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Managing Innovation

© Bert Markgraf

One of the main differences between large and small companies is the way innovation should be handled. In large companies, the top managers are not usually close to any but the largest customers and they are hardly ever close to production. Their job is therefore to cultivate innovation in those who are in the field and on the shop floor and to decide which innovative ideas are worth pursuing.

In small companies, the top management knows the whole business - in fact they probably did most of the jobs as the company grew. The management can therefore be the source of good, innovative ideas as well as deciding on applying them. The key role of management in small businesses is to convince everyone to follow on the innovation track with enthusiasm and dedication.

Most employees are selective in the kind of innovation they will favour. "More", "faster", "better" etc. is an easier sell than "different". You'll have no trouble getting employees to accept faster computers but just try changing the word processor.

If you manage a small business and have an innovative ("different") idea, you will have to consult your employees, if only to make sure there is nothing important you have missed. If you know your business, it is unlikely that such consultations are going to change your mind about proceeding with your project but the exercise will still give you valuable feedback.

Once your ideas are re-confirmed, you can advise your staff that the project is going ahead and that you need further input on implementation. This is where you can get everyone on board. If the project itself was non-negotiable, there are always many ways to implement it. Set down guidelines on the things that can't be changed and let your people run with the rest. If the goals are clear and the fixed parameters set down, a large percentage of your staff will try to make the best of the situation and the results can be better than you expected.

For some interesting real life cases of innovation management from a slightly different perspective try this link. Happy innovating.