Welcome to the March 2010 edition of Strategic Innovation newsletter, a free monthly newsletter on leadership, strategy and innovation. Delivered on the first Tuesday of each month.

Back issues are archived for free downloading at www.DanielLockConsulting.com.

Tips for improving business processes

• Simplification starts by evaluating every element making it easier to understand and less demanding of other elements.
• When an organization fails to make continuous simplification efforts a major portion of the managing process, it invites difficulty and poor performance;
• Simplification is achieved by combiningsimilar activities, reducing the amount of handling (reduce delays caused by handoffs and decision making), eliminating unused data andcopies, and refining standard reporting.

7 Sources of innovation

Last month I discussed a process for innovation, emphasising that innovation is a process, a management process, just like decision making or strategic thinking.

The problem is too many of consultants are engaged in problem solving,which is ultimately remedial work, just getting the business back towhere it should be. Where as innovation is about go beyond fixing problem to raise the bar.

Innovation is the life blood of any business. Too often business leaders over emphasise the old adage, 'if it ain't broke don't fix it.' But tell that to the Kodak who missed the digital camera revolution, and compare to GE who is the only company in its peer group to still be on the stock exchange since 1892, and filed more than 20,000 patents inthe last decade alone.

In the first phase Assessment, or what could also be called Ideation. Is the systematic method of coming up with ideas to fill the top of the funnel. This is much more, way more, interesting and intelligent workthan the arbitrary suggestion box in the lunch room.

Instead a structured process of gathering ideas, from a variety ofsources is required. Gather subject matter experts from engineering,sales, marketing, management and accounts to dream up ideas. The morediverse the group the better.

The idea is to not just sit them in a room with coloured pens and ask "Anyone got a good idea?" Ask targeted questions, give them a specificplace to look. Peter Drucker, the fore runner of much managementthinking showed us where to look. 

The following is a list of areasaround which to focus the ideation process.

1. Unexpected Successes and failures.

Unexpected successes and failures are a rich source for ideas. Particularly the failures. We are all admonished to learn from ourmistakes but how many of actually think about what could be improved,not fix, but to innovate.

Likewise we are asked build on strengths, and unexpected successes often take us by surprise just as much, find out what might have caused them and capitalise on them in the future.

2. Incongruities.

The variance between reality and what everyone assumes it to be, or what it is and it ought to be. Apple with the iPhone changed the phonefrom just a phone to a ubiquitous multi-use internet device.

3. Processes changes

People are adept at designing 'work arounds', where ever there is a work around there is an opportunity for innovation. Toyota where theprime examples of process innovation to build in quality and speed ofproduction, not withstanding there current turmoil.


4. Structural Industry and market changes

Underlying market shifts, when nascent are often hard to to detect. By way of example many super market and then fast food chains catering toinner city dwellers at the beginning of the century (in the US), missed the mass city exodus to the suburbs. Woolworth's and McDonald's capitalised on this market change.

5. Demographic changes

Companies tend to be adept this one, and we are constantly barraged with the gen x & y differences. As stupid as these generalisations are, they point to something more important. Different people value and want different things.  

What changes are happening out there, westernculture is becoming older and will have what needs. Also considerescalating house prices, does this mean increases in household sizes.

6. New knowledge

Advances in scientific and technological knowledge present obvious opportunities. Intel was somehow always able to stay ahead of AMD in the micro-chip field, but again Apple systematically waits until technology has proved itself in other formats, and re-combines tocreate an entirely new platform for the knowledge.


7. Perceptual changes

Society morays change over time, civil rights over the last century just to name one. Be on the lookout for current attitude shifts thatcan be exploited.

Focus is important, using these areas you will be able focus creative energies generating many useful ideas to evaluate.
   

Technique of the month: 4 Reasons for meetings

Lately I am reminded of the corporate culture of meetings. Much maligned astime wasters, meetings can be fruitful, necessary and productive.

When setting the agenda keep in mind these for reasons for meetings, asdescribed by Andy Groves former CEO of Intel, where he valued productive meeting culture.

1. To make decisions
2. To generate alternatives (innovation)
3. To give information
4. To get information (learning)

And lastly bring some reading material, others are almost always late.