THE

INNOVATION MATURITY
MODEL


The strategic and capability building steps for
creating an innovative organisation

Author: Robynne Berg

Berg Consulting Group Pty Ltd

THE INNOVATION MATURITY MODEL

THE THREE QUESTIONS
All businesses and industries in todays market place are challenged by the increased rate of change, disruptive technology and uncertain
economic times. While the specific challenges are unique to a business based on its industry, marketplace and maturity, there are three
key questions shared by all leaders. Those questions are:

Where to we find the breakthrough ideas for long-term growth?

How do we successfully action our ideas?

How do I engage my employees to drive innovation and change?

THE BARRIERS TO INNOVATION

Many organisations find the process of innovating difficult. Theres good reason for this. Mention innovation and youll often hear
comments like:
New ideas never get up around here.
We cant afford the risk of new ventures: we need to focus on operational improvements.
We dont have the resources to undertake innovation.
We cant start risking new ideas when were dealing with reduced margins and revenue.
I cant get my staff to take responsibility for being innovative and improving performance.
We have plenty of new ideas but we can never action them.
Every time we try to action a new idea something urgent comes up that shifts our focus.
We tried some new initiatives but they flopped. We cant afford that kind of failure at the moment.
When the economy turns around well.
We cancelled the ideas box because it became a black hole.
Were analytical types we cant be innovative; its not in our genes.
The above comments each represent the barriers to innovation. Theyre typically heard in organisations that have not yet built their
innovation competency. For a number of reasons, often historical, the company fails to successfully create or implement innovation. This
is not uncommon. Most often the reason innovation fails is the company has not yet grasped some of the truths of innovation.

THE FIVE TRUTHS OF INNOVATION

Becoming innovative is imperative for survival.

If your business focuses only on operational improvements in todays business environment you will soon struggle for relevance
in a market place that has greater choice, changed expectations and increased power. Customers and clients have a different
understanding of value that businesses must meet.

Innovation is about people.

Innovation is not about strategy or technology. It is first and foremost about people. The most sophisticated innovation strategy
or technology will never succeed unless the people have the mindset to both create and deliver.

Innovation is a skill: it must be learned

Innovative practices are often incongruent with how we think and how management is taught. To become innovative,
managers and employees must develop skills in innovative thinking and behaviours before they can be innovative. Importantly,
innovation is not a genetically endowed skill; it is a learned skill. In other words anyone can learn to be innovative with training.

Copyright Berg Consulting Group 2013

market

Innovation is about process

A set of principles and processes is required to create and implement ideas that are commercially viable. Innovation doesnt
end at the idea. Innovation must follow replicable sequenced a process from initial idea to full execution. Process will ensure
that the idea is successfully actioned.

Innovation requires a framework

A framework is required to ensure that innovation activities are de-risked across the process including strategic, resource,
operational and cultural risks. An innovation framework with a suite of tools and practices will ensure that a common approach
and language for innovation is executed across the organisation at every level.

ONE SOLUTION, TWO PERSPECTIVES

The following model looks at innovation maturity from two different perspectives: the strategic perspective (executive viewpoint) and the
capability perspective (organisational development viewpoint). In order for innovation to be successfully achieved you must consider it in
terms of both your strategic processes and your organisational capability. These two perspectives are concordant and interdependent.

Copyright Berg Consulting Group 2013

market

THE INNOVATION MATURITY MODEL

Where to start? Innovation is fundamentally about people. An innovative mindset and culture can innovate without a strategy (although
a lack of strategic process can increase risk and compromise outcomes). However an innovation strategy cannot be successfully
formulated or implemented without innovative capability, mindset and culture. For this reason, it is advisable to place a preliminary focus
on developing capability and culture. Innovation strategy formulation and execution are best to take place either whilst or after internal
capabilities have been developed.

