New study unlocks the pattern of effective innovation

Specific combinations of organizational size and styles are dictating innovation success today, according to a study conducted by futurethink, a leading innovation research, tools and services firm. The complete survey results and white paper analysis titled “Cracking the Code of Effective Innovation”, which identify distinct patterns concerning both organizational size and method of innovation as indicative of innovation success and, can may be downloaded at http://www.getfuturethink.com/innovation/index.php?cPath=180_186http://getfuturethink.com/innovation/index.php?cPath=180_186.

The results, collected over an eight-month period, were determined by an online study survey of 251,248 executives from a cross-section of businesses around the world as they rated their organization along the four capabilities essential to innovation: Ideas, Strategy, Process and Climate. Respondents answered 20 questions in this diagnostic, broken down by each of the four capabilities, to help identify their organization’s strengths and weaknesses. Each answer was assigned a specific score and the final score indicated the innovation capabilities of each organization.

Size plays a major role in how successful an organization’s innovation efforts.

“This is not a proverbial case of David versus Goliath, rather a case of David and Goliath,” emphasizes Lisa Bodell, chief executive officer of futurethink. “Our results demonstrate that actually it is both the largest (50,000-plus employees) and smallest (500 and under employees) organizations that are most effective when it comes to innovation.”

According to the survey, medium-sized (5,000-10,000 employees) organizations are “stuck in the middle” and are struggling with their innovation efforts.

The study points out that two very different approaches, when functioning in direct correlation to organizational size, positively impact innovation efforts.

“Typically, smaller organizations, those still exhibiting a more entrepreneurial bent, focus on generating ideas,” says Bodell. “In contrast, larger firms rely on a more formal style that centers on a process for innovation.”

Recent leadership changes at JetBlue underscore the survey findings. The company has evolved from a start-up to a major player in the airline industry and its transition illustrates the growing pains that mid-sized companies can face as they move from an entrepreneurial to an established mind-set.

“Dave Neeleman was an acknowledged innovation leader in 1998 as the head of this then-entrepreneurial airline. Over the intervening years, however, JetBlue has matured its operations and expanded service to 575 daily flights. The result? Entrepreneurial Neeleman recently stepped down as CEO of the organization to take on a more overview role as chairman of the airline,” says Bodell.

The study further shows that organizations have not yet figured out the ideal way of blending these two approaches – and in fact, many are struggling with implementing this discipline to function in a consistent and productive manner. Overall findings include:

• The state of innovation in organizations today is in dire need for improvement.
• The average innovation score was only 8.3 out of a possible 20.
• Organizations are taking the easy way out. They are focusing on capabilities that are relatively easier to manage and control. They are neglecting strategy and process – the more difficult and complicated capabilities required to successfully pull off innovation on a consistent basis.

“The world of innovation is ever-changing. We continually scan the business environment and keep tabs on who and what is effectively evolving the discipline of innovation – this makes our research extremely deep and always fresh,” says Bodell.

futurethink offers cost-effective research memberships that provide unlimited access to its entire research library (http://www.getfuturethink.com/innovation/index.php?cPath=180) that includes weekly innovation scans, innovation resource lists, in-depth case studies, white papers and “best practices” of leading innovators. Individual research memberships are available at $499 per year, with discounts available for multiple and organizational memberships.