5 Powerful Systems Thinking Steps for Innovation Success

Why is a systems thinking mindset important?

In this post, we look to provide some guidance and approaches that encourage leaders to focus on the system of innovation as applied in the innovation economy.

Most everyone understands how a manufacturing system works. In the manufacturing system, process are piloted, developed and continuously improved. The leaders, supervisors, and line workers receive continuous education and become relentlessly focused on optimization of the manufacturing process. From this system approach, over time, a strong and repeatable process emerges that delivers reliable results at the expected quality, cost and lead-time.

It is this same systems thinking applies to Innovation across the company that you work in.

Where does systems thinking evolve from?

Both Dr. W. Edwards Deming and Peter Senge proposed the systems approach. Deming’s focus was manufacturing and quality.  A foundational tenent of Deming’s approach gave the statistics that 94% of the problems are caused by the system, and 6% by the worker.  In a similar manner, Senge applied systems thinking to organizational leadership and development.

What are the 5 systems thinking steps?

STEP 1: A commitment from leadership to Innovate for Growth.

Why it matters: Strategic alignment of the organization will create the environment for long term success. Also having an ideal actor point for what growth actually means for the organization. Growth can be classic measures of net margin revenue improvements or growth in skillsets and capabilities that never existed before.

STEP 2: Take the Lead, to drive value for the business across the enterprise to innovate.

Why it matters: Simply here, your organization’s team members need to see energy in leadership. Meaning that a clear leader should be identified that will champion the initiatives and become helpful support for the internal team.

STEP 3: Develop and deploy an Innovation System for Growth.

Why it matters: Here it is important to educate first. Many in the organization might not understand the basics of Innovation and Growth Mindset. Not only from a fundamental skills perspective, but also there may be a minimal awareness of the psychological and neuroscience elements that are necessary to understand how an ideal innovation system operates. Education on these principles gets the organization aligned and provides a deep understanding of current state and future state success.

STEP 4:  Add Technology as the amplifier of the skills.

Why it matters: Analog skills come first. Technology becomes an amplifier. Look for education methods with learning labs to practice the new skills that have been taught and develop the processes needed for success. Once the education and processes evolve and become pressure tested, it is at this point to consider scaling the process with technology.

STEP 5: Cascade the methods and approach to your suppliers and customers to creating a Supplier Enabled Innovation approach.

Why it matters: Sustainable growth is the end state. Cascading the methods does two things. First, it provides signal to your suppliers that your organization is serious about innovation and growth. Second, for your customers, is provides signal that customer feedback is important and considered as part of your development process.

How does the education tie it all together?

With The Innovation Garage approach, the innovation system education helps to get a balanced brain mindset into your teams.The systems thinking based mindset for innovation focuses on growth mindset and neuroscience and always begins with educating the team first.

What is meant by a balanced brain mindset?

With the balanced brain approach, the Left Brain logical types (typically the traditional engineer or code developer) learn tools and methods to be more right brain creative. The right brain creative types (typically the traditional marketer or initial artist of concept designer) learn tools and methods to be more logical and systematic in their thinking.

The intent is not to have each team member unlearn what they already know, but rather rediscover and build up skills that are not their traditional core competency. This helps the diversity in thinking of the team, and amplifies the out of box and intentionally disruptive concepts the traditional team creates.

This method helps teams develop a common mindset to innovation. This mindset reduces fear and creates ideas fast. Each product, process, or service concept then runs through innovation systems that rapidly assesses the viability of the concept, develops cheap and simple experiments to rapidly solve the problems with the concept, allowing the team to quickly fail forward.

The team in unison moves the concept to either the next step in your development cycle or makes a quick and smart kill decision. The team can deep freeze the concept for a later time, or put the concept out to pasture for good. From this point, with a smart kill decision made, the team can move on to something else in the Innovation pipeline that grows revenue.

What is your call to action (CTA)?

Can your team count on you for building an environment that provides the opportunity to grow, fail fast, and do great things that matter to the organization and themselves? The training starts with the leadership team, and systems thinking should be the focal point.

If you are in development, marketing, supply chain, finance, or legal look to focus on the system. Teams traditionally considered as cost centers can and should intentionally disrupt themselves and flip to become profit centers.

Developers can come up with cool things to sell. Sales can entice customers to buy. Operations can innovate and make a process more efficient. Supply chain and legal can innovate and close a deal faster. The leadership then provides sustainable and continuous value for your organization.

In summary, educate first to establish a common language and approach to innovation. Go deep with these methods and watch what happens!

Ready to learn more and explore next steps to build systems thinking for your organization?

The Innovation Garage offers three levels of innovation training anchored in systems thinking that will build innovation mastery for your organization. To learn more about upcoming innovation training and education events, click here:

At The Innovation Garage®, We help organizations grow. Providing education, tools, technology, and expert consulting in change management for strategy, innovation, and supply chain. Guiding leaders from organizations across the world to intentionally self-disrupt their offerings and organizations. We deliver world-class education, tools, and technology on how to craft business operating systems focused on long-term profitable growth. 

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