Time is more important than money because it is subject to the laws of physics and cannot be stopped, while both the value and meaning of money change. Experience from the world of innovation shows how projects become successful.
October 26, 2018, by Martin Petruzzi
“We urgently need an innovation; we know exactly what we want, and we just need to know what it costs.” The date of the trade fair where the product is to be launched is already known. Usually, only the first and last points are actually true.
With a reasonable amount of experience and know-how, it is possible to make a rough estimate of the minimum effort required. Quantifying the maximum effort, however, is negligent. Anyone who claims they can do that doesn’t need a seatbelt in traffic—because they already know in advance they won’t have an accident.
What speaks against the supposedly “exact” estimation of an innovation?
Trying to estimate an innovation precisely, thereby forcing it into a tight corset, is inherently contradictory and does not promote success. In addition to the actual engineering effort, three other factors significantly influence innovations:
The Unknown: An innovation is always something that didn’t exist before. Consequently, nobody knows how to do it; nobody knows the hurdles that will stand in the way. Naturally, an experienced person has a better sense of what might come. However, if they are forced to stick to a predefined scope, they will carefully avoid considering or investigating better solutions that appear during the project—simply because the “precise” estimate made before the project started could be torpedoed.
Constant Change: Secondly, changes flow into every project. The reasons for changes are manifold: requirements are added, they evolve, or they are dropped. Customer requests, user behavior, or even laws change in the meantime. Furthermore, change requests are often bloated because—in addition to checking the essential side effects of the change—the impact on resources and costs must also be estimated and approved. The approval process, in particular, sometimes takes a considerable amount of time. During this period, the team could have already started implementing the change. Meanwhile, time does not stand still.
The “License to Fail”: We know that all humans make mistakes. Give the project team a “license to fail,” but also hold them accountable for finding mistakes early and ironing them out. The longer errors remain hidden, the more expensive it becomes to correct them—if it’s even possible at all. If your team finds a mistake, congratulate them on finding it! By the way, this applies to more than just innovation projects.
Prerequisites for Projects with Innovation Potential
A project needs a clear goal as well as the trust and commitment of all parties involved. Instead of estimating everything precisely before the start, a rhythmic exchange with all stakeholders is established throughout the project. This allows the project to be ideally steered and managed. A humane and motivating environment is created, and ambition is fueled. Everyone wants success, and that leads to success.
Pursue a Goal! – Not a Solution.
The next time you collaborate with partners, don’t just compare the numbers; instead, compare their approaches to how they tackle a project. So-called “comparable offers” belong to the past; innovations are neither apples nor oranges. Instead, use the opportunity to test new approaches.
The question must be: Do I believe the goal can be reached by the deadline? Ultimately, the only things that are truly expensive are missed opportunities—above all, a delayed market entry!
Innovations are born in collaborative partnership!
