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Greg Githens
Catalyst Management Consulting
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Radical innovation success starts with asking the question -
Why are we doing this project?
by Greg Githens, Principal, Catalyst PM
Successful radical innovation programs are driven by the answers to four key questions.
In this article, Greg Githens discusses the first question, "Why are we developing this
product?" and provides readers with valuable techniques and insights on how to use this
question effectively.
While leadership is an important
determinant of success for radical
innovation teams, it is not
some elusive, magical quality.
You can increase your ability to build commitment
for radical innovation by asking and
answering what I call The Four Driving Questions
for Radical Innovation. These are listed
in Exhibit 1 on this page. Notice the order:
the first two questions are strategic factors
that affect the program’s success, whereas
the second two are tactical.
You will find useful definitions of radical
innovation, incremental innovation, and commitment
in the sidebars on
pages 22 and 23. These
definitions help to explain
why radical innovation
must be approached differently.
Instead of using
a template-driven planning
effort, the best radical innovation
projects find ways to
increase strategic thinking
and increase stakeholder
commitment.
The scope of this article
is the first question, "Why are we developing
this product?" Where appropriate I describe
some useful supporting techniques. I will use
the shorthand term "why" in the article to
refer to the entire first question.
A good learning environment
The "why" question is useful because it
stimulates a learning environment. Projects that learn well perform better at
radical innovation. The high levels of uncertainty
distinguish radical innovations, compared
to incremental innovations. The simple
rule to remember is this: "Projects that are
fastest to learn are fastest to market." Asking
"why" encourages people to reflect and learn.
Here, in no particular order, are some questions
that stimulate personal reflection:
Within your organization Why is the
product or project important to me personally?
Answer these same questions for
your boss and for your business unit.
For your co-development partners or
other interested stakeholders Why is it
important for the individuals, their boss,
and their employer? Why are my peers
interested?
The project learning environment starts
with individual personal reflection. Give
individual stakeholders in the proposed
project this article, and ask them to
answer the question "why." Share their
answers and you will have the basis of a
common, aligned vision.
A reality test
Secondly, asking "why" is
something of a reality test
of the market’s need. The
program’s funding should be
commensurate with the ability
to answer the question.
Inherent in the question "why" is an external market
view of reality. Radical innovators
often struggle to
find the right target market,
asking, "Where is the need?" For example,
du Pont’s Biomax has the capability to be recycled
or decomposed and was originally intended
as a material for diapers. But it found
one of its first commercial successes as a
bagging material for bananas. In this case,
the answer to "why" was "We have a material
that has unique properties that some
customer ought to find attractive. We need to probe deeper to identify unrecognized
and unprioritized customer needs." There
is considerable potential for breakthrough
advantage by finding and delivering to the
customer’s unvoiced, unexpressed needs.
The biggest challenge for most NPD
projects, particularly radical innovations,
is bridging across interfaces. One prominent
example is the R&D/Marketing interface.
Typically, specifications documents
are tools for making requirements more
specific. All good specification documents
should include a statement of rationale for
the product, and the rationale
is particularly important for
radical innovations.
Manifesto writing is a technique
that you might find useful
for clarifying the value proposition
of the radical innovation.
A manifesto is a statement
that rejects the current status
quo. With the skillful use of
rhetoric, a manifesto can put
forward reasons that stimulate passion and
courage. For example, Apple Computer’s
famous "1984" commercial for the Macintosh
Computer was in part responsible for
energizing its customers and employees to
"bring down big brother," and resulted in a
legendary product success.
It creates clarification
This "why" also clarifies organizational
capabilities, capacity, and co-development
agendas. To see how this works, let’s look
at a successful co-development program.
The Chrysler Viper was launched with great
success over a decade ago, and produced
a remarkable, head-turning product. Even
more important, the changes to the development
process proved that the company could
change its methods and significantly reduce
cycle time, produce smaller production runs,
and creatively engage its suppliers as partners
rather than vendors. The Viper program
applied all four of the questions listed in
Exhibit 1, and in the order listed.
Also inherent in the question "why" are
an internal-capabilities view that captures
the portfolio management concern of "Can
we make it?" "Is it within the capabilities
of our organization?" and "Can we make
it in sufficient volume at sufficient quality?"
Radical innovations stretch already stretched
organizations; someone will
own the responsibility for producing and
servicing the product.
