This is a hot topic for organizations right now! So, leadership advisor Noel Sobelman hosted a webinar on innovation in the face of a downturn, which you can watch on demand.
Rationalizing your Innovation Portfolio
When you rationalize your innovation portfolio, you’re looking at balancing resource supply and demand – a useful exercise to do even when times are good! You’ll be able to judge whether your supply is outstripping demand or vice versa, and predict what effects this will have on your business in the short, medium and long term.
Decentralize Your Decision-Making
It’s important to make sure that the people making resource allocation decisions for innovation portfolio rationalization are those who are closest to your markets and understand your customers. These people typically operate at the business unit leadership level in large companies and at the corporate level in smaller businesses.
Revisit Your Innovation Strategy
When carrying out innovation in the face of a downturn, it’s important to take a look at your innovation strategy. Start off by carrying out a quick market assessment – nothing complex, just talk to some of your major customers to get their opinion on what’s going on.
Once that’s done, you can assess your innovation strategy by asking questions such as:
- How is the downturn impacting our target opportunity areas?
- Will any new opportunities open up?
- Do we need to revise our revenue targets?
- Should we switch our investment to lower-risk projects?
- Are there some opportunities we need to stop?
- Are there any dormant projects that need to be cancelled?
Clean Out Your Zombie Projects
Zombie projects are those innovation projects that have a habit of coming back to life, even after you thought they were dormant or cancelled! You should clear out these projects and focus on those that bring real value to your organization.
Watch Innovation in the Face of a Downturn On-demand!
Watch the whole of Noel’s masterclass on Innovation in the Face of a Downturn.
- How to reset your project projections and adjust for market risk
- The key steps to follow when rationalizing your innovation portfolio
- How to avoid common pitfalls and thrive under market pressure
You can also find out more about Noel on his website.