1. Always create the motivation first. Then build the basic necessities. Motivation may be about having the right to work on the ideas that one feels passionate about. Or it may be about establishing enough credibility for the corporate commitment to innovation so that it is worth bothering with. In addition, make the rules of the game explicit. Do I have a right to work on my idea for one month exclusively if I submit it to the pipeline? Do I have the right to join an innovation team part-time? What kinds of risks (implicit, career-wise) am I taking if I dedicate my time to innovation?

2. Ensure management commitment - concretely, consistently and explicitly. Avoid situations where there is a lot of talk but no action. That is a sure way to erode the credibility of the entire effort for years to come.

Open up the strategy dialogue about innovation so that general managers talk to each other, to their organizations, and to top management. Then create a platform that has commitments such as:

• I will invest 5% of my budget in the innovation pipeline.
• I will dedicate 10% of my time to mentoring innovators in my business.
• I will evaluate the success of innovative efforts according to the following targets: 50 ideas in the next 6 months, 5 experimental business concepts in 12 months, 2 ventures ready for commercial launch within 24 months, 10% of innovation projects in the pipeline receiving support from my organization in the form of labor, seed capital or use of other assets.

Also, ensure that you obtain the cooperation of middle managers. 

3. Start the innovation engines. Innovation is hard work. Most managers make the mistake of assuming it will just happen. There may be a few ideas floating out there that are going to be easy to harvest, but beyond such easy catch it is going to take time, energy and dedication. Create your innovation engines that will drive the effort over time. For example, at Kraft Foods, a small dedicated staff skilled in networking with the business divisions is driving innovation. R&D labs often function as an engine, but the challenge is to build the capability for turning technologies or scientific discoveries into business concepts.

4. Cultivate innovation routines, and name your innovation ambassadors. Study what makes innovation tick in the organization; catalogue what has worked and what hasn’t. Identify people who can mentor others in these routines. Name your innovation ambassadors and let them spread the best practices. For example, computer-services company EDS has instituted a fellows program to recognize innovative individuals who can serve as mentors for aspiring innovators in the company. Appointment to fellow does not change an employee’s work function or business unit. But, in exchange for the honour, fellows assume an ambassadorial role in the company. As ambassadors, they typically spend a fair amount of time presenting their ideas to clients, speaking at professional conferences, or representing EDS at industry consortia.

5. Put the checks and balances in place. Assess their effectiveness and purposefulness regularly. It is difficult to get the criteria, metrics and innovation incentives right the first time. Adjust them periodically based on your accumulating experience. Focus on quantity first to develop an innovation habit. Then slowly move to quality to make the most efficient use of resources. Over time, link the use of the best-practice innovation routines to the evaluation. And, finally, reward your executives as entrepreneurs - not simply as stewards of the corporate legacy.

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