After experiencing a number of organisations from the small to the very large, it is clear that pace and innovation can be stifled in large companies but also there are good examples of innovation in big companies. Smaller companies by dint of their size have some advantages in terms of pace and innovation but is there a way of understanding the similarities of success and therefore understand the common threads?
In my view a simple formula to explain it has just two components –
N = the levels in the organisation between the person with the clearest view of what is needed (V) to be delivered, not the senior manager but the product designer, key user, etc. and the lead person who can actually deliver it (P) again not the manager of but the software developer, production designer, artist, etc.
T = the amount of their time as a percentage that the person (V) spends on the project with the deliverer (P)
So an ideal situation is 0 and ideal time is 100% which gives an ideal of 100 in the equation
Innovation Index = T / N+1 or T / (W-P) + 1
So, for example,
The marketing manager has a visionary idea for a new proposition for a new way of delivering products to customers. He briefs a product manager, who briefs the portfolio manager for marketing, they define requirements, talk to their contact account manager in logistics, who appoint a project manager, who gets a logistics expert assigned to the project. In this case N would be at least 4.
The marketing manager will spend 10% of his time on this in steering groups and reviews.
Therefore the pace and innovation index for this would be 10 / 4 +1 and hence T = 2, and therefore if the ideal is 100 the pace and innovative thought in this project would not be high.
Feels like it has legs…:)