Webster’s definition of potential is:  1. That which has power; potent; 2. Possible; latent; unrealized; undeveloped

Thus it follows that creative potential means: the unrealized power to cause something to come into existence.

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Let’s use a football analogy. In football, the quarterback gets paid for what isn’t. He gets paid for putting the ball where it isn’t. He doesn’t get paid for moving the ball around or running the ball, or calling the plays. He might do that, but he gets paid for putting the ball where it isn’t. And a good quarterback knows how to get the ball where it isn’t.

The next day newspaper articles are published about the game. But journalistic reporting doesn’t make quarterbacks any better. On the other hand, if the coach is any good, his form of communication can make a big difference to the quarterback in getting the ball to where it isn’t. What we refer to in regard to leading innovation is called coaching communication, as opposed to journalistic communication.

A good leader of innovation knows how to gather and analyze the facts, take a look at what the elements are, and has enough experience and training to know how things work. But that isn’t enough to make a great leader. If you want to be an outstanding leader, pay very close attention to what is not. You’re actually paying attention to it whether you are aware of it or not. So, if you know that’s what you’re getting paid for, you can start doing it intentionally.

GoInnovate! is your guide to getting the ball to where it is not.

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One of the reasons so many family businesses fail to transition from one generation to the next is they do not pay sufficient attention to innovation in their business, industry and marketplace. Although innovation drives the early years of the family business, the following generations often tend to become “caretakers” rather than innovators.

The ultimate challenge to increasing growth, profit and sustainability is to achieve the proper balance between the “traditions” of the family’s business and innovation. For a family business to succeed from generation to generation, it will have to overcome the tendency toward being risk-adverse as it matures. Simultaneously the proper attention, support and funding must be given to embed to make innovation a core competency. 
 
So, how does a family business embed innovation into its culture?
 
There are three primary requirements for a culture of innovation:

1. Values and Personal Skills: The values of openness, intention, courage, integrity and calmness are essential. And creativity, collaboration and leadership skills jump start and sustain the innovation process.
 
2. Process:  Teams are more effective when there is a structured approach to guide their thinking as they transform ideas into innovations.   
 
3. Environment: There are forces inside the organization that will either enable or inhibit innovation. Aligning these forces - People, Structure, Processes and Technology - in support of innovation is the responsibility of family leadership.  
 
In sum, the capacity to innovate is impacted by who we are (values/skills), what we do (process) and the environment in which we work (context). When a family business interconnects and integrates these three components, it will have a culture of innovation.

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The drive to innovation as a source of growth and competitiveness is prompting company executives to revise their company structures and processes in order to enhance their level of innovation effectiveness. For this to be useful, the innovation process needs to be understood within the context of their specific business environment and their company goals, strategies and resources. Merely mimicking another successful company’s approach could be counterproductive if the drivers, requirements and gaps are significantly different.
 
Though innovation can occur via both planned and unplanned routes, it is difficult to design for that which is completely unknown. However, by understanding key facilitators of the innovation process and incorporating critical behavioral as well as structural factors, probabilities of success could be substantially improved for deliberately designed innovation projects. The change in the underpinnings and fundamentals of the organization would also better prepare it for recognizing unplanned opportunities and taking advantage of them in a timely fashion. 

As started in a previous post (New View of Leadership) we are taking a look at the three main skills required for leaders of innovation.  Today, you walk your talk as you model innovation for others.

A leader of innovation must be a model or example for others to follow.  As a leader you are always under the microscope of evaluation.

These are the five areas where leaders can model innovation by example:

Conversely, imagine an organization where people are smiling, happy to be at work and optimistic about the future. Something is very right about how this organization is being managed.

To achieve this state, leaders need to create an environment where people are prized for their individuality and their participation in the innovation process. Leaders must demonstrate that they care about people by rewarding creativity, celebrating individual differences, prompting everybody to participate in the innovation process, and recognizing the role innovation plays in achieving personal and organizational success.

When leaders are able to create this type of atmosphere, employees begin to believe that they are productive contributors to something bigger than themselves, something that is worthy of their efforts. These people truly begin to have fun with their work!

So, how do you walk your talk?  Leave your examples here.  I would love to see what you are doing to model leadership and innovation for others (and yourself).

Traditionally, leaders have been viewed as heroes who have all the answers. This perception is an obstacle to innovation. Under that model, employees attempt to innovate if they are told to innovate, when they receive their directions from the top. They feel they do not have to think for themselves; that is what their leaders do.

When leaders of an organization are seen as heroes with all the answers, creative thinking and innovation are stifled.

The systems approach to innovation suggests a special kind of work for leaders. Today, effective leadership is more about knowing oneself, modeling the right behavior and enabling others to perform at their best. As we said earlier, an enlightened leader is a gardener who assures his or her people have the right empowerment and environment in which to innovate. People follow these leaders because they believe their leader is guiding them toward a better future. Anyone in an organization can be a leader, for it is not defined by one’s position in the organization hierarchy, but rather by one’s attitude, knowledge and skills.

