Tuesday, August 9, 2011

Standalone innovation group creates "organ rejection"

In the mid 2000s I had the opportunity to create one of those innovation groups - the job of which was to get our company into new, growing markets, combining the processes we had with new technology - using partnerships to move more quickly than developing our own technology.

We had 10 folks, in marketing, product management, implementation and sales. We met every day, built expertise, became one of the top 3 names in this new market segment within months.

The biggest mistake I made was viewing the innovation group as a destination in itself. I saw it growing to become a fully-functioning company, rather than as a feeder to the main operating units. As a result, I didn't do enough to communicate with, collaborate with, or otherwise pave the way for the rest of the company to support what we were creating.

We sold three deals right out of the gate, a huge validation of our approach, in my view. However, when we needed resources and capabilities from the other units, we suffered "organ rejection" - my colleagues didn't accept our approach and decisions when it came to them doing the work. Completely understandable in hindsight - I hadn't asked them to participate in creating the solution - it was nonetheless devastating.

After several highly emotional and agonizing encounters, we found a way forward that integrated our innovation efforts with the main organization's vital capabilities - but in doing so we wasted valuable time and created lots of unproductive conflict. And poor decisions that more collaboration might have avoided also harmed the business.

Net result: we accomplished far less than we should have done.

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