When I wrote my first post I mentioned three aspects of productivity I wanted to cover; innovation, flexibility, and speed. The first aspect I mentioned and talked about in detail, in subsequent posts, was innovation. Innovation was also the first key John Chen mentioned in his post on the method for a successful company turn around. This wasn’t a coincidence. There is a reason why we both mentioned it first but that should not be interpreted as an order of importance. As Mr. Chen stated in his post, innovation is what people expect from companies in his industry. It is the most visible aspect for an outsider. It is what is talked about most often and it tends to generate the most excitement. If you were to tell an outsider your company is now faster in delivering it’s products or services, it is now more flexible in it’s operations, and it has improved all internal and external communications you will likely receive a somewhat positive to neutral response. If you were to say your company is producing more innovative products or services you will more than likely receive a much more positive response. It can be argued whether or not innovation is more important than the other aspects of productivity but one thing is certain; it definitely grabs a person’s attention more than the others. This is the reason why it is usually mentioned first.
Once you have that person’s attention they will either assume your company is engaging in ground breaking R&D or they may ask how is it being innovative. If you tell them “inside the box” they feel that it may not be enough. The chances are that reason would not be based on any intimate knowledge of your organisation but purely on preference. People generally like to hear that some thing is “cutting-edge” or radical. As I said in a previous post ‘Innovation, No Its Too Hard – Part 2‘, your decision to innovate inside or outside the box would depend on your available resources. If your organisation has an abundance of resources such as expertise, time, money, et cetera then both options could be considered. If your organisation has a shortage of any one or more of the typical resources then inside the box would be the more viable option.
I read an article on an interview John Chen had where he talked about the two approaches to innovation. He basically said that while “outside the box” is nice it is not necessary for developing great products. He then said that utilising the “inside the box” approach can yield great products also. What he was indicating was that if one already has a good product then “inside the box” innovation could transform it into a great product. To understand his approach you have to keep in mind his specialty; turning around struggling companies. Struggling companies may not have an abundance of money and certainly not an abundance of time. With a shortage of two significant resources, “inside the box” innovation become the preferred method of innovation.
Although we all would like to have radically new products and services derived by “outside the box” thinking, we have to be aware of not only of the available resources but also the risks. Remember the risks are much greater when you develop a product or service “outside the box” than “inside the box”. I am by no means trying to discourage anyone for engaging in “outside the box” thinking. All i am saying is be aware of your resources and risks. Even though John Chen’s company was struggling and short on resources at the time, they still produced a revolutionary product that was well received by their customers. They took the risks and it paid off for them.
In my next post I will talk about the next key to John Chen’s method for a successful turn around and how it is similar to it’s associated aspect of productivity.
Until the next time!