Is innovation getting enough attention?

The Global Innovation Index 2019 revealed that New Zealand has dropped three places since 2018 to the 25th spot on the index. Ten years ago we held one of the top 10 spots (at ninth). In a time of unprecedented change, directors and organisations need to be increasingly nimble and responsive to opportunities for market innovation.

In the IoD/ASB Director Sentiment Survey 2018 just over half of directors (51%) said they expected their industry to be affected by a major / disruptive change. There was also an increase in the number of boards (87% compared with 75% in 2017) considering the long-term sustainability of their organisation’s business model.

Boards have a key role in fostering a culture of innovation within organisations. They need to ensure that they are keeping up-to-date on emerging innovative opportunities and risks in the operating environment and the business. They also need to support and guide management in promoting a culture that fosters innovation and growth.

Seven questions for directors

1. How does your board proactively foster an innovative culture (including an open mind-set to trial and error)?
2. Does your board and management have the right capability to lead innovation and the organisation’s digital future?
3. Does your board need a separate committee to drive and oversee innovation?
4. How often does innovation feature on the board agenda? Is that sufficient?
5. Does innovation risk feature on the risk register?
6. Does your board receive sufficient information from management and our sources about trends and innovations that may affect your organisation and industry?
7. Does your organisation have the right structures and processes in place to facilitate and encourage innovation?