I made someone cry at work the other day. I did not mean to, in fact I was trying to encourage them. I am sorry, I was wrong.
I have seen something more dramatic happen in the last few months. The truism innovate or die is being challenged. Lasting success is more rare than ever, as the innovation rate rises and competition gets tougher. So, how do you keep up with the increasing complexity and innovation in the market? The most natural way, of course, is to unleash the innovative potential of the organisation. Which can be very painful. To do so, a creative climate is a necessity, but far from enough. Innovation excellence requires shared language, processes and platforms too.
Explore, play and create novelty.Innovation as an expression of human creativity and lateral thinking, is not the result of economic development, but rather the source of sustainable economic and social progress. I am privileged to be working at the cutting edge of empirical service innovation and it is very exciting. In restaurants and hotels I work closely with, I see that they are constantly attempting to find innovative ways to serve customers more effectively and efficiently. My experience of seeing innovating in a service business, is that it seems to work best if the innovations are:
- aligned with you why or purpose,
- meet (and predict) a future consumer need and
- can be delivered by empowered staff.
Now more than ever, innovation is seen as key to growth, to acquiring and sustaining competitive advantage, and to building shareholder value for the long term. But is innovation deflecting us away fro giving excellent service? Of course service systems are the dynamic configurations of people, technologies, organisations and shared information that create and deliver value to customers, providers and other stakeholders.
I see the innovation process fast becoming more open and more global. Setting up shop in local markets around the world and getting customers more involved in innovation efforts are now a vital part of any successful innovation effort.The rising significance of service and the accelerated rate of change mean that service innovation is now a major challenge to all business sectors. Innovation is forward looking. Solving yesterday’s problems is important, but not innovative. Copying what others do well is often a good approach, but not innovative.
Hotels, restaurants and the service industry form a growing proportion of the world economy and are becoming central to the way businesses, governments, families and individuals work. Innovation, a term applied almost exclusively to technologies in the past, is increasingly used in relation to service systems. Ideas of service are, of course, not new. However, the scale, complexity and interdependence of today’s service systems have been driven to an unprecedented level, due to globalisation, demographic changes and technology developments. Over the course of modern history, innovation has proved fundamental for formal organisations. In the past decades, as market competition intensified and the business environment grew in complexity and uncertainty, innovation became essential not only to an organisation’s performance, as several studies have demonstrated, but to its very existence and survival.
Innovation can be seen as a new or improved ways of designing and delivering services. This may include innovation in service delivery systems, though often this will be regarded instead as a service product innovation. Innovation of this sort may be technological, technique or expertise-based. While radical innovation can be viewed as market driving idea which comes from the leader’s vision of market opportunity, the incremental innovation from the service team is equally powerful. Just don’t make them cry.
It is surely true that every company, in every industry, needs an innovation strategy. This can be a high-tech product innovation, packaging innovation in consumer goods, or process innovation at financial services companies. But this requires a zoom out then zoom in approach. This results in a new challenge to service innovation, the real-time nature of introducing new services. The service cannot be tested in a laboratory. At minimum it must be pilot tested with real guests in a real hotel. Real clients in the restaurant. Even though innovations are desirable, the customers and organisation may resist them. And that can be dangerous ground and can produce some negative feedback on social media.
My passion for excellence requires that innovation is most successful in service operations that seek the support of employees for innovations and, beyond that, encourage employees to participate in a culture of innovation. Many individual strands of knowledge and expertise relating to service systems already exist, but they often lie in unconnected silos. Perhaps my favourite expression,
Learn, Love, Laugh, Cry and Innovate.
I will try not to make anyone else cry tomorrow.