Do Your Innovation Emperor, Rules & Idea Management Help or Hinder the Process?

by Robert F. Brands with Jeff Zbar

In the pursuit of innovation, many “enlightened” companies try to follow what they believe are established morays and best practices.

They install someone to manage new product development or innovation. They set up a litany of rules. And they select only the “best” ideas for further development.

Then they wonder why innovation falls fallow.

A recent study from The Nielsen Company. found that companies with acknowledged, successful innovation practices also have limited involvement from senior management. The teams are guided, but freed of stifling controls.

With the premise, “Manage Ideas Lightly, Manage Process Precisely,” the study of 30 top consumer and package goods companies found that ideation and new product development must be structured, but unconstrained. The companies enjoyed 80% more new product revenue when senior executives were less involved in managing innovation. The study also found that the companies realized 130% more new product revenue with less rigid “stage gates” or measurable reporting goals along the way.

In short, smart companies – Apple, Starbucks, Whole Foods and IBM, for example – have an innovation an environment that removes the constraints and welcomes a free flow of ideas, noted Tom Agan, the Nielsen SVP and managing director who presented “Renovating Innovation” at Nielsen’s Consumer 360 conference in June.

“One of the keys to successful new product innovation is to manage new ideas lightly,” Agan was quoted in DrugStore News. “While we don’t dispute senior management’s strengths and good intentions, they are often too quick to get involved in the creative process, especially when things are not going well, and their mere presence can stifle free-thinking and boundaryless ideas — which can doom the new product development process to failure.”

I agree – to an extent. This is much of what “Robert’s Rules of Innovation” espouses from its inception. To be sure, meddling leadership can stifle the process. But effective innovation thrives under the guidance of a CEO or , supported by the Board, with the authority to provide the air cover needed to protect unfettered (but deliberate) innovation, and the soft hand to foster creative, imaginative innovation.

Any and all ideas should be welcomed, Open Innovation from the inside as well as outside and fed into an innovation Idea Hopper , where they can be further developed, if not in the near-term, then when market conditions or forces allow for such development.

The limited involvement of management is the real gem in Nielsen’s findings. While the CEO is the best possible champion for any company’s innovation strategy (after all, support at the highest level generally helps ensure adherence to vision, mission, strategy and ultimately resources), such support also must encourage lower and mid-level management’s embracing of the concept the CEO or CIO is selling.

With objective and not to be forgotten reward systems and incentives aligned, pursuits have the highest chance of taking root.

Agan also noted the need for stage gates and scorecards to measure results. In fact, observation and measurement is essential to effective innovation. Such deliberate focus provides consistency and keeps teams on target and .

The removal of stage gates can help expedite and foster unfettered innovation, as long as the required steps are still incorporated. Yet this only works if such blossoming of ideas is followed by deliberate pruning and cultivating to ensure the best ideas are pursued at the best possible moment, which – in turn – ensures the best possible opportunity for commercialization or market exploitation.

The challenge for the CIO or Emperor, especially in larger companies, remains to encourage hearty pursuit of innovation – without meddling by VPs, who have full plates, unique silos or fiefdoms, and objectives and rewards that often are contradictory to the very premise of the innovation goals. Such mis-alignment can kill innovation.

Instead, an inspired Emperor must lead the charge. He or she must align agendas, and figure out and pull into line the objectives of fully engaged teams and leadership. Across the ranks, those involved in successful innovation are rewarded or bonused accordingly. Such uniformity builds consensus, helps remove conflicting agendas and can ensure.

In the end, the Emperor will find him- or herself ruling over an empire where ideas thrive, goals are met, and innovation blossoms.

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GUEST POST by Robert F. Brands

Innovation counselors and organizational consultants alike extol teamwork as the key to shared success. For projects or new initiatives to succeed, it’s said all involved have to be “on the same page” or working together as one.

But does that include innovation initiatives in the corporate environment?

Actually, look at the basketball court for comparison.

This month, Lebron James, Dwyane Wade and Chris Bosh – each highly successful and well-paid athletes – gave up a chance a millions more in salary to play together on the Miami Heat. Their belief: By bringing their individual skills together on the basketball court, they had a better shot at winning an NBA title.

