Five Common Mistakes in Innovation

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"Connect and Develop" is a wonderful strategy for P&G, because of who it is, the categories it plays in, and the structural systems and DNA of the company. Just because something is good for P&G doesn't mean it will be good for the rest of us. The mechanical application of inappropriate methods has led to the failure of more than one innovation program.

• Descent into a cycle of self-recrimination

"Our people just aren't creative enough."

Looking to external sources of inspiration can sometimes have further unintended consequences if the firm decides it can never measure up to the level of external case studies. It's not unusual for innovation planning teams to benchmark other companies only to come away feeling that their own problems are insurmountable. As it turns out, they may be looking in the wrong place.

Companies such as 3M (MMM) are instead returning to what has made them great in the past. It's a generalized form of what organizational-change experts call Appreciative Inquiry: Search inside yourself for moments of greatness, determine which activities spurred these moments of greatness, and then figure out how to do more of that. Virtually no companies in the Fortune 500 got where they are by accident. Savvy leaders capitalize on their organizations' strengths and capabilities to create sustainable approaches to growth appropriate to their inherent cultures.

• Resignation to superficial changes

"Let's just paint the walls purple."

Perhaps most depressing of all are the companies that turn away from significant structural improvement in favor of cosmetic changes. After benchmarking several Silicon Valley companies, one firm noticed that many companies it admired had yellow and purple walls. The team went back and painted the walls of their offices yellow and purple, thinking this might actually make them more innovative. While color can influence behavior, and there's something important to be said about the effect of environment on creativity, such initiatives alone usually aren't enough to actually change the DNA of the organization.

Changing the Game

A few years into the business fad of innovation, the conversation around the space is changing. Some companies, such as General Electric (GE), played around with quick hits, harvested the low-hanging fruit in front of them, and moved on to the next thing. Other companies, such as Ford (F), have draped themselves in innovation terminology only to keep on doing business the way they always have.

The companies that are realizing the biggest bang for their innovation buck, however, aren't on the front page anymore. While out of the public eye, companies such as Hewlett-Packard (HPQ) have been digging deep and doing the long, hard work of transforming into innovation leaders for the long term. They can see the script for innovation isn't a mystery. It just takes a long time and a lot of change to pull off. That's why right now we're discovering just who has game and who just wants to claim the title of innovation to look good.

Dev Patnaik is the Managing Associate of Jump Associates. Jump helps companies build new businesses, define new products and services, and create cultures of innovation.