Breaking out
In a study by Price Pritchett, he confronted 312 CEOs with a list of what was found to be the ten “deep strengths” driving successful organizations, and asked them what strengths they considered as most important for their organization. What he found was that the top three was very similar for For-Profit and Not-For-Profit organizations.
For-Profit organizations
- Can do attitude
- Resilience
- Creativity and Innovation
|
Not-for-Profit organizations
- Resilience
- Creativity and Innovation
- Can do attitude
|
When asked how their organizations measured up to the complete list of ten most important “deep strengths”, both groups rated Creativity and Innovation as the area where their organizations lacked the most.
The innovation gap
In our discussions with CEOs and organizational leaders we found an additional aspect. Many of the companies are using the word “innovation” a lot in their mission statements, value statements and advertising. So they project to the outside world that they have what is needed, because they know that is what is expected. But closing the gap between actual organizational capability and the aspired innovation capability is not on the list of strategic priorities. It is on the “to-do” list, but not on in the top 3. The most quoted strategic priorities are “cost reduction”, “customer retention” and “revenue growth”.
Going full circle
Many organizational leaders find themselves in a crisis mode as they struggle to create the revenue growth with an aging portfolio of products that is becoming less relevant for their customers. Stalling growth triggers cost reduction. The lack of tough portfolio decisions causes an underinvestment in renewal. And the lack of renewal causes further decline of revenues. Full Circle. The result is a de-motivated workforce, which does not help in turning the situation around. The best talent leaves, frustrated. Others stay, also frustrated.
When asked why they are not focusing on Innovation, the feedback is that it is not the right time, or the organization doesn’t have the resources.
Doesn’t that sound familiar? Who hasn’t heard “there is no money to do things well, but there is always money to do things over”. Well if you think you don’t make the choice, you do. If you don’t start closing the gap today, your competition will close it for you.
Breaking out
Each organization will have its own issues, and therefore its own priorities to turn the situation around. But in general, it comes down to getting back to the basics.
- Customer Relevance
- Focus, Focus, Focus
- Organizational strength
Making your leadership team aware of what innovation is, of the things they can do to contribute to the organizations capability to innovate and of the positive impact that will have on the strength of the organization, may seem a small thing to do, but it is an enormous step in the right direction. Positioned well in he organization, that focus gives perspective and creates a very positive energy.
The question is not whether you have the time for it, the question is whether you can afford not to start now. |
see also
|