Stimulating, nurturing and protecting self-generated innovation in SA

At FNB, we focus heavily on innovation as a being a strategic source of competitive advantage. Our strategy is customer centricity, but innovation is both a value and strategic pillar deployed in support of the strategy. The following attributes help drive innovation internally: providing employees with the space to contribute, issuing challenges that require solutions, encouraging and rewarding innovations that generate business benefit, encouraging flexibility, and empowering people though a high degree of autonomy.

Importantly, we have learned that there needs to be tolerance for failed innovations. This is part of the knowledge management process that helps give subsequent innovations a better chance of succeeding, whilst also keeping the innovation spirit alive.

We believe that leadership needs to provide a clear idea of how innovation can help our firm compete. In our experience, there is great benefit in categorising specific company objectives and clarifying how innovation can be employed to support the achievement of these goals. Employee participation tends to increase when the innovation effort is linked to the company's current concerns and priorities.

It helps tremendously when the actions of management include proactively seeking, acknowledging, reinforcing, supporting and rewarding innovative ideas, and the implementation of these in ways that generate real business benefit.

Processes and widespread employee involvement are vital

When it comes to processes, it is important for an organisation's leadership to make sufficient budget available for innovation. Processes should be put in place to review new technological or market developments and what they mean for the organisation's strategy. Processes should also be put in place to help manage new product development effectively from idea to launch.

Striving to involve all employees is also vital. The business rationale for designing and running an innovation programme is typically to foster innovation and increase the extraction of innovative ideas and action from all employees. The more people involved in improvements to products, services and processes, the better it is for innovation within a firm.

Reward-and-recognition systems that support innovation should also be considered - such as linking successful innovations to line and senior management's compensation, using a blend of monetary and non-monetary reward and recognitions tools and techniques has worked for us. Acknowledging a successful innovation via a public forum can, in many instances, be more highly valued by the beneficiary of the recognition than monetary reward.

The importance of teamwork

Encouraging a strong sense of teamwork within the company will encourage and increase participation in the innovation programme. This is because teams are more likely to share ideas and work together in order to achieve a common goal, which is reflective of one or more of the team's ideas.

Also of importance is the need for a prioritisation framework. Given that innovation is also subject to limited resources, and should be undertaken in line with an organisation's strategic intent, it is important to have a clear system in place for choosing innovation projects.

There should be sufficient flexibility in the system for product development to allow small "fast track" projects to happen.

Commitment to training and development

The provision of innovation-related and innovation-supportive training, including coaching and/or mentoring, is crucial. For innovation to thrive, a strong commitment to training and development of people should be present within the organisation.

Taking time to improve performance, this notion should be extended to innovation systems, processes and projects within an organisation.

Making South Africa a more innovative society

Business needs to communicate its need for creative problem-solving skills to the local and national education system more effectively. The education system then needs to deliver on this need. I believe that we in South Africa need to transpose the lessons learned from Silicon Valley in California. Hands-on mentorship and investment by innovators and entrepreneurs who have successfully "been there and done that" is absolutely vital if we are to protect and nurture innovation within our society.

I challenge South African companies to focus on legitimising and delivering innovations, both big and small. Lots and lots of incremental improvements within a business are potentially a great source of sustainable competitive advantage, as they are difficult for competitors to copy. They also help improve the basics, providing an ever-increasing solid platform upon which more radical innovations can be successfully delivered.