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Value Innovation: Making it work in your organization (Part 2 of 3)

Where do you start if you want to develop a climate conducive to value innovation in your organization? Here are four simple ways you can promote and enhance value innovation in your organization.

First – Be the parade leader. This means you won’t kill innovation and will add value to the process – and this needs to happen with both verbal and nonverbal communication. The mere 7 percent of an executive’s style that is verbal should be encouraging, helpful and noncritical.

Second – Let the creative process blossom. Allow the development of some good ideas in a safe environment without fear of critical judgement.

Third – Test the ideas on the market. Knowing in advance that this step is coming later in the process reduces the tendency to stifle a good idea before it can mature. Be sure and find out if the market will buy and what price it is willing to pay.

Finally, introduce the financials. When a new innovation is being vetted, the senior executive team is usually in the best position to determine if the idea is financially viable.

The price determined by the market testing should not get raised to make a profit. What must change is the cost. So either get the cost down so a good profit can be made at the price the market will pay, or scrap the project.

 

This is Dr. Sarah Layton. I invite you to view all three videos in the series.   Together these videos give you an introduction to Value Innovation, four ways to foster Value innovation in your organization and the places to look for Value Innovation in your organization.   Visit us on our website www.corporatestrategy.com or call on my private cell 407-342-6507 if we can help

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Posted by Dr. Sarah Layton in Growth, Organizational Strategy, Strategic Planning on April 28, 2015.

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