June 12th, 2008 in Management

Innovate in the Downturn – 7 Things You Must Do

Grasping the Sun Bill Gates recently said, “We are in an economic downturn but an innovation upturn.” Most people are focusing on the downturn and the dangers it poses rather than on the opportunity for innovation. Most businesses are restructuring and streamlining their operations. How can you maximize your chances in the change maelstrom? One way is to take a positive approach to change and to be seen as an innovative go-getter who will help make the re-organization a success. Here’s how:

1. Adopt a positive attitude.

Like Bill Gates — see the opportunity. Don’t be cynical about change. Don’t assume the worst. Don’t believe and repeat rumors about management’s conspiracies to do down the workforce. Change is inevitable for every organization so it is time to start liking it. Change means new opportunities, new responsibilities, and new things to learn and do. People who are positive about new challenges are more likely to be given them. People who are resistant to change and reluctant to adapt are the first to be culled.

2. Become a change agent.

Make suggestions. Introduce ideas and recommendations. Look for ways in which your department could bring in new products, business processes or partnerships. Ask yourself — is there a better way to meet the needs of our customers? Anticipate trends and suggest ways of changing the department to exploit new opportunities and new technologies.

3. Listen to customers.

Where can you find the ideas for change? One source is customers. In your dealings with clients you should make a point of asking how your product or service could be improved. What do they like and dislike about your offering? How are their business needs changing? What will they need in the future? Even better than asking them is to study how they use your product or service. What difficulties do they encounter? How could you alleviate the problems and make their life easier? Do they use your product or service in conjunction with others? Could you co-operate with another company or combine your product with others to bring an innovation to market?

4. Watch the competition.

Keep an eye on what they are doing and any innovations they introduce. Ask customers what other suppliers are doing that is smart and new. Study their initiatives and see what works. Suggest ways in which you cannot just match the competition but leapfrog them.

5. Be sensitive to office politics.

For most ideas it is best to talk them through with colleagues in your department and in other areas to test their workability before you speak to your manager. That way you have checked out the concept, cleared some obvious objections and gained feedback before you propose it. It will sound better thought out. However, there are some ideas that are so sensitive that it would be silly to bat them around the office before proposing them. You have to choose your moments carefully. Often you can prepare the ground by describing the size of the problem and agreeing how pressing it is before you introduce your idea. Catch the boss when he or she is most receptive. Sometimes it is best to introduce your big idea outside the hurly burly of the office. If you can buttonhole the director in the pub or the car park you may have a better chance of a good hearing.

6. Don’t insist on the glory.

If you spark an idea and then other people adapt and improve it then that is fine. By letting go you have a better chance of it being adopted than if you insist on driving every aspect of the initiative because it “was your idea in the first place.” Sometimes the cleverest tactic is to let your boss take it over as his or her idea. People will still know that you were the one who planted the seed.

7. Be prepared for rejection.

Most managers are analytical and critical. They are good at finding fault with other people’s ideas. The more radical your proposal the more likely it is that people will feel uncomfortable with it. Propose it carefully. Lay it out in a logical way and explain the benefits. But if your boss disagrees then don’t fall out over it and don’t bypass him. Let it lie fallow for a while. I once worked for a CEO who would tear new ideas to shreds and ridicule them. But the next day he would often say, “I was thinking about that idea of yours and I can see a way to make it work.” His initial reaction was to oppose an idea just to test it. But once the germ of the idea was in his head he could find ways to develop it. Above all don’t stop bringing forward ideas because the first few are rejected.

Change means winners and losers. If you can be known as someone who is creative, innovative and a driver of change then the chances are that you will emerge a winner. Not only will you survive the change but you will be given the responsibility of making part of it a reality.

WRITER'S BIOGRAPHY

Paul Sloane

Paul Sloane is an author and speaker on leadership, innovation and lateral thinking. His most recent book is The Innovative Leader. He helps organizations improve innovation, creativity and leadership. He is the founder of Destination Innovation. He has written 15 books of lateral thinking puzzles and hosts the lateral puzzles forum.

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  • B Smith @ Wealth and Wisdom says on June 12th, 2008 at 12:50 pm

    I find the biggest opportunities occur during economic downturns. You just need to be alert and look for it. Most companies are looking at cutting costs. This is important but should never be at the expense of your customer. Instead look for ways to better serve your customer.

  • Jeff Ruley says on June 12th, 2008 at 9:14 pm

    One, I agree that economic downturns are great opportunities for innovation. Two, I agree that the points you make are good things. However, I don’t think the two go together. I think the things you talk about should be present no matter what the economic condition, and the successful companies are the ones that implement those things no matter what the state of the economy, marketplace, political landscape, etc.

  • Madeleine McGrath says on June 18th, 2008 at 5:45 am

    I agree that seeing downturn as an opportunity is a massive opportunity. But I also think we have to acknowledge the real anxieties that people have when the economic climate is so testing. Developing the psychological hardiness that is implicit in many of Paul’s recommendations is important, but so too is fine tuning your judgement as to where innovation and change will give an advantage, and where good old cost cutting is what is needed. Managing that paradox will be testing for many.

    For innovation to thrive, leaders must create the right context for their people, giving them freedom within a credible framework. Peter Drucker labelled this the era of the Knowledge Worker, and whilst there is no doubt that organisations the world over have been making efforts to adapt to this reality, the progress for my taste has been slow! The great thing about crises is that they force us to look at the situation and ask what we can do about it. Maybe it will take a crisis like today’s to provide the necessary boost for that gradual evolution to become a revolution in the way we get the best from our people?

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