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Executive Adviser

Innovation

Together We Innovate

By Rob Cross, Andrew Hargadon, Salvatore Parise and Robert J. Thomas

September 14, 2007

How can companies come up with new ideas? By getting employees working with one another.

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When it comes to innovation, the myth of the lone genius dies hard.
Most companies continue to assume that innovation comes from that individual genius, or, at best, small, sequestered teams that vanish from sight and then return with big ideas. But the truth is most innovations are created through networks — groups of people working in concert.

The misperception has never been more damaging, as companies pour more money into generating ideas and then end up frustrated as innovations simply don’t develop. To lay the groundwork for innovation, organizations must make it easy for their employees to build networks — talk to their peers, share ideas and collaborate.

Forget Edison
  • The Myth: Most companies assume that innovation comes from an individual genius or small, sequestered teams. Yet companies that try to follow that model often end up frustrated — and poorer for the effort.
  • The Way It Works: Most innovations are created through networks — groups of people working in concert. To lay the groundwork, organizations must make it easy for employees to talk to their peers, share ideas and collaborate.
  • The Road Map: Among other strategies, companies should make an effort to break down the walls between company departments, rapidly test and refine ideas, and figure out whether there are people in the chain of command who are hard to work with.

After studying networks in more than 20 organizations, we’ve found three problems that stifle innovation. They share a couple of common themes: the failure to effectively leverage the expertise of employees (or their peers in partner organizations) and the failure to react effectively when new ideas do arise. But we’ve also found five steps companies can take to clear those barriers and start producing big ideas.

Here’s a look at the network problems and how to solve them.

THE PROBLEMS

1. No Communication In any organization, there are many people who could almost certainly team up to produce new ideas — but often the structure of the company keeps them apart. The problem could be simple logistics: The workers may be in different departments or physical locations, for instance, or company bureaucracy could keep them from knowing they’re working in parallel on the same task. Or their bosses may dislike each other, making collaboration tricky.

These problems can afflict even relatively small groups within a company. Consider the plight of a partner in a well-known accounting firm who was leading a group of 50 experts to

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This article was printed from MIT Sloan Management Review online: http://sloanreview.mit.edu/executive-adviser/2007-4/49412/together-we-innovate/

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