In one of my last blogs on InnovationManagement I discussed more than 40 reasons why people struggle with innovation. Corporate culture, uncertainty, a lack of support, a lack of market insights, the absence of an appropriate process, missing the tools and lacking the right resources all matter a great deal.
An interesting question is if the size of the organisation matters in the process of starting innovation. In the linkedin group on the FORTH innovation method, consisting of front end innovation managers and experts from all over the world, we had a poll on this with a clear outcome. Half of the innovation experts and managers believe starting innovation is easier for smaller companies. A quarter thinks there’s no difference and a quarter says it’s easier for bigger ones.
Is starting innovation easier for bigger organizations compared to smaller ones?
4% Yes, it is easier for bigger ones
21% Yes, it might be easier for bigger ones
26% There ‘s no difference
29% No, it might be easier for smaller ones
20% No, it is easier for smaller ones
Even more interesting are the arguments!
Why would starting innovation be easier for smaller organisations? Five arguments are:
- It is easier to create urgency is a small firm.
- It is less hierarchical and political, thus quicker in adapting to change.
- Small companies are nimble and flexible.
- Entrepreneurs in small companies and start-ups are more willing to take risks.
- Smaller organisations are full of energy and ideas.
On the contrary there are four arguments mentioned why it would be easier for big ones to start innovation:
- A big firm has the advantage of deeper pockets. and a larger ‘brain pool’ to tap into.
- A big firm has more potential innovation champions.
- Larger enterprises have more room for failure.
- Innovation usually is a more integrated activity in the bigger ones.
A very interesting observation was that it might be easier to start innovation in smaller companies, but not necessarily easier to complete. They often do not have the resources to follow through. If the first five attempts at innovation are not quite right, funding the 6th initiative might be near impossible due to depleted financial resources. And we know that only 1 out of seven ideas is a success.
At the end of our discussion nevertheless most innovators agreed upon the fact that size doesn’t matter enough to be a clear distinction. What really matters for both small and big companies is the right culture, – strategy, – innovation processes and management style that create a fertile environment to jump start innovation.
By the way: Innovation is never easy. You just have to learn to love the struggle!
Gijs van Wulfen (The Netherlands, 1960) is the founder of the FORTH innovation method. FORTH is an effective and structured method for ideating innovative products and services. The method is published in his inspiring and practical book Creating Innovative Products and Services’ (Gower, 2011).
He helps organisations to kick start innovation by facilitating the FORTH innovation method and advising companies on their innovation strategy, process and organisation. His clients are international companies in industry and services, as well as non-profit organisations in government and health. Gijs also trains facilitators in his method. His dream is to make FORTH the most used method for the front end of innovation around the world.
Gijs is a both presenter and chairman at several (international) innovation conferences, like the ISPIM Conferences and the European Conference on Creativity and Innovation. He is also founder of the yearly Dutch Innovation Conference on creating new products: ‘Nieuwe Producten Bedenken’.