Is Your Company Choosing the Best Innovation Ideas?

Case Solution

This Case is about COMPETITIVE STRATEGY

PUBLICATION DATE: July 01, 2011 PRODUCT #: SMR388-PDF-ENG

There is not any dearth of resources or guidance on the best way to turn corporations into fountains of creative thoughts. Yet, as veteran leaders of invention efforts ponder, the issue for most big organizations typically is not a dearth of thoughts – it is figuring out how to ferret out the great ones. As seasoned executives understand, delegating choices that are crucial come with dangers. The corporation may wind up encouraging notions senior management does unworthy; instead, it might not pursue jobs top direction would have boosted had they recognized about them. This post, predicated on research on more than 10,000 discovery suggestions from within a large multinational corporation, analyze what occurs when thoughts are screened through a big organization. Senior managers must design systems, or funnels, where the thoughts they are likely to favor are either (a) chosen by subordinate supervisors for additional assessment at their amount or (b) if the thoughts are of sufficient value or guarantee, flagged to the interest of top management for additional assessment. In a sense, in choosing great thoughts, the actual challenge is optimizing the tradeoff between the prices of both missing out on great thoughts as well as the direct choice prices on the one hand and executing the incorrect thoughts on the other.