Innovation Leadership

The success of any business today is reliant on not only outstanding products and services, innovative marketing, well-oiled sales channels and flawless, customer-focused operations. These are not optional; rather they are essential elements for business success. But what makes the difference between future industry leaders and those back in the pack? Innovation. Leading for innovation is critical for success today, tomorrow and in the years ahead.

Engage all employees and their ideas

Even though companies have been espousing this idea since the invention of the "suggestion box" few companies really take this principle seriously or use it effectively. There need to be easy ways for all employees (plus suppliers and customers) to provide ideas. The ideas need to be reviewed in a timely manner and feedback needs to be provided to those who provide the ideas. This cannot be a short term "program" or project but an on-going process which become part of the way of doing business.

Continuous planning

Strategic and business planning are central to any effective corporation, business or other organization. Unfortunately, many get caught up in the process (annual) rather than using it as an on-going opportunity for bubbling up new ideas and integrating them into the short and long term product and financial plans for the business. Planning should not just be about products, sales, revenue, costs and expense by period, but rather it should be about monetizing ideas and place resources against those ideas which are going to generate the most sales and create the most efficiencies.

Rewarding risk taking while rewarding success

Many companies have recognition programs from trophies, to certificates to financial incentives for contributions to the success of the business. Frankly, the type of award, reward or recognition is less important than the fact that it is done. Companies are quick to award sales success for closing the big deal and exceeding revenue quota. It is equally important for companies to find ways to reward the contribution of ideas to the front-end of the process. The ideas which evolve into new products, services and improved operations must result in recognition for the individuals and teams who contribute them.

Challenge how it's done today

Now matter how anything is done today it can be done better - whether faster, with less costs, with more quality, with greater revenue contribution or in other ways better achieve to goals and objectives of the business - not matter how challenging they may appear.

Making communication easy

The most innovative companies communicate often and easily. They communicate from above. They communicate across. They encourage their customers and suppliers to communicate about what is working and more importantly what is not working. And they make it easy to communicate from the trenches to the top. Whether face-to-face, by e-mail, blogs, letters, IM, telephone or other means, communications is essential to innovation. But it only begins with receiving the message regardless of the means of communication.

More bottoms up than top down

Innovative companies are not driven from the top down. They are driven by their customers and those front line employees who deal with the customers day-to-day. While R&D is essential, customers may express their real needs and line employees may see inefficiencies before they are ever raised through a formal scientific process or formal efficiency task force produce their reports.

Time is the enemy

When fighting a war, every single day counts. This has fact has been recognized by warrior-generals going back to the earliest conflicts and continuing on to high tech battlefields. The same holds true in business. The longer an idea for a new product or service or a process improvement is analyzed by working and leadership committees, the less likely they will provide a positive, competitive business impact. Once an idea or recommendation has been submitted - especially by customer or a front-line employee, the clock is ticking. A timely evaluation, development and implementation process is needed to insure they are screened and action is taken while the idea still has its "punch".

Global ideas

The best ideas do not come from your town. Or your state. Or even your country. There is a whole world go great ideas out there. Tap into them globally. Even if your company is not yet global, ideas for new products, services and better ways of doing thing can come from sources Memphis to Singapore not just the office conference room and the corporate planning retreat.

Seniority agnostic

New employees, whether fresh from college or from another employer are a great source of innovation (we are not recommending stealing proprietary information or intellectual property). And at the same time, employees who have performed the same function year-after-years may be discounted as not have an original idea. Nonsense! New employees, long tenure employees and all in between need to be free to offer up ideas and recommendations. And all ideas and recommendations need to be taken equally seriously regardless of the source.

By applying all of these concepts, any corporation, business or other organization can thrive. There is no such thing as too many ideas or too much innovation. The business imperative is to create a culture built on ideas and to vet the implement those ideas with velocity. Not every idea will be successful. But may will and that will make all the difference in the marketplace.

