Crossroads

At the intersection of technology, finance and the Pacific Rim.

Sunday, May 25, 2008

Innovation

How to be innovative in the face of intense competition--this is one of the core themes of CEOs today. One company that has so far done well at it is Procter and Gamble. A.G. Lafley was interviewed by the NY Times and this is what he had to say:

Q: only half of your product innovations succeed. Why isn’t the rate higher?

A. I don’t really want it to be. Human nature is such that, if we push our people to drive the batting average up, they’ll try to hit more safely, take a shorter swing, go for the singles instead of home runs.

But we try to set milestones that innovations must meet at every step along the development process. As soon as they miss one, we allocate the resources to another product moving through the funnel. That’s another difference from the old days, when P.& G. let bad ideas go too far.

2 Comments:

Anonymous Inhye said...

It is always fun to hear different philosophys from people leading organizations. The CEO of Sony, Mr. Howard Stringer, seems to emphasize "Passion & Enthusiasm" to survive the competition. He recently told his staff "to get mad". Check out the article at http://news.cnet.com/8301-10784_3-9951198-7.html?tag=newsmap

10:37 PM  
Blogger ByoungHee said...

we can tell Innovation dose not need to be a big deal as to shake a whole corporate organization like every successful innovation directed to pieces of successful products in market. Many times, people get headache much with being innovativ, if we can feel more confortable with proceeding innovation thru a corporation, its result from the mobilization of all employee's contribution is much better.

4:36 PM  

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