Definition and Importance of Radical Innovation
There are many different terms used
to describe the degree of innovativeness.
Thus, here are three important definitions
from the PDMA glossary. Radical innovation
is defined as "a new product, generally
containing new technologies, that signifi-
cantly changes behaviors and consumption
patterns in the marketplace." The glossary
defines incremental innovation as "an innovation
that improves the conveyance of
a currently delivered benefit, but produces
neither a behavior change nor a change
in consumption." The glossary defines
an incremental improvement as "a small
change made to an existing product that
services to keep the product fresh in the
eyes of customers."
Firms end up emphasizing incremental innovation
over radical for good reason - there
is a lot presently on the plate; there are
many pressures to produce current-period
benefits; and there are cultural pressures for
consistency, conformity, and risk aversion.
However, innovations that are predictable,
incremental, or mundane simply don’t create
as much value.
At the NPD portfolio level, the trick is to
maintain current production while investing
in innovations that create competitive
advantage because they are unique, original,
and unexpected.
At the NPD program and process level,
the trick is allowing managers to select
the right kind of process for the innovation.
Incremental innovation requires
a "grind it out" mindset that typically
relies on templates, calendars, and
consistency. However, successful
radical innovators use a different approach
than their standard methods
for incremental innovation. In the May
2000 issue of the Journal of Product
Innovation Management (JPIM), Ronald
Mascitelli nicely summarizes the
issue for managers: "The challenge for
managers is to inspire, guide, excite,
encourage, and shape, without imposing
arbitrary structure that might
destroy the fragile essence that separates
breakthrough innovation from
uninspired incrementalism." |
Co-development is a powerful tool of innovation
strategy and needs to be based on
a solid grounding of complementary strategies
and capabilities. Failure to address "why" could lead to a poor partnership.
Could the following scenario be true of
your co-development strategy? The perceptions
of middle managers and their defense
of their view of the world, have caused the
organization to reach out to co-development
partners. Organizations are political entities
and middle management has considerable
power and interest in protecting their "turf."
It may only take one negative or lukewarm
response to result in selecting a co-development
option. Could it be, once you examine
your assumptions more critically, your
organization drifted unintentionally into
co-development? Could it be that your co-development
program is heading towards an
avoidable, unpleasant situation? Could it be
that co-development is not the right solution
for your organization?
Definition of Commitment
The word commitment has
at least two related meanings
when applied to NPD programs.
The first is the resource
perspective where commitment
is management’s promise to invest
resources in a project. For
this definition, the invested level
of resources is synonymous
with commitment. The project’s
performance ties directly to the
investment: no commitment,
no resources, and no results.
Even worse, changing resource
levels (changing people on the
project team) creates "speed
bumps" that delay the project
every time a project leader or
team changes.
However, the kind of commitment
that is most fundamental
is the emotional commitment of
people to invest their ego and
passion into a project. Author
Peter Block has a nice definition
of commitment, which is "a personal investment or
consignment in the face of
uncertain outcomes." Radical
innovation projects are characterized
by uncertainty and
ambiguity, and these characteristics
are unsettling to many
people. Many people prefer to
stay in the personal comfort
zone of their own subject matter
expertise. Ambiguity avoidance
is common, and explains
why many groups are reluctant
to embrace radical innovation,
despite its rewards.
Notice the relationship
between the first type of
commitment (investment of
resources) and the second
type (emotional resources).
When top management has a
lukewarm emotional commitment
to a project, that leads
to the revolving-door assignment
of people to projects. It’s
no surprise: Organizations that
lack mechanisms for developing
challenge and commitment
also struggle the most with
radical innovation projects. |
There are plenty of differences in values,
goals, and cultures of co-development
partners. Asking
the question "why?" can help
assure a better understanding
of each party’s interests.
Individuals representing the
partner organizations still have
bosses back in their home organizations
who will be judging
their work and performance.
It improves dialogue
This question is also a tool for improving
dialogue. Most NPD people have faced this
issue: In organizations, people tend to resist
and/or ignore new ideas and behaviors. Innovation
projects are fraught with conflict, in part
because people have different opinions on the
best methods to use to achieve their goals,
as well as differences of opinion on what the
goal is, or even should be. In my experience,
what people call "resistance" is really lack of
knowledge and misunderstanding. They don’t
resist radical innovation projects because
they are opposed to the project; they don’t yet
understand the project and their tentativeness
is perceived by others as resistance.
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