Is Your Company Ready to Innovate? A Quick Test
One reoccurring question I field from CEOs is, “When is the right time to divert resources away from the core business and begin to focus on innovation?”
This is a great question and one that every CEO should consider before investing significant resources into innovation.
To start, it is important to figure out if your core business is stable.
If your core business is not stable, your company is just diverting valuable core business resources toward innovation – which will not only further destabilize your core business but never allow you to put the required resources behind any innovation.
One way to analyze if your core is stable is to compare your year-over-year revenue and profit with that of your industry.
If you are not performing as well as your industry, then your core business is probably not stable and you have some work to do to stabilize it before diverting resources to innovation.
Innovation allows you to reach Act #2, #3, and beyond in your company’s life. Before you can move beyond Act #1 (the solution on which your current company was built), you have to have a solid platform on which to launch subsequent innovative solutions. By having a strong foundation, your company can dedicate the appropriate attention needed to innovate and expand your business properly.
Paul Benevich has been helping to re-imagine companies through innovation for the past 20 years. Paul can be contacted through his consulting company www.nonfictionbusiness.com or by emailing him at email@example.com