you ensure a culture of innovation in your organization?
Andrew shares the process he uses with clients to determine their optimal speed, and explains what the benefits of this are for organizations.
Miller’s Monday Morning Message
presented by ACM Consulting Inc.Andrew Miller on operational excellence, strategy, life balance and everything in between
Toronto – February 25, 2013
With Target getting ready to enter the Canadian market, they have launched a new advertising campaign to make Canadians more aware of the company. The campaign focuses on the pride Canadians have in their diverse country and culture. The adverstisements tell Canadians that Target has spent the last year getting to know Canada and its citizens, so they can best meet the needs of customers. Target’s strategy highlights some keys to remember when moving into a new market:
“The key to entering a new market is knowing who your target customer is and how to best appeal to that target customer,” says Andrew Miller, President of ACM Consulting. “Too many companies move into new markets and assume that doing what they have done in the past will make them successful. Every market is different and every country is different, so organizations may need to look at a different strategy to be successful.“
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© Andrew Miller. All rights reserved. 2013.
In a recent post, I identified different ways to find money and performance boosts. One of the statements was, “Instead of focusing on resolving customer complaints, measure the amount of new revenue generated from those complaining customers.”
Many organizations measure the amount of time it takes customer service representatives to get off the phone, or the volume of calls per hour or maybe even the number of customer issues resolved on the first call. But what about turning that customer complaint on its head and actually making a sale after resolving the issue. When their issues gets resolved quickly and to their satisfaction, customers are grateful. You have just removed one point of stress from their lives.
If you just spilled water on your computer and someone at Apple’s Genius Bar was able to fix it, wouldn’t you be open to listening about an additional warranty to replace your computer if that ever happened again, or some kind of storage device that automatically saves your data? Sometimes it takes a problem for customers to realize what they really need and they’ll be willing to take steps to avoid that problem happening again.
These are the types of opportunities that the best companies in the world look for and exploit.
Of course it requires customer service reps to have a different set of skills, but it also creates a new revenue stream and strengthens customer loyalty. What other opportunities can you find to turn negative situations into growth opportunities?
|Andrew explains how companies that simply “move fast” are not the same, or as effective, as those that focus on speed optimization, which includes speeding up and slowing down.|
According to a recent survey by the Conference Board of Canada, more than half of the 450 companies surveyed have no formal innovation process. How is that possible? And we wonder why Canadian companies lag behind other countries in developing and implementing innovation.
Creating a process to manage innovation is not that difficult. Frankly, most organizations are probably already doing it in an informal way, but there’s no doubt they are missing some important components. Here’s a cycle of innovation organizations can use as a guide.
Within this cycle of innovation, there are some questions organizations should be asking:
- Where are the innovative ideas coming from? Where should they come from?
- How do we evaluate the ideas to ensure we move forward with the right ones?
- How do we know if an idea was successful or not? How do we measure progress?
- What plan do we need to execute in order to turn the idea into something commercially viable?
- How do we compare against our best competitors?
In a complex and inter-connected world, organizations can’t afford to miss any opportunity for an advantage. Managing innovation according to the process above may just give you that advantage you need.
Click here for more details on this cycle of innovation.
My ideas on operational excellence and speed optimization were recently featured in an article by Harvey Schacter in the Globe and Mail. If you want to be a great organization, you can’t afford to ignore these concepts.