Copyright Berg Consulting Group 2013

market

EXPLANATION OF INNOVATION MATURITY LEVELS

LEVEL 1 ENTRY LEVEL INNOVATION PRACTICE
Entry-level organisations are often those who have historically focussed on operational outcomes.
While innovation may have started entering into the business vocabulary (eg: innovation is a corporate value), managers and staff are
effectively paying lip service to innovation rather than building competency. There is no known executive sponsorship of innovation
development across the organisation.
Innovation has not been assigned to any individual or team, so there is no formal ownership. New ideas are generated through ideas
boxes and brainstorming sessions but rarely enacted. Any innovation that takes place is generated on an ad-hoc basis and is often
reactionary (in response to industry or technical shifts forced on the business).
There has been little or no training in innovation and innovative leadership.

STRATEGIC FOCUS
To elevate you organisation from entry level to emerging level the following strategic focus is required:

Securing executive sponsorship

Developing competency of managers & staff

Initiating strategic approach to innovation

Assigning innovation responsibilities to managers

Appointing innovation committee

CAPABILITY FOCUS
To elevate you organisation from entry level to emerging level the following capability focus is required:

Build competency in innovative thinking and leadership

Commence creation of a common language across organisation

Commence focus on developing foundations for innovative culture

Development programs should focus on:

Develop innovative leadership skills in executive team

Developing innovative leadership skills in management team

Develop preliminary skills in innovation strategy in executive/management team

Introducing innovation and creativity skills across all staff

SOLUTION FOCUS
To elevate you organisation from entry level to emerging level the following approach is recommended:

Half-one day The Innovative CEO innovation program

2-Day The Innovative Leader program for executive & management team

1-2 Day The Innovative Culture all staff program

Copyright Berg Consulting Group 2013

market

LEVEL 2: EMERGING INNOVATION PRACTICES

Emerging innovators have recognised the need for innovation. Whilst the concept has become widely discussed the organisation has
struggled to bring innovative ideas into action. While there is executive sponsorship, the executive is not seen as actively pursuing
innovation.
Any innovation has been assigned to only one person or department (eg: product development). Innovation activities have taken place
but success has been limited. There is a lack of strategic direction in terms of innovation.
Most innovation takes place in isolation and there remains a siloed approach to innovation in the organisation. There is some openness
to innovation but not yet a fully engaged culture. There are no replicable processes for innovation.

STRATEGIC FOCUS
To elevate your organisation from emerging level to co-ordinated level the following strategic focus is required:

Project-based innovation focus: products/services/markets/processes

Strengthening executive sponsorship

Creating innovation KPIs and measures

Building innovation across business strategy

Developing innovation strategy skills

Developing innovation strategy execution strategy

Develop innovation framework and processes

Furthering innovation committee role & influence

CAPABILITY FOCUS
To elevate your organisation from emerging level to co-ordinated level the following capability focus is required:

Build competency in innovation strategy

Build competency in executing strategy

Continue to build competency in leading innovation

Continue to build innovative culture

Development programs should focus on:

Innovation strategy skills

Developing management skills in executing innovation and change (tipping point leadership, fair process)

Developing innovation and creativity skills across all staff

SOLUTION FOCUS
To elevate you organisation from emerging level to co-ordinated level the following approach is recommended:

2-Day Blue Ocean Strategy Intensive workshops

Executing Strategy (Tipping Point Leadership & Fair Process) workshops

Strategy planning offsite

Innovation incubator (working group) programs (4-26 weeks)

Innovation processes training

Mentorship and coaching (internal and/or external)

Copyright Berg Consulting Group 2013

market

LEVEL 3 CO-ORDINATED INNOVATION PRACTICE

At co-ordinated level, organisations have established innovation practices and strategies with some strategic success. This includes the
successful launch of new products and services, the creation of new markets or the implementation of new resource structures. The
executive team sponsors innovation but directs rather than drives innovation.
Innovation management processes are in place but remain the domain of particular departments. Managers exhibit competence in
innovation. The culture of the organisation is regarded as innovative. Replicable programs and frameworks are in place to develop
commercially viable ideas. Innovation KPIs are set for every department and manager.

