While we are always interested in what our colleagues over at McKinsey have to say on the subject of innovation-enabling in organizations, we often see their various observations from a quite different perspective.
Reading between the lines of their recent survey, entitled Making Innovation Structures Work , we noticed a couple results being stated in ways other than how we might state them.
The McKinsey report states that, of the 2,927 organizations surveyed, “33% ranked product and service creation innovation as their companies’ primary focus over the next one to three years”….That would seem to indicate that a much larger number (67%) consider areas OTHER than products or services to be their primary innovation focus over the next one to three years.
Primary Innovation Focus: Next 1-3 Years
33% Products & Service Innovation
67% OTHER Organizational Innovation
Certainly many of the organizations that we work with are seeking help to tackle all kinds of organizational challenges – not just those related to product and service creation.
As important as new product and service creation continues to be, savvy organizational leaders recognize that product and service challenges are often entangled in other organizational challenges, including innovation skill-building, innovation leadership, integration of data/information streams into innovation, cross-vertical collaboration, leadership alignment, and innovation culture building. More than having innovation as a corporate value, having an integrated innovation-enabling strategy is key.
What we see is a rising recognition of, and interest in, “The OTHER Innovation” categories.
We did agree with several other findings in the McKinsey report related to innovation integration in organizations, including this one:
“...While an overwhelming majority say their separate functions’ organizational structures have a positive influence on outcomes, these functions face the same challenges regardless of structure. This finding reaffirms the classic need for strategy (a key factor for success) to precede structure when companies decide to create new innovation functions. Companies should also focus on other enablers, such as C-level [Leadership Team] support, which the results indicate can drive success—and take care to tailor the function to existing company objectives and culture. Companies cannot rely on a single innovation function alone to create successful outcomes; it must be integrated with the entire organization.”
You can find the McKinsey Report here.