Extract | Orbit-Shifting Innovation

A new book says innovative thinking-on-demand is possible, if executives are given the right challenges.

Stimulating the mind

Pathbreaking “innovation happens when an area that needs transformation meets an innovator with the will and the desire to create, not follow, history”, write Rajiv Narang and Devika Devaiah in their new book, Orbit-Shifting Innovation: The Dynamics of Ideas that Create History. Narang is the founder of consultancy Erehwon Consulting Pvt. Ltd, and Devaiah is director at the firm.

The book makes a case for devising new innovation strategies that are not based on precedent or projections tied to past performance. In a chapter on “Take on an Orbit-shifting Challenge and Burn the Bridge”, the authors explain that sometimes asking a different or a broader question can lead to more efficient and interesting solutions. Edited excerpt:

All excitement around innovation is centred on getting the bigidea. Thinking out of the box is talked about with obsession. The world of innovation is full of stories of how a leader got to an out-of-the-box idea that created a transformative impact.

Nearly all of these stories are really about incidental and accidental innovation. The core question is: How do we make orbit-shifting innovation happen by design?

The reality for most organizations is that layers and layers of gravity can make it very difficult to come up with an out-of-the-box idea. Come to think of it, out of which box is the real question. For there is the organizational gravity box, the industry gravity box, the country gravity box, and the cultural gravity box. The deeper you go, the more invisible the box becomes.

Most orbit-shifting innovations did not start with an out-of-the-box idea, but with an out-of-the-box challenge, an orbit-shifting challenge.

It takes an orbit-shifting challenge to create the escape velocity needed to break through gravity. An out-of-the-box idea is a consequence. An orbit-shifting challenge leads to an orbit-shifting idea and not the other way round.

Redefine Goal Setting

To trigger orbit-shifting innovation by design, organizations need to start by going beyond performance goals. They need to redefine goal setting into a twin-track exercise: orbit-maintaining PLUS orbit-shifting goals. A powerful principle is: for every three orbit-maintaining (performance) goals, a leader needs to take on at least one orbit-shifting challenge. Adopting and institutionalizing the 3+1 twin-track goal-setting construct will unleash orbit-shifting innovation by design.

Going further, by ensuring orbit-shifting challenges are not skewed, but straddle across process, product, and business models and at all orbit-shift levels, a leader will ensure a powerful orbit-shifting portfolio: to not just build competitive advantage but sustain and grow future advantage. Twin-track goal setting is a powerful way to embed strategic flexibility into the organization’s DNA.

Triggering the Orbit-shifting Challenge

How does a leader or an organization go about uncovering and identifying orbit-shifting challenges? What are the new reference points? What triggers the identification of an orbit-shifting challenge as against a traditional performance goal?

Most traditional goal-setting exercises get rooted into the reference points of the current orbit. Last year’s achievements and
industry projections become the first reference point for next year’s goals. Orbit-shifters, unlike followers, don’t reference last year and create stretch goals. They trigger orbit-shifting challenges.

Making an Exception the New Reference Point

Some followers look at the average and create stretch goals, others benchmark with the industry best practices and create catch-up goals. Orbit-shifters search for the exception, across
industries and domains, and make the exception the reference point for an orbit-shifting challenge.

The Most-Watched Show

The KBC (Kaun Banega Crorepati) orbit-shifting challenge came to life when Rupert Murdoch and Peter Mukerjea asked ‘what is the most-watched TV programme in India’ and ‘not what is most-watched game show in India’. They made the exception across all TV formats as the reference point, and this went on to trigger the orbit-shifting challenge—make the Indian version of Who Wants to be a Millionaire as big as an India-Pakistan cricket match on a Sunday.

As a CEO, think about this:

Traditionalists focus on the average; they treat exceptional events/occurrences as abnormalities to be ignored. For orbit-shifters, what is an exception today could be the norm tomorrow. Acting like an orbit-shifter, look for: the absolute exceptions in your industry. What is an exception across industries? For each reference point defining the current orbit, look for an abnormality, look for an exception—within the industry and across industries.

Make the exception the new reference point of the next orbitshifting challenge.

source: http://www.livemint.com / Mint / Home / by Rajiv Narang & Devika Devaiah / February 23rd, 2014

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