There is an entire science around innovation.  We saw that innovation is about bringing ideas to the market, and that this is critical to the long-term success of the organisation. 

This, therefore, places a sizeable responsibility of the Board of Directors, legally bound to act in ‘the best interests of the organisation’.  At the very least a proper understanding of what is innovation, and what are the characteristics of an innovative organisation,  is necessary.

Innovation can take many forms, but these can be reduced to four directions of change, an "innovation compass", to enable and organisation explore all areas in the search for innovation.

Product innovation: changes in the things (products/services) that an organization offers.  This can be incremental, such as for Microsoft Windows and Apple OS versions, new versions of established car models, and improved incandescent light bulbs.  It can also be radical, that is, new to the world software, Toyota Prius, the Tesla, LED lighting, Spotify.

Process innovation: changes in the ways in which they are created and delivered.  For example, incremental innovation includes improving performance of manufacturing processes in industries like steel or chemicals, adapting service concepts like mortgages or insurance products.  Examples of radical innovation include low-cost airlines, direct line insurance, etc.

Position innovation: changes in the context in which the products/services are introduced.

Paradigm innovation: changes in the underlying mental models that frame what the organization does.

The ‘innovation space’ is pretty wide.  The glass ceiling is probably the entrepreneurial attitude of the organisation and its ability to act on ideas, bringing these to the market. 

Organisations must embrace change and create settings that allow creative talent to thrive.  This needs to be continuous, a culture rather than a single project.  CEO and board leadership are critical.

This will be the subject of another article.