Steve Clean The Three Pillars of World-class Company Innovation

Posted on by steve clean

My good good friend Alexander Osterwalder, the inventor of the business model canvas (one in every of foundations of the Lean Methodology) has written a playbook (alongside along with his affiliate companion Tendayi Viki,) From Innovation Theater to Growth Engine to elucidate the way to construct and implement repeatable innovation processes inside an organization. 

Right here’s their introduction to the important thing ideas contained in the playbook.


Over 75{3e18fd0294dcd0538a4224efd4ff4cf1a4eba7d5af3eb2ce7612ea3b09e1dd41} of executives report that innovation is a high three precedence at their corporations. Nonetheless, only 20{3e18fd0294dcd0538a4224efd4ff4cf1a4eba7d5af3eb2ce7612ea3b09e1dd41} of executives point out that their corporations are able to innovate at scale. That is the problem for modern organizations: How one can develop a world-class ecosystem that may drive repeatable innovation at scale.

The playbook describes the three pillars of company innovation: Innovation Portfolios, Innovation Applications and a Tradition of Innovation. Below every pillar, the playbook describes three questions that leaders and groups can ask to guage whether or not their firm has the best innovation ecosystem in place.

Innovation Portfolio: what are your organization’s portfolio of innovation tasks?

  • Are your organization’s innovation efforts exploring or exploiting enterprise modes?
  • Does your organization have a balanced portfolio of tasks that cowl effectivity, sustaining and transformative innovation?
  • What’s the well being of your innovation funnel or pipeline?

Discover: Seek for new worth propositions and enterprise fashions by designing and testing new enterprise concepts slightly than execution. 

Exploit: Handle current enterprise fashions by scaling rising companies, renovating declining ones and defending the profitable ones.


Innovation Applications: how are your organization’s innovation packages are structured and managed.

  • Do your leaders get excited in regards to the mistaken innovation packages?
  • What outcomes are your innovation packages producing?
  • Are your organization’s innovation packages interconnected in a strategic manner?

To shut the innovation functionality hole, corporations can consider their innovation packages by asking whether or not they’reinnovation theater or producing tangible outcomes for the corporate.

  • Worth Creation: Creating new merchandise, providers, worth propositions and enterprise fashions. These packages spend money on and handle innovation tasks that create worth by producing new development or price financial savings.
  • Tradition Change: Remodeling the corporate to determine an innovation tradition. This will likely embody new processes, metrics, incentive methods, or altering organizational constructions. These transformations assist the corporate innovate in a constant and repeatable manner.

Innovation Tradition: What are the blockers and enablers of innovation in your organization –

  • How a lot time does your management spend on innovation?
  • The place does innovation reside in your group and the way a lot energy does it have?
  • What’s your kill fee for innovation tasks?

To beat the innovation functionality hole, corporations have to create a tradition that permits the best behaviors to supply world-class revolutionary outcomes. A dependable indicator of the standard of your innovation tradition is how innovation groups would describe it. Is it a tradition that’s dominated by blockers of innovation or enablers of innovation?

  • Management Help: How can company leaders have the largest affect on innovation by way of time spent, strategic steerage, and useful resource allocation.
  • Organizational Design: How one can give innovation legitimacy and energy, the best incentives, and clear insurance policies for collaboration with the core enterprise.
  • Innovation Apply: How one can develop individuals’s innovation expertise and expertise and purchase the best innovation expertise. How to make sure that we’re utilizing the best instruments, processes, and metrics to check and adapt concepts to be able to cut back threat.

 Classes Discovered

  • The three pillars of an innovation ecosystem:
    • Innovation Portfolios
    • Innovation Applications
    • a Tradition of Innovation
  • Obtain the Osterwalder Playbook here