Then there’s the tale of Michael Jordan. Some years ago, an assistant coach on the Chicago Bulls chided Michael Jordan for the star player putting on a stellar – albeit individual – performance in a team win. The coach stated the now famous line, “There is no ‘I’ in team.”

The statement has come to epitomize the place of players in a team performance. For a team to be successful, the thinking goes, there is no individual.

To the contrary, there are many “I’s” in team. Individual initiative is the hallmark of successful innovation. Certainly, everyone must collaborate in the push toward a common goal. Each has his or her place in the process: One person or group performs market research, another crunches the numbers, a third may draft a marketing plan to support the product or initiative.

Then there’s the heterogeneous nature of corporate teams. Aside from differing skill sets, these individuals bring unique characteristics – their own outlook, style or points of view – that help place their stamp on the project. In my experience, homogeneity that leaves the “I” behind also jettisons the desired results. A diverse team is a more productive team.

Each is working toward that common goal. But each also is a soloist – even within the smaller subset of the individual teams. Each knows his or her brand is on the line, ready potentially to shine with success, or tarnish with failure.

It’s been said there are two types of successful people in the business world: Those who are entrepreneurs, and those who think like entrepreneurs. The “I’s” among us fall into the latter group. They are leaders, champions of the cause. They’re passionate and willing to stick their necks out for a cause or to deliver on a project or promise.

They represent the best that individualism in the corporate environment has to offer. They take ownership and focus their individual efforts on their part in accountability and ROI .

They eschew the resistance common with team-think. They’re willing to speak up and speak out. They put their beliefs out there – and the whole is better for it.

A team can be full of these people. Team managers (Chief Innovation Officers or Champions tasked with creating the teams to pursue innovation initiatives) must seek them out. They should look for the heterogeneous characteristics that bring diversity in the ideation process. With such variety across the teams that comprise innovation (including R&D, Customer Service, Marketing, F&A, and the like), there’s no missing dimension.

The result promises to be more complete.

Once his assistant coach spoke that famous line, Michael Jordan’s response was even more telling: “There’s an ‘I’ in ‘win”

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GUEST POST by Robert F. Brands

Creativity in the form of fresh ideas, whether from executives, salespeople or customers, is an invaluable resource to any organization. But these ideas need guidance and structure in order to achieve the key goal of innovation – profitable growth. To successfully channel ideas into a profitable result, it is necessary to establish a formalized new product development (NPD) process, from concept to launch.

The new product development process is often referred to as The Stage-Gate innovation process, developed by Dr. Robert G. Cooper as a result of comprehensive research on reasons why products succeed and why they fail. It’s a system of best practices for organizing a new product development team once ideas land in the organization’s “idea hopper”and passes the hurdles and criteria to go to the concept stage.

The Stage-Gate innovation process has two key elements.

1. Stage. The “stage” refers to the critical activities that need to take place during a certain stage of product development. It is important that the new product development process be cross-business to give balanced ownership. So “stage” content should be divided amongst all business functions.
2. Gate. The process of “gating” involves ownership, decision makers, degree of flexibility, criteria and prioritization. This includes a selection of ideas and concepts from the hopper.

During the new product development process, build a system of metrics to monitor progress. Include input metrics, such as average time in each stage, as well as output metrics that measure the value of launched products, percentage of new product sales and other figures that provide valuable feedback. It is important for an organization to have agreement of these criteria and metrics.

Even if an idea doesn’t turn into product, keep it in the hopper because it can prove to be a valuable asset for future products and a basis for learning and growth.

Remember that it is possible to nurture both creativity and structure! Here are some tips for how:

• Open Wide: Keep the idea funnels wide open, find and fill the product “white spaces” – untapped marketplace opportunities.
• Sharpen Those Teeth: Make sure your Go/No-Go decision checkpoints have “teeth.”
• Widen the Innovation Highway: Make the system lean, adaptive, flexible and scalable, in order that you can simultaneously process different types and risk levels of projects and increase sped to market.

