First of all, I would like to thank you all for such an overwhelming response to my last blog. I haven’t yet responded to all of your emails and personal messages, but I will respond to them within next few days.
While going through your messages, I have also realized one thing, most of you are not happy with just innovating at a restricted budget, but you are looking to innovate at a faster pace than before. With the technology and the world moving faster each day, I can definitely understand your sentiment. Thus, in this blogpost, I will provide you with some strategies through which you can increase the speed of your innovation at your workplace.
Eliminate hierarchy: Large organizations often find it hard to respond to new market opportunities and change quickly due to the hierarchical burden that comes with these organizations. Thus, if it is possible, we should create smaller R&D teams in our organization which has its own budget and, who can work independently within this organization. If you don’t have that liberty to independently manage the R&D team, then you should at least keep it simple. Try to keep the product cycle small, and perform frequent inspection. Purpose of these inspections shouldn’t be profit based, just yet, but it should be a checking point to make sure that the research is headed in the right direction.
Change incentive system: From Microsoft to Google, we always hire R&D personnel from science-oriented background, and hence, their interests lie in technology, not in markets. These employees, being from technical background, are not trained to engage their customers in the decision making process. Thus, if we want to change this culture of “obsolete innovation”, then we have to start by changing the incentive system, itself. If we use stock options to align the work of our technical staff with the firm’s financial performance, then they will be able to understand the business environment in which your organization does business, and they are more likely to innovate things that help your business.
Create new roles: Changing the incentive system alone wouldn’t help you to change the culture of the entire organization. In order to kick start this organization-wide change, you need to create some new roles within the organization to focus explicitly on customer engagement. This can be done with either existing or new personnel who are placed in important positions within R&D where they can effect change. You can also build new, multi-skilled teams to help change existing practices within R&D. This might involve building teams with both marketing and technical skills to reduce traditional barriers between R&D, sales and customers. It may not even be necessary for all R&D personnel to change or take on a more customer-focused role. Just having one in five in an R&D team being more customer-focused might be enough.
I have seen this strategy work for many small businesses, and I am sure that it can work for you too, if implemented correctly. Please provide your feedback on this blogpost through your comments. Thanks – Bhavin Gandhi
Bhavin Gandhi's Blog 