Step 5: Be resilient to create a cost-conscious culture in your innovation agenda

If you are introducing cost-cutting in your innovation agenda, your ultimate drive is to create a cost culture that sustains itself over time and is not forgotten three months after being announced by the leadership.

Your final goal is that your workforce feels that the organisation’s investments are personal investments, which can benefit all.

Still, organisations are living creatures in changing contexts. So, strategic cost-reduction priorities should be regularly reviewed and updated in the same way as business opportunities are.

And so we find ourselves where we started: needing to map out intervention areas at micro and macro level, both good and bad costs, and clearly define and (re)align everyone with your cost strategy over time. Ensure that you have the best methods in place to address each area in an efficient way, using top-down yet privileging bottom-up approaches in your innovation agenda.

For bottom-up approaches, also review the communication plan at hand to help your employees understand the tweaks and turns. Let them have an active role in the process of building the company’s future together.

It will take time and some effort, since resistance is normal under less favourable circumstances. It will take people’s commitment.

Yet, with strong leadership, a clear and well-defined strategic cost-cutting programme and the awareness of shared responsibilities, an organisation can reinvent itself and learn how to do so continuously, as models are challenged and new opportunities arise.

This continuous engagement of your workforce will also make your employees more cost-conscious, imposing a more effective cost and spending culture.

 

Andreia Agostinho Dias, Sales Executive
Diana Neves de Carvalho, Exago’s CEO

Access the Five-step Guide to make cost-cutting work within your innovation initiative here

Innovation training day: Exago team updates its facilitation skills

With the aim of improving our team’s skills as innovation workshop facilitators, several Exago employees are attending a certified Workshop Facilitation Training in Lisbon, Portugal.

The session covers topics such as better communication, posture and participation promotion and is arming our teams with the latest facilitation tools and techniques. It was designed to enable them to provide our clients with informative and engaging innovation workshops that draw the most benefits throughout the innovation cycle.

How innovation can help you conquer the new generations

A Gallup report shows that US companies lose $350 billion in revenue every year due to employees’ disengagement. In fact, 70 per cent of your employees are probably disengaged. Yet full participation is an emotional commitment that cannot be forced.

With the Millennials and Generation Z joining the workplace, the challenge rises: no longer can we believe that it is enough for a company to provide the work, and that an employee’s motivation will come naturally.

What is more, data shows that employees want to be more innovative at work and want to take more responsibility. This tells us that fostering creative environments and innovation initiatives will also nurture motivation, engagement and, therefore, productivity.

Three perspectives on the value of making companies more inclusive and collaborative

Innovation can be defined as the development of customer value through solutions that meet new, undefined, or existing market needs in unique ways. Solutions may include new or more effective products, processes, services,  technologies, or ideas that are more readily available to markets, governments and society.

The development of a corporate culture where innovation is incentivised and becomes the way of doing business can bring companies several advantages, according to different points of view:

  • From an organisational perspective, managers encourage innovation because of the value it can capture. Innovative employees increase productivity by creating and executing new processes, which in turn may strengthen competitive advantages and provide meaningful differentiation. Innovative organisations are inherently more adaptable to the external environment; this allows them to react faster and more effectively to avoid risk and capture opportunities.
  • From a managerial perspective, innovative employees tend naturally to be more motivated and involved in the organisation. Empowering employees to innovate and improve their work processes provides a sense of autonomy that boosts job satisfaction.
  • From a broader perspective, empowering employees to engage in broader organisation-wide innovation creates a strong sense of teamwork and community and ensures that employees are actively aware of and invest in organisational objectives and strategy.

In this sense, managers who promote an innovative environment can see value through increased employee motivation, creativity, and autonomy; stronger teams; and strategic recommendations from the bottom up.