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GUEST POST by Robert F. Brands

In order to achieve innovation, a champion within an organization must take ownership – one of Robert’s Rules of Innovation imperatives. The champion, whether an officer or executive manager within the company, has the responsibility of convincing others to work outside their comfort zone, even if they are resistant to change.

To take ownership, the champion, ideally somebody that is passionate about the initiative, must first take responsibility of the project tasks and decisions, form the team and then clearly communicate what’s expected to the rest of the team. The champion’s unique and challenging job is to sell the new idea and convince the team to take calculated risks while working towards that goal.

Some of the most successful product development managers are often successful salespeople in the company, because their talent is building consensus around a brand new, untested idea and convincing others to wholeheartedly work towards that cause with an uncertain outcome. It is the champion’s job to empower and inspire the team towards Innovation.

That’s why it is essential to have a leader for every product development team – a powerful, respected champion for the cause, a passionate leading advocate and ultimate decision-maker.

Next, it is important to establish and maintain regular New Product Development (NPD) meetings. Here are some key points for these meetings:

• Face to face (in person) is best.
• Keep a regular date, time and duration.
• Clearly state the meeting objectives in a written, pre-distributed agenda.
• Include cross-functional teams in the meeting: marketing, sourcing purchasing, sales, operations, quality assurance, etc.
• Review New Product Development by priority level (high/medium/low).
• Set next steps and a clear-cut action plan. Follow through and instill accountability.

Everyone on the team should feel like they are part of the process to get a sense of Ownership. To test Ownership, here are some questions you should ask:

• Who’s Driving This Thing?: Your program for sustainable Innovation must have a champion, a true driver of the process.
• Where’s the Passion?: Select associates who care and are truly passionate about the product and the effort. Kick disbelievers off the bus – this is too important for naysayers to derail.
• Different Strokes for Different Folks: Assign a specific task to a dedicated “owner” – this is critical to unleashing the best performance out of each member of the project team.
• Is incentive compensation aligned?: Make sure the incentive and recognition programs are supporting and rewarding the results and those involved.

Ultimately, ownership must extend beyond a single person to be embraced by the whole organization. The true test of ownership is simple. Ask them, “Excuse me, is this yours?”

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The Story of Gilette

by Robert F. Brands with Jeff Zbar

Think your company must innovate to stay ahead of the competition? Imagine being a product manager at Gillette.

Beset by competitive forces from all sides, whether it’s rival manufacturers looking for an edge or fickle consumers looking for the next best shave, the Procter & Gamble subsidiary is forced to innovate – or go dull.

In its mandate to “innovate or perish,” the company this month introduces the Fusion ProGlide. The new, multi-blade razor features seven new “innovations.” Whether this is the next – or the last – step in shaving innovation remains to be seen.

The real lesson offered by a close inspection of Gillette is how shavers are just part of its current role in men’s grooming. Worldwide, the company’s grooming and toiletry products part of a larger strategy that keep Gillette ahead of the competition – and a model of innovation.

Still, a question emerges from among Fusion ProGlide’s batch of “improvements.” Can innovation go too far? Can innovation – solely for innovation’s sake, or to encourage more consumer purchases under the expectation that something’s “new and improved” – be simply too much? Where do meaningful innovations end – and the hype begin?

A little history: Shaving traces its history back to the dawn of civilization. In 3000 BC, early metalworking led to the first blades for removing body hair. “Modern” shaving arrived in 1800s England with the creation of the first straight steel razor. This soon was followed by the first “hoe-type” razor that puts a single blade perpendicular to the handle. The timeline continues and by the 1880s, the safety razor was invented.

By the 20th century, a salesman named King Camp Gillette helped create the first double-edged, disposable safety razor blade. High quality and low priced, he soon sold 51 razors – and 168 blades. By the 1980s, dual-blade razors are introduced. By 2005, razors feature five blades.

