When successful products prevent strategic innovation

Design Management Journal, Spring 2002 by Jones, Peter

Internet peak that spin-offs can accomplish innovations unthinkable by the overall firm. By creating a subsidiary "start-up" from a core of designers and product developers, and allowing for new leadership, innovation and design competencies are given latitude to focus entirely on next-generation opportunities and smaller markets. By establishing success criteria appropriate for the opportunity, the spin-off creates a teambased organization sheltered from the concerns, processes, metrics, and business values of the parent firm. These are not plays for the shortterm by any means, since markets take time to grow. Successful spin-offs range from Internet channels (for example, LexisNexis' lexisONE.com, for small law firms) to major multi-product companies (HP's spin-off of Agilent). But they often start as internal R&D teams, walled off from organizational interventions and allowed to pursue new technologies or product lines with their own processes, metrics, and values.

However, not all situations afford a spin-off. Some are better served by a strategic approach to design, fostered across the organization by executives and designers. If design activities remain tactical, relegated to specific projects, design-led innovations will not break through the process. Design should be engaged in strategy, as with chief-level officers at automobile manufacturers promoting design excellence in the company and the marketplace.

Address project values within their process structure. Design managers must learn project management language, build business cases for high-value activities, and create approval authority for design. Processes change over time with successful engagements; build a repertoire of new activities after proving their value to project goals.

Finally, at the design level, let designers and developers self-organize as communities of practice. As educated and professional practitioners of creative disciplines, design groups embrace the joint work activity, shared history and knowledge (repertoire), and social systems of practice communities. Design management sustains a practice by affording time and space for community development, and actively participating in professional growth. By giving the firm's braintrusts of innovation the physical and organizational space to build their own best practices and negotiate their own processes, you secure a future for innovation.

Reenergizing a culture of innovation doesn't guarantee product success, but then harvesting even the largest markets eventually stalls without innovation. A strategic intent to innovate must combine with organizational pathways to

achieve innovation practice. Start down your own path by just noticing the values exhibited in critical projects, and observe whether these support innovation. If not, consider the values leadership you might bring to inspire a

competitive innovation strategy.

Reprint # 02132JON30

Find related articles on www.dmi.org with these keywords: cultural change, innovation, organizational management, product