To Develop an Innovation Culture MBEs have to Partner Strategically for Results.

One of the seemingly inexplicable elements of the market is that some companies come out with innovative products over and over again, while others struggle to even update their current product line. Why is it that some can and some can’t? Though it may be easier to credit luck or some special genius, the truth of the matter is that an innovation culture doesn’t happen by accident.

An innovation culture within the newest minority or woman-owned business is no different from the innovation culture at a leading edge firm like Google, Apple, or Nokia. It’s a carefully designed, meticulously cultivated, and carefully encouraged mindset. Any firm can have that if they dedicate themselves to opening the door for innovation to thrive.

Building the Framework to Innovate

The first step in developing an innovation culture is building the framework for innovation to thrive. This requires minority business owners to take a close look at the soul of their organizations and determine where they allow ideas to grow. For many firms, this can be a surprising discovery.

In truly innovative companies, ideas are encouraged from everywhere in the organization. There is no pre-judging based on the source – the focus is on finding the next thing needed to move ahead. This is a sharp contrast to top-down firms or companies that only accept ideas from a group of “management approved” sources.

Taking that tough look at the organization culture is a challenge. Many MWBEs were founded by a strong leader with a vision, making it difficult to accept “outside ” innovation concepts even if they are not officially labeled as such. Status quo inertia, my-way-or-the-highway, and passive/aggressive resistance to new concepts simply can’t be permitted in any culture seeking to become a market leading innovator.

Maintaining an Innovative Culture

Of course, laying down a framework and “dictating” innovation doesn’t exactly work. MWBEs need to leverage key innovation best practices and strategies to maintain cultures that thrive on development. To fail to continue to innovate risks going the way of BetaMax, AOL, or MySpace. Each thought they were on top of their game only to be brutally pushed aside by their markets.

Some of the key best practices for MWBEs include transparency and a push for continual improvement on processes. Transparency helps drive innovation because it eliminates mystery about the direction the organization is going and the status of current plans versus goals. This can be a brave stance. For example, when Steve Jobs returned to Apple, he had to refocus the company by eliminating projects that detracted from the vision, even when they were profitable. However, since what he was doing was transparent, the change went through and the innovation engine continued, each step pushed on by the drive for continual improvement.

Never being content with “now” is the second practice critical for keeping an organization moving forward in good markets, tough markets, and markets where it might be easier to be complacent in temporary success.

Successful Innovators

Who can MWBEs look to for examples of successful innovators? Though Apple is a beacon for innovation, it is hardly the only firm that has pushed through status quo to continually bring new things to the market. Other top global innovators include Google, Skype, and Hyundai, but for each one of these big names there are also a dozen lesser known groundbreakers. Many lie within the MWBE community; some were honored by Ossie Davis in his tribute film, “From Dreams to Reality” while others honored by NMSDC, WBENC, and their supplier partners with Supplier of The Year Awards.

Some successful minority firms that are encouraging innovation include SmartTank, Syncom Venture Partners, and The Adolphe Group. SmartTank actually makes a business of connecting innovators in the minority community, while Syncom Venture Partners turned to a niche in the satellite communications industry overlooked by other players to carve out a major opportunity. The Adolphe Group pioneers new science, including a past as lead investigator on 15 SBIR projects. These firms are just the tip of the iceberg in the minority community, which is filled with creative talent moving the bar daily.

Creating That Path to the Top

Once creativity and innovation are embraced at a firm, how does that firm become the next Apple or Google? It’s not by winning the lottery. Minority firms need to position themselves to be in the right place at the right time. This is done by partnering with firms that grow their supplier talent and by taking the initiative to pursue innovation opportunities within existing supplier relationships.

In terms of partnering with firms that grow their supplier talent, there are dozens, if not hundreds, of mentorship programs thriving across the nation. The burden is on MWBEs to take advantage of the potential that is there. Resources, funding, even shared intellectual property is on the table as markets hunger for new innovations. Instead of merely “doing what we do best,” MWBEs have to be willing to do the extra work and put in the extra due diligence to uncover growth partnerships that feed the innovation engines.

Along with building partnerships that move in positive directions, MWBEs also need to pursue innovation opportunities. This may involve participating in innovation challenge events, like the one launched by Kraft this year, or putting in the extra time to do research and development along with daily deliverables. The key is not resting on laurels or taking it for granted that innovation will happen without deliberate action.

The firms considered to be the most innovative around the world inside and outside the MWBE community didn’t get there by accident. Developing a successful innovation culture is a deliberate and continual act that must be maintained with effort and diligence. Firms that fail to promote innovation will be left behind, but for MWBE firms that rise to the challenge of growing an innovation culture, not even the sky is the limit.

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