A new business insight provided by Roger La Salle, innovation thought leader and pioneer of “Matrix Thinking”™
An innovation in itself
In a blog some months ago I highlighted research conducted by the Harvard Business School that revealed that the adoption of ISO9000 may come with a “sting in the tail”.
The research showed that in the years immediately following ISO implementation business outcomes improved in terms of reduced defect, less waste and rework, improved quality and more repeatability in terms of all processes. However, with ISO implemented it was found that no longer was there so much free thinking nor an ability to step outside the boundary dictates of ISO.
In short, the study found that within five to seven years of adopting ISO, innovation output plummeted, companies had become slaves to the ISO regime.
Join the Dots!
In another blog even earlier I suggested the outrigger model for start-ups within large companies with IBM as the case study.
IBM, the supplier of major computer systems in days when computer centers occupied entire floors, came to the realization that the personal computer may be a new horizon. However in order to implement the PC development and avoid the risk to the “mother ship” and their brand if the PC was just a “flash in the pan”, they adopted a novel approach. This avoided their brand risk as well as the lengthy nightmare that an in-house development would have meant.
Rather than doing the development “in-house”, a development that would have taken a decade or more with all the internal bureaucracy and inertia of IBM, instead they simply put a small team together, put them in a separate building, gave them an objective and left them tot it. The outcome was the IBM PC, developed and delivered in just 12 months.
We might call this independent entity an “outrigger” business.
Have our cake and eat it too?
Perhaps the solution to both embracing ISO and at the same time having your research or “blue sky” department free from the constraints of ISO is to have the research entity as an outrigger. In other words, an independent organisation that does your innovation separately and only passes on the complete solution to the host “mothership” when the work is done and dusted.
A good Idea? – perhaps
Innovation of the business model. Yes, innovation can be applied to all aspects of business.