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The goal is really to become client-driven instead of processdriven . It means moving the evaluative metrics for innovation away from the standard performance-based approach .
You know it ’ s very rare when you begin the innovation process that the thing you end up with bears a very strong resemblance to what you started with .
When you are leading within a known business , you have the data and typically a lot of performance history with which you are working . When you are stepping into innovation , you are facing a lot more challenges around the unknown , so the evidence you are looking for has to shift away from performance evidence into validated learning .
Do we need new performance metrics around innovation that would allow for a change in the culture of government ?
ML : The goal is really to become client and citizen-driven instead of process-driven . It means moving the evaluative metrics for innovation away from the standard performance-based approach .
Do you know of any governments that are changing their evaluative frameworks to encourage more client and citizencentric innovation outcomes ?
ML : I think the United States has made a big shift in the last five years in its thinking around innovation . A great example of this is the National Science Foundation that has driven a lot of innovation with engineers and scientists taking their developments to the marketplace .
Until now they had been using very traditional methods . Last year , they engaged Steve Blank 6 , who is the author of the Customer Development process to work with some of their engineers . In fact , they did an A / B test with a pilot group and a control group . One group used the standard process that they had been using for years and they had their standard response for that cohort . About 25 % of them received funds that would allow for further formal development into the market . However , in the second group that used Steve Blank ’ s customer development and discovery-driven process , their results were much greater , with 68 % receiving approval for funds .
Ultimately , this is because they could show customer validation ?
ML : You know it ’ s very rare when you begin the innovation process that the thing you end up with bears a strong resemblance to what you started with . So much validated learning changes what you know about the marketplace and what you know about your clients . Now , the National Science Foundation has made it mandatory for anybody that wants to apply for grants to move products forward to undergo training in customer development and discovery-based innovation and entrepreneurship .
Many public sector leaders bring a kind of leadership legacy that is really quite different from the likes of design thinking and innovation . It seems to me , we won ’ t get there without new skills development . Would this also involve both innovation capability building and a new kind of leadership ?
ML : Yes , it ’ s the famous Einstein statement that we can ’ t solve problems with the same thinking we used to create them .
The challenge is that innovation often has to exist in the context of an ongoing operation . However , by developing capabilities in discoverydriven innovation methods and design thinking principles , you can control the costs , keep the burn rate low , pilot and test new ideas to make sure they work before you scale . Iteration is key .
So it is in fact very much incumbent on government agencies to both develop innovation skills as well as build strong relationships with entrepreneurs and others that can become channels that bring new ideas to government institutions .
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