Grooming innovation seems beset by an “enough is never enough” mentality. Case in point: the Fusion ProGlide. According to its marketing materials, the product “incorporates a series of unique technologies that address critical areas” for a better shave and incredible comfort and performance. These include “Low Cutting Force Blades,” that are thinner with finer edges and “an advanced low-resistance coating.” It has a blade stabilizer, a “Snowplow Comfort Guard” to channel excess shave prep (lather?), and a “Microcomb” to guide hair to the blade. Its “Enhanced Lubrastrip” is larger than previous strips – and is infused with mineral oil and lubricating polymers. It has a “Precision Trimmer,” a comb guard to better align long hairs, and new rinse-through slots. The handle has been redesigned for getter ergonomics.

Shaving has come a long way. But has it gone too far?

Interestingly, a new innovation at a company like Gillette doesn’t mean “out with the old.” The company still sells its Sensor XL. And while the Fusion franchise is its top revenue producer (ProGlide retails for $22.99 for six cartridges), its Mach 3 line tops the charts in unit sales, a company executive says.

Would-be innovators can learn a lot from Gillette. Its expansion into other areas of men’s grooming – not just shaving – keep it strong against the competition.

The Process of Innovation

Then there’s the process of innovation itself. Every new product begins with consumer research, says Damon Jones, the company’s Global Communications Director. Studies tell the company consumers want a better, more comfortable shave. The company tested the ProGlide with some 30,000 men.

“We measure our success in the real world, not just in the laboratory,” Carl P. Haney, Gillette’s Vice President or Research & Development, said in a statement. “Our deep understanding of men, their emotional motivations, their daily grooming rituals and the physiology of their skin enables us to deliver meaningful benefits, not technology for technology’s sake.”

Some question the value of innovation versus the marketing machine that drives it. The company spent millions on pre-launch promotions. Gillette is giving away 1,000 free ProGlide samples via its Facebook page – just to get people to try the product and hopefully spread the word.

I’m wary of the hype. It’s possible that seven new innovations are worth the money (full disclosure: I’ve not tried the Fusion ProGlide). But while Fusion was Gillette’s largest revenue generator, did the fifth blade really add consumer value vis a vis comfort? The product was criticized by industry followers for being more smart marketing than genuine innovation. To be sure, innovation comprises much more than radical or breakthrough moves. But marketing noise can make concerning consumers suspect.

Which begs the question: With seven innovations packed into one razor, have consumers seen the last innovation from the shaving category? Not likely. In its quest to lead the pre- and post-shaving category, Gillette will continue to watch the competition (they “keep us on our toes as well,” Jones says). And it will talk to consumers. “That’s how we’ll come up with next innovation and the evolution into men’s grooming, as opposed to shaving,” he adds.

Criticism and hype notwithstanding, I admire what Gillette has and continues to accomplish. Its deep-pocketed R&D and marketing support is unrivaled in the industry – and sets and example for any innovation-minded company to follow.

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GUEST POST by Robert F. Brands

Without , there is no innovation. Action items won’t get done, programs will lose traction, meetings will fall off the calendar – the issue can be as frustrating as “herding cats”.

Every company culture needs accountability. Actually, for any company to succeed accountability is an imperative. Members of a corporate team need to feel responsible for their work – to meet deadlines and to deliver what was agreed upon. Holding others accountable begins with clear communication of what is expected of them and even getting the agreement in writing if necessary.

So to expect creativity in developing new products at your company, hold your team accountable. Schedule New Product Development meetings. Set clear action items and expect follow-through to keep the program moving along. Team members need to feel responsible for delivery.

Now there’s the left brain vs. right brain argument that creative people cannot be organized – that creation loves chaos and therefore creatives are not able to deliver on a set schedule. But for a group of creatives who feel responsible for the outcome of their project and accountability for what happens within the company, Robert Brands assures you that in his years of experience leading project development teams that he has seen plenty of people who are creative and competent in delivering work on schedule. If you struggle with accountability, monitor and have your team report on smaller, interim steps in between monthly meetings. These tips should be helpful in encouraging accountability in your organization…

• Give Them Enough Rope To…: The natural tendency is to dictate terms – deadlines, methodologies, etc. Let the team members decide upon the “how it’s going to get done” elements. Should they go a bit off the track, you can always fine-tune. Or, better yet, lead a discussion on how they can fine-tune.
• It’s Expected: State clearly, from the outset, that the team members will be expected to develop the answers to work-related issues – it will be their responsibility.

