Commentary by Bob Carter

In order to understand the relationship between Innovation and growth, it is necessary to first understand why some new product development (NPD) projects are successful while others fail. Funding the right NPD projects is a key leadership challenge that can make or break an organization. I have found that in almost every case, successful NPD projects are balanced. This is also true in the area of new business proposals. Like NPD projects, winning proposals have a balanced approach to the solution. Innovation can often be the key ingredient in both NPD projects and new business proposals, so the key to successful Innovation is balance. Balanced Innovation is where the intellectual, human, and organizational factors validate each other. The intellectual factors are What you know, do, and are (like science, technology, and engineering); the organizational factors are How you learn, How you solve issues, and How you plan and organize; the human factors are the emotional connections you make, the behaviors you exhibit, the way you tell your story, and Why you do what you do. So success is dependent on the What, How, Why Balance.

Organizations should focus their investment funding on balanced projects. This doesn’t mean that unbalanced projects aren’t worth considering, but the project leader should have a plan of action to achieve balance as part of the development program.

At the recent PDMA Voice of the Customer Conference in Scottsdale, I moderated a panel that discussed whether the Voice of the Customer and Innovation are friends or foes. Certain industry and thought leaders believe that Innovation gets derailed by the Voice of the Customer, citing Henry Ford who was alleged to have said that if he’d have asked the customer what they wanted they would have asked for a faster horse. The temperature at the debate was further raised when we added the benefits or otherwise of Six Sigma to Innovation. Those of you who know me will not be surprised to hear that I strongly argued that Six Sigma and Innovation should be bosom buddies, and that if Innovation is really about the introduction of something new that adds value, the Voice of the Customer is also a vital element.

Ford may have been right, in absolute terms, but the key to Innovation is in making the right emotional connection with existing and new customers. This is not about asking what they want, but in understanding their underlying needs. How can we do this if we don’t listen and observe?

Furthermore, I argue that Innovation is about turning dreams into reality and what better management tool than Six Sigma to bridge that gap. It is true that at the creative front end of Innovation, methods like Six Sigma can be a little cumbersome, but Innovation is about taking the critical few ideas that can make a difference and making them real. I would like to re-introduce this debate to RealInnovation. Do you agree that Six Sigma, Innovation and the Voice of the Customer are truly linked, or do you believe they get in each others way?

There is a view that the clearest view of the Innovation horizon is from the top of the ladder but is this a fact or fiction? It is true that industry leaders need to set an environment that enables creativity and trusts individuals to turn that creativity into reality but the role of C-Level Executives must be to run the company to the satisfaction of shareholders. In my opinion, leading Innovation from the top usually forces incrementalism because shareholders want stable results, not risk takers.

Could you imagine the scenario in a major record company about 20 years ago where a group of African Americans suggested a new form of music that related to their lifestyle, that included shouting lewd and cursed lyrics to show their anger and had a thumping beat that gave most listeners a headache at best and loosened the teeth at worst. The C-Level Executives would have laughed before throwing them out.

What actually happened was an underground music scene was set up, usually in ghetto areas, that allowed people the freedom to create their own music, reflecting their own views and dealing with their personal issues. Rap music was Innovation in every sense of the word, but it was born out of the need of consumers, not the idea of a genius C-Level Executive. Today, Rap is by far the most popular and successful form of music in our culture.

Robert (Bob) Carter, has over 20 years experience in the Aerospace industry with Raytheon and BAE Systems. Now based in Tucson, Arizona, Bob’s knowledge and experience has been gained as both a Program Manager and a Business Developer across a broad range of high technology systems. Bob has developed capture strategies and led capture teams to over $2.5Bn of business. He has extensive knowledge of international business, having led several multi-national campaigns and projects, traveling to more than 30 countries.

Recently, Bob has been focused on developing customer relationships through Raytheon Six Sigma, unveiling many opportunities for growth in this field. He has also developed and delivered new training to enable new leadership behaviors towards growth. As part of his Six Sigma role, Bob led the Raytheon team in a new partnering initiative with the UK MoD called Programme RaPID, or Raytheon Partnering In Defence, a program that won the Raytheon CEO Award For Customer Relationships in 2004, and the UK Chief of Defence Logistics award for Partnerships in 2005

Bob has a MBA with Distinction from the University of Hertford in the UK. Bob is now leading Raytheon’s Six Sigma efforts for Innovation and Growth. He is a sought after speaker having delivered many keynote speeches on Six Sigma for, Innovation Growth and Voice Of The Customer. He is also a published poet and the author of The Balanced Innovator, a book about achieving out of this world performance through Innovation, Growth and Six Sigma (expected publication in November 2007).

Born in Manchester, England, Bob is married to Teresa and has five children, three daughters and two sons.

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