Innovation Systems
UNCLOGGING
INNOVATION
The Pattern
Innovation team generates lots of concepts. They run pilots, make prototypes, create beautiful presentations. Execs get excited about possibilities. Then... nothing scales, nothing launches, nothing makes money. Good ideas die in handoffs (to business units) or drown in process
Innovation is theater, not engine of growth.
The real problem: You don't have an innovation *system*. You have innovation *activities*. Without clear governance, metrics, funding models, and handoff processes, good ideas can't survive the antibodies of a typically cautious org.
What’s it worth?
Industry benchmarks
—Successful innovation portfolios: 10x return on investment
— Transformational innovations generate 70% of innovation ROI
— Organizations leveraging insights effectively: 77% higher revenues vs. 61% for others
— Companies that excel at innovation: 54% more likely to achieve 10%+ profit margins
— Well-governed innovation programs: 63%-78% launch success rate vs. 24% for ad hoc
Example
A $100M company investing $5M annually in innovation with no system gets maybe 1-2 launches. With proper system: 5-6 successful launches delivering $50M in new revenue = 10x return.
Back-of-envelope
— $3M annual innovation spend
— Currently 24% success rate (industry average for ad hoc innovation)
— With a system: 70% success rate
— Additional launches: 3-4 per year
— Revenue per launch: $5M average
— Additional value: $15M-$20M annually
______________________________________
Innovation System Design $95K
Increase Success Rate 24%→70%
Add’l Revenue $15-$20M/yr
What I do
Autopsy past failures
Understand what killed previous initiatives before launching new ones
Design the system
Build repeatable processes for how different types of innovation get funded, reviewed, scaled
Create governance
Define who decides what, when, based on what criteria
Build handoff playbooks
Smooth transitions from innovation team to business units
Result
Repeatable system where innovation isn't a random act of courage
Ways to start
-
2-3 weeks | $20K
You keep launching initiatives that stall or die. You need to know what's killing them before you launch the next one.
What we deliver
— Failure mode analysis for each initiative
— Common organizational patterns killing innovation
— "What needs to change before you launch the next thing"Expected value
Avoid repeating $2M-5M failures. If assessment prevents one major failure, it pays for itself 100-250x over. -
4-6 weeks | $95K
You have an innovation team/lab, but no clear process for how things get funded, reviewed, or handed off. Good ideas die in the handoffs.
What we deliver
— Innovation operating model (how different types get treated)
— Stage-gate process with decision criteria and clear metrics
— Governance structure (who decides what, when)
— Handoff playbook (which handoff models for which types of projects)
— 6-month rollout planExpected value
Increase launch success rate from 24% to 65-75%. For $3M innovation budget, that's $1.2M saved from failures + $15M-20M in additional successful launches. System pays for itself in first launch. -
12-16 weeks | $225K
You need someone to design the innovation system AND coach your team through running the first cohort of initiatives.
What we deliver
— Innovation operating system
— Portfolio of funded initiatives
— Trained internal team
— First set of results + lessons learnedExpected value
Portfolio approach delivers 10x returns. $5M innovation budget with proper portfolio management generates $50M in new revenue within 3 years. First cohort typically produces 1-2 successful launches worth $5M-10M each. Program pays for itself 20-40x in first successful launch.
Case Studies
Global Shipping Company
Previous lab hired startup guy who built $50M sensor business in the first year—by breaking every company rule. Resulted in "organ rejection." Lab was killed, startup guy fired. Execs wanted innovation but never agreed on what kinds.
What we did
We defined what "innovation" actually meant for them (new businesses? improved operations? new capabilities?). We designed an innovation program that could serve global marketing AND scale practices across company. Built a scaling approach that aligned with their cultural (working within legal/operational constraints, not against them). Created executive education program on how to lead innovation teams.
Result
Innovation unit still operating 5+ years later (avoided second $10M+ failure). Balanced portfolio: new products/services + operational improvements. Multiple successful launches: Portfolio generating $10M+ annually. Cultural alignment prevented second "organ rejection." Executives learned when to ask the right questions as teams explore.
Major tire company's North America division
Wanted innovation function to serve major business lines, test new products/services, and grow capabilities across functions.
What we did
Designed innovation lab structure, processes, governance. Defined how lab would serve different business lines. Created capability-building approach for broader organization. Built complete blueprint for launch.
Result
Complete innovation lab design. Framework adopted and adapted for their needs. Lab launched and operating. First 18 months: 4 new product launches, 2 process improvements. Estimated impact: $30M in new revenue + $5M operational savings.