Ultimately, it’s about people knowing their roles and that there are limitless possibilities and positive rewards for jobs performed in an organization that insists on Accountability.

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How Much Can Innovation Sell Pies?

by Robert F. Brands with Jeff Zbar

First, there was pizza – round dough, with cheese, sauce, and toppings.

Then, competition arrived, and the simple pizza pie simply wasn’t enough.

Delivery companies began a string of innovations. Hand-tossed, think-crust, “Chicago-style,” stuffed crust and “Meat Lovers” were among the pies du jour. Then one chain rolled out cheesy sticks. Another offered various desserts. Then, a line of pasta – in plain tin pans, or in bread bowls.

Most recently, the New Product Development team at Domino’s posed a remarkable innovation: It created what it called a “better” pizza. Aggressive marketing hyped its culinary research into its new taste, and the company rolled out its new pie – seemingly same as the old pie, only tastier.

Innovation in the delivery pizza category is as circular a process as pizzas are round. This doesn’t include sit-down pizza restaurants, like California Pizza Kitchen or the string of “coal-fired” pizza chains.

Innovation, in pizza or Corporate America, is a double-edged sword. Pizza companies invest immense time, energy and brain power conjuring up the next innovation. With industry sales softening and competition razor sharp, a simple innovation can turn the tables. Yet, innovation done “Just Because” can fail miserably.

Innovation extends beyond mere product. A broad approach to innovation based on consumer needs or habits can invite loyalty and deliver long-term returns. Look at brick-and-mortar companies that have introduced online innovations – beyond the du rigeur services like online ordering – like the ability to list and keep lists and favorites. This brings customers back, and boosts the relationship between company and customer.

Domino’s recent move toward taste is a noteworthy innovation for a number of reasons. Essentially, the company went back to the foundation of its business: “Build a better pizza, and they will come.” Domino’s – even the entire $22 billion pizza delivery category – needed something. At a time when sales across the category were as soft as unbaked dough, the market responded. The company recently reported a 14.3% rise in comp sales among stores open at least one year – a remarkable, almost unheralded feat in the fast-food business. Christopher Muller, a professor of hospitality the University of Central Florida in Orlando, told USA Today, “No one in the industry thought it was going to be this successful.”

But innovation trends continue. One of the most recent “innovations” revolved around pricing. Five-dollar pies, or $5.55, or three for $15. Buy one, get a bottle of soda. Toss in some bread sticks with the latest dipping sauce. But pricing alone isn’t innovation. In fact, pricing doesn’t drive long-term loyalty or differentiation. Pricing just begets lower pricing from the competition, which drives down margins and profitability.

Alas, price and taste alone aren’t long-term fixes, either, especially when a company is public and answers to Wall Street as much as it does its Main Street. Though its stock had been up 70% over the past year, Domino’s stock dipped almost 13% soon after news of its double-digit sales growth. It seems some had projected even stronger growth following the chain’s marketing and discounting.

Then there’s the issue of the original brand or concept promise delivery pizza heralded: Speed and service. Domino’s was built on a 30-minutes-or-free mantra. The idea was, it’s hot, or it’s free. Over time, it seems they’ve strayed from this commitment. Although this is historically has been an imperative in many delivery chains’ success, they must stay focused on this.

So does the customer really want a $5 pie? Or a tastier pie? Or meat, pasta or cheesy sticks?

Or does the customer want a hot pizza fast? (Hint to pizza delivery companies: That might be the next game-changing innovation).

Between the recession and innovations in the frozen pizza business, forces have been brutal on delivered pizza companies. This makes Domino’s taste “innovation” all the more noteworthy.

Will this sort of innovation continue. Given market competition, it will have to. These companies will have to find new lures to hook customers. But few innovations seem to deliver long-term allure. As Doyle conceded to USA Today, “If we did this every quarter for seven years, we’d be bigger than U.S gross domestic product.”

If you’re an innovation officer or employee charged with new product development, there’s much to learn from the pizza industry’s example.

If you’re a pizza lover, you can only hope the industry’s pursuit of innovation continues.