George F. Franks, III is the President of Franks Consulting Group, a Bethesda, Maryland management consulting and leadership mentoring practice. George has over twenty-five years of experience working with companies of all sizes plus not-for-profit organizations and individual leaders. He is a member of the Institute of Management Consultants (USA) and many other professional and non-profit organizations. Franks Consulting Group is on the web at: http://franksconsultinggroup.com

George can be contacted at: gfranks@franksconsultinggroup.com

10 Steps of Successful Crisis Management

Crises affect the best run companies and organizations. They also spring-up with great frequency in less well run companies and organizations. Generally crises are the result of smart people doing dumb things. Sometimes they are the result of poor quality, greed, corruption or worse. Regardless of the reason for crises, it must be handled with the utmost care, speed and professionalism. The ten point outlined below identify the key elements to success crisis management.

1. Identify the problem

What is the crisis? Define it. Not what caused it or who is to blame but rather what it is in clear terms. This can also be referred to as the problem statement.

2. Create a team

Now that the crisis is defined, what areas does it touch? Assemble a team with the owners of the subject matter experts in each of those areas. For a business this generally means: executive management with a representative, marketing/product management, operations, legal, human resources, information technology, finance, PR or media relations sales and research & development. If any of these functions are not necessary, do not include them in the team just to fill a seat. For other organizations such as non-profits it may include: executive leadership, development, IT, member relations, finance, PR or media relations, human resources and marketing.

3. Set up a command center

Find a place where all the members of the team can meet and updates on the crises can be monitored and tracked. The command center should be manned 7x45 by a representative of each key functional area until the crises has been resolved.

4. Communicate out

The first thing the team needs to do once the problem has been identified is communicate the problems and what is being done about it quickly and clearly to all appropriate media outlets through PR or media relations. Generally, more information is better. The more senior the person providing the updates is the better also. Ideally it should be the CEO of the company or organization or the most senior person directly involved with the crisis. Also update customers, investors, employees, clients, constituents, and members – anyone with an interest in the company or organization.

5. Problem breakdown

Break down the problem with the crisis management team. Identify what the problem is, what the potential solutions are and which are the most viable courses of action. Bring in other subject matter experts as needed but do not take the accountable functional areas owners out of the loop or off the hook. They own a successful resolution from their area.

6. Receive communication

Concerns of customers, employees, shareholders and constituents need to be addressed. Set up phone hotlines and email folders related to the crises. Have knowledgeable people take the calls. If they cannot, have a mechanism so every call is returned with an answer in 24 hours. The same holds true with e-mails.

7. Resolve the problem

Nothing is more important than resolving the problem or crises because it is a disruption to everyday business. It could ruin the reputation of the business or organization. For a company it can destroy shareholder value. For other organizations it can impact membership, causes, careers, lives and worse. The crisis team needs to commit their time, money and energy and also grab the best and the brightest internal or external to the company or organization to resolve the problem or crisis quickly.

8. Provide updates and resolution

Communicate updates through all outlets and communicate final resolution of crisis at the most senior level available. Communicate frequently. Communicate in a timely fashion. Do not hold information back. Make leaders, functional owners and subject matter experts available to questions from the media (all forms). Have all communication controlled through the command center i.e. centrally.

9. Investigate (the post mortem)

After the crisis has been resolved establish a team to investigate what happened, why, who was responsible and what actions need to be taken to insure that it does not happen again (or is minimized). Insure the team has full access plus as much time and budget as they need to do their jobs effectively.

10. Integrate improvements

Integrate the findings of the team into business as usual. Take the learnings from the crises to change the business or organization so there is a minimal chance of the crisis repeating itself. Make these changes know to all the company’s or organization’s stakeholders.

Crises happen – no matter how careful, quality conscience and integrity focused any company or organization considers itself. And when they do, it is up to the leadership to establish a crises team and command center quickly. By following these 10 steps, the best will be made out of any bad situation.