Electric Dreams @Tate Modern
Connecting Dots is a monthly newsletter that demystifies innovation leadership.
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Starting a New Innovation Mandate
This is the first article of three answering the question of how to start a new innovation mandate from two perspectives: executive and manager.
In this article, let’s first address what an innovation mandate is and why now.
Why Now?
Due to commercial, environmental, technological and geopolitical forces, innovation in many organizations has gone from important to vital.
Innovation, like any form of change, is always important in theory, but it generally needs to be seen as existentially vital to happen in practice.
This shift from important to vital is why many senior leaders are thinking about how to answer the call of a new innovation mandate that is now central to their role.
With an innovation mandate, you will either be expected to develop new solutions or to adopt new solutions someone else has developed in a way unique to your organization and in service of your performance goals.
A new mandate to innovate comes from primary stakeholders. Often the primary stakeholder is a board or shareholders, but they may also come from regulators, society, customers and employees.
The job of an innovation mandate is to state the desired outcomes that innovation will serve and the reasons for doing so.
This is where many executives and stakeholders currently are. They have a mandate to innovate, and they are working out what exactly they are asking of their teams and organizations.
Where to start?
A new mandate means there is a shift in expectations for innovation due to one or more of the following:
Rate - increase, decrease or sustain
Resources - new technology, capabilities or capital
Return - different desired outcomes from innovation
The trick with a new innovation mandate is that it won’t outline what to make or how to do it. That’s your job.
A new innovation mandate is not a traditional change management process. That approach is why 94% of executives report disappointment with innovation outcomes.
Traditional change management is very effective in delivering known solutions to known problems.
Innovation requires change leadership, which develops new solutions to emerging challenges/opportunities.
Unlike your existing BAU, success or failure is determined by three primary characteristics of a new innovation mandate:
Emotional - Innovation triggers strong emotional influences, and emergent behavioural responses are a central but overlooked aspect of successful innovation leadership
Specific - Innovation is a unique situation of leadership with its own dynamics, capabilities and practices that can be decoded and influenced
Systemic - Innovation plays out as a multiparty negotiation, where how the parties collaborate is a primary driver of whether the desired outcomes are realized or frustrated
That is why traditional innovation processes and theories aren’t enough. They typically have an isolationist approach, are focused on one role (innovator, founder or intrapreneur) and try to force everyone to work a prescribed way. That’s fine for a traditional R&D pipeline, product delivery or other forms of iterative innovation on a well-established mandate, but unsuited to a new innovation mandate.
How to start?
So if you have a new innovation mandate, start with the expectation that the solution needs to be discovered and will be emergent. Then, intentionally empower two parallel protagonists of the executive view and the manager view.
The executive holds innovation as one part of the portfolio of tasks in their role. Whether a CEO, CFO, GM, country manager or division head, innovation is one of many topics you are responsible for driving or enabling. It’s not like your other tasks, yet it’s easy to treat it like any other task.
As a manager, driving innovation is entirely your task. You may be part of more than one innovation initiative, but continuously improving and implementing the solution is your focus, in service of the executive vision and the authority granted to you.
These two levels form a working alliance that informs each other with links to the primary stakeholders inside and outside the organization.
For the primary stakeholder triggering a new innovation mandate (e.g. board chair), your task is to protect the mandate developed by the executive, be consistent in the desired outcomes and guide managers towards a balanced risk profile at the portfolio level.
Next month, we'll explore the executive role in delivering the innovation mandate.
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Learn more about how to lead innovation with relentless calm.