**5. Conclusions**

For any innovative customer proposition that goes beyond incremental, innovation to the delivery model is often required at the same time. Whether this is done through acquiring new assets, developing new capabilities, or working with partners, you will need to innovate within your own organization.

The central question we are addressing is how best to evolve an existing organization focused on delivering today's proposition? While most people recognize the difference between the performance cycle (delivering results today) and the innovation cycle (identifying sources of future value growth), many pay insufficient attention to the challenge of connecting the two. In other words, we know what our future value proposition might look like, but we do not know how we will evolve our existing organization to deliver it. Consequently, many exciting innovations are either mothballed or executed elsewhere, often by nimbler start-ups or competitors.

Our view is that established organizations can do a better job at "innovating inside." The conventional combination of performance cycle and innovation cycle needs to be bolstered by an evolution cycle (specifically focused on organizational innovation) and an active approach to

**Figure 7.** Complete model for "innovation inside.".

• Contributions from different roles, giving different ideas and perspectives.

ates an inbuilt ability to adapt to rapidly changing circumstances.

tivity and job satisfaction.

are valued:

18 Marketing

respect.

Condition 4: Appreciation and recognition

those not meeting expectations.

celerating innovation.

itive reinforcement).

within your own organization.

**5. Conclusions**

competitors.

• Change led by those "who know" directs resources to areas that need them most and cre-

• Increased autonomy encourages people to see tasks from start to finish, promoting produc-

Leaders and managers regularly and consistently notice and appreciate the contributions and achievements of staff. This can be through implementing contributions, saying "thank you," personal feedback, or corporate recognition. Contributions are made meaningful to the individual and the organization, and a "feedback loop" ensures that staff know that they

• Recognition increases, morale, productivity, competitiveness, and pride and singles out

• Leader appreciation encourages peer-peer appreciation—fostering a culture of value and

• Ideas are translated into action, improving the performance of the organization and ac-

• A positive value exchange is created, where positive rewards shape positive behavior (pos-

For any innovative customer proposition that goes beyond incremental, innovation to the delivery model is often required at the same time. Whether this is done through acquiring new assets, developing new capabilities, or working with partners, you will need to innovate

The central question we are addressing is how best to evolve an existing organization focused on delivering today's proposition? While most people recognize the difference between the performance cycle (delivering results today) and the innovation cycle (identifying sources of future value growth), many pay insufficient attention to the challenge of connecting the two. In other words, we know what our future value proposition might look like, but we do not know how we will evolve our existing organization to deliver it. Consequently, many exciting innovations are either mothballed or executed elsewhere, often by nimbler start-ups or

Our view is that established organizations can do a better job at "innovating inside." The conventional combination of performance cycle and innovation cycle needs to be bolstered by an evolution cycle (specifically focused on organizational innovation) and an active approach to organization engagement, enabling the whole organization to evolve in a joined-up, strategically sustainable manner (**Figure 7**). While much time and energy have been dedicated to the performance cycle and innovation cycle, we are still at the relatively early stages of exploring the evolutionary process that connects the two.

The benefits that one should expect from a fully functional evolution cycle include:

