Launching an innovation management system does not have to be guesswork, and it is simpler than most organizations think. Unlike routine processes, innovation thrives on continuous change. Waiting until you can get it totally right misses the point. Innovation is not a destination; it is a mindset. This means getting started is easy, and you can continuously iterate to explore, improve, and enhance.
Here is a collection of the most popular innovation management questions we have been asked over the years, and what best-in-class companies believe are sound strategies and operating models to address them.
Question 1: How can we build a system if we have not settled on an innovation management process?
You will never fully "settle" on a process, and that’s okay. It is true that having a process is necessary to move beyond idea capture. An innovation management system evolves alongside your organization’s needs, helping to shape the right process over time. This includes focusing on the right problems, identifying big challenges, and fostering an innovation ecosystem. The initial process should be simple and adaptable just to get started. Adjust it as you learn and adopt new practices.
Pro Tip: Create a basic framework for collecting and reviewing ideas weekly. Focus on selecting one idea to explore further, and refine the process based on feedback and results.
Question 2: Who in the organization should manage innovation?
The starting point may be different from the final destination. The best place to start is the line of business (LOB) owner who shows the highest interest and has funding to support the innovation initiative. Ideally, innovation should be overseen by a center of excellence team, eventually evolving into a formal Innovation Management Office with CEO support. This team would act as a shared service to ensure innovation becomes integral to the organization’s culture, daily work, and standard processes. A good innovation management system includes templates, a communication strategy, and clear processes to quickly launch activities. This allows a small, central team to act as the innovation hub, enabling advocates across different LOBs to launch their own initiatives.
Pro Tip: Identify an interested LOB owner and set up a small task force to launch initial projects. Create a roadmap for transitioning to a centralized innovation team over the next 12 months.
Question 3: How do we get our executives to support the innovation program?
Start by demonstrating value. Executives want clear ROI and progress metrics. Focus on tracking and reporting the right metrics: alignment with business strategy, financial impact, competitiveness, agility, risk, and required effort. This approach will secure executive buy-in, ensuring the program addresses key business priorities.
Pro Tip: Develop a presentation that shows the program’s alignment with strategic goals. Include a pilot project and expected ROI to demonstrate early wins. Schedule a meeting with an executive sponsor to review and gain initial buy-in.
Question 4: Where should we innovate first?
Innovation projects can be highly impactful if aligned with corporate strategy. This challenge-driven model ensures that ideas receive attention and funding, leading to successful projects and outcomes. For organizations just starting out, focus on simple, continuous improvement challenges, such as “What should we stop doing?” or “Where should we innovate next?”
Pro Tip: Hold a brainstorming session with key stakeholders to identify pressing challenges. Choose one challenge to focus on and launch a pilot project aimed at achieving quick wins.
Question 5: How can we make sure we get disruptive ideas?
If you want your innovation program to be focused on disruption, ask participants to submit challenges they face and look for patterns. Combine similar challenges to identify areas ripe for disruptive innovation. Do not use a stage-gate approach; instead, follow an agile innovation model that allows for multiple experiments. Continuously refine your experimentation strategy by increasing the number of experiments, reducing costs, and celebrating learnings from failures.
Pro Tip: Launch a company-wide challenge to gather problem submissions from employees, then use workshops to identify patterns and pinpoint one area ripe for experimentation. Start with a manageable project that explores a bold idea, keeping the scope limited to reduce risk while focusing on quick learning within the first six months.
Question 6: How do you control the volume of ideas so we can actually review and act on them?
Instead of ad hoc idea submission, focus on a challenge-driven model that clarifies the types of ideas needed. Designate a challenge owner who is responsible for engaging users, evaluating ideas systematically, and delivering results.
Pro Tip: Launch a focused innovation challenge (e.g., “How can we cut operational costs by 10%?”) with a designated owner. Set criteria for idea submission, and establish a regular review schedule.
Question 7: How do we keep people engaged?
Be transparent about your innovation process, and let submitters see the status of their ideas. Establish clear guidelines for response times, ensuring that users are notified of key milestones. If an idea is rejected, provide feedback on why it was declined and how it can be improved for resubmission. Ensure visibility for all contributors by highlighting outcomes achieved, demonstrating that the company actively supports innovation efforts.
Pro Tip: Implement an innovation dashboard where employees can track the status of their submissions and overall progress. Communicate results regularly to maintain transparency and motivation.
Question 8: What is a good engagement rate for a typical innovation activity?
Engagement rates depend on who is involved, the duration, and the type of innovation activity. Contributors can include employees, customers, suppliers, and others. Results correlate with contributors' circles of influence and depend on the rewards and recognition systems in place.
Pro Tip: Set an engagement target for your initial challenge, such as 20% participation. Analyze results and adjust communication strategies and incentives for future challenges.
Question 9: What type of rewards work best?
You need a mix of soft and hard rewards. Hard rewards work well for external ecosystem contributors and occasional innovators. Soft rewards are essential for sustaining a culture of innovation and should be tied to HR performance metrics. Active participation in innovation should be part of every job description.
Pro Tip: Start by surveying your workforce to understand what types of recognition and rewards are most meaningful to them. Create a tiered rewards system with both immediate incentives (like gift cards or extra vacation days) and long-term recognition (such as professional development opportunities or inclusion in performance reviews). Regularly evaluate the effectiveness of your reward strategy by tracking engagement and the quality of submissions to ensure your system evolves alongside your innovation culture.
Question 10: How do we celebrate failure?
Stopping bad investments early has value, as does helping others avoid the same pitfalls. If an experiment fails and there were learnings, then a celebration is in order. Clearly define what constitutes a "good failure," as innovation will naturally result in more failures than successes. Tracking the cost of experiments and rewarding learnings from failures will drive more resources toward experiments, increasing the likelihood of successful innovation outcomes.
Pro Tip: Create a “Failure Wall” where teams can share lessons learned from unsuccessful experiments. Hold quarterly reviews to recognize teams that took bold attempts and gained valuable insights.
Summary
The good news is that phasing in an innovation management system can be straightforward with a challenge-driven approach. As you progress, you’ll see both immediate benefits and long-term growth. While careful planning is important, progress often comes from starting small and adapting quickly. Choose one simple challenge to address, measure the impact, and let your innovation system evolve naturally.
