Features of an innovating enterprise

The chief executive has the key role of architect and builder of the innovating enterprise, including:

mobilising the business vision, starting with the leadership team
systematically building on the strengths of the business
systematically removing barriers to delivering innovation.

The principles are easy, but the practice is usually challenging, with the specifics differing from case to case. In our experience, however, there is a set of pragmatic principles that can be a valuable guide for the chief executive who is committed to making change. There are also a few diagnostic tools available for this chief executive to identify the critical tasks .

We have found the broad framework set out in Table 6.1 to be useful in highlighting key performance areas for an innovative enterprise. In all cases, an objective view of the business is very valuable.

Table 6.1: Characteristics of innovating enterprises
Characteristic	Description
Ambitious business agenda	There is a clear set of objectives and priorities for improving the business and a clear program for doing so. Innovation is integrated into the strategy.
Clear purpose	The business purpose is understood at all levels of the business. Everyone can describe the business purpose and relate their work to it.
Attacking rule-based bureaucracy	Some rules and systems are necessary but keep it simple and focused.
Customer intimacy	The business is closely attuned to its customers. It has deep insight into customers value chains and how its activities add value. The business understands which areas of improvement will add significant value to its customers and it targets those areas.
Leadership	The leadership at all levels focuses on enabling the people in the business to contribute to the best of their capacity. Managers are held accountable for building teams and improving the personal effectiveness of team members . Managerial leadership is a disciplined professional system with explicit accountabilities for achieving results through others.
Culture	There is a well understood set of values and behaviours that constitute ˜the way things are done around here . These behaviours positively value innovation, improvement, risk-taking (within understood boundaries) and problem solving for customers. Ideas are valued. The culture is closely aligned with the business agenda. In short, a clear, accepted ideology for the business.
Systems	There are well developed and closely connected business, organisation and people systems that institutionalise attention to implementing the business strategy, customer focus, innovation, risk management and leadership processes required in the business. These systems reinforce the business agenda, the desired culture and required business behaviours.
Infrastructure	The business has a core of systems, structure and governance arrangements that are framed around enabling the business purpose and which are appropriate to the size and aspiration of the business.
Skills	The business provides opportunities to individuals to build knowledge and skills that build the core knowledge and capabilities. Learning is an investment.
People	The people in the business are actively selected for the attributes that reinforce the business culture and capabilities. The organisation clearly addresses, for every employee, ˜Where are we headed? , ˜What s my job? , ˜How am I performing? , ˜What s my future?