Attitude

Innovation leaders recognize that they make a difference in the organization. In some cases, they make the difference. This type of leader very often takes a service approach to asking what he or she can do to help others succeed. This stands in contrast to the command and control style of leadership. Innovation leaders simply desire to make a real contribution to their organization and the lives of the people they work with every day. They are committed to doing what it takes to see that happen.

Knowledge

Leaders of innovation have a knowledge base that extends well beyond their industry. They know how to build a shared purpose and a desired future state for the innovation. They are able to hold onto the ideal when reality appears quite bleak. They know how to challenge the status quo for the purpose of creating a climate for innovation and change. And they build commitment to the actions necessary for innovation, thus attracting and retaining quality people.

Innovation Leadership Skills

The three skills leaders of innovation need to possess are what we call

1. Modeling
2. Enabling
3. Introspection.

With these three skills a leader can guide others in innovating successfully time after time.

We will explore each of these skills in more depth a a short series of articles later on this week and the next.  In the meantime, ask yourself this question:

“What are some ways I can enable those around me to innovate?”

In addition to dealing with limited budgets, looming deadlines, and the rate of change happening in the outside world you also have to take notice of the rate of change and innovation within your own business.

And this change is largely due to everybody’s belief systems, and how they ‘understand’ things to be.  Each person’s beliefs and expectations affect their every thought and action, and are pervasive in the company culture.

In order to embrace new beliefs that better serve the business and align with the changing world people will have to be disappointed by the leader as they are challenged to let go of their old beliefs.  However, these beliefs are very dear to them, and many will fight hard to hold onto them when challenged.

And so the question for the leader now becomes…

“How do I disappoint others as a leader in way that promotes continual growth and belief change?”

This is a very delicate art for a leader to master.

In adaptive leadership theory leadership has been defined as “Disappointing people at a rate they can understand.”  This definition offers a valuable insight into how leaders should challenge others beliefs - at a rate they can understand.

This means at a pace they can follow, and at a rate of change that is not so uncomfortable that they shut down or resist the innovation.

What does this mean to you as a leader?

The next time you are heading up an innovation take special care to ‘disappoint others’ (challenge their belief systems) at a balanced rate:  balancing it between change and comprehension, between pushing the comfort zone and overwhelm.

Use The Skills Of Collaboration To Maintain The Balance:

1. Reflect - slow down your own thinking to become aware of your own patterns.
2. Inquire - explore the beliefs of others and the reasons behind them (very important).
3. Advocate - once you understand their beliefs you are now in a position to better advocate the need for change (and they will be more likely to listen to you now that you have listened to them).

When you slow things down you can actually end up going faster.

How have you been disappointing others lately?

Company Highlights

• “A+” rated by the Better Business Bureau.
• Featured in The Robb Report Collection, The Franklin Report, MovingInsurance.com, and GreenMoversUSA.
• Voted Citysearch “Best Mover”.
• On the Inc. 5,000 list for the fastest growing companies for the third consecutive year.
• Top 100 Fastest Growing Private Companies by the Los Angeles Business Journal.
• Top 50 Fastest Growing Private Companies for the third consecutive year.
• Ranked number four in the Top 30 Best Places to Work by the San Fernando Valley Business Journal.

Laura shares NorthStar Moving’s ’secrets’ to success in areas of customer service, passion, knowing your target market, and collaboration in company culture.

“Make sure your marketing dollars are targeting the right group,” Laura advises to other businesses and talks about how NorthStar Moving has continued to grow in spite of tough market times.

Listen in:

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Innocentive has been seen in Inc., Wall St. Journal, Business Week, Discovery Channel, U.S. News, Newsweek, Forbes, NPR, New York Times, TIME .

In this open interview Dwayne shares some new thinking on innovation and the power of collaboration such as:

• Crowdsouring as innovation and the new open innovation model.
• Why “[Company] Culture Eats Strategy” for lunch.
• The power of diversity and original, and creative solutions.
• How cross fertilization of ideas leads to new breakthroughs across all industries.
• A challenge for you: are you a seeker or a solver?

Listen in to the interview now.

Click to Listen

We are offering you a unique opportunity to learn the GoInnovate! Sytem for innovation and to network with other professionals on innovation.  We will be offering a 2-day, in-person seminar October 6-7, 2009 in San Diego, California. This is the only in-person workshop, open to the public, that will be offered this year.

Class size is limited to ensure we provide you with the best possible learning experience.  We encourage you to bring a team and bring a current challenge.  Early bird registration ends August 28, 2009 so sign up now to save $200 of the regular price.  For more information visit our website.