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GUEST POST by Robert F. Brands

Companies and organizations turn to governing boards for so many critical elements these days.

Boards of Directors guide overall strategy and direction. Appointed Audit Committees pore over corporate financials and performance. HR / Compensation Committees ensure the organization’s on track with hiring and benefits that keep it competitive. Each has been formed to inform, advice and support the CEO in his or her the ethical- and policy-backed pursuit of protecting shareholder / stakeholder interests.

Yet in the Age of Sarbanes Oxley-like governance across the organization, why doesn’t innovation have such oversight?

While attending the CEDEP “Innovation-In -Action” this April at the Insead Business School’s Europe Campus in Fontainebleau, France, business leaders and top minds in innovation mulled the importance of creativity and new thinking in the organization. We discussed how innovation “tournaments” can drive critical thought, how capability-building drives ROI amid investable propositions, and how to create and nurture innovation champions from the bottom up who overcome organizational resistance.

At the CEDEP event, I spoke with Andrew Sleigh, the former group Managing Director and Chief Technology Officer with robotics and defense contractor QinetiQ, and an adjunct professor at London’s Imperial College. Andrew is a strong advocate of innovation governance. His beliefs in many ways mirror the 10 Imperatives in “Robert’s Rules of Innovation” that are required from a Governance perspective. Andrew espouses – among eight concepts, the value of innovation, skills assessments, and creating incentives to reward effective efforts.

Innovation Governance would require appropriate audit capabilities to measure outcomes, a board-level framework to ensure input and involvement, and explicit engagement with executives across the organization – just like any company or organization faces with SOX-type governance. A Chief Innovation Officer and or CEO would be getting board mental and policy backing.

Without this framework – and governance oversight, many innovation initiatives fail to take deep-seeded root within the organization.

The real issue boils down to the well-being of the organization – and the board’s willingness to create an environment that fosters sustainable health and continued growth. Governance with regard to innovation is more than just another committee. Competitive forces – especially in organizations that have been leaned-down, streamlined and fat-trimmed to the bone – beg the wise, thoughtful implementation of innovation. Assuming board members and executive leadership agree that we’ve lived through the decade of growth through Mergers & Acquisitions, and maxed out the value gained from lean manufacturing and operations, profitable growth drivers will have to be derived someplace else.

I would argue that well-considered innovation and related intellectual property will be the growth driver in the 21st Century. To make that happen, you need to elevate innovation higher than just the CEO or a C-level innovation exec. Beyond his or her required inspiration. It will have to encompass the entire C-Suite, the board – and the governance policies that guide them.

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Why Results Require Rewards: Encouraging Action With Incentive

by Robert F. Brands with Jeff Zbar

Imagine a company that has taken the time to consider the role of Innovation in the corporate mission. Employees were encouraged to be part of the innovation process but their reward was compensation linked strictly to output.

Does that encourage value-added thought process? In my mind, it encourages work, which should need no encouragement at all.

Now, what if that same company put a reward system in place whose reward system was based on innovation and results, not hours or labor? It aligned reward to patents granted, products launched, or sales achieved? And its reward process was integrated along side its Vision, Mission, Strategy, and Resources/Budget?

I would argue that that organization has asked itself a key question: What motivates your team to excel in innovation? The answer is Net Rewards for Net Results.

Many companies see cash as the ideal motivational perk. This might not be the case. A recent survey from McKinsey found that three non-cash motivators rise above all other forms of incentive:

1. Praise from managers
2. Attention of leadership that takes place in one-on-one conversations
3. The chance to lead projects, teams or task forces.

Such nods and recognition topped even cash bonuses, increased base pay, and stock or stock options – the three top-ranked financial incentives, McKinsey found.

“The survey’s top three nonfinancial motivators play critical roles in making employees feel that their companies value them, take their well-being seriously, and strive to create opportunities for career growth,” the McKinsey report noted. “These themes recur constantly in most studies on ways to motivate and engage employees.”

