Often, we see companies quitting their innovation programs just as they finally start to generate tangible results. This showcases both a desire for quick results and a lack of patience and a structured, long-term approach to innovation. One might claim that all companies want from their innovation teams are “quick and dirty” results.
Well, here's a secret: organizations with this mindset will probably not make it very far. It's no coincidence that our most successful peers and partners are those who have been around the longest. We're not alone in this observation. Anyone deeply engaged in and knowledgeable about innovation will tell you the same thing: innovation is a marathon, not a sprint. The best part is that once results begin to materialize, their growth is exponential.
Why Companies Quit Innovation Early
The question is, why do companies cancel successful innovation programs too early?
There are a few common reasons and perhaps some unique ones in each case. Here are the most cited ones:
- Upper management treats innovation like any other department where input and outcome must always be balanced.
- Decision-making rests mainly with people who are not close enough to the innovation activity (e.g., CFO, HR, etc.).
- Innovation teams haven’t set the right KPIs to track the innovation progress until the actual ROI is realized (read more about innovation accounting in this article).
- Innovation teams haven’t successfully communicated the successes, progress, and benefits of the program (read more in this article: 'How to Market and Innovation Program')
- Innovation is not seen as a necessity, particularly when budgets are cut
To be fair, most of the time at least some or all the above are true in combination.
What can innovation leaders do though to ensure that the effort and, more importantly, the budget they have already invested are not in vain?
Note: The above graph may vary based on the circumstances of each organization. Our inspiration was drawn from an exemplary organization with no previously initiated innovation programs or endeavours upon outset.
A Call For Action
1. Setting the right KPIs
It is crucial to set the right KPIs from day one to help monitor the progress of the innovation process. Such KPIs could include the number of ideas generated, the number of employees involved and motivated, the potential success of ideas, and the expected outcomes per idea or project.
2. Communication of progress
Next, innovation leaders should always communicate this progress to all stakeholders. It should be made clear that a 200% ROI cannot be expected on day one, nor even within the first year. Setting realistic timelines, balancing short-term and long-term innovation goals, and understanding what it takes to achieve the desired results is important.
3. Have the right oversight
It might sound too populist, but the innovation budget shouldn’t only sit with Finance. To all the upper management folks, reading this: you must be more open and collaborative with your innovation peers. If innovation worked like any other department, it wouldn’t be such a “make it or break it” for companies. Your Finance Executive might be brilliant at their job, but their job is not to understand innovation. It is your job though, and everyone else’s, to get familiar with some characteristics of innovation.
Innovation Requires Persistence and Dedication
The journey of innovation is full of challenges and obstacles. It requires uninterrupted commitment to the overarching vision—yes, the vision, not just the numbers—and resilience to keep going after every setback. Dedication to the cause ensures that every effort is aligned with the long-term objective, maintaining focus and faith even when immediate results are not visible.
Innovation Requires Patience
Patience is perhaps the most undervalued characteristic that is required in the innovation process. In a business environment obsessed with instant gratification, waiting for tangible results can be very hard and even disheartening. But the truth is, innovation without patience cannot happen. The best ideas require time to mature, be tested, and develop into real solutions.
Innovation Requires A Championship Perspective
For your corporate innovation efforts to succeed, stakeholders at all levels need to see innovation as a championship rather than a single game. Like a championship, innovation is won through a series of games, each one contributing to the final, grand victory. It is a team effort that needs strategizing, adaptation, refinement, experimentation, and consistency. It is certainly a long journey, which is why only a select few can ultimately claim the championship cup. This however makes the triumph far more rewarding than winning a single game.
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