Six principles to implement for your innovation department
Having an innovation department is not within the reach of every company. Most of the time, SMEs that lack the critical mass entrust this task to a third party. But in an increasingly competitive market, more and more companies want to have their own in-house structure. They then ask themselves: are there rules to follow? Principles to implement? Mistakes to avoid?
Here is a brief guide to best practices.
1. The non-negotiable criterion: independence
This is undoubtedly the fundamental imperative of any innovation department. Freedom — and therefore the fertility of the entity — depends on it. This does not mean, however, that an anarchic structure should be established within the company. It will indeed be managed by a leader. One simply needs to prioritise collaboration with people who have long-term vision, such as the CEO.
To this, two additional guarantors of this precious foundation must be added: this "company within the company" must have an annual budget at its disposal and a distinct location separate from other units.
It is better to avoid, for example, grouping everyone together in an open-plan space. Freedom — which is the objective — comes at a price, and it is essential to give the innovation department's resources a sense of exclusivity.
2. No short-term profitability
If in the capitalist economy an unprofitable company is an absolute absurdity, one must nevertheless accept it for the innovation department — at least in the short term. It is therefore important to provision a loss-making budget. Innovation cannot be envisaged as a productivity system. It is not an assembly line where each component has a use and production follows a mechanical pattern. One must accept failures and the fact that expected results come after a certain period of time.
3. A multi-instrumentalist conductor
Freedom, which is the objective, comes at a price, and it is essential to give the innovation department's resources a sense of exclusivity.
Be aware that recruiting the person to whom you will entrust the leadership of your innovation department is an impossible mission — because you are looking for a rare gem. They must not only be multidisciplinary, but must also have a strong human sense in order to prioritise closeness with their team. They must be able to exchange with team members about their respective competencies and also understand them as individuals.
4. Passionate people who think "out of the box"
While this characteristic might seem self-evident for any innovative entity, it is far from obvious for the department of a company that would not itself be spontaneously identified as such. And that is precisely the challenge in creating your innovation department: you must succeed in keeping the sacred flame of creativity alive while the rest of the company focuses on more down-to-earth tasks. One must succeed in preserving impertinence.
5. Being put to the test
All the "advantages" granted to the innovation department come at a price. Despite the many privileges accorded, it is subject to pressure just as significant as that faced by other units of your organisation. It is the department from which the impossible will be demanded, along with an unfailing capacity to solve problems that have remained without solution for the others.
6. Transparency and visibility
A final piece of advice: it is essential to devote more resources to the communication of this department than to that of the others. Internally, care must be taken to ensure that the innovation department is not perceived as a privileged entity but as an engine of the company. Externally, it is the department that will bring back trophies and generate media coverage for your company — an undeniable asset that no company can do without today.
In conclusion, emphasis must be placed on the necessary versatility of this structure. It must engage with all strategic subjects — not only the product, the services, and their possible deployments, but also after-sales service, production methods, sales, marketing, and communication. It must ultimately be the figurehead of your company, capable of anticipating the future.
Once it has proven itself, it will, without difficulty, earn the respect of the other entities — a natural consideration that will establish itself without the need to impose any form of hierarchical subordination.
