Gary Shawhan, Chemark Consulting08.21.23
Ideas come in all shapes and sizes. According to one definition an idea is a thought or suggestion as to a possible course of action. This definition says nothing about its innovative value or intent.
In the context of industry, new ideas are those that are innovative, creative, and bring a potential value to a company, providing the organization a potential path for future growth. New ideas may take the form of products, services, or processes. Some may be game changers while most are new ideas that can deliver a competitive advantage in the marketplace.
In business, new ideas are the life blood of a successful organization. Ideas that contribute opportunities for future revenue growth are a fundamental need. Not all ideas are well thought out or practical to consider as actionable opportunities. The challenge is to pick the right ones.
Regardless of the size of the organization, it is important to create a business environment that fosters new ideas. Individually, each company is different in the way new ideas are generated, brought forward for consideration, and selected for pursuit by management. The reality is that the internal culling process varies considerably, not only based on the size of the company but also according to organizational structure and management practices
For small to mid-sized companies, it can be the owner or a few key members of the management team that determines which ideas are worthy of further consideration. For entrepreneurial companies, start-ups, and privately owned businesses, the decision to go forward is often limited to the inventor, a particular creative individual, and/or the owner.
In general, the importance and the visibility of new ideas, for these small-sized companies, is extremely high. At the same time, the number of new ideas is normally limited by the size of the organization and the range of products, services, or processes from which new ideas can be drawn. Limitations also exist based on the availability of capital and the internal resources necessary to support a commercialization effort.
Innovators, entrepreneurial start-ups, and niche’ market companies are dependent on bringing new ideas to market to survive and grow. This may be in the form of new products, expanded services, or even potentially disruptive technologies. They can also take the form of geographic expansion, market diversification, or mergers/acquisitions that will strengthen the company’s market positioning versus competition.
Larger companies and multinational corporations have put-in-place processes that provide guidelines intended to prioritize new ideas. Each organization has its own version of how new ideas are to be characterized and then evaluated for their relative merits. Among the more recognized methodologies used for this purpose is the Stage Gate process which has taken on many customized, company specific variations.
When the “business plan” is primarily based on the emotional attachment of its creators, the chances of achieving actual commercial success are very low. Frequently, Dreamers spend a lot of time chasing “interested parties.” This approach is often unstructured and lacks discipline. The information generated through these contacts, without a focused business plan behind it, adds more confusion than clarity in determining its real value.
In those situations where many companies are engaged (early-on) in evaluating the “product,” the feedback can become very confusing if not misleading. Testing protocols almost always vary company-to-company. The priority and thoroughness given to evaluating a new idea under these circumstances is often low. One bad result frequently wipes clean the initial enthusiasm generated at the potential customer about its potential benefits. Further evaluations and resource allocations at the R&D level of the potential customer are normally terminated at this point.
In addition, If the follow-up effort is not diligent, the company may not know when, why or if a change in interest in the idea has occurred. In either of these circumstances, the consequence is that the company eventually becomes disenchanted with continuing support for the idea.
Creative Thinkers have balance. They possess the enthusiasm necessary to drive new ideas forward in the organization. Their focus is frequently on advancing ideas that address trends in the marketplace or target unmet needs.
Creative Thinkers are more valuable to a company when the business environment is supportive of new ideas. They are normally more successful than Dreamers for these key reasons:
• More engaged with others in the organization in developing and bringing the idea forward in the company.
• Ensure that the idea is sufficiently vetted in the marketplace to support its potential commercial potential.
• There is an organized plan of attack in place,
The more accomplished Creative Thinkers are those individuals that are willing to compromise. They recognize the importance of making adjustments in business strategy during the commercial development period based on feedback from the market.
The features and benefits envisioned in the original business plan almost always require some level of re-evaluation and adjustment. When the champion of the idea does not show a willingness to listen or support the views of others regarding the need to change direction, it can be fatal. This is especially true when the resources needed to support continued commercialization efforts are high and budget support from others in the organization are required.
A Gate Keeper approach is a necessity for larger companies and multinational corporations where there are many more ideas than there are resources to effectively support them. Characteristics of Gate Keepers Include:
As a structured process, a Gate Keeper approach eliminates the spontaneity and enthusiastic energy experienced with new ideas originating from Dreamers. Creative Thinkers represent a bridge in how new ideas are brought forward for consideration. Creative Thinkers recognize the importance of market research and the development of a well thought out business plan.
