McKinsey have just released their 2010 innovation survey. It’s a very thought-provoking read and its based on a survey of over 2000 respondents from several industries. The survey can be found on McKinseyQuarterly.com and its free to get a subscription. Many of the survey results regarding the management of innovation as a process are consistent with a lot of things that we have been writing on the blog. According to McKinsey, these same management issues come up year after year, too.
Interestingly, exhibit 4 shows that most managers think that innovation performance would improve with a better pipeline of big ideas (57%), yet only a third of these managers thought they had a good balance between idea generation and effective execution. The ideas trap is alive and well!
One of the most interesting graphics related to the effects of formalizing the innovation process. Most respondents did not have a formal innovation process and only a third were able to say that they had their innovation initiatives aligned with strategy at the business or corporate level.
However, those that reported having a very formalized innovation management process (about 20%) reported higher rates of innovation rejection within the business and slower times to market compared to firms that had more informal innovation management processes. While it would be interesting to know what these processes actually look like, it gives us some evidence that too much formality is a bad thing.