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| CHALLENGE THE STATUS QUO FOR INNOVATION Photo CreditDabra Larson |
Business is a Two Way Street, Either Innovate or Perish
Any business organization is a highly complex system that is comparable to advanced machinery. Like a machine it has multiple components, interacts with the environment in which it operates, needs to be operated by skilled people, exists for a specific purpose and consists of intertwined internal processes culminating into intricate input-output cycles. It must be observed here that any machine needs to be upgraded to an improved version over a period of time. This is necessitated by a variety of factors including but not limited to emergence of a better technology, enhanced ease of operation, wider service objectives, increased competition, changes in the user tastes & preferences, etc. This up-gradation is necessary for the machine to remain relevant to the users it is designed to serve or there is a clearly defined path to oblivion by being labelled as obsolete. And the business world is no different, as we have numerous examples of huge businesses with highly successful product categories which were doing very well at one point in time but they failed to adapt themselves to the dynamic environmental changes over a period of time. Today these businesses stand relegated to the annals of business history as their glory has diminished with time.
“One Best Way” Becomes Ineffective with Onslaught of Time
The businesses must take a cue from this point that if they have been successful during the past years or decades the credit goes to their struggle which led to the winning innovation responsible for their success during their start-up phase, where they could come out with an effective strategy which worked very well for them in addressing the specific set of environmental forces prevailing at that point in time. As the time passes by, changes happen in the market, competition, technology, customer preferences, etc, which render the erstwhile success strategy redundant, it ceases to add any value in the changed circumstances, on the contrary it gets in the way of the progress of the business, because the executive team is overtly obsessed by the "one best way" of doing the things as that had always worked in the past. The real problem is the obsession of the executive team with the "one best way" of doing things. But they miss out on re-validating their set of assumptions which were deeply embedded into the development of that "one best way". The “one best way” which earlier worked for the business loses its relevance in the context of the changing business realities where the earlier assumptions do not hold any ground, as these assumptions need to be questioned on a continuous basis to successfully address the challenges posed by the dynamic environmental uncertainties.
Businesses Must Innovate to Safeguard against Extinction
As there is a continuous need to carry out maintenance of a machine, similarly an organization must also be continuously monitored for any ailing divisions that may be requiring surgery or some other treatment. The emphasis must be laid on innovation, as the executive team needs to conduct in depth research to decipher the prevailing business trends and generate improved solutions to create value for their business organization. A very critical point to be noted here is the concept of preventive maintenance, where the catch is to proactively maintain the machine through continuous inspection and ensuring that the machine is kept in an efficient working state by carrying out proactive repairs before any actual work loss or breakdown occurs. Here if any complacency sets into the approach chosen by the executive team of the business organization, it necessarily overlooks the highly critical innovation through preventive maintenance resulting in guaranteed inefficiencies in conducting its business leading towards the impending organizational failure. As compared to the proactive preventive maintenance adopted for up-keeping the machines, the business organizations must also prevent the organizational break down by converting the challenges faced by them into opportunities through proactive preventive maintenance leading towards effective innovation. If the proactive preventive maintenance is not adopted by the business organizations then sooner or later an epidemic or a catastrophe hits them, putting them in a distressful situation, where getting into the fire-fighting mode is the only option left with them. In such a state of distress, it is quite natural for the business organization to shift its complete focus & energy from its core business objectives towards the fight against extinction, but with little chances of survival.
Innovative Mind Set: Key to Business Survival
Innovation is not necessarily a paradigm shift bringing about business disruption as it may come in multiple forms. For a marketing division it may be an act of identifying new uses its products can serve with an entirely untouched market segment, for the production team it may be an equivalent of a more efficient production process capable of delivering better quality in lesser time & cost, for a chip design organization it may be introduction of a more compact sophisticated design capable of delivering better value, reliability & speed as compared to the previous versions, etc. So a progressive organization needs to continuously challenge the status quo. Its executive team must be intelligently obsessed with the idea of innovation by identifying organizational challenges and converting them into opportunities. This innovative approach needs to be an organization wide culture for an exponential impact on the overall functioning and well being of the organization under consideration. It is a very widely known fact that the organizations which were considered very successful for a series of decades eventually became obsolete because they could not adapt themselves to their changing realities. The real challenge for the progressive businesses lies in continuously reinventing themselves through an innovative mindset to ensure that they remain relevant to the changing business landscape by re-validating their assumptions and redefining their new set of values, beliefs & assumptions on which their complete organizational competencies, strategies, effectiveness, success and long term survival are based.
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