As business models being are challenged, organisations need to become more adaptable and resilient, naturally also by becoming more efficient and cutting inadequate costs. This change must happen from the bottom up, with the right leadership and sponsorship, to separate the good from the bad costs, at both micro and macro levels. Innovation managers can, and should lend a hand to address this shared challenge.
Transforming cost-cutting into growth in your innovation programme
In times of uncertainty, when business models are challenged, companies are bound to cut costs, to become more agile, robust and adaptable to change. Managers can support these efforts, namely within the corporate innovation programme.
Meet the Exago Innovation Guru prize-winners
The challenge was set, the votes counted and the champions announced. And now, Exago has delivered the prizes to the Innovation Guru Award winners of 2017. We were proud to present the trophies to Via Varejo, Ageas and CTT, the three clients who especially stood out for their solid focus and resilience to innovate over the past year.
The 7 (+1) things you have to do to succeed as an Innovation Director
As companies fight to stay ahead of the innovation curve, the role of the Innovation Director is developing and growing in significance. Some have trained in the field with a high degree of specialisation, while others have fallen into the position from other areas and have moulded themselves to become the innovation leader of their company. Regardless, their goal is the same: to help propel and direct innovation within their organisation.
Step 5: Be resilient to create a cost-conscious culture in your innovation agenda
If you are introducing cost-cutting in your innovation agenda, your ultimate drive is to create a cost culture that sustains itself over time and is not forgotten three months after being announced by the leadership.
Step 4: Overcoming fears over cost-cutting within your innovation agenda
Typically, cost-cutting is an expression that frightens employees. It often suggests salary reductions, job cuts and increased individual workload. When introduced in your innovation agenda, you should thus ensure that both real needs and strategy are understood across the organisation, consistently framing any cost-cutting goals.
Optimise your cost-cutting strategy with the right innovation management tool
You can save time and money by having your employees contribute ideas for the cost-cutting strategy, as well as cost-optimisation ideas that can transform and impact the company positively. Examples from our clients’ innovation management programmes show just that.
Step 3: Invest more in a bottom-up approach for your innovation agenda
When developing your innovation agenda, bear in mind that employees deal daily with inefficiencies in your company, having often diverse and powerful ideas related to organisational processes and products. The following are real examples of this.
For step 2 in cost-cutting within your innovation agenda, you will need this
A cost-cutting initiative within your innovation agenda needs to be run as a strategic initiative with the same board sponsorship, direction and accountability as any other critical initiative. It is important to ensure central governance, senior management agreement and employees’ engagement.
What are the good and the bad costs in your innovation agenda?
When introducing a cost-cutting strategy in your innovation agenda, you should first have a clear view of your company’s strategy and map out good and bad costs for programme intervention, at macro and micro levels. Both macro- and micro-level-oriented strategies have value and they often make more sense combined.