Manufacturing Executive - September 2008 - (Page 19)

idea that their process for innovation has clearly defined roles, responsibilities, and deliverables for company stakeholders. In Europe, it’s a bit better (36.7%) (chart 6), but still far below what’s needed to effectively manage innovation on an enterprise-wide basis. The reason this may be so, the poll results suggest, is the way U.S. and European manufacturing companies tend to be organized: functionally, rather than cross-functionally. A key finding in the survey points in this direction. When asked how they manage innovation, 51% of European respondents and 49% of U.S. companies (51.9% last year) say they do so as individual projects, with designated teams, budgets, milestones, and success metrics. Such an approach may produce some wins, but it doesn’t seem to be generating ongoing gains for most U.S. and European companies. When asked whether their innovation efforts are producing a steady and continuous stream of results, 38.7% of U.S. organizations (36.6% in 2007) and only 32% of European companies answer positively. The lack of continuous motivation by management may be a root cause of this problem. In the United States, only 38.7% of poll takers (43.1% in 2007) say that company employees are “extremely passionate and motivated” to participate in innovation projects, while even fewer European companies, 32%, feel that way. Interestingly, about the same low response occurs when poll takers are asked about rewards and recognition for innovation work. Clearly, management is falling short in keeping people motivated about innovation over time. One area that managements of both U.S. and European companies may focus on right now to improve the sustainability of innovation efforts is resource allocation and training. Even though more European entities indicate a commitment to training and resources — 40.6% of European companies and 30.9% of U.S. companies (35.1% last year) say they continually provide both (chart 8) — companies on both sides of the Atlantic can do more to keep an emphasis on innovation. And it’s that longer-term commitment that is key to unlocking innovation’s potential in many companies. That potential seems to exist. Now, if manufacturers can figure out a way to better manage the process, the promise of innovation may indeed become a reality. ■ t futurethink, based in New York, provides research, tools, and consulting services to help companies innovate. For more information, visit www.getfuturethink.com. processma poll GAP APPEARS BETWEEN INNOVATION TARGETS AND RESPONSIBILITIES 5 Does your organization focus its resources on the ideas that will best move the business forward? 51.9% 13.9% 12.2% 34.9% 35.9% 33.1% 10.1% 56.8% 51.2% U.S. 2008 6 U.S. 2007 Europe 2008 Does your innovation process have clearly defined roles, responsibilities, and deliverables for stakeholders? 23.4% 31.7% 44.8% 43.6% 36.2% 20.2% 36.7% 28.1% 35.3% U.S. 2008 Strongly Agree = U.S. 2007 Strongly Disagree = Europe 2008 Neither Agree/Disagree = climatema poll TRAINING, RESOURCES FALL SHORT OF INNOVATION INTENTIONS 7 Does your company actively encourage a climate of curiosity and open dialogue? 49.8% 58.2% 52.3% 2008 U.S. 2007 U.S. 2008 Europe 14.8% 12.3% 9.4% 35.4% 29.5% 38.3% 8 Does your company continually train employees and give them resources necessary for innovation? 30.9% 35.1% 40.6% 2008 U.S. 2007 U.S. 2008 Europe 27.6% 24% 25% Strongly Disagree = 41.6% 40.9% 34.4% Neither Agree/Disagree = Strongly Agree = September 2008 19 http://www.getfuturethink.com

Table of Contents Feed for the Digital Edition of Manufacturing Executive - September 2008

Manufacturing Executive - September 2008 Contents Editor's Letter Opinion By David Humphrey Starters Road Trip Part 1: Innovation or Efficiency? Part 2: The Innovation Gap Opinion By Lisa Bodell Special Report: Great Aspirations Supply Chain: The New Money Machine Product Design: Fruehauf Gets into High Gear with 3D CAD Business Intelligence: Food Distributor Turns Up the Heat on Manufacturers Software: Manufacturers Face SaaS Hurdles Dialogue Opinion By Pierfrancesco Manenti

Manufacturing Executive - September 2008

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