Fast innovation cycles

One of the issues that leadership teams often wrestle with is the length of time it takes for innovation to bear fruit.  I don’t think there’s a magic bullet for this, but that organisations should try a range of approaches.  For large organisations, innovation at scale can be achieved through a range of software solutions including MindJet SpigitEngage.  However it’s still hard to beat the face-to-face interaction of small teams racing against a clock in the same room.  With that in mind a new book from Michael Schrage favours the 5×5 approach:

…half of Schrage’s new book is devoted to an innovation methodology called 5×5 that captures the benefits of experimentation. In the 5×5 approach, writes Schrage, “A minimum of 5 teams of 5 people each are given no more than 5 days to come up with a portfolio of 5 ‘business experiments’ that should take no longer than 5 weeks to run and cost no more than 5,000 euros to conduct. Each experiment should have a business case attached that explains how running the experiment gives tremendous insight into a possible savings of 5 million euros or a 5-million-euro growth opportunity for the firm.”

Schrage says that he’s been facilitating these 5×5 exercises in companies, under the auspices of MIT’s Sloan School of Management and the Moscow School of Management since 2009. The results: “There are always—without exception—at least three or four experiments that make top management sit up straight, their eyes widening or narrowing, dependent on temperament, and incredulously ask, ‘We can do that!?’”

via How to Avoid Bad Investments in Good Ideas.

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