STRATEGIC FOCUS
To elevate organisations from co-ordinated level to innovation leadership level the following strategic focus is required:

Strategic Innovation focus: business model

Implementation of fully integrated innovation program (including policies, processes & procedures)

Organisation wide innovation KPIs & measures

Innovation KPIs & measures individual performance plans

Innovative competency become a key recruitment focus

CAPABILITY FOCUS
To elevate organisations from co-ordinated level to innovation leadership level the following capability focus is required:

Advance organisation-wide innovation competency

Developing organisation-wide innovation program

Implement organisation-wide innovation policy and process

Create high level employee engagement: strategic direction and innovation

Development programs should focus on:

Implementing employee engagement program (Organisational vision)

Implementation of innovation program & processes

Advanced-level innovation competency

Innovation core focus of induction programs

SOLUTION FOCUS
To elevate you organisation from co-ordinated level to innovation leadership level the following approach is recommended:

Innovation incubator (working group) programs

Litmus testing of innovation projects

The Innovative Leader & Innovative Culture workshops (advanced level and function-specific)

Engagement programs (briefings, workshops, training)

Training - innovation program policies, process and procedures

Internal induction program

Mentorship and coaching (internal and/or external)

Copyright Berg Consulting Group 2013

market

LEVEL 4: INNOVATION LEADERSHIP
The business has built a reputation for innovative practices. The organisation has had repeated innovation success across products,
services and processes. It is an industry leader in both incremental and disruptive innovation.
A robust and innovative business model ensures the companys long-term strategic success. A company-wide innovation program drives
strategy at every level and across all departments and is supported by robust policies and processes.
The management team is strongly supported through executive sponsorship. Innovation is considered a core capability of the
organisation and is intrinsic to its brand value. Innovation is deeply embedded into the corporate culture.
The company is viewed as a good company to work for due to its innovation capabilities.

STRATEGIC FOCUS
To elevate organisations from innovation leadership to industry innovation leadership level the following strategic focus is required:

Strategic innovation focus: industry and cross-industry collaboration

Develop policy for open innovation and collaboration

Develop IP management policies and processes

Leverage organisational IP for commercial outcomes

High-level engagement with innovation research, government and industry

CAPABILITY FOCUS
To elevate organisations from innovation leadership to industry innovation leadership level the following capability focus is required:

External collaborations across businesses and industries

Leveraging organisations innovation IP and businesses

Industry leadership

Development programs should focus on:

Implementation of collaboration programs

Cross-business/ industry innovation development

SOLUTION FOCUS
To elevate you organisation from innovation leadership level to industry innovation leadership level the following approach is
recommended:

Open innovation and capacity development training

IP management and knowledge transfer

Network development

Open source R&D training

Open innovation policy training

Mentorship and coaching (internal and/or external)

Copyright Berg Consulting Group 2013

market

LEVEL 5: INDUSTRY INNOVATION LEADERSHIP

Widely recognised as industry leaders in innovation, the organisation has enjoyed consistent success resulting from its innovative
structure and processes. The networked business structure is world leading and responds to current and future work practices.
An industry leader in disruptive and incremental innovation the business is strategically driven by both industry and cross-industry
collaborations. The company has a number of workgroups with representatives across the organisation working the charters such as new
business innovation, market innovations and business model innovations. It also invests in innovation working groups and start-ups
operating outside the organisation who are tasked with research and development of disruptive products and technologies. A leader in
its field, the business has leveraged its innovation IP into commercial enterprises. Company owned IP might include innovation ecology,
innovation models and frameworks and innovation training programs.
The company has deep relationships across research labs, universities, government and Small and medium-sized entrepreneurs and
venture capital firms. It is regularly engaged in leading innovation research and pilots.
Innovation its core capability and core brand value. The business is ranked a Top 50 Employer due largely to its innovation capability. As a
result the business is able to attract and retain employees and executives of both national and international standing.

FOR MORE INFORMATION

For more information about the innovation maturity model please contact:

Robynne Berg
Managing Director
Berg Consulting Group Pty Ltd
P: +61 3 9016 3795
M: +61 407 316 052
E: robynne@bergconsulting.com.au
W: www.bergconsulting.com.au
T: @robynneberg

Copyright Berg Consulting Group 2013