Marketing, metrics, and innovation
*Dennis Urbaniak, VP of innovation at sanofi-aventis, on fostering innovation by keeping things simple*
By on Nov 9, 2010Dennis Urbaniak, VP of innovation at sanofi-aventis, on fostering innovation by keeping things simple
Most commercial organizations employ people who make it their business to dismiss new ideas, so change often doesn't come naturally.
But according to Dennis Urbaniak, VP of innovation at sanofi-aventis, the key to spotting new ideas and opportunities is simplicity.
A new idea will be easy to implement if it is readily understood, especially if it is implemented in small easy steps.
Urbaniak is a fan of Clayton Christenson of Harvard University, who recommends treating sales in the same way as hiring an employee.
Before hiring someone, you define the job and the criteria, and then review the candidates.
If there is a gap between the requirements and the available skills, some creative ideas are required. This process of gap identification is also used in sales.
The gap is essentially an opportunity to do something innovative, something that delights the customer.
Keep it simple
Simplicity runs as a common thread throughout Urbaniak's thinking.
Any innovative action needs to be monitored, and good monitoring requires simple metrics.
For any new effort you should be able to answer four questions, Urbaniak says.
First, you need to be able to describe it. If it takes a PowerPoint deck to describe it, you are not focused the right way! he says.
Next, identify the rationale, which is best defined in terms of the desired outcome.
Then, identify the success criteria. People often have widely different impressions of whether a project was successful, often because the success criteria were not stated up front.
Finally, a time frame, which enables status to be reported, is essential.
Urbaniak emphasizes the need to publish metrics internally: You can't be afraid to put this thing out there, and say, What if I'm wrong?
Manage expectations
Expectations must be defined and managed up front. The only thing to fear, Urbaniak says, is failing to try something new.
People tend to rely on experience, which is fine as far as it goes, but it's not enough on its own. Risks have to be taken or there will be no innovation.
Urbaniak suggests that the best ideas come from employees, and to a lesser extent from customers, rather than from the boardroom. This means that internal communication must be two-way.
To facilitate this, sanofi-aventis ran a 72-hour online discussion called an Impact Jam. The results exceeded expectations, particularly across departments and specialties.
Creating impact
The initiative has now migrated to a continuous platform called Impact Ideas, where anyone can post an idea he or she thinks will have a business impact. This generates great discussion and sharing of experiences.
The best ideas are fed into the company's recognition awards program, and the platform has been spun off into other areas, notably prediction of business performance.
Having validated the program internally, the next step is to externalize the platform and engage customers.
There is a wealth of expertise out there to help anyone committed to serious innovation, says Urbaniak.
But he cautions that innovative initiatives are continuous efforts, not flavor of the month.
Show people that you are being consistent, and give people a chance to move ahead, he suggests.
And, of course, keep it simple by focusing on the three main components of the innovation process: spotting opportunities, creating simple metrics, and establishing a sustainable platform.
This article was adapted from a talk given at the 2009 eComms USA conference. For information of the 2010 Pharma Marketing Summit, click here