It’s time to reflect again on these unusual times we find ourselves in and our ability to either sustain gains or recover from losses resulting from the pandemic. I read an interesting article from McKinsey recently which talks about unlocking opportunities post the crisis. It also quotes J F Kennedy who inaccurately stated that the Chinese translation for Crisis which consists of two symbols
one meaning danger the other opportunity - It’s not like a politician to bend the meaning of something? The accurate definition is danger and pivot the phrase technically means “the pivot of danger” and this is of course exactly what business needs to do during this transition into the Season 3 of Covid recovery.
The McKinsey survey below argues this point, whilst asking you to consider the business capability.
This is why leadership must embrace the concept of the “Intrapreneur” which we will cover in an up coming Think Tank but also learn how to create the right environment for innovation and creativity.
The article goes on to say that organisations during season 1 and 2 have de-prioritised innovation in favour of shoring up the core business, focusing on the human element and employee safety, exploiting easy opportunities, protecting the balance sheet and reducing risk.
To bounce back and achieve accelerated growth we need to embrace creativity and imagination by driving an innovation culture. We also need to observe and react to how consumer needs have evolved and resource the organisation in the appropriate business development areas that can enhance revenue generation by exploiting new ideas.
Leaders who are not using the creative right side of the brain or a board that is over loaded with left-brain characters struggle to establish the business model and management practises needed to harness this energy.
Whilst having a yellow and red preference myself my early training and organisational culture was predominantly blue which resulted in an analytical almost command and control style that struggled with this need for innovation.
Here is a true story from my confectionary days.... and how I was forced to adapt.
Creatives once upon a time gave me headaches and anxiety attacks!! I remember the Head of Product and Packaging Design (one of my direct reports) walking through the fields at the back of the head office during business hours in her bare feet. Shocked at this, I decided to confront her and ask if she was ok? She said look at the meadow flowers, the colours are amazing and the smell is wonderful. “Yes”, I said, somewhat frustratedly, “but why are you out here walking barefoot during working time?” “Oh”, she said, “just searching for inspiration, we have some important designs to complete and I find this clears my mind of unproductive clutter”. My first instinct back then was to say, “don’t worry, I will free you of all unproductive clutter and give you all the time you need for walking barefoot in the park!”, but in that important gap between stimulus and response something made me find a better choice. I told her rather than be out here on your own bring your entire team and let them share the experience.
She did just that and it became a regular thing on a sunny day and she starting inviting other departments to help brainstorm new ideas and the teams productivity and quality dramatically increased. Later in my career I started reading about open workspaces with creative space for people to have breakouts and new stimulus to solve problems. Ours was a field full of wild flowers and an aberrant creative genius who challenged the old-fashioned company principles. Embrace your eccentric imaginative characters, give them the freedom to imagine and watch the innovation grow. Create time and space for you and the team to think.
We also recently lost one of the UK’s most famous designers, Terence Conran, who famously said that a designers job is not to imagine the world how it is, but how it should be. He also argued that business should remember that people whose talents are not exploited become disenchanted and disruptive.
We have clearly read how digital engagement has expanded significantly and this is increasingly becoming a disruptive influence on business models. So this need to pivot is becoming much more important as we deal with changes to our competitive landscape, new consumer habits, a demand for new ways of working all of which are leading to a requirement for a different operating model in Seasons 3 and 4.
So before we expand on the Uspire Network 12 Leadership Steps for establishing Creativity and Innovation, let’s consider a few great stories and evaluate the WHY.
Not many of you will know that airbnb was created by two men who could not pay their rent so they blew up a couple of mattresses in their front room and charged people for using them. This business now has a higher market capitalisation than some of the major hotel groups; in fact they are valued at over £5bn. How is this business described now....”a communal way to travel by connecting people who have space to spare with those who are looking for a place to stay”.
Uber started as a niche transportation company in San Francisco and now operates in over 80 countries using its seamless application of connecting riders to drivers embracing simplicity and the elimination of bureaucracy.
You may have seen more advertising for Square recently, it only started a few years ago with its increasingly relevant mobile payments portal, which allows everyone to accept contactless transactions via any credit card. In no time at all they have established relationships with the likes of Starbucks by aiming to simplify commerce and rethinking how companies exchange value.
I also admire Nike and the fact that they are continuously innovating but this is not about creating new running shoes - they clearly do that. No the story they are now telling internally is how to create new and imaginative digital interactions which customers use to enhance the physical and technical relationship with the brand during everyday life.
