In a recent show, I talked about setting innovation objectives.  Listeners wrote in asking for details on how to include innovation in the objective setting process.   So, in this week’s show I share the steps to setting innovation objectives. Done well, innovation objectives can result in exponential success for your organization.

The purpose for setting objectives is to gain alignment in the organization.   Innovation success depends on getting everyone in the boat and rowing in the same direction.  When you incorporate innovation objectives into individual, team, and organizational objectives, you gain alignment.  This will be evident around the innovation focus, funnel, and strategy.

Missteps

Setting innovation objectives is hard work.  Over the years, my approach has changed. In my days leading teams at HP, objectives did not provide clear guidance leaving engineers to figure things out.  When objectives are vague, people wonder whether what they’re doing aligns with the organization.  

Other issues arise when objectives are…

Too task-oriented leaving no room for creativity.  

Too rigid, locked in concrete until annual performance reviews.  

Too broad or include too many things creating a fog.   

Measurable, hence tied to performance review and annual budget cycles.  

Getting it Right

To help with setting innovation objectives, I’ve come to believe in OKRs (Objectives and Key Results).  Andy Grove, co-founder of Intel, defined this objective setting process. Many major companies are using OKRs today.  I use a simplified version of OKRs.  Think of the objective as the vision or goal line.  It’s where you want to go. The key results are the measurable steps to get you there.   When the objectives are clear and the key results align, the outcome is inspiring. People see a successful and meaningful impact in their efforts.  

To begin, I set the objective with two to five key results.  It can be set for one year to five years. Key results are laid out in a six-month rolling process.  Every six months, a key result is met and the next key result begins.

Alignment and autonomy are the overarching goals.  Get the entire organization aligned. Give employees the goal and allow them to use their creativity to achieve it.  Provide the direction and measurement of success. Leave the ‘how’ to them.

Advice on Setting Objectives

Take time to set objectives.  

I spend hundreds of hours, write and rewrite, and get feedback from others.

Make sure there is clarity.

Wording is important.  

Clarity is key to getting alignment.

Be transparent.  

Share objectives with others.

Avoid too many objectives.  

Three to five objectives with two to five key results for each.

Objectives should be adaptable.

Change the objective based on learning.

Objectives should be specific.  

Good Innovation Objectives

A basic element of good innovation objectives is a framework.  I use the FIRE framework.  FIRE stands for Focus, Ideation, Ranking, Execution.  I’ve done many blogs and