An Overlooked Key to Innovation Strategy
Start by defining concretely the fundamental problem-to-solve
Strategy is a deceptively complex concept. Business leaders apply the term constantly but loosely, for market strategy, manufacturing strategy, key account strategy, and the like. Strategy context and connotation vary widely, however, which complicates communication, alignment, and execution.
One of the best definitions of strategy comes from Michael Porter (not surprisingly). He argued years ago that business strategy should contain four elements: a distinctive value proposition, tailored and distinctive activities to deliver that value, explicit choices about what to do and not do, and synergistic fit within the internal value chain. Each element should be defined explicitly and clearly, in a manner that facilitates collective understanding and implementation.
Makes sense.
But my client work reveals a more fundamental weakness with innovation strategy today, which stems from the starting-point definition of the fundamental problem to solve. Often, in the well intended rush to action, business leaders and teams will underemphasize the importance of defining what it is they want to do and why – exactly.
Starting on the right strategic and tactical path to Agile Innovation requires three simple but often overlooked principles:
• Couple clear objectives with a specific definition of success, including a quantified end point and target date
• Identify the external and/or internal customers for the intended outcome, and iterate early and often with those entities
• Use a clear and concrete problem-to-solve to structure the execution team, and then guide and evaluate progress.
To be fair, every business and every strategy today are driven, at least implicitly, by goals and objectives. The weakness, however, is that the underlying problem-to-solve or opportunity-to-exploit is not always on point or clear. Moreover, the objectives and success definition may not reflect the true needs of the ultimate customer, stakeholder, or beneficiary. Absent upfront clarity and customer validation, the strategic target tends to wander, unintentionally.
Elevate your probability of innovation success by three straightforward steps:
1. Invest extra time, upfront, in defining the fundamental problem to solve.
2. Build your Agile team and its way of working around this definition of success.
3. Communicate/iterate early and frequently with your customer throughout implementation.
Innovation success starts with strategy. And not to be overlooked in the definition of innovation strategy is crystal clarity in the fundamental problem to solve.
© OIC Innovation LLC 2022