By Lisa Blankman, CPA
Manager, Audit & Assurance Services
The concept of innovation is very critical to any organization that wants to grow and evolve. Some business leaders will fall into the pattern of doing things the same old way, almost out of habit. And not without reason: if the status quo has worked well for a long time, there is fear of disrupting a pattern of “success” by changing. A feeling of safety and consistency is comforting.
But the only truly consistent thing about the marketplace is that it is always changing. If you’re not looking ahead, you’re already at risk of falling behind. A “success” of the year 2005, may lead you to a false sense of accomplishment. A prudent leader must be intentional in driving new ways of thinking into their organization.
In order to build a business that will be successful for the long term, you must create a philosophy and corporate culture of continuous innovation. That mindset needs to be a component of everything you do. “Change” is the only constant in your strive to be superior to your competition.
When we talk about innovation, most people think of a specific product or service that is ahead of the competition. And that can be critical to your success, given the rapid changes in technology and social engagement. Devices and ways of doing things can quickly become obsolete.
Remember standalone GPS devices? Ten to 12 years ago, they were the hot new gadget everyone wanted. Now they’re in the technological dustbin. And how about fax machines? It’s difficult to even find one nowadays that’s not incorporated into a printer/scanner.
So beyond finding that next product or service, try to be innovative in the way you deliver that to the marketplace. Innovate in the way you interact with your customers, be creative in how you deal with vendors, employees and other stakeholders.
In short, focus on making innovation not a one-off event but a continuous theme that is driven into the heart and soul of your organization’s culture.
Examine your internal processes from time to time and ask yourself if they are up to speed. Look at what others in your industry are doing, especially those who have recently adopted new methodologies. Are they working? Can they be improved upon?
Talk to your customers and vendors and ask their advice. See what their needs are, and task your team with coming up with a better way to satisfy it. Solicit your team of employees: “Is there a better way to do this?”
For example, in the accounting/bookkeeping world it was once a universally accepted practice to make a daily run to the bank for deposits. Now that’s virtually all handled with online tools. And that came to be because some people thought about ways to make the process faster, simpler and more reliable. Improved Productivity!!
The reality is that new products and service follow innovation, not the other way around. Innovation is a mindset that constantly questions how you’re doing things, and looks for ways to do it better.
If you’re a business owner or manager, thinking innovatively means being responsive to what the market demands. You should want your company to be seen as creative and dynamic. An organization doesn’t necessarily have to live on the bleeding edge, but at least be in tune with the latest best practices.
Whatever you do, you don’t want your company to be regarded as being obsolete or out of the mainstream of what the consuming/retail customer expects. That is not a formula for growth and prosperity. At a minimum, be open-minded to a different way of accomplishing a goal and encourage your team members to make similar recommendations.
When your organization is viewed as being proactive in adopting new ways of doing business, it’s easier to attract more customers and explore untapped opportunities.
If we can assist you with any process improvement, please contact Lisa Blankman at (317) 613-7856 or email [email protected].