Top 5 Innovation Killers - #3

#3 - A desire for a magic pill, not a daily exercise regime. This requires innovation as a way of life rather than as an isolated change programme. 3M is the avatar of this approach, allowing its developers to spend a proportion of their time on their own development projects as a way of encouraging a stream of bottom-up ideas.

General Mills Analysis -- currently, the word 'innovation' is most often used in reference to new product development. As a result, the idea of innovation is considered to be a separate activity from the core business and functional responsibilities. We currently have a culture of executional excellence, as opposed to a culture of innovation. In other words, while there are pockets of real innovation (primarily driven by our technology organization), innovation is not part of General Mills' organizational DNA (i.e. innovation isn't considered to be part of everybody's responsibilities). Furthermore, we often lack patience when it comes to innovation. When teams do not deliver big results right away, there is a tendency to disband teams, or at the very least, adjust the scope of the team. We need to start inching towards the 3M example above, in which innovation is a way of life.

This is not an insurmountable challenge. As current initiatives continue to gain traction and continue to deliver tangible benefits, Senior Leadership will begin championing (and perhaps mandating?) more innovation across the company. Once that senior leadership support is in place, we will execute against it in a big way. After all, we have a culture of executional excellence......when we align around a goal or objective, we make it happen!

Top 5 Innovation Killers - #4

#4 - An unwillingness to cannibalize sales. The only way to prolong success is, paradoxically, to destroy it and create something even more valuable. Technology companies know that they must consistently add new features at lower prices if they want to stay ahead in the market. The same principles are true in other markets. Gillette has consistently strengthened its leadership in razors through its willingness to make its existing ranges redundant and introduce new, higher performing products and brands.

General Mills analysis -- Apple is the most obvious example of a company that isn't afraid to cannibalize sales with its new products (e.g. Iphone, Ipod, etc.). At General Mills, we factor both margins and incrementality into our go-no go decisions for new products -- the higher the expected incrementality, the more willing we are to 'lean in' on margins. The implied opportunity for Mills is to be more aggressive and intentional in developing offerings that, on one hand, will make current offerings redundant or obsolete, but on the other hand, will keep consumers in the Mills family and away from competitor offerings.

Top 5 Innovation Killers - #5

A recent article by Sterling Performance outlined 5 common 'innovation killers', or things that prevent companies from developing true breakthrough innovation. It's often more interesting and insightful to examine barriers, as opposed to best practices. Over the next few posts, I will share the top 5 list and thoughts on the relevance at General Mills. Let's get right to it with #5:

#5: A reliance on a small cadre of innovators. Relying on a small development team to identify, create and deliver game-changing innovations is unrealistic. You have to cast your net much wider. In the past five years Procter & Gamble has dramatically increased its willingness to work source ideas from and work with external organisations and now aims to develop at least half of its new growth ideas through these external networks.

General Mills analysis - while General Mills has recently been implementing terrific open innovation initiatives, the whole idea of innovation continues to be treated as separate from the core business. Within the operating divisions, there are some 'new products' teams, as well as some 'transformational new products' teams. These teams, in many cases, are isolated from the broader business. Also, the term 'innovation' is primarily associated with new products. As a result, the ITQ group is considered to be the real innovators in the company....and rightfully so! Under PE's leadership, that group has 'done' while other groups continue to 'talk'. We're making strides, but there's continues to be huge upside. For us to continue being a top-tier player, the definition of innovation needs to be broadened beyond new products, and innovation needs to be part of the organization's DNA, not a separate activity worked on by a few teams and functions.