We have overwhelming evidence that supports the fact that companies who achieve a culture of innovation and creativity rather than just profit focus, achieve above average returns for shareholders and establish sustainable and exciting companies for their employees. These will also be the businesses that have a culture which is not thrown into chaos in a crisis but it instead sees the opportunity to meet changing customer needs.
We could now easily expand on the production line of innovative companies like Apple and of course 3M although these represent interesting insights are they really helping us to define the changes that companies need to implement. It is important that leaders have an open mind and encourage the generation of new ideas and proposals. These new perspectives and points of view will allow you to break from traditional and obsolete practises that can hold a company back.
One of leaderships most essential skills in solving new customer problems and establishing a culture of innovation when in itself can be so undefined is to understand what questions to ask.
Albert Einstein famously said, “If I had 20 days to solve a problem I would spend 19 days defining it”.
Take two great examples for reflection:-
- John F Kennedy, “we are going to put a man on the moon”.
- Steve Jobs, “create a product that will put a 1000 songs in your pocket”.
Those were clearly great visions but what questions do you need to ask next to turn an idea into winning innovation?
Let’s consider further WHY you need to embrace creativity and innovation - what’s in it for you?
- In a majority of markets it is the driving force for revenue growth.
- It enables you to evolve and embrace the principles of continuous improvement - conscious innovation is a modern approach.
- It allows you to explore new channels and markets.
- Brand enhancing both internally and externally.
- It helps to create super engagement by encouraging collaboration.
- You can attract and retain better quality people.
- When internally focused it increases productivity by promoting better, faster and cheaper ways of working.
- It can prevent you from becoming a commodity and losing sight of changing customer needs.
- It can be a differentiator in establishing your competitive edge.
- Most countries allow you to get tax incentives for new original ideas.
If the benefits are so clear then you need to create the leadership framework for this successful application of great practise.
12 Leadership Steps to Establish a Culture of Creativity and Innovation
Vision
At the core of the leadership agenda should be the acceptance that innovation and stimulating organisational creativity is a driver for growth. Leadership must build a team of creative individuals with the right mindset.
Focus
If the vision exists how do you then focus your innovation activity, are you achieving the appropriate equilibrium of new ideas and core business activity.
Insight
The company intelligence and research functions are directed at market opportunities that involve creative solutions and innovation. Are they providing the innovations with useful information that can be translated into revenue or efficiency driven concepts?
Experiment
The executive team need to create new ways of servicing the market and be prepared to take tactical risks with new business models and channels.
Agility
When insight is identifying changes to the market and customer behaviour or observing changes with your competitive benchmark, are you prepared to move quickly? Leadership need to enable the business to operate with agility if the opportunity presents itself how do you establish first mover advantage.
Organise
To move with agility the leadership team must consistently address the application of resources and define the most appropriate organisational design.
Measure
Leadership must understand the real value of innovative opportunities. How have the financial functions or decision support team structured themselves? Have they analysed and agreed the most effective measurement of a "good idea"?
Prioritise
How are ideas evaluated - measurement is essential but balancing resources and calculating the impact assessment across the organisation is just as critical. Think about the size of the opportunity compared to the ease of implementation!
Invest
Leadership allocate financial resources and budgets for new innovation. This is done with the expectation that "not every egg is a chicken". When the experimental phase is completed then significant investment goes into making the new opportunity a success.
Network
The leadership team actively promote collaboration and joint ventures that can originate or mobilise innovation. They see the advantage of working with others and will seek to establish relationships with a diverse range of industries to promote shared learning experiences.
Recognition
Everyone is motivated by working on creative and innovative business solutions. It is an area of recognition and the reward structure enables people to share the success of new ideas.
Promotion
Leadership need to constantly tell the stories of success that fuel the organisation to achieve more. Progress not necessarily perfection is acknowledged and all stakeholders understand the innovations that will secure tomorrows revenue.
Although the simplistic definition of innovation is “creation of something new”, without this creativity we only have what we have. So without something new then there will be no progress. If your company is not making progress or standing still then in reality it is going backwards and ultimately it will become irrelevant and unsustainable.
The finest commercial leaders mobilise a culture of creativity and innovation and achieve above average financial returns.
Colin Wright is the Chair of the Uspire Network. To find out more how The Network can help you become the best leader you can be contact Colin for a confidential chat.