Many equal innovation with product innovation or market innovation. While this is important, another type of innovation, even more important, is ignored. This innovation is operational innovation. Good leaders develop and train other leaders in this.
Focus on Business Tools
The idea is simple – you focus on some important value-added business processes and make improvements to them. At Schneider Electric it started by establishing a business process method, which describes the operation of the company with regard to the small value of creating end-end processes. The process includes Development Relationships, Acquiring a New Business (ANB), Getting Transportation, Delivering Freight and Providing Ability to Transfer Freight. These few processes accomplished almost all the jobs that Schneider had thousands of employees. By defining the Acquire New Business (ANB) process, setting its limits, determining its scale and targeting it for improvement, Schneider defined the appropriate problem that needs to be solved.
Most companies set too narrow a range for their innovation efforts and can only make incremental improvements. For the first time, Schneider introduced the concept solely with regard to the preparation of the proposal, and did not preclude a large number of groups and activities that concern the more purpose of acquiring a new company. By focusing the second time on the entire ANB process, eventually as it did eight different departments and a number of projects, the Schneider team could discuss all issues that are responsible for slow response of customers.
The innovative innovation in Schneider thus created a new strong way of acquiring a new company. For those who know business at a retail outlet, the option to track all knowledgeable, regardless of their departments, behind the new acquisition will become apparent.
View business as a business management suite, measure and improve them, and even achieve better breakthroughs in them can lead to strong business innovations. This only key role of leaders.