Why don t companies innovate more?

Why dont companies innovate more?

If we accept that innovation is not optional and is the key mechanism that allows the corporate enterprise to reinvent itself, why does there appear to be such a lack of innovation in many organisations? There are several reasons for this oversight. If we asked the owners or senior management of most organisations whether they are innovative in a corporate sense, most would say yes. And in fact they are innovative. The problem arises when we look at the level of their innovation compared to that of their competitors. To survive, organisations must be at least as innovative as their competitors . To thrive they must be more so.

The main reasons companies fail to be more innovative are:

• The companies falsely believe they are being sufficiently innovative.

• Managers get too involved in the day-to-day issues to focus on innovation (working in the business, not on the business).

• There is insufficient drive from the top of the organisation to prioritise innovation.

• Staff are not sufficiently motivated to provide creative ideas.

• There is a lack of goal congruence between senior management and staff.

• Organisational structures and poor communication limit (or even suppress) innovation.

• The culture of the organisation is not one that encourages innovation.

Many enterprises believe they are innovative already. It can come as quite a shock when they realise suddenly that they need to be more innovative if they are to survive. Sometimes urgent action is required to combat an immediate crisis or emerging threat, and so circumstances demand that they become more innovative. Occasionally innovation is driven by the desire to take advantage of a new opportunity. The other situation that may trigger a more innovative approach within the enterprise is the arrival of a new leader who has a mandate to implement change.

Innovation is often a necessity (giving credence to the old saying, ˜necessity is the mother of invention). Consider this example. In World War II, the British bomber squadron known as the Dam Busters undertook one of the most famous of all wartime exploits. One of the technical difficulties the squadron faced was to devise a method of dropping the bombs from exactly the right altitude so they would skip along the top of the water. Because of the low-level attack requirements and the criticality of altitude, normal altimeters were unsuitable. It is now part of legend that Sir Barnes Neville Wallis realised the solution while at the theatre. He noticed that the spotlights were set at a specific angle to meet at a certain point, thereby defining the required height. ^{[ 2]} Necessity was again the mother of invention.

How many times previously had Sir Barnes been to the theatre and never thought of the implication of these spotlights? Without doubt, the solution occurred to him because he was focusing on the problem. He had a mind-set that was different to the one he had had on every other occasion he had visited the theatre.

Organisations must create an environment that encourages an innovation mind-set or focus. This is a cultural thing. It is difficult to define but involves most of those soft management issuesthe people management issues that either motivate or demotivate staff. Because corporate innovation requires individuals to be creative in their thinking, management cannot force staff to do this. It is only achieved by motivating staff so they want to be creative for the good of the organisation.

When it comes to people skills, management is a mind game. We have all heard examples of an underdog team beating more skilled opponents because of their higher level of motivation. These one-off wins can be achieved from time to time, but it is the ability to sustain motivational levels over extended periods of time that is the key to ongoing success.

^{[ 2]} Sir Barnes Neville Wallis, as represented in the film The Dam Busters , 1995.