Innovation

7. Nurturing Innovation

Commitment is key. Half-hearted innovation will fail, causing disruption and lowering morale.

7.1 Train your managers to lead innovation.

Encouraging innovation in your business may mean redefining the relationships between managers and employees.

• Make sure your managers are not afraid to fail.

7.2 Involve your employees in the development of your business.

• Share your vision of where you are heading.
• Make sure business goals are regularly communicated in team meetings.
• Develop your employees' skills and ambitions.

7.3 Plan for innovation and set new challenges.

• Build your long-term goals into your business plan. Set and review numerical targets and milestones.
• Track key performance indicators (eg profits, sales and rate of return) to monitor progress.
• Set a target for sales of products less than three years old.
• Focus on the areas of your business where new ideas can make the most difference.

7.4 Review your situation regularly.

• If circumstances change, you may need to change policies.