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Managing innovation effectively has become an essential requirement for staying competitive in todays’ world. Increase your capability to generate customer value by implementing the idea and innovation management manifesto (SIIMM) developed by Synpulse.
Great ideas can arise from anyone, anywhere, at any time. However, many of us fail to tap into one of the most valuable sources of inspiration we have: our employees. Take a look inside your organization. Somewhere there is an employee with a perspective that might potentially transform your business better than any strategy consultant ever could. With the banking sector going through a phase of massive disruption, we can’t afford to let these game-changing ideas and solutions just sit in our employees’ heads. At Synpulse, we believe that organizations can only capture and exploit this vast potential with a professional idea and innovation management approach.
A Real-Life Example
Landesbank Baden-Württemberg (LBBW), a German bank and financial service provider, is an example of a company that experienced disruption first hand. But instead of sitting idly by, it decided to do something about it. LBBW suffered heavily from the financial crisis in 2008, posting losses of over two billion euros and ending up with a cost/income ratio of over 100%. They were forced to act.
To combat the crisis, LBBW introduced an idea management system to enlist the collective knowledge and improvement ideas of its 11,000 employees. These ideas were then evaluated by a designated chief innovation officer (CINO). When approved, the idea was implemented, with the submitter receiving recognition as well as a share of the realized profit. This change enabled LBBW to turn the tide and return to profit within three years.
Today, LBBW’s employees generate around 4,000 ideas per year, of which 47% are realized, creating an added profit of EUR 18 million per year. But the new innovation approach didn’t just boost profits. The bank was also able to significantly improve employee satisfaction and camaraderie among staff. Moreover, the initiative helped attract new clients because LBBW was perceived as an innovative player in the market.
How to Become an Innovation Leader
To help organizations implement their own innovation process, Synpulse Management Consulting has developed an Idea and Innovation Management Manifesto (SIIMM). As shown in figure 2, it consists of four core pillars:
- Process & Organization: Establish an end-to-end idea and innovation process and build governance that encourages the structured handling of new ideas.
- Incentive: Introduce a transparent recognition and reward system that gives employees a share of the profit generated from their ideas. This will help boost the number of submissions.
- System: Make sure you have a system that fully supports the entire life cycle of an idea, from submission to finished project.
- Culture: Live an open innovation culture where everyone is eager to actively participate and contribute ideas to improve the company they are working for.
Setting up a customized innovation management system has multiple benefits, ultimately enabling you to become more efficient and establish a wider sense of acceptance of change within your bank. Once this happens, most of the ideas for change initiatives will be generated not just top-down but from the bottom-up, meaning they draw on the opinion of a broader audience. By generating a larger pool of ideas and selecting the suitable ones for implementation, you also improve the return on investment of your change initiatives.
First Step to Greater Innovation: Find out Where You Stand
To help you assess the innovation management processes within your organization, Synpulse offers you a full Idea and Innovation Management Maturity Assessment (SIIMMA)free of charge. Drawing on our experience from across the industry, the assessment will enable us to make detailed recommendations for a bespoke action plan. You’ll find more information on SIIMMA here.