“Innovation” is one of those words that is quickly becoming a ubiquitous rallying cry for companies and entrepreneurs alike. If you are not innovating, you are surely destined to die a slow death – think a whip and buggy or perhaps a VHS tape system. As I talk to CEOs and successful entrepreneurs as part of my responsibility in leading our Clemson operations at ONE, it is clear that innovation is extremely important as a rejuvenating force for any organization. But what is it? Where do these ideas originate? Who is truly responsible for the innovative impact? How do you sustain a culture focused on creating value in the marketplace?
Perhaps a good place to start addressing these questions is with a myth one often hears: that “visionary leaders” are wholly responsible for the innovative impact that changes markets and drives organizations for future success. According to a recent Wall Street Journal article, “Together We Innovate,” when it comes to innovation, the “myth of the lone genius dies hard. … Most companies continue to assume that innovation comes from individual genius … but the truth is most innovations are created through networks – groups of people working together.”
In a recent interview, Brian Chesky, cofounder of Airbnb, confesses that his multibillion-dollar business was the “worst idea that ever worked.” Airbnb began in San Francisco when Chesky and his roommate, Joe Gebbia, could not pay their apartment rent. A large convention happened to be in town the week the rent was due, and the roommates rented their apartment to three convention guests. Airbnb was born. When the interviewer pressed him on his “innovative genius,” Chesky said too much is made of this industry-changing idea. True innovation in his company happens every hour and comes from his team, which he asks to change his company for the better every day.
One of the classes I teach in our Part-Time MBAe (MBA in Entrepreneurship and Innovation) program explores the nature of innovation as framed by Larry Keeley in his book “Ten Types of Innovation.” Keely contends that the most certain way to fail as an innovator is to focus only on products. Innovation can and should come from many different parts of the organization.
Keely categorizes innovation into three broad areas: configuration (profit model, network, structure and process), offering (product performance and product system) and experience (service, channel, brand and customer engagement). He further links true innovation to market performance. This implies that ideas by themselves are not innovative. It is when these ideas have impact that they become innovations.
To me, innovation is about solving problems uniquely with scarce resources. Expanding our understanding of what innovation is and is not gives every employee – regardless of functional area – the opportunity and responsibility of changing the organization for the better.
Ultimately, the key challenge for organizations is finding the right kind of person to be a part of an innovative culture and the leadership to encourage experimentation and initiative. Glenn Llopis, in his article “Five Ways Leaders Enable Innovation in Their Teams,” believes that innovation is not dependent on participation of high-ranking executives, “but on any employee that is a student of the business, knows their customers and their specific needs. … Innovation is something that happens when you have a team who has a pulse on the marketplace and what it is telling them they must do.”
If you are fortunate enough to lead an innovative team, your job is really quite easy. First, learn to trust yourself to trust your team. Control is pushed down to those doing the work with rich dialogue occurring to shape the opportunity. Next, collaboration and communication is built into the fabric of the work culture. Team members need to feel they can engage with others routinely outside of formal meetings to discuss concerns, new opportunities and market contingencies. Frequent “collisions” are welcomed and open conversations encouraged. Try to think of the workplace as an “innovation lab” where team members challenge each other and help each other shape ideas. Work hard to build a work environment where being a change agent, challenging the status quo for positive disruptive change, is a good thing, not something to be discouraged. Finally, don’t be afraid to “course correct.” Innovation is not seamless and is not easy. When great ideas don’t achieve the results desired, address the idea and don’t blame the originator for having it.
I am very proud of the success our MBA programs have had since we moved to Greenville. We have launched successful freestanding concentrations in Entrepreneurship and Innovation and in Business Analytics, and have embraced innovation as a key element in the education we deliver. Our students find jobs in some of the largest companies in the area or chose to start their own business and pursue their own entrepreneurial dream. While former President James Barker’s vision of taking Clemson education and research throughout the state through “Innovation campuses” has been realized, the innovation that makes this vision a reality for our graduate programs housed in Greenville ONE is owned by our team. I cannot wait to see what they innovate next.
