-Jim Carroll
Given the economic challenges that swirl around us and the rapidity with which the events of the fall of 2008 unfolded, a unique and challenging mindset seemed to quickly envelope many organizations:corporate idea factories were turned off, and innovation paralysis settled in.
The result is that we're not just in an economic recession - we're entering another idea recession, similar to what occurred with the last downturn starting in 2001.
And when it comes to marketing and branding, there couldn't be a worse time to let this happen, given the fast-paced now occurring. There's a flood of new ideas around interaction, advertising methodologies, social networking opportunities, branding micro-sites. We've got a flood of ideas, but are people prepared to pursue them?
Here's a reality : while many organizations are focused on hunkering down and micro-managing their way through the recession, others are busy pursuing breakthrough ideas that will vault them into the forefront as the inevitable economic recovery comes our way. This has happened many times before: many people miss the fact that an economic downturn provides a great opportunity for innovation. After all, companies like Burger King, Microsoft, CNN and FedEx all started up during a recession. Many of the ideas that led to Web 2.0 started during the dot.com downturn -- Facebook, Youtube and Myspace come to mind.
Recession a perfect opportunity for "disruptive innovation"In November 2008, right as events were at a fever pitch, Wharton Universities Innovation and Entrepreneurship group released a provocative article strongly suggesting that a recession provided the perfect timing for "disruptive innovation" - that is, stepping into an industry and rewriting the business model so as to achieve significant growth. Think of Steve Jobs and the iPod - which he first released during the recession of 2002.
That's the message I've been focused on for the last six months. I've been busy doing high level keynotes and CEO level meetings with organizations like Burger King, Yum Brands, Ingersoll Rand, Rockwell Collins and others. The key theme? Now is the time to move forward with aggressive, innovative ideas.
So what do organizations need to do?Move past the "shock" and "denial" phases
Events happened so fast that many organizations still find themselves in the "shock" and "denial" phase. They will be the innovation laggards.
First, move to the "acceptance" stage earlier. I began to relate the fast-paced events of the last few months in the context of the "stages of economic grief," an emotional reaction that seems closely related to the "stages of bereavement.
Then there are the innovation leaders who are prepared to innovate despite the uncertainty. They are prepared to keep their idea factory running - maybe not at full tilt - but running nevertheless.
These leaders know that despite the vast sections of the economy in stress, there are still plenty of opportunities for innovative thinking. They know there are still growth markets; and opportunities for marketplace, distribution channel, and operational innovation.
Despite vast sections of the economy in stress, there are still opportunities for innovative thinking. There are still growth markets.
Innovation leaders are aware that ongoing change in consumer behavior also means that there continue to be new ways to brand, grab customer mindshare and forge unique and distinct relationships. One of my clients, Yum! Brands (owner of 50,000 restaurants - KFC, Taco Bell, Pizza Hut) just launched a new micro-site, UnThinkKFC.com, which is already gaining attention as an innovative way of shifting brand perceptions. There's an undeniable need for creative thinking like this out there -- so what are you waiting for?
There are plenty of opportunities to turn ideas into innovation. It all depends on where you want to place yourself on the scale of the seven stages of economic grief.
Bold moves and integrated elementsThe key decision is whether now is the time for innovation, and if so, how to move. It is critical that organizations begin to undertake a series of bold actions that re-orients them to face these future challenges. This series of actions should include several integratedelements:
-Undertake a regular number of experience-focused projects aimed at boosting the "experiential capital" of the organization.
-Identify specific areas of capability weakness, product line, skills or structure that should be addressed through specific.
-Articulate key opportunistic strategies through a variety of risk-oriented initiatives and align the organization to explore those strategies.
-These actions should aim to develop needed capabilities and realign the corporate mindset away from the current risk-adverse culture towards re-orienting the organization for the future.
-The greatest mistake that any organization can make right now is to avoid action. Inertia - real or implied - establishes a culture of inaction, and that can lead insurance organizations down another slippery slope.
Clearly, that's why today, innovation isn't an option, it's critical - because it is the key method by which we can gain traction.