Page 170 - The Resilient Organization

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Would-be innovators in large corporations are sometimes offered the
following advice: “Behave as if you were independently wealthy!” The key
resilience word is “independently.” With independence, would-be innova-
tors can make their own judgments without relying on managerial permis-
sion or control. Independence confers a privilege on those with a passion
for creativity and experimentation—the opportunity to follow one’s instinct
without being under some externally imposed obligation. Is such an
approach feasible or advantageous in a corporate setting?
Apparently not, based on how few corporations pursue this approach.
Despite 3M’s lauded and well-published rule of allowing its researchers 15
percent discretionary time, only a few other companies (see the sidebar)
have adopted this or a similar best practice.

THE INDEPENDENCE FORMULA

Google is one of the few firms that sees exceptional value in the indepen-
dent innovator. The company has a management philosophy that requires
it to dedicate 10 percent of its investment to employee-initiated projects
unrelated to the core business. Google calls this the “70-20-10 formula.”
According to the CEO Eric Schmidt, 70 percent of the company’s
resources are channeled to the core business of Internet search and adver-
tising, 20 percent are channeled to adjacent products such as desktop and
product search services. The remaining 10 percent are focused on highly
experimental products—innovations important for the long term.

This chapter is adapted from Liisa Välikangas and Quintus Jett, “The Golden Spur:
Innovation Independence.” Reprinted from Strategy & Leadership, vol. 34, no. 5, 2006, pp.
41–45, with permission from the Emerald Group.

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