Innovation Teams Require a Special Structure to Succeed

To foster innovation, companies need to create a special structure for their innovation teams. This structure should be different from the structure of the rest of the organization.

There are three key structural attributes that innovation teams need to succeed:

Scarce but secure resources: Innovation teams should have a small budget, but that budget should be secure. This means that the team should not have to worry about its budget being cut in the middle of a project. This allows the team to focus on its work without being distracted by politics.
Independent development authority: Innovation teams should have the autonomy to develop and market their products without having to get a lot of approvals. This allows them to move quickly and learn from their mistakes.
A personal stake in the outcome: The members of an innovation team should have a personal stake in the outcome of their work. This could be in the form of stock options, a bonus, or simply public recognition. This helps to ensure that the team is motivated to succeed.

By creating this special structure, companies can create an environment where innovation can flourish. This is essential for long-term growth and success.