Though being discussed last in the list of the 10 Imperatives to Innovation, “Net Rewards and Net Results” arguably holds equally high a position as any other imperative. There’s a fundamental connection between the two. Rewards must be in alignment with the expectations of the organization and its people. Some organizations seek to innovate, but try rewarding people based on R&D spend. It is a worthy financial metric, but is no guarantee for success.

Incentives should not be about output or spend. It’s about “thought-put,” and the creativity, ideation and esprit de corps brought to the effort.

Done right, rewards the organization in search of inspiration, motivation, ideation – all the imperatives that drive innovation. It rewards the individual for performing at a high level, and the team for working effectively as a Unit of One.

For the organization that seeks results, incentive is a kind of Reward ROI. By investing in employee rewards as a carrot, think of innovation as ROI derived from the alchemy of ideas-to-money. As we’ve written before, innovation leads to improved performance, heightened sales, more black on the bottom line. This profit – whether in actual product on the street or improved organizational performance – brings benefit to all stakeholders: shareholders, executive leadership, employees, customers and consumers.

Various perks can drive incentive. Incentives must be earmarked for all participants at the table. This may include the development team itself, to the marketing, finance, R&D, sales, customer service or people from other departments who helped with ideation, market research, justification or any other process that went into creating the new initiative.

For example, in the NPD process, the team or division should be rewarded with a compensation package that includes a percentage of sales derived from new products delivered. The neat thing about NP sales is that success is rewarded and people stay engaged and involved they care post development or launch.

Simply put, the fruits of your team’s labor benefit all – and rewards must reflect that. Moreover, this type of validation acknowledges individuals’ ability to envision new concepts, help shepherd them through the R&D process (even if the individual is not part of R&D, per se), and play a key role in bringing product to market.

Rewards can enhance valued employees’ commitment to the organization, boost morale, motivate future efforts, reinforce positive outcomes, encourage repeat performances and help keep employees’ “eye on the ball” vis a vis innovation and ideation. It also strengthens the connection between strategy and results.

In sum, when Net Rewards are based on Net Returns in the innovation process, everybody – the organization, the innovators, the stakeholders and the consumers – wins.

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GUEST POST by Robert F. Brands

“Excuse me, is this yours?”

If someone asked members of your Innovation Team about “ownership” of a current initiative, would individuals reply, “Yes”?

Or would the people involved point to the team leader, the CEO or someone else – someone other than themselves? Would they reply, “No, that’s his”?

I spoke recently with a CEO of a consumer products company who expressed disappointment that an idea for an exciting new wrinkle in sunglasses technology had faltered. In doing so, others had beaten the company to market.

Why did this happen? The “Leader” admitted he’d failed to sell the idea. “Others just didn’t get it,” he said. “Their hearts weren’t in it. They were moving forward out of duty, not out of passion. And we dropped the ball.”

In the world of Innovation, it’s the Chief Innovation Officer’s job to marshal forces, to empower, to inspire, and to transform team members into stakeholders of the process or project. In short, it’s to create and encourage a spirit of Ownership.

As one of the 10 key Innovation Imperatives “Ownership” ranks up there in importance with Ideation, Risk, Results, Idea Management and .

Ownership = Accountability = Foundation of Innovation

Put as a business equation, Ownership Equals Accountability Equals the Foundation of Innovation. Without accountability, ideas stall. Progress dies on the vine of best intentions. Any real chance at success is lost.

Without ownership, positive results are almost impossible to achieve. A team member cannot point to the Chief Innovation Officer or team leader as a project’s or initiative’s owner. Every participant along the innovation process’s chain must embrace accountability as a champion of the idea, the development process, the success – and the failure – that may come in tow.

To be sure, Champions at the highest level – like a CIO – have the authority and (and should have the passion) to garner organizational respect needed to push Innovation from the idea stage to development and ultimately to fruition. Champions build consensus, convince others to take calculated risks and to work outside their comfort zone.

But Ownership must extend beyond one single Champion. To be sure, a champion at the highest level ultimately drives projects forward. But “ownership” must be claimed by all involved, encouraged by the senior project manager, but wholeheartedly embraced across the organization.

How will you know a project has been welcomed into the hearts of its team? Ask one question:

“Excuse me, is this yours?”

The response will give you your answer.

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