Steve Clean The Three Pillars of World-class Company Innovation

Posted on by steve clean

My good good friend Alexander Osterwalder, the inventor of the business model canvas (certainly one of foundations of the Lean Methodology) has written a playbook (alongside together with his affiliate associate Tendayi Viki,) From Innovation Theater to Growth Engine to clarify learn how to construct and implement repeatable innovation processes inside an organization. 

Right here’s their introduction to the important thing ideas contained in the playbook.


Over 75% of executives report that innovation is a high three precedence at their firms. Nonetheless, only 20% of executives point out that their firms are able to innovate at scale. That is the problem for up to date organizations: How one can develop a world-class ecosystem that may drive repeatable innovation at scale.

The playbook describes the three pillars of company innovation: Innovation Portfolios, Innovation Packages and a Tradition of Innovation. Beneath every pillar, the playbook describes three questions that leaders and groups can ask to judge whether or not their firm has the fitting innovation ecosystem in place.

Innovation Portfolio: what are your organization’s portfolio of innovation tasks?

  • Are your organization’s innovation efforts exploring or exploiting enterprise modes?
  • Does your organization have a balanced portfolio of tasks that cowl effectivity, sustaining and transformative innovation?
  • What’s the well being of your innovation funnel or pipeline?

Discover: Seek for new worth propositions and enterprise fashions by designing and testing new enterprise concepts relatively than execution. 

Exploit: Handle present enterprise fashions by scaling rising companies, renovating declining ones and defending the profitable ones.


Innovation Packages: how are your organization’s innovation packages are structured and managed.

  • Do your leaders get excited concerning the unsuitable innovation packages?
  • What outcomes are your innovation packages producing?
  • Are your organization’s innovation packages interconnected in a strategic method?

To shut the innovation functionality hole, firms can consider their innovation packages by asking whether or not they’reinnovation theater or producing tangible outcomes for the corporate.

  • Worth Creation: Creating new merchandise, providers, worth propositions and enterprise fashions. These packages spend money on and handle innovation tasks that create worth by producing new progress or price financial savings.
  • Tradition Change: Remodeling the corporate to determine an innovation tradition. This will likely embrace new processes, metrics, incentive methods, or altering organizational constructions. These transformations assist the corporate innovate in a constant and repeatable method.

Innovation Tradition: What are the blockers and enablers of innovation in your organization –

  • How a lot time does your management spend on innovation?
  • The place does innovation dwell in your group and the way a lot energy does it have?
  • What’s your kill charge for innovation tasks?

To beat the innovation functionality hole, firms must create a tradition that allows the fitting behaviors to provide world-class progressive outcomes. A dependable indicator of the standard of your innovation tradition is how innovation groups would describe it. Is it a tradition that’s dominated by blockers of innovation or enablers of innovation?

  • Management Help: How can company leaders have the most important affect on innovation when it comes to time spent, strategic steerage, and useful resource allocation.
  • Organizational Design: How one can give innovation legitimacy and energy, the fitting incentives, and clear insurance policies for collaboration with the core enterprise.
  • Innovation Observe: How one can develop individuals’s innovation abilities and expertise and purchase the fitting innovation expertise. How to make sure that we’re utilizing the fitting instruments, processes, and metrics to check and adapt concepts in an effort to scale back threat.

 Classes Realized

  • The three pillars of an innovation ecosystem:
    • Innovation Portfolios
    • Innovation Packages
    • a Tradition of Innovation
  • Obtain the Osterwalder Playbook here