With all this change happening, there is a growing need to adapt much quicker and that leads people to feel there is an innovation imperative, the need to create more innovation. But at the same time, structurally, many companies just aren’t set up to deliver continuous innovation. Even when some companies reach moments of brilliance and create a new product or service that makes the company successful, that can also create the seeds of their own destruction. This happens when they feel that their new offering is the ultimate solution, and that is only thing they know how to do well. The real solution is to “adapt to the new world as it comes along” and keep changing, keep innovating.
Specific suggestions were given on how to refocus to increase a firm’s internal speed of change:
- Get everyone on same page. Create a common language on innovation. Start with a vision, a specific strategy, goals and definition of what innovation means for the firm. “Create shared understanding, a shared set of beliefs and ownership. Get real agreement and momentum so everyone not pulling in different directions.” Brendan mentioned that he is completing work on a new collaborative, visual change planning toolkit that “literally gets everyone on the same page.” He also mentioned that he is looking for firms to work with as case studies. Volunteer firms to help contribute to his book.
- Increase the speed of decision-making. Determine who the decision-makers will be, make clear who they are, know what data needed and pull that together, develop a specific decision criteria, even go as far as have a designated decision room and have everything there, then, time box it by setting in advance time limits for decisions. One of the key ways to kill innovation is have delays in making decisions.
- Increase the speed of commitment. Be prepared to go fast by having all your ducks in a row. Get people used to going fast by providing a process and tools they can use and trust.
- Increase the speed of resourcing. Know that your resources are not just financial and data, but human resources including a new way of thinking. You need your people to go outside of job description/requirements and you need resources outside of your organization. Liberate and incorporate vendor partners, customers and employees and all their skills. Develop staff so they can do 80 percent in job description but can also do 20 percent to grow to be an asset to the firm over time, so they can contribute their full skills/talents not currently being used in their primary existing role or job description. This also becomes an excellent retention strategy.
- Increase visibility of change effort. There's a need for strong leadership sponsorship, clear communication and investment in building your culture. Anticipate resistance and replace fear of unknown with curiosity. Innovation and change are team sports.
Since most companies don’t currently have the capabilities to do ongoing sustainable innovation, how can firms start building these capabilities? A suggestion was offered as one way to go about this is to partner outside of the organization. Strong strategic partners can help identify weaknesses, bring in service providers to help bolster your efforts and weak spots. This kind of outside-in collaboration can help you get prepared to go fast. Working on this in advance of the need gets you ready for when you push the “go” button. But, it was emphasized that you need that vision and commitment first to innovation and change for that to work.
Another suggestion was to use some of the many change management models available like Kotter’s Eight Steps, which are all quite useful in a big picture way, but Braden disagrees with Kotter’s emphasis on short term wins being hugely important. As explained before, he feels the core concept is the speed of change, of how fast you absorb and adopt change. ”It’s all really about the momentum, not just focus on early completions or quick wins. Focus should be on more regular wins and an agile approach, sprints of a duration that the company can cope with. There are problems where people have early wins and celebrate but do not keep up the momentum.”
At the intersection of innovation and change is the need for speed, strong leadership and making the right external partnerships.
The Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial services firms. We position our members with the necessary ongoing innovation resources and coaching to drive and facilitate their growth, differentiation and unique community engagement strategies. The institute was launched with the support and foresight of our founding sponsors -- Innovation Equity Partners, Pershing, Voya Financial, Ultimus Fund Solutions, Fidelity, MeridianIQ/AdviceIQ, and Charter Financial Publishing (publisher of Financial Advisor and Private Wealth magazines). For more information or to join click here.