The Gate Keeper approach establishes guidelines for new ideas and a process within which each new idea needs to comply to receive consideration. The advantage is that after it is accepted and incorporated into the company’s business strategy it will be supported and resourced as long as progress continues to be in line with expectations.
A structured approach with a well-defined set of criteria is also accompanied by increased internal competition and internal politics. Competition, in this case, is not just based on the overall merits and growth potential of the idea in the marketplace. Instead, the competition may be linked to the internal priorities of a particular business group, the influence of a more senior member of the management team or the need to address an overriding strategic issue or goal of the corporation (e.g.. sustainability).
In addition, priorities can also change based on the emergence of a strategic market threat or a potential loss of a key strategic account that demands immediate attention.
A Gate Keeper process varies individually from one company to another. The more adaptable the process is in addressing the individual needs of key strategic business groups within the organization and adjusting to regional variations within a given market space, the more effective it is in identifying, selecting, and supporting the best ideas.
The more concentric the business criteria and the process is for evaluating the merits of alternative ideas, the more likely that the selection process is more dependent on inputs from individuals or departments less familiar with the marketplace involved. When a single set of criteria is applied across multiple business groups and/or different regional geographies, the potential value and growth potential for certain ideas is easily diluted or distorted.
Separately, administering the process (within a large organization) by applying a common set of business criteria to all parts of the organization increases the level of internal competition for what is essentially a single “pot” of resources. The value of new ideas that are market or business group specific often loose much of this value (in this case) without some recognition of its importance to the market needs it has been targeted to address.
Longer-term projects are more frequently challenged by shorter-term business or market needs in response to various competitive situations. Internal politics, personal preference of management personnel, introduces additional competition for obtaining support for new ideas entering the Gate.
In the context of industry, new ideas are those that are innovative, creative, and bring a potential value to a company, providing the organization a potential path for future growth. New ideas may take the form of products, services, or processes. Some may be game changers while most are new ideas that can deliver a competitive advantage in the marketplace.
In business, new ideas are the life blood of a successful organization. Ideas that contribute opportunities for future revenue growth are a fundamental need. Not all ideas are well thought out or practical to consider as actionable opportunities. The challenge is to pick the right ones.
Regardless of the size of the organization, it is important to create a business environment that fosters new ideas. Individually, each company is different in the way new ideas are generated, brought forward for consideration, and selected for pursuit by management. The reality is that the internal culling process varies considerably, not only based on the size of the company but also according to organizational structure and management practices
For small to mid-sized companies, it can be the owner or a few key members of the management team that determines which ideas are worthy of further consideration. For entrepreneurial companies, start-ups, and privately owned businesses, the decision to go forward is often limited to the inventor, a particular creative individual, and/or the owner.
In general, the importance and the visibility of new ideas, for these small-sized companies, is extremely high. At the same time, the number of new ideas is normally limited by the size of the organization and the range of products, services, or processes from which new ideas can be drawn. Limitations also exist based on the availability of capital and the internal resources necessary to support a commercialization effort.
Innovators, entrepreneurial start-ups, and niche’ market companies are dependent on bringing new ideas to market to survive and grow. This may be in the form of new products, expanded services, or even potentially disruptive technologies. They can also take the form of geographic expansion, market diversification, or mergers/acquisitions that will strengthen the company’s market positioning versus competition.
Larger companies and multinational corporations have put-in-place processes that provide guidelines intended to prioritize new ideas. Each organization has its own version of how new ideas are to be characterized and then evaluated for their relative merits. Among the more recognized methodologies used for this purpose is the Stage Gate process which has taken on many customized, company specific variations.
Dreamers, Creative Thinkers and Gate Keepers
Company culture has a significant influence on how new ideas are generated and brought forward for consideration. Figure 1 identifies three alternative business environments from which new ideas are generated.Dreamers
Dreamers are individuals (or companies) that have a strong vision of the outcome they see through implementing their idea. They are both knowledgeable and enthusiastic individuals. Characteristics typical of Dreamers include:When the “business plan” is primarily based on the emotional attachment of its creators, the chances of achieving actual commercial success are very low. Frequently, Dreamers spend a lot of time chasing “interested parties.” This approach is often unstructured and lacks discipline. The information generated through these contacts, without a focused business plan behind it, adds more confusion than clarity in determining its real value.
