Peter Christo

The fundamental challenge in innovation is the underpinning framework within which we engage opportunities. It is similar to the underpinning framework of something like contract law. Contract law underpins our commercial ecosystem that allows us to manage our risk and assure ourselves of the various inputs to our business.

Similarly a corporate innovation framework needs to:

o Promote innovation

o Allow for risk to be taken in line with appetite for that risk

o Compensate the innovator and the business fairly

o Allows the business to capitalise on the opportunity at a level that is appropriate:

§ The business at large

§ In the areas and departments that stand the most to gain.

§ External interests and partners

o Be transparent and accountable to the business, and deliver measurable results.

Commercialisation Management Framework Alpha.

This is a simple framework based on a project or program management office methodology (also used in software development, taught to me by Project Management Office [PMO] specialist, Steve Collard).

The framework has three simple stages, each with three sub stages. It should be noted, that while a program manager may liaise with a PMO re delivery of these projects (depending on their size), it should not be managed by the PMO. PMO’s processes would stall any innovation possibilities.

A word of caution: The following should not be read in isolation. The broader activities and issues related to innovation management should be considered when implementing this framework.

Evaluation –>Execution –>Exit.

Each stage has three sub stages, they are as follows:

Each sub stage has templates and processes but, the key is that once something enters evaluation, it may or may not move onto the execution stage until it is committed to. Commitment (stage) will be determined by the qualification details. One of the qualification factors is of course the time and cost associated with the execution phase.

Example: Someone has an idea for ‘new software’, and while their idea to just build it may be rejected for lack of research stage (at commitment stage), it could however get the ok to spend half a day researching (thus moving to execution). Originators then have to exit and start the next run through with as much of a scope and business argument to get the ‘sign off’ again. Our software developer may get the ok to review some competing software and create a function list.

Some detail about the stages:

Evaluation

Registration - Registration can take the funnel of business ideas and idea creation initiatives and database them into a simple (intranet based) database of ideas (DBI). Nothing more is required of the idea originators, however there is no real scrutiny here, except that the registration (even incomplete) is made by the originator.

The mere act of naming an idea and placing it on a database is a powerful catalyst for developing an innovation culture.

The format can be designed by the business, and should keep in mind that all layers of the organisation should be able to use it.

The registration should include an indication on whether the originator intends to move to the qualification stage in the framework. As a metric generator, this database is a great baseline for ideas bubbling up through the organisation.

Qualification

This is the most misunderstood stage of the process. This stage does not include ‘the doing’, it is not even planning the doing, this is the qualifying the undertaking with enough information so a commitment can be made to move onto the execution stage (part of which may be scoping/planning).

Qualification can be made using a template business argument, and tested against a screening tool (a series of relevant questions that are scored from 1-10). So, even a big idea would be evaluated only on the details of the next stage, rather than the viability of a fully formed business venture. The nest stage might be undertaking the research or prototyping for the business case (which would be a separate project again).

If an idea doesn’t get a Guernsey (ie moves to Qual Stage), it can stay in registration phase while the thinking develops.

The structure of a qualification template would need some thinking, and there is no one size fits all. I have a screening framework which I am happy to share, just comment on here, and ask for the Eval Screen.

Commitment

This is where the ok is given for the next stage. If the qualification has been done properly, this should be straight forward, if however the originator or the team committing to the project has confused the two stages, then it will become bogged down. The idea is to take a baby step forward, in line with the businesses appetite and enthusiasm, and of course the originators skills and resources.

Execution

Scope

This stage could take three minutes or three weeks depending on the project. It is good business practice to plan your work in any field, before you embark on building it. So a event a market research exercise needs to be planned, before it is undertake and reported on. Similarly, the building of a house needs some planning and forethought, nothing new here.

Build

Self explanatory. This is where the work is done. The trick here is not to do more than was scoped.

Deploy

This may mean presenting the report, the beta software, the business case etc. It also means collecting feedback to put into the next run through at qualification stage.

Exit

Exit/Harvest

If this was a venture, the harvest is the bit where someone buys it, or your risk is zero and reward is maximized. In smaller projects, it’s the bit where you complete the job, and have it signed off, even by yourself. Mentally this is important. Each battle won gets closer to winning the war (arguably).

Learn/Educate

The business should be able to share its learning experiences via a range of methods. Training and mentoring, knowledge bases, wiki’s, debriefs etc. Nor making the same errors in the future and accessing tacit knowledge is a powerful capability.

Archive

Drop the documented material somewhere where people can access it in the future.

What Now?

This cyclic approach will generate a venture pipeline which can be made visible against KPI’s to management. Originators need to have their efforts rewarded, and the business needs to include equity and profit sharing in their thinking.

Advice should be sought by commercialisation consultants on the pipeline projects and these should be contrast on external opportunities and synergies the business is involved in.

Good luck!

Peter Christo