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Innovation Diagnostix...Pathways to Innovation and Performance Improvement

About Innovation

In today’s world, innovation is the key to success in business, governments, and nonprofit organizations. In fact, failure to innovate will surely contribute to poor performance for any organization.In today’s world, innovation is the key to success in business, governments, and nonprofit organizations.

Innovation is change that creates a new dimension of performance. All nonprofit organizations must be governed by performance, not merely good intentions. In the nonprofit sector, as in business and government, performance is the ultimate test of an organization. Every nonprofit organization exists for the sake of performance in changing people and society.

In the years ahead, nonprofits will become even more important. As government retrenches, we will look increasingly to the nonprofits to tackle the problems of a fast-changing society. These challenges will demand innovation in services, and in nonprofit management.

Click here to take the QUICK QUIZ ON INNOVATION

About the Innovation Diagnostix

The Innovation Diagnostix tool helps leaders in the nonprofit sector in their continuing quest to practice innovation and define and develop areas where they need to be effective in their actions to lead to important advance performance.This tool helps leaders assess their organization and/or programs or projects in three distinctive phases.
    1. Diagnostic Phase How innovative are their programs?

    Note: The tool captures the level of innovation and the dimensions of change in their results in the Innovation Diagnostix Scorecard.

    2. Program Development Phase What shall they do to become more innovative?
    3. Action Planning Phase What steps do they need to take to implement their innovation?

Background

In 1993, the Drucker Foundation was created in Canada to find, recognize and celebrate outstanding programs among national nonprofits groups. We realized that the tool designed to evaluate each Award application could be further developed and used more widely by those who have a limited understanding of what innovation really is, what it means for them, and how they can set themselves on a path to breakthrough innovation.

Without the inspiration and wisdom of Peter F. Drucker for his management literature and for his support and contributions to lead social sector organizations toward excellence in performance we would not have not started on this successful journey.

The development of the Innovation Diagnostix tool is the result from the effort and commitment of hundreds of nonprofit leaders who shared their experiences and ongoing comments. Also contributing to its development are the many leaders who believed the concept, played a role in creating it and gave some financial support for its publication.

Development of the revised Innovation Diagnostix was made possible in part by financial support from CEDTAP-Community Economic Development Assistance Program.

Assessment Phases

1. Diagnostic Phase: How innovative are our programs?

As a first step, the tool helps organizations assess the degree of innovative change achieved on five fundamental management elements through a series of questions based on best practices:

  • innovation strategy·
  • innovation shared values
  • innovation skills·
  • innovation systems·
  • innovation structures

As a second step, the tool helps measure the outcomes of the changes on three dimensions of performance:

  • benefit to clients
  • benefit to the community
  • benefit to the organization itself, again using a set of questions drawn from best practices.

As a third step, the results of these assessments are then plotted on the Innovation Diagnostix Scorecard, which will tell the organization whether it has achieved Breakthrough Innovation, Complementary Innovation, Additive Innovation, or Incremental Innovation.

2. Development Phase: What shall we do to become more innovative?

In this phase, organizations use the questions in the Diagnostix to guide them as they discuss new ways to innovate across the 5 S’s.

They will also analyze the potential value or benefit creation against the three dimensions of performance.

From this exercise, organizations will have a clear strategic direction and integrated program with clear targets and measures.

3. Action Planning Phase: What steps do we need to take to implement our innovation?

In this phase, organizations develop pathways to implementation with clear roles, responsibilities, and timing for action.

Throughout the phases described above, the user will refer to best practices and case examples of successful innovation across the S’s. The rest is up to them to ensure they actually follow the path to desired success

About the Innovation Diagnistox Scorecard:

Click here to see what the Innovation Diagnostix Scorecard looks like.

The Scorecard gives an assessment of the innovativeness of the organization today, placing the results in one of the following four categories

  • Incremental Innovation- Doing more of the same things you have been doing with somewhat better results.
  • Additive Innovation - More fully exploiting already existing resources, such as product lines extensions, and can achieve good results. But, as Drucker warns, "these opportunities should rarely be treated as high priority efforts. The risks should be small - and they should not take resources away from complementary or breakthrough opportunities."
  • Complementary Innovation - Offers something new and changes the structure of the business.
  • Breakthrough Innovation - Changes the fundamentals of the business, creating a new industry and new avenues for extensive wealth creation.

These categories are based on Peter F. Drucker Managing for Results. New York: Harper Collins, 1986; pp. 204, 205