In those situations where many companies are engaged (early-on) in evaluating the “product,” the feedback can become very confusing if not misleading. Testing protocols almost always vary company-to-company. The priority and thoroughness given to evaluating a new idea under these circumstances is often low. One bad result frequently wipes clean the initial enthusiasm generated at the potential customer about its potential benefits. Further evaluations and resource allocations at the R&D level of the potential customer are normally terminated at this point.
In addition, If the follow-up effort is not diligent, the company may not know when, why or if a change in interest in the idea has occurred. In either of these circumstances, the consequence is that the company eventually becomes disenchanted with continuing support for the idea.
Creative Thinkers
Creative thinkers are knowledgeable and business savvy. Creative thinkers have vision and look beyond the current status quo to see other possibilities. They are also analytic and strategic in the way they view the potential value of pursuing a given idea. Characteristics typical of Creative Thinkers include:Creative Thinkers have balance. They possess the enthusiasm necessary to drive new ideas forward in the organization. Their focus is frequently on advancing ideas that address trends in the marketplace or target unmet needs.
Creative Thinkers are more valuable to a company when the business environment is supportive of new ideas. They are normally more successful than Dreamers for these key reasons:
• More engaged with others in the organization in developing and bringing the idea forward in the company.
• Ensure that the idea is sufficiently vetted in the marketplace to support its potential commercial potential.
• There is an organized plan of attack in place,
The more accomplished Creative Thinkers are those individuals that are willing to compromise. They recognize the importance of making adjustments in business strategy during the commercial development period based on feedback from the market.
The features and benefits envisioned in the original business plan almost always require some level of re-evaluation and adjustment. When the champion of the idea does not show a willingness to listen or support the views of others regarding the need to change direction, it can be fatal. This is especially true when the resources needed to support continued commercialization efforts are high and budget support from others in the organization are required.
Gate Keepers
A Gate Keeper is not a person. It is a process or an organizational practice that has been put in place to provide a structured approach for evaluating and prioritizing the merits of new ideas. A Gate Keeper formalizes the way new ideas are brought forward. Once an idea enters the Gate, it is typically shepherded by a committee, a management group, or a particular department within the organization.A Gate Keeper approach is a necessity for larger companies and multinational corporations where there are many more ideas than there are resources to effectively support them. Characteristics of Gate Keepers Include:
As a structured process, a Gate Keeper approach eliminates the spontaneity and enthusiastic energy experienced with new ideas originating from Dreamers. Creative Thinkers represent a bridge in how new ideas are brought forward for consideration. Creative Thinkers recognize the importance of market research and the development of a well thought out business plan.
The Gate Keeper approach establishes guidelines for new ideas and a process within which each new idea needs to comply to receive consideration. The advantage is that after it is accepted and incorporated into the company’s business strategy it will be supported and resourced as long as progress continues to be in line with expectations.
A structured approach with a well-defined set of criteria is also accompanied by increased internal competition and internal politics. Competition, in this case, is not just based on the overall merits and growth potential of the idea in the marketplace. Instead, the competition may be linked to the internal priorities of a particular business group, the influence of a more senior member of the management team or the need to address an overriding strategic issue or goal of the corporation (e.g.. sustainability).
In addition, priorities can also change based on the emergence of a strategic market threat or a potential loss of a key strategic account that demands immediate attention.
Summary
As the coatings industry has grown, having a well-defined Gate Keeper process for evaluating, selecting, and guiding the commercialization process has become a necessity for most mid-sized companies and corporations. The innovative freedom associated with Dreamers and even for Creative Thinkers is desirable but not normally accompanied by a structured approach for evaluating, selecting, and administering the commercialization process.A Gate Keeper process varies individually from one company to another. The more adaptable the process is in addressing the individual needs of key strategic business groups within the organization and adjusting to regional variations within a given market space, the more effective it is in identifying, selecting, and supporting the best ideas.
The more concentric the business criteria and the process is for evaluating the merits of alternative ideas, the more likely that the selection process is more dependent on inputs from individuals or departments less familiar with the marketplace involved. When a single set of criteria is applied across multiple business groups and/or different regional geographies, the potential value and growth potential for certain ideas is easily diluted or distorted.
Separately, administering the process (within a large organization) by applying a common set of business criteria to all parts of the organization increases the level of internal competition for what is essentially a single “pot” of resources. The value of new ideas that are market or business group specific often loose much of this value (in this case) without some recognition of its importance to the market needs it has been targeted to address.
Longer-term projects are more frequently challenged by shorter-term business or market needs in response to various competitive situations. Internal politics, personal preference of management personnel, introduces additional competition for obtaining support for new ideas entering the Gate.
