In my last column, I spoke about finding packaging innovation. Since then, I have received inquiries on how to develop an innovation/R&D capability within the organization. Providing a comprehensive plan here is beyond the scope of this column, but I can provide my perspective and additional resources you may want to explore.
In my experience, managing an R&D organization for personal care products and package innovation, I have found it essential to drive for targeted innovation. I think it’s fair to say that nothing deliberate happens without a plan, and that R&D without an identified target is costly and inefficient. To ensure this targeted approach, the best tool is a structured and disciplined business process. Strategic Business Planning, with annual objective-setting and -tracking sessions, is one such process. Strategic Business Planning (SBP) is your three- to five-year road map to the future. It identifies where you want to take the business, your core competencies that will help you, obstacles that will hinder you, and actions and objectives you need to make happen to deliver your plan.
Typically, the plan will identify five or more areas to provide a structure to achieving your goals: financial objectives, quality, customer service, and innovation and organizational objectives.
While the plan objectives and action plans are structured into five or more categories, the objectives and action plans within a specific category often are dependent on and interlocked with objectives and action plans in other categories. For example, financial objectives for sales profit growth can require supporting codependent activities in quality, customer service, innovation, and organization. Therefore, a critical element in the success of a strategic business plan is a comprehensive, interlocking objectives process that identifies the activities your organization needs to accomplish in the short term (one year).
