Leading Innovation

We know that leading innovation is key for any organization which wants to thrive – or even survive.  In fact, not so long ago a Nonprofit CEO was quoted in The Chronicle of Philanthropy that we are now in an environment where it is “innovate or die.”

But how do executives go about leading innovation?  In the June 2014 issue of Harvard Business Review, Harvard leadership professor Dr. Linda Hill and colleagues have an article entitled “Collective Genius”* which provides some insights.

Their opening point is this: “The role of a leader of innovation is not to set a vision and motivate others to follow it.  It’s to create a community that is willing and able to innovate.”

This is opposite from what most leaders think their role is.  They think that they need to create vision and sell it.  But what Hill et. al. tell us is that creating a culture of innovation is the leader’s main responsibility.

Creating a community which has a culture of innovation includes four key points:

1.  Shared Purpose & Values.  Make sure that everyone is clear on the mission of the organization and the core values that everyone is expected to follow.

2.  Creative Abrasion: Discourse & Debate.  A culture of innovation encourages active debate among teams.  They do not avoid conflict and know that “constructive conflict” leads to better ideas.

3.  Creative Agility: Experiment, Learn, Adjust.  Innovation does not mean figuring out the perfect idea immediately and then scaling it.  Try small experiments.  See what works and what doesn’t.  Learn, adjust, and experiment some more.

4.  Creative Resolution: “And/Both” Thinking.  So often when confronted with options for action we use “either/or” thinking.  Creative Resolution involves looking for ways to take the best of seemingly opposing ideas and melding them together.

Innovation is a key competency for success in today’s ever changing environment.  Utilize these ideas to create a culture of innovation and make even more of a Mission Impact.

*Collective Genius, Linda A. Hill et.al, Harvard Business Review, June 2104

For more ideas on how you can lead breakthroughs in your organization, follow this blog and check out my web site at www.SheehanNonprofitConsulting.com   You will find free resources you can download, including a Breakthrough Strategy Workbook that you can download at no cost.  You can also check out my book, Mission Impact:  Breakthrough Strategies for Nonprofits, and buy it if you are interested.  And you can follow Sheehan Nonprofit Consulting on Facebook.

The $500,000 Windfall

“What would we do with a $500,000 windfall in revenue?”  This was a question that a fellow Board member asked the rest of us at a recent meeting.  “What a great question,” I thought.  “I am so glad we have Puja on this Board.”  But, our inability to answer her question with ideas that were well thought out makes me think we should revisit this question at a future meeting.

What would you do with a one-time big windfall?  Maybe $500,000 is too small for your nonprofit to even be concerned about if you are big.  The organization referenced above has a $2 million annual budget.  If you have a $10 million budget then imagine a $2.5 million windfall.

I know.  It would depend on the circumstances.  But just imagine it is a no strings, one time, anonymous windfall.

I suggest this as a great strategic thinking exercise for one of your upcoming Board or staff meetings.  What would we do and why?  How would it feed our strategy?  How will it help us build capacity and make even more of a Mission Impact?

Maybe it should go directly to your reserves if you have identified that as a weakness that needs to be fortified.

It probably should not go to a new program you made up on the fly and which would go unfunded after the windfall evaporates.

But maybe it does go for an innovation or demonstration project you have been musing about for years and which, if proven successful, you think you can build sustainable resources for and scale.

Regardless, it is best to take a strategic, “investment” mindset about your new windfall.  Play the Windfall Game at your next staff or Board meeting and see what creative juices you can get going to make even more of a Mission Impact.

For more ideas on how you can lead breakthroughs in your organization, follow this blog and check out my web site at www.SheehanNonprofitConsulting.com   You will find free resources you can download, including a Breakthrough Strategy Workbook that you can download at no cost.  You can also check out my book, Mission Impact:  Breakthrough Strategies for Nonprofits, and buy it if you are interested.  And you can follow Sheehan Nonprofit Consulting on Facebook.