Change is Inevitable, Be Prepared

In his excellent book, Game Changer, author, Ram Charan states that "When innovation is at the center of a company's way of doing things, it finds ways to innovate not just products, but also functions, logistics, business models, and processes. This point is well taken given today's economic environment.

While an innovative company will probably continue to research and develop new products even in a downturn, those same companies need to look at all of their processes in order to stay competitive or even just to stay in the game. There is little doubt that times like these, and they may actually be quite unique, demand creativity and innovation by great companies.

Even though the normal business cycles as we have known them lead to downturns as well as booms, this recession really is unique. It is unique for many reasons that have to do with banks and mortgages. This current situation is also a result of the rate of change in business and in our society.

Many years ago, a very popular book titled Future Shock by Alvin Toffler was recommended reading for all people interested in the future. In the book, Toffler speaks of accelerating rates of change that will leave people disconnected and suffering from shattering stress and disorientation.

In my observation, the rate of change has been event greater than that. Our extraordinary means of communication that exist in this decade, have accelerated change beyond that of our imagination from the 1970's. I believe that this change level has directly contributed to our current slump.

Many companies will emerge from this slump in an even better position than prior to it but in order to accomplish this amazing run, they will need to innovate. They need to apply innovation to all aspects of their business. Companies need to take a macro and micro look at their operations now and figure out how they plan to emerge.

It is not business as usual in 2009 but these are times for careful analysis and very strategic planning. Keeping innovation at the forefront of that planning is the key to surviving this recession and emerging as a leader.

The Game Changer

I recently had the privilege and pleasure of listening to a great presentation by renowned businss advisor, leadership expert, and best-selling author, Ram Charan. His message revealed the importanct of innovation in the success of a company or organization.

Innovation, however, is not a simple process and it must involve company leadership as well as drivers of products and sales. Ram went to great lengths to illustrate a complex grid of how ideas flow through to launches with numerous steps and influences in the process.

One of the key take aways from the presentation is that innovation must deliver, revenue, margin, and differentiation. Revenue and margin are rather self explanatory. Differentiation on the other had is key to why innovations are successful. We don't necessarily need more commodity items but new products that are answers to the market's needs.

I suggest that you pick up a copy of Ram's recent book, The Game Changer. Now is a great time to take a close look at his recommended process.