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Wednesday, July 9, 2014

Innovation versus Continuous Improvement


I recently read the blog post below from Harry Hertz, a Baldrige guru. But, it gave me pause to think, can we be innovative in a culture of continuous improvement?  I think we can. But are we?



Improvement and Innovation

Posted by Harry Hertz, the Baldrige Cheermudgeon

I have found myself in numerous conversations lately about continuous improvement and innovation
innovation. Is there a difference between the two concepts? Is the distinction important? While the lines between improvement and innovation might blur, I think there are conceptual differences that are important and worth understanding. Innovation is about breakthrough change or discontinuous improvement. Improvement, as generally referenced, is about continuous improvement, doing the same thing better, faster, cheaper with less waste. Innovation is about disrupting the existing process or product and conceiving or re-conceiving from the start.

Improvement is about higher levels of performance; innovation is about new dimensions of performance. Improvement processes generally yield positive results. Innovation processes might result in success. Innovation involves risk-taking. Innovation decisions are generally strategic, aligned with organizational planning. Innovation attempts will sometimes result in failure. That potential should be recognized at the outset and lack of success should be rewarded for the attempt, not punished for the failure.

In most organizations, improvement activities are locally chartered, might require some managerial approval, but rarely require senior leadership involvement.

Innovation is more challenging. Senior leaders must set the supportive environment, encourage outside-the-box thinking, reward success and failure, participate in decisions about which intelligent risks to pursue, and make the resources (people, time, and funding) available to support innovation projects.

Henry Ford Health System (HFHS), a 2011 Baldrige Award recipient, considers innovation to be one of its core competencies. HFHS strives for innovations in four areas: clinical research and technology, facilities, services and access points, and processes. Innovations have included health kiosks in community faith-based organizations and demonstration kitchens in the hospital where patient’s families can learn healthy cooking.

Cargill Kitchen Solutions (formerly Sunny Fresh Foods), a two-time Baldrige Award recipient, defines two types of innovation: customer focused innovation and high performance innovation. Customer focused innovations involve converting knowledge and insight into new customer products and services. High performance innovations involve converting knowledge and insight into new processes that help create distinctive value, competitive advantage, and profitable growth.
HFHS sums it all up with two equations: ideas + execution = innovation, and innovation + accountability = sustainable growth.

What is your organization doing to achieve sustainable growth?
 

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