Who “Owns” Innovation? Here are the Pros and Cons of 5 Different Approaches

Ten years ago, if you were to present your business card to someone and it said “Chief Innovation Officer” or “Chief Ideation Officer,” you’d likely see an entire room of blank stares and be laughed out of the room.. In today’s world however, titles like that (and entire departments reporting into said title) are becoming more and more normative.

CEOs have long said in pollings that innovation is the most important factor for growth, which naturally leads to one question:

Where should it be housed?

There are several different options. What would work for your org?

1) Chief Innovation Officer

How It Works: This is a centralized department approach. There is a Chief of Innovation (just like there’s a Chief of Operations or Finance) and people report into him/her. Innovation is housed here, but ideally solicits input from the entire organization.

Pros: Creating an area with sole focus for innovation -- or, at the very least, for managing the process of innovation -- reduces the work demands on placing it in an area with other responsibilities (i.e. HR, marketing.) Having a clear hierarchy in place (along with a process for innovation management) will be the least confusing to the organization as a whole.

Cons: Possibility it could not be taken seriously without high levels of senior buy-in. Others who feel overworked day-to-day might ask, “What exactly does the innovation department do each day?” Process needs to be in place to gather input across the organization, or else it could come to be viewed as “the place you go if you want to have idea-generation opportunities” (which could negatively affect managers in other departments if their people try to flee for the Innovation department.)

2) Operations

How It Works: The operations team, up through the COO, manages the innovation process -- idea submissions and price proposals. A section of the operations team then evaluates the proposals for operational effectiveness -- i.e. what exactly it would take to turn any proposal into reality.

Pros: No matter what type of idea is generated in an organization, eventually it needs to pass through Operations (typically) in terms of slotting it into long-term plans, making sure it’s functionally doable, and coming up with effective processes around it (this varies by organization, but typically ‘execution’ of a concept tends to tie back in some way to Ops.) Operations can tend to be more practical and detail-driven than some other departments, which can lead to deeper vetting of innovation proposals.

Cons: Because of the focus on details, there’s a chance that very strong “big picture” ideas might get shot down early in the process. Operations also already has a good deal of their own work, so shuffling innovation work over to that department might not be ideal.

3) Human Resources

How It Works: Human Resources has responsibility for the people (and their career progression) of an organization, so they house the innovation idea collection and vetting procedures -- and potentially tie those into an employee engagement, recognition or performance context.

Pros: One of the core challenges for HR in the past few years has been “gaining a seat at the table.” This allows them a hand in that process. It sends a message that people, and their input, truly matter to the overall organization -- and that because idea generation can ultimately tie back to an individual and their career path, HR deserves a chance to manage it.

Cons: HR professionals already have a broad range of responsibilities. From hiring to training to benefits, they may not have enough time to bring this area the focus it really needs. Finally, linking “innovation” and individual careers could send the message that only “idea people” will be getting advanced.

4) Marketing

How It Works: Marketing tends to externally tell the story of the organization. Most new ideas and innovative policies need a narrative attached in order to gain traction, so marketing can be the house of innovation towards that end.

Pros: The connection back to the “story” of an idea is tangible. If marketing evaluates an idea or proposal and attaches a 2-3 line “Why this is necessary” blurb (which could come easier for them than other departments,) theoretically certain ideas move towards enactment much faster. Marketing departments tend to have different contextual roles -- copywriters, designers, website specialists -- so they could find a few different avenues to present ideas up the chain.

Cons: They have their own work, as with the other departments. Linking it with marketing could send the message that the blurb / elevator pitch of an idea is all that matters. And oftentimes, it’s best for an organization if your external and internal messaging doesn’t come from the same place.

5) Hybrid Approach

How It Works: Every department has some degree of ownership of the process. The organization as a whole uses a central idea repository (such as an innovation management platform or employee suggestion box like Vocoli) and everything is routed up to a member of senior leadership (or multiple members.)

Pros: With this approach, it doesn’t feel like one group controls it, giving the impression that ideas matter and can truly come from anywhere. With proper buy-in, process, and routing, could be an effective way to generate and evaluate new, revenue-facing ideas. Shared ownership seems the fairest approach on surface.

Cons: Shared ownership can also lead to confusion about roles / elements falling between the cracks. If everyone has a piece of the process, it can lead to “favorites” of senior leadership (ultimate evaluators) getting more wins (ideas through) than other departments/managers do. Can become a political situation.

So what’s best?

Quite simply, it’s going to vary by organization. Some orgs might come across this post and say, “Where we work, it’s a no-brainer: Operations.” Others might think that’s ridiculous and assume marketing would be the best home. Still, others might think a 5-6 person Innovation department is the best launching pad. The above is supposed to provide a little context around each potential scenario. Ultimately, every organization will be different on these fronts.

To recap:

• Understand your current processes and workflow
• Think about where an innovation program might fit in
• Design brief, direct pitch of its value and home to senior management
• Get buy-in
• Develop explainers and routing (we’re here for you!)
• Roll out and contextualize

Have you had success with innovation programs in your business? If so, share some comments with us on Twitter @_Vocoli and tell us about it.