The most competitive, long lasting and fast growing organisations are those that produce a succession of ideas and innovations that continuously improve on existing processes. They deliver to the market new effective products and services and preferably with a stable or falling price tag. This is known as continuous innovation and will always be found in the DNA of any business that’s been around for the long haul.
The most competitive, long lasting and fast growing organisations are those that produce a succession of ideas and innovations that continuously improve on existing processes. They deliver to the market new effective products and services and preferably with a stable or falling price tag. This is known as continuous innovation and will always be found in the DNA of any business that’s been around for the long haul.
If you too are running or managing a business in today’s turbulent environment, you will need to spend a good part of your time innovating or buying out innovative competitors. In today’s world, your customers and clients expect products and services to improve, last longer, offer additional features, and all at a reducing price.
In the late eighties many industrial businesses started setting up manufacturing plants offshore to reduce supply and labor costs to keep prices down. Having a competitive advantage such as cost reductions increases profit margins and allows a business to increase market share against competitors at a very, very fast pace, effectively disrupting the market. Welcome to the modern age.
Disrupters are nothing new and may come in the form of supply and demand fluctuations, changing market needs, legislative changes, technology advancements, and any other element with the potential to quickly change the commercial playing field. Thriving innovation is a sure way to prepare and combat such disruptors.
Goran Ekvall of Lund University in Sweden and a pioneer in quantifying the climate for innovation has defined three conditions needed for a climate of innovation. They are trust, dynamism and humour. During one of his earlier studies, Ekvall featured a Swedish newspaper where the team working on the women’s section consistently outperformed all the other teams. He concluded that this was because this group trusted each other, always had a high level of energy and passion shared a common sense of humour.
“People are not your most important asset. The right people are.” Jim Collins
Yes I know, I put a lot of emphasis on recruiting well but it really is an important piece to creating a fast growth business and a thriving and innovative workplace. You will want to hire doers, solution focused and creative people who can generate innovative solutions fast and without consistent guidance, direction and instruction. Not always easy to find and are worth their weight in gold.
“If you can hire people whose passion intersects with the job, they won’t require any supervision at all. They will manage themselves better than anyone could ever manage them. Their fire comes from within, not from without. Their motivation is internal, not external.” Stephen Covey
Well said, Stephen. Hire the right people, check in early to confirm their ability and then get out of the way!
Making new connections between existing features of your product or service is a popular way to innovate. Akio Morita, chairman of Sony, said that he invented the Walkman because he wanted to listen to music while walking between shots on his golf course. His team simply put together two seemingly incompatible products: a tape recorder and a transistor radio and presto – and new innovation is born.
Your customers’ feedback is extremely important. They are regularly using your products and/or services and will no doubt eventually discover possible improvements, modifications and innovations. Treat them as part of your R & D team and fully explore their suggestions. Listening to your customers is key to building your business and maintaining ongoing innovative improvements and designs.
One relatively easy approach to innovation is to notice how others deal with problems and then adapt their solutions to your own. It’s known as “adapt and adopt”. An example of this is what watchmakers Swatch did when they realised that the more reliable their watches became, the less people needed to replace them. Their solution? Borrow an idea from the world of fashion and collections and turn their watches into desirable and colorful fashion accessories. Now people buy Swatch watches not just for reliability but also as colourful fashion accessories.
Just like a good stock or futures trader has set up predetermined stops to automatically take them out of the market when a move goes against their position – you may have to do the same in your business. If you are in the wrong business, in the wrong market at the wrong time and with the wrong people, then you may have to take yourself out and have some gin and tonics whilst watching some good sunsets.
Examples of some serious major disruptors that come to mind in the Australian market are offshore competitors with efficient processes, procedures, technologies and distribution channels i.e. Uber, ALDI and currently on the horizon Amazon. These business examples all have a DNA of innovation baked deep into their culture.
There is no doubt that innovation is a key element of a successful workplace culture. But, there are many more elements and considerations that must be addressed and circumstances that must be achieved in order to build and maintain such a phenomenon i.e. did Uber get the balance right? Will ALDI be around in Australia for the long haul? Will Amazon really disrupt like predicted?
Paul Marshall
Partner | HR Chief | FCPHR
With decades of Business and HR experience a HR Pro, corporate trainer, author and a welcomed and trusted business partner with commercial awareness and expertise in people, performance and HR capabilities .
Author of:
103 Golden Tips to Turbo Charge your Business make More Money and Get Rich
103 Golden Tips to Turbo Charge your Employees Skyrocket Productivity and Get More Output
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