The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation Review

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The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation ReviewAuthors A.G. Lafley and Ram Charan in "The Game-Changer" make the case that innovation - the conversion of a new idea into revenue and profits - does not have to follow conventional wisdom that small companies are better innovators because they are nimbler and have a more coherent sense of purpose. Lafley and Charan alternate throughout the book with Lafley, the operating executive, providing the "how' in how he turned around Proctor & Gamble by operationalizing innovation, and Charan, the organizational and business researcher, providing the "why" of its spectacular success.
Lafley admits to some truth in the small company stereotype but he believes larger companies can be just as innovative as small companies, if not more so. Big companies have significant advantages - scale, management capability, and resources to take risks - that should facilitate innovation. But these advantages are wasted due to layers of management that stretch decision cycle times, internal vested interests to maintain the status quo, and the lack of a growth-through-innovation process.
"Game-Changers" outlines the principles(1) of innovation Lafley developed, the how and why innovation changed P&G's game, and the steps Lafley took to operationalize innovation which has led to the consumer-industry's leading organic sales growth rate. He believes that a disciplined innovation process, like that at P&G, can be central to growth for any company, in any industry. He cautions, though, that one size does not fit all, and each company must adapt the principles to their unique circumstances.
Having spent the past 20 plus years in Silicon Valley shepherding innovative medical technologies to the market, I can personally attest that the acceleration of change today is unprecedented. There are many more opportunities today for teams like mine to disrupt and create obsolescence for larger companies. It appears that Lafley and Charan have got the principles right, and P&G appears to have gotten their application right. The remaining questions are: Will this be sustainable? Transferable? Will game-changers(2) become the next "big thing" in operational excellence?
Footnotes:
1. The principles of innovation include: motivating purpose and values; stretching goals; choiceful strategies; unique core strengths; enabling structures; consistent and reliable systems; a courageous and connected culture; and inspiring leadership.
2. A game-changer is: a visionary strategist who alters the game his business plays or conceives an entirely new game; a creator who uses innovation as the basis for sustaining profitable organic growth and consistently improving margins; a leader who understands that the consumer or customer - not the CEO - is boss; a catalyst who uses innovation to drive every element of business from strategy to organization, and from budgeting and resource allocation to selecting, rewarding, and promoting people; an integrator who sees innovation as an integrated end-to-end process, not a series of discrete steps; a breaker of chains of commoditization who creates differentiated and value-added brands and businesses through innovation; and a hardheaded humanist who sees innovation as a social process and understands that human interaction - how people talk and work together - is the key to innovation, not just technology.
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