171: What Is Your Incentive To Innovate?
Are You Providing An Incentive To Innovate? Or Is Innovation a Disincentive?
Good morning everyone and welcome to think future podcast I’m your host Chris Kalaboukis. And once again we’re coming to you live from deep in the heart of Silicon Valley California. Now you may ask yourself. Why. Am I not innovative. You may think yourself. Why is my company not innovative why are we not innovating Why can’t we just. Get up to speed with our competitors Why can’t we be as innovative. As. Everybody else. Why can’t we go there why can’t we innovate can’t we come up with innovative new ideas innovative new products and services innovative new IP. While our competitors seem to be able to do it very easily and very quickly why is that. I think it’s a simple thing actually think it’s a very simple thing because if you ask me every human being has the ability to be creative. Every human being has the ability to be innovative every human being can think outside the box. But the problem is is that. Are they being incentivized to think outside the box? Think of your typical corporation think of your corporation think of your company. Are your people being incentivized to innovate. I mean everyone knows that. You get what you incentivize right if you’re incentivizing more sales then you’re going to try to people are going to try and get more sales if you’re incentivizing. Selling your current products and services then people are going to work harder to sell your current products and services. So whatever you’re incenting incentivizing for whatever you’re giving them incentives for that’s what people will do. It’s pretty straightforward. So you’re wondering why innovation isn’t coming out of your organization is because you’re not incentivizing for it where is the incentive for your people to innovate. And in fact in many organizations. You don’t have an incentive to innovate you have a disincentive to innovate if you spend time on these innovative new products and services where we have no idea if they’re going to be making us any money we have no idea if they’ll improve the bottom line we have no idea if they’ll cut costs and increase revenues we have no idea. So why would you work on something like that. I mean think about companies like Google Apple where they have. Given their employees baked in. It’s baked into their jobs that they have extra time to do non core activities their position so they have. Incentive to innovate they have a time. Basically set aside for them to think about the. Things that have nothing to do with the core products and services of the company nothing to do with the profitability of the company nothing to do with bringing in revenues or cutting costs there’s nothing new that it’s free time to simply innovate. And in other companies you have incentive programs to develop targeted IP you have incentive programs around generating new and interesting ideas you have companies where the innovator is applauded innovator is recognized innovator is given rewards awards recognition within the organization. When you incentivize that’s the behavior you’re going to get so if you incentivize. For innovation then you get innovation. If you incentivize for. Upping the sales of your current products and services then that’s what you will get so if you really want to see more innovation within your organization then you need to build incentive programs around that innovation. And you can start small it could be something as simple as tying the number of ideas that you generate that are over certain quality. To increases in bonuses it could be selecting ideas and. Pulling them into all hands meeting as pulling your inventors into all hands meetings and showing off those ideas at the all hands meetings to everybody here here’s an interesting new innovative idea. From X. Y. Z. employee. If you incentivize for innovation then you’ll get innovation. If there’s disincentives to being innovative in that you’re going to miss your quote. Or your sales are going to get hit this see this is the thing it’s pretty straightforward that what you incentivize is what you’re going to get. So if you want innovation you need to incentivize for innovation and it has to be absolutely baked in to any kind of comps compensation and recognition structure within your organization. If you incentivize for innovation you will get innovation. It’s as simple as that. That’s it for me for today C N X time and until then don’t forget to think future.