Human beings have long been fascinated by time. It’s very hard to see and taste; yet its effects are indisputable. Its progress is unstoppable and forward momentum irreversible. Man is working on changing his perspective both in the long term (see this link for efforts to build a clock that will run for the next 10,000 years), and in the short term, where time can be measured down to the tiniest unit of Planck Time (the time it takes light to travel 10-35 meters). In between these time scales are many layers of time defined by various physical events, like the evaporation of a black hole.
Having pushed your mental agility a bit, let’s step back to the realm of the innovative organization and time. The key thing the innovator is constantly grappling with is what actions to take in the present that will set up the best possible future.
There are two time frame discussions that are relevant for today’s post.
Compressed Learning Cycles
The first is on the shorter side and that is the concept of compressed learning cycles. In the late 1980’s lean manufacturing principles came into vogue, emphasizing pull systems and zero waste. The underlying tools were then carried forward to lean software development, which was anchored by seven key principles that greatly emphasized line of sight, crisp decision making and speed. Similarly, lean startup techniques make use of tools that allow the development team to experience several complete product development cycles inside the time frame it used to take for one prototype. The skillful program manager sets up a cadence that allows the product to be mocked up, shown to a real customer and have a documented feedback cycle in usually about 10-20% of the usual long cycle product development loop.
These tools have been extended powerfully to the design of the business model itself, before the product development team even begins to take shape. Instruments like Osterwalder’s Business Model Map and Customer value mapping, allow rapid iteration and contributions by all the stakeholders. Steve Blank has documented startup teams that do 30 cycles of improvement on their business model in just a few short weeks. Research done by the Doblin group has shown that the value derived from business model design and innovation in many cases eclipses that from product design and development alone.
Planning Cadence
The second time-based function of interest is the planning cadence of the organization. Most publicly-traded organizations have a deeply embedded annual planning cycle that drives all other planning in the organization. The most innovative organizations build on this heartbeat and do equally rigorous innovation planning including technology and product development roadmaps, strategy centers and collaborative stakeholder sessions. If you are in a private firm, it takes more effort to install these systems, because they are not driven by the SEC, but that does not diminish the importance.
These time-based sessions are the secret weapon of consistently innovative firms. They have three key functions:
- First, they force the rigorous re-examination of the existing investments in programs. The investment context of innovation needs to be carefully assessed annually to assure that the momentum of discovery has not overtaken fiscal & market reality.
- Second, it is an opportunity for the emergent projects and programs to get an opportunity to make it on to the core agenda. Organizations need to make a clear line of what is on the agenda and what is on the parking lot, and having an annual opportunity to weigh the new against the existing in an objective way is very productive.
- Third, these sessions give a forum to the minority view. It is easy for business momentum to drown out the voices of key subject matter experts in the organization. By having a management board level review, with a hard line item for counter consensus thinking, it keeps any one narrative from running away with the bulk of the investment and taking the organization over a cliff.
So what are the takeaways for your firm?
1) Be deliberate about your planning process
Having a real process for examining your investments and progress on innovation is fundamental to long-lived innovation. These processes are scalable down to the small firm level – and even to the personal level. Set hard dates for when you are going to run through this process every year.
2) Empty the buffer
This is key – no project or investment should have an automatic pass. The process needs to be robust enough to catch the “walking dead” projects that have outlived their usefulness. The good can definitely suffocate the best, and it takes real temerity to have a process of deliberation to make sure the stakeholders are best served.
3) Make sure you scan the horizon regularly
Off cycle scanning is key. On a personal level, every innovator should have a running list of great ideas they could execute on, and a digital scrapbook of background on each of them. Larger firms should be commissioning white papers from outside experts on key emergent areas. These white papers should be circulated to the management board well in advance of the planning sessions so that a common fact base is established for the team.
We have just scratched the surface today on time-based plans in the organization – please drop me a line or leave a comment below if you have questions or additions.
