understanding opportunity and risk

minimising future risk       creating sustainable advantage       creating opportunity

THE IDENTIFICATION AND ADOPTION OF INNOVATION July 2009

It is a common misconception that “the strongest survives”.

If it was simply a matter of strength we would see mammoths and sabre-tooth tigers roaming around today. Clearly there are none. This means there must be another important factor or factors that determine survivability.

Look through the history of every species, the dynamics of every society – and that other factor becomes clear. Those who survive and flourish are those who have the greatest capacity and responsiveness to change. And as our human world moves faster and as the dynamics become more complex, this responsiveness to change becomes increasingly important for any organisation, any society, to remain relevant.

This requires an understanding of:

• change

• internal culture

• external developments

Of course, this is different for every organisation and every country. Every organisation is a unique society in its own right. It has its own strengths and weaknesses, its own ambitions, capacity, skills and inherent knowledge – its own culture.

If there was only one way to unravel a scrambled rubix cube then everyone would have learned how to do it quite quickly.

One of the key elements of sustainable and progressive change within a fast moving, highly commercial world, is the identification and adoption of relevant innovation. It is crucial to understand the evolving landscape we are a part of, how it is developing, what is emerging over the horizon – how we can use these developments to create sustainable advantage, most especially in times of great challenge.

The most difficult area of this essential development is not resource - it is culture. Some cultures are chaotic and change too much with no control. Some cultures do not change and so will be consigned to history. Within every culture there will always be resistance to change, where change is perceived as a threat - yet change there has to be if we are all to overcome the challenges approaching over the horizon. There has to be leadership. There has to be development - and mutual development most especially in times of great challenge.

This is such a time. For every country, for every company, for every person, this is such a time.

BALANCED INNOVATION: (another way of looking at things) it's not enough to have a good car. The car has to run on a road. The car and the road must have acceptable standards - as must the maintenance and service of the cars and the roads, as well as the breakdown services and the fuel and information on any hold ups along the way. And everyone must speak the same language in order to communicate, to communicate the service history and immediate future needs to increase the effectiveness and the running time of the car and the road.

Without any of these components either the car or the road will stop functioning. If these components do not work together then no matter how good the car or the road, neither will achieve their full potential and will continuously attract high maintenance and cost. We see this in some vehicles. We see this in some countries.

Achieving any level of harmony requires collaboration. It’s the same with business. It's the same with countries. As businesses change, as their markets develop, as new competitors, new expectations, new services transform the business landscape, the established business requires new ways of looking at that landscape to determine the best way forward. Resistance to change and development means the vehicle of business activity does not function as well as the newer models … and slowly but surely becomes consigned to history. Likewise, any country that seeks to alienate itself from everyone else and radicalises its population to fear demons and enemies, to inspire blind conflict will also, in time, be consigned to history.

It is inevitable.

Innovation provides an input into developing sustainable evolution. And yet, within a fast moving world, even as it is inadvisable to have organisational inflexibility, it is equally inadvisable for any organisation to be so flexible as to be chaotic. There has to be control. For the sustainable adoption of innovation this means creating a balance between the everyday restrictions of "business as usual" or tradition, and the complete lack of restriction through having no control.

This is balanced innovation.

A key component of Balanced Innovation is the timely identification of relevant areas of development. Commonly known as "horizon scanning" this gives visibility of what will be tried and tested mainstream within the 3-5 year time frame. This gives a good view of what’s coming over the horizon. Anything beyond this is "blue sky". It would be a waste of finite resources to expend too much time on blue sky developments.

Gaining visibility of these innovations and so the opportunity to maximise business benefits places great emphasis on horizon scanning as well as the free flow of information from those potential major partners. Alienation does not work.

The balancing of innovation and "business as usual" is possible only if specific factors are met. There should be a clear appreciation that indeed this process is a daunting one. Yet more daunting would be the outcome if such a process was not committed to, most especially in times of great challenge.

Standing still in the midst of great change entails unacceptable risk.

In a fast moving world, success comes through organisation … and the will to adopt progressive change. Holding back change does your country or your business no good. It only creates greater tension and greater need for change. The wave is upon us. The question is ... are we to be completely swamped or do we ride the wave and take advantage of its energy and movement? Do we create and harness the next wave? Do we achieve what we want to achieve? Or do we sit back and blame everyone else for the problems of the world? This is the same for companies as it is for countries ... most especially in times of great challenge.

And this is such a time.

Regards

JS

If you don't understand the risks, how can you prepare? Can you afford to let the issues be blurred?

The turbulent 21st century

life isn't black and white

central@alt3.co.uk