Inc. magazine (June 2008)challenged Procter & Gamble CEO A.G. Lafley and business consultant Ram Charan to envision a $4 mil company with 30 employees, and then develop a process to make innovative thought routine.  From that perspective, any manager (whether for a team, department, division, or company) can develop a strategy to drive new ideas.

Here is a synopsis of their strategy:

1. Select the Strategy.  Look for ways to better understand your existing customers, and then segemtn them.  Identifying an overlooked segment is less expensive than inventing a new technology.
2. Connect to Customers.  Many of the ebst ideas are born of customer-immersion experiences.  Hire creative people and make them a conduit to customers.  Sharpen their observation powers.  Connect them through social internet networks, and force a minimum of five different connections.  Question, talk, refine opinions.
3. Generate Ideas.  Have brainstorming participants write their own ideas on the group's flip charts 9rather than have the facilitator do it).  This forces each person to refine their thoughts.  Discourage negative comments but do encourage digressions.  Where does the path of discussion lead--a new idea?  before a person can submit an idea, they must get a co-sponsor for the idea (like how Congressional bills are proposed).  Once approved, cosponsors become team innovators.
4. Select an Idea.  Don't let emotion control the decision.  Set criteria based on projected revenues, profits, or measured customer satisfaction impacts.  Create an incentive system for innovative thought.  Give small ideas for interesting ideas, and more once those small ideas move forward.  Grant awards often and publicly celebrate the winners.
5. Prototype and Test.  Choose one idea to pursue, and then bring it forward rapidly.  innovative small companies excel at bringing ideas forward fast and inexpensively.  Develop a prototype and then let members of your social community review, test, comment, and suggest enhancements.
6. Go to Market.  Know that you will be lucky to find two good innovative ideas that you can implement each year.  Don't worry about being perfect.  Remember the 80/20 rule!
7. Adjust for Growth.  As your company grows (or your area of responsibility),  so too will your resources for innovation.  Continue to give your creative employees the tools and resources to turn brilliant ideas into reality.

Our third book, Retaining Success, also has other strategies and ideas on innovation and brainstorming techniques.  Watch this web site for its availability--4th quarter 2008!