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How Innovation Is About People: Case From Statkraft

September 15, 2009 Innovation 6 Comments

I had the pleasure of presenting my thoughts on innovation and intrapreneurship in a corporate session for managers from the Norwegian company Statkraft, which is Europe’s biggest producer of renewable energy. The reason for the session was that they have established a quite interesting program called The Innovation Agent

The program is an attempt to strengthen the culture of innovation and encourage innovation within the Statkraft group. In short, the agents work on specific innovation projects during a one-year period in which they can spend 20% of their work time on these projects. They also receive support from the innovation department and other people within the organization. This program is in its second year and it seems as if it has gotten good traction within Statkraft.

There are many such programs in the corporate world. So what makes this program worth writing about? Well, what I really like is how they work not only with the agents, but also with the managers of the agents. I should note that each agent has been appointed by a manager whose department has bought into the idea of the program. I have many times stated that the middle managers of an organization can make or break innovation initiatives. Check this blog post: TBX - An Approach To Developing The Innovation Culture
 
The innovation department at Statkraft understands they need the support of the middle managers to get current and future support for the program. So they gathered the managers of the agents to a 24 hour retreat. The purpose of the retreat was to help the managers better understand the Innovation Agent program, help the managers get a better understanding of innovation in general and help them make the innovation agents look great.

The retreat seemed to work very well. Several participants expressed an increased belief in the program. The retreat also provided the participants with a great opportunity to network across business functions and units and discuss how innovation should take place at Statkraft.

At the end of my session, I asked the question of how the managers could make the agents look great knowing this would also make them look great. I think the responses we got on this also work in other situations where people need to drive innovation. The feedback included:
 
Show interest in the work of the innovation agents and provide the necessary support. The agents need tough and constructive feedback, but you should of course keep this on a positive and supportive level.
 
Help them pick the fights they need to take. They will meet a lot of resistance but they should choose their fights wisely. The managers can help on this.
 
Make sure the agents get proper recognition for their work. Remember that recognition is the most powerful incentive for innovation leaders and intrapreneurs. Well, perhaps except for Americans who seems to prefer financial incentives : – )
 
Explain the program to other employees. Colleagues might not fully understand why these agents get to spend so much of their time on their projects leaving more work to them. The managers could explain the program to the colleagues and explain why they support this and why others should do the same.
 
I hope to stay in touch with Statkraft and hopefully this will give me the opportunity to give you an update on their activities in the near future.

A REQUEST: Do you know of other such programs that focus on developing the people who drive innovation? Let me know as I think it is worthwhile for the innovation community to it is relevant to share insights on such programs.

You can also get an idea of how business plan competitions have worked in companies such as Danfoss, Hewlett-Packard and Novozymes in this blog post: Corporate Business Plan Competitions

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Currently there are "6 comments" on this Article:

  1. Hi stefan
    I so agree that middle management can make or break an innovation culture project. My experience with a number of companies in the past has supported this.
    I run a number of programs where Emotional Intelligence is built in to the Innovation program. Innovation – making something new happen or become – something that adds value – requires lots of people to make it happen. Lone wolves can do little on their own. So relationship skills are so much a part of building the people to drive innovation. We also workshop Power and Influence, as essential elements for the innovator.
    Love your blog. Thank you.
    Janine

  2. Stefan,

    I agree that middle managers are critical for any innovation program to succeed. What is great in the program that Statkraft is doing is that they recognise that innovation requires different skills as compared to on going business. Hence, specific associates are being given the responsibility. The other great thing is that they have not done away with Innovation department but have made them as environ manager, providing the required environment and skills and collaboration. Amazing. Innovative way to manage Innovation.

    It would be great to keep hearing how they do in future.

    Davinder

  3. Peter Santaw says:

    I could not agree more with both Stefan and Janine.
    In my many years trying to innovate against what can seem like an impenetrable wall I have had issues with Middle Management, Power and Influence.
    Understanding who is really on your side as well as understanding and working with the power and influence base within an organization is essential to move innovation forward.
    I also love Stefan's Blog. I think it is the best overall blog on innovation.
    Peter

  4. Hege Brende says:

    Thank you for your constructive comments Stefan. We are ourselves very interested in how other corporations work on these issues and are constantly focused on possible improvements and enhancements in our program! I support the key points in Janine's comment; Relations, Power & Influence in order to make innovation happen.
    Hege

  5. Sergei Dovgodko says:

    I am trying to visualize an "Innovation Department" (as in Statkraft) in an average S&P500 company.

    One day the upper management announces a new Innovation Department. Some staffers are appointed to work in the department. A high-potential friend of the CEO is appointed to lead it.

    Question:

    How would an average employee outside the Innovation Dept. react to such an announcement? What kind of feelings the employees would have about their own department, lab, or the business unit? And themselves as innovation agents?

  6. Oddbjørn Brul says:

    The importance of mid managerial level is also emphasized by Christensen & Raynor (2003) that argues that a major reason for why companies are not able to be innovative and come up with new ideas for business growth is not necessarily lack of ideas in the company, but rather the filtration through the mid managerial levels.

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