How do I get More Wins from my Innovation Investments?

That was the question the Chief Executive Officer (CEO) of an innovative specialty chemicals manufacturer was asking himself. Faced with competitive entry after leading the market for a long period, the CEO sought our help to address the dilemma.

The specialty chemicals manufacturer had successfully created and dominated a particular market category for an extended period. However, the entrance of competitors in the market raised concerns about maintaining their position. The CEO believed that continued innovation was a core element of an effective strategy. They had attempted various approaches to boost innovation, improving project prioritization and strategic alignment with key segments. However, the CEO felt more improvement was needed.

Approach and Insights

To expand the CEO's option set, we conducted a comprehensive assessment of the company's innovation processes, people, capabilities, and culture. Through this assessment, the CEO realized several additional gaps existed. A few key insights framed the assessment.

• Many of the performance gaps were in activities that spanned organizational boundaries. This is a common area where organizations struggle, and examples of gaps we often see include: decision making across the portfolio, risk management between technical and commercial issues, and cross-functional team problem solving.
• Cross-functional gaps highlighted functional siloing in the organization. We often see functional silos in organizations. Breaking down silo’s is a critical component of any innovation culture, and can make or break change efforts, no matter how well designed.

In response, the CEO asked us to help develop leadership alignment against these newfound gaps. We facilitated a series of workshops with the leadership team, where they collectively selected priority initiatives and committed to a unified path forward.

Results and Conclusion:

As a result of our collaborative efforts with the CEO and the leadership team, the manufacturer now possesses a clear roadmap forward.

By focusing on gaps in cross-functional activities, the team has launched a series of initiatives design to accelerate innovation returns, and to rapidly identify higher-value opportunities.

The CEO and the leadership team now understand the importance of aligning on solutions and have embraced a unified path forward. This level of commitment is crucial for the success of innovation investments as it fosters a culture of accountability and ownership.

With the necessary commitment and momentum, the CEO and the firm are well-positioned to maximize the returns on their innovation investments.