5 Top Gurus Talk Innovation Principles and Practices
How things change.
CIO — The 2001 CIO-100 honorees represent all kinds of innovation, from new and effective developments in products and business processes to new relationships within and among enterprises. For insights into how companies can weave innovation throughout their businesses, we asked several thought leaders to address issues in their particular area of expertise. We check in with consultant Thomas Kuczmarski on product development teams. Author Gary Hamel comments on strategic approaches to success in a postindustrial era. Boston University professor Anita McGahan speaks on the importance of relationships, and metrics expert Howard A. Rubin addresses the necessity of measuring innovation. Finally, author Michael Schrage shares his thoughts on the effect of the Internet on innovation.
From their different perspectives, these thinkers agree that innovation must be an integral part of every enterprise, undertaken consciously and deliberately, for business success and longevity.
Thomas Kuczmarski
Avoid the five deadly sins of new product teams.
Innovative corporations today are often defined as having the ability to develop breakthrough, new-to-the-world products that expand market opportunity and accelerate revenue growth. Unfortunately, 70 percent to 80 percent of new product introductions crash and burn in their first year. How can corporate America avoid a new products future consisting of boring line extensions and "me too" competitor knockoffs?
One of the first steps should be taking a different approach to assembling and managing the teams tasked with developing new products and services. In many cases the failure of new products can be directly attributed to the ineffectiveness of the teams assigned to create them. Based on our experience and those of various cross-functional team experts, we’ve identified five deadly sins of new product teams.
- The Visionless Team: It is amazing just how many new product projects are launched with no game plan. Without a clearly defined and agreed on set of goals and success criteria linked to the company’s overall strategy, a new product team cannot determine what success looks like.
- The Wrong Team Leader: Many companies still fall into the trap of choosing a project leader based on seniority instead of ability. New product leadership requires a unique skill set, different from that required to run an existing business.
- The "Are You Serious?" Syndrome: This is exactly what team members say when they’re tasked with developing breakthrough innovation that will change the future of the company in only two months’ time-with no relief from their day-to-day responsibilities. Companies that take new product development seriously allow at least four months for a new products project and relieve team members of at least half of their daily job functions.
- The Revolving Door: It’s a month into the project when a "business emergency" develops that requires the immediate attention of two team members for the next three weeks. But don’t worry, replacement members have been assigned! This is a momentum killer. In successful projects, once the team is selected, it stays intact until the end.
- A Motivationless Environment: Developing a rewards and compensation structure to motivate team members is critical to the success of current and future innovation efforts. Sometimes the best motivators are the nonmonetary ones, such as face time with senior management. But that requires senior management involvement. New product success is not solely the task of the project team.