READ MORE:
How to create a culture of collaborative innovation in younger generations

FROM THE START:
Loyalty is no longer enough to both employers and the workforce

Aylin Olsun, managing partner of ASO Company
Diana Neves de Carvalho, Exago’s CEO

How to pick useful and feasible ‘fights’ for innovation challenges

Here’s a simple but essential tip when establishing your innovation challenges: pick ‘fights’ that are useful and bring attainable value to your organisation. This means you need to guarantee your programme is relevant both to your people and company, namely:

• Make sure challenges have business relevance: Don’t solve problems you don’t have. Key business challenges make the most relevant innovation challenges.

• Also, remember to have problem sponsors: International idea management programmes have triumphed by negotiating innovation challenges with particular business unit leaders. Take leaders’ challenges and label them innovation challenges. This way, you’ll have your own champions. Understand, as well, what your champions’ motives are for solving the problem, since this builds you a stronger base from which to negotiate.

• Engage fully your C-level and innovation team: Prioritise those challenges that are useful to your C-level and make sure these leaders approve and support your initiatives. Leadership’s active involvement is key for programme success. Also, make sure that your innovation team is truly dedicated, embracing the tasks at hand.

• Identify key problems that need solving and can be solved: Look for discrete barriers to progress or opportunities within your innovation portfolio of projects. These can be articulated in a way that others, even those from diverse areas of expertise, have a chance to make important contributions to your progress. Also, be sure that your problems can be realistically solved. You need to raise the stakes, but you can’t afford to misuse resources.

HERE’S WHAT OUR CLIENTS SAY ON THE SUBJECT:

‘Sponsorship’s impact is enormous, and we can clearly see this in the number of average market users. In years with higher sponsorship from the CEO and space in internal communication, as well as more attractive prizes, we have many more active users.

‘A staff of committed people must be present in the back-office. No leader can do things alone.’

‘The feasibility of an idea is mostly a function of one’s capability of elaborating, processing and developing it. Newborn ideas are neither good nor bad. They are just ideas (usually very raw). As a matter of fact, the final implementation is always very different from the original idea. Instead, good problem setting is very relevant.’

 

FINALLY, TRY THESE ACTIVATION QUESTIONS:
  • How relevant is this problem? How urgent?
  • Whose problem is this?
  • Who can sponsor and promote it?
  • Can this problem be solved?

Diana Neves de Carvalho, Exago’s CEO/ dnc@exago.com
Francisco Bernardes, Exago’s head of Innovation Services/ fmb@exago.com

READ MORE:
How to mobilise the right audiences for innovation challenges

FROM THE START:
Your ultimate innovation challenge – what works and what doesn’t

Fighting for your audience? Take on the right incentives

Your customers will always be glad to share with you insights on how to improve your product. They’re probably doing it now in some way, though irregularly and outside any structured innovation management framework.

Nevertheless, if you’re looking for specific expertise or creativity focuses, you can’t expect the answers to land on your doorstep. You need to give people some kind of incentive to think ideas through, getting them to share their best contributions. ‘Why should I participate in this programme, anyway?’ is the question potential participants will certainly ask.

Which incentives should I use?
You need to opt for both self-promotional – leaderboards, reputation enhancements and community recognition events – and material incentives – money, products and experiences. This is particularly relevant if you’re running a competition or targeting the general public or consumers.

Make sure that the company you pick to help you with initiatives takes this route, providing a detailed overall plan of programme incentives and articulating which activities should be promoted and how this happens. The template model needs to accelerate decisionmaking. These elements must create clear links between incentives and rewards, aligned with programme objectives and organisational brand values.

In addition, the chosen online platform should implement a horizontal incentive scheme that covers each stage of the open innovation process. It must also integrate gamification techniques and game elements such as points, badges, leaderboards and digital currency rewards (which participants can exchange for material prizes) for each valuable interaction with your platform.

This model allows programme managers to promote the desired behaviours of targeted stakeholders or communities. Finally, you need to be able to manage your programme easily for brand awareness, quality of proposals and quantity of interactions.

(to be continued)

Pedro da Cunha, Exago’s co-founder/ pdc@exago.com

FROM THE START:
Open innovation and the fight for your audience