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Some companies see innovation as groundbreaking products that storm the market. Others think of it as delightful, unexpected improvements to existing offerings. Still others treat it as repackaging and repurposing products. For some product managers, it feels like innovation just to get the product out the door.
But what does it mean when the boss asks for “more innovation?” What are the expectations? And what do you, the product manager, need from the boss in order to deliver? We interviewed several product managers and executives responsible for product management organizations, across a number of different industries, and discovered some interesting findings.
BOSSES AREN’T ALWAYS EXPLICIT
Innovation is welcomed, expected and often assumed, but not always directly requested. Managers tend to see the company as being only as smart as the dumbest competitor. “My boss puts pressure on me for results, not necessarily innovation,” says the Managing Director at a major legacy airline. “He only explicitly asks for innovation when he sees that things aren’t cranking at a high enough level. Creativity isn’t always high on the boss’s list. Instead, they generally focus on results.
Managers do assume that you can improve, but don’t always define innovation the way you might. One executive observes that there’s probably nothing that can’t improved somehow, so effort should be focused on taking things to the next level, rather than maintaining the status quo. A Product Manager at a large merchant processing services company says, “The boss often defines innovation as a visible increase in sales, profitability market presence or revenue base. For better or worse, my boss views boosting the scorecard as innovation.
IF THE BOSS CAN DEFINE IT,
IT ISN’T INNOVATION
We also discovered that when the boss asks for innovation, they don’t expect to be able to define it: If they can define it, they don’t see it as innovative. The boss likely wants you to stay ahead of the market, and definitely keep the competition in second place. They would absolutely love for your company to be the market leader, but under no conditions would it be acceptable to be the last player to catch up. “Your boss probably sees product or service life cycles as short, “says a Senior Product Development Manager at a leading consumer electronics manufacturer, “Beyond these rough ideas, though, your boss usually doesn't have a clue about innovation—that’s your responsibility.”
From their perspective, if they can brainstorm an innovation from their limited, somewhat out-of-market-touch perspective, it can’t be that innovative.
INNOVATION EQUALS SURPRISE
Bosses tend to see results as innovative when both they and the customer are happily surprised. It doesn’t seem to matter whether it’s a dramatically effective change in one of the 4P components (e.g. rollover minutes for cell phones)(, a totally new, innovative product line (high quality, hands-free cell phones), or a brand new, market-making concept (inexpensive satellite phones). They tend to welcome anything that draws markets and positions your company at the forefront.
So we have a pretty good idea of what bosses expect when they ask for innovation. Given that understanding, what do product managers need to be innovative?
Entrepreneurial Freedom. Product Managers need entrepreneurial freedom to manage their product line like a small business. Innovation requires calculated risks, but it’s sometimes difficult to keep the boss aware of risk. An occasional reminder to the boss that there is a change of failure is a good idea.
More Resources. Innovation requires more resources than established products. Really innovating requires More people, budget and time, whether it involves new products or just radical marketing ideas. It helps to have a great idea, coupled with a strong business case and a crystal-clear ROI.
Permission to Fail. Product Managers need the bosses to understand that, even with the right resources, minimal risk, a great mindset and wonderful ideas, we won’t execute perfectly. Not every initiative is going to yield maximum results, so it’s good to set some limits in advance.
Share the Pressure. Last, but certainly not least, the boss should diversify budgets and staffing across multiple innovations. By keeping two or three active tracks, it’s a simple matter to shift creative resources from one project to another as things change.
To summarize, Expect that while the bosses may not directly ask for innovation, or expect to be able to define it, they know that it feels like innovation when they are happily surprised. Don’t be afraid to ask the boss for the entrepreneurial freedom, resources, and permission to fail. And don’t forget, permission to fail includes demonstrating this support with 2-3 simultaneous innovations track projects.
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