Read the full article: https://medium.com/the-corporate-startup/the-four-principles-of-good-innovation-governance-d7bd6c08c5cc Looking at the innovation governance of the companies which are ahead of the curve, four core principles become apparent.

1. Four Principles of
Good Innovation Governance

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Independent of
company size
or industry,
innovation
constitutes a
driving force for
growth.

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1. Efficiency
(& effectiveness)
Looking at the innovation governance of the companies which are ahead of
the curve, four core principles become apparent:
With resource scarcity (especially in talent and time) and the ever growing
opportunity cost, the ability to swiftly allocate resources to high-potential
projects while killing low-potential ones is a crucial governance principle.

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A good yardstick to measure your
company's innovation governance
efficiency would be the time it
takes to reach a go/no-go decision.
If that time is longer than the time
required to get the evidence upon
which the decision will be based,
the system in ineffective.

5. In the pharma
industry, companies
making hard decisions
about which project to
terminate earlier in the
project lifecycle did
much better than
those postponing
these decisions for
later.

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2. Evidence-based
We want to think of ourselves as rational
and fact-driven entities. But unless
challenged, most of our decisions are still
emotions based.
We constantly need to be reminded that
facts don't cease to exist be-
cause they are ignored.
Hence, a good innovation governance
system should enforce evidence-based
decision making over faith-based.

7. At Southwest Airlines for
example, customer data is
used to determine what new
services will be most popular
and the most profitable.
Southwest has found that by
understanding customers’
online behaviours and actions,
the airline can offer the best
rates and customer
experiences.
As a result, Southwest has
seen its customer and loyalty
segments grow year after year.

8. Clarity should not be confused with
transparency. Transparency is a
necessary condition for clarity but not
a sufficient one. Clarity lives at the
intersection of purpose, transparency
and process.
Sadly for most corporations
ambiguity is the status quo.
When an organization doesn’t know
why it exists, how it behaves, and
what makes it unique, if falls back on
policies and procedures.
3. Clarity

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4. Psychological safety
“the highest-performing teams have one thing
in common: psychological
safety. The belief that you won’t be
punished when you make a mistake”.
- P. Santagata, Head of Industry, Google.
The teams with the biggest amount of mistakes
prove to be more successful than others.

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Indeed, individuals feel more
self-motivated and open-minded when
they have the freedom to speak up
without bearing the consequential
humiliation. Hence, by:
● encouraging lateral communication,
● replacing blame with curiosity and
● asking for feedback on the message
delivery, companies can expect
employees to feel comfortable taking
risks which will eventually lead to
better results.

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As a whole, organizations
are a collection of human
beings working towards the
same goal.
Their performance is in large
shaped by the way these
individuals think and interact.
For the common goal to be
attainable, companies have
to keep their focus on
improving their governance
system.

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Understanding that
principles are universal
while tactics are
contextual, managers
focus should be on
managing the system
of innovation not the
people in it.

13. Contact Email: me@danto.ma
Website: danto.ma
thecorporatestartupbook.com
Twitter: @danto_ma
LinkedIN: linkedin.com/in/dantoma/