Telco in a Box NZ innovate through evolution not revolution

Reading and watching the financial news it would be easy to lose count of the number of organisations that have undergone massive restructures. Many consider restructures as ‘the revolution’ a company needs to bring the business back to profitability quickly. Yet the ordeal can be completely disruptive. It can cause high levels of chaos* that can last for months even years, taking the focus away from the core business, while at the same time causing serious emotional cost on the people, not to mention the reputational risk on the company. The error with this formula is that these businesses have resorted to extreme measures for a quick gain when they could have simply chosen the path to evolution.

So what does this mean and how it be applied to individual businesses?
 
Just a little innovation to constantly evolve a business is required. Smaller businesses do not typically go to the extremes as larger companies to change, but they do run at much higher levels of chaos than is healthy, which can leave staff stressed and working long hours. A good measure of a healthy business is that its people have a good work/life balance and relatively low levels of stress. Innovating through maximising people’s output while minimising their stress is one way at looking at ‘evolutionising’ a business.

By way of an example, telecommunication provider Telco in a Box, represented in New Zealand Telco in a Box NZ, supports more than 110 customers that are phone companies. If these customers needed help, they either logged a ticket or rang through with their question. This created pressure on staff and also frustrated customers as they just wanted a quick answer. It resulted in a high level of chaos.

Through innovation the telecommunications provider created the “Knowledge Base”, a self help program that answered most of the customers’ questions. More than 3,000 articles were published in less than six months. This is a classic example of innovating by adding value or Value Innovation. This idea evolved the business by providing a much higher level of service to customers while decreasing costs and reducing the levels of chaos within the business.

When thinking about innovation through evolution, ensure that it answers these two questions below: 

1. Does it increase the value to the customer? (eg. make something easier for them) 
2. Does it reduce costs? (costs include time, money or resources)

The benefits of value innovation include: 

• Greater staff retention due to better staff morale 
• Lower costs (time, money and resources), therefore greater profitability 
• Greater customer loyalty due to better levels of service
• Higher growth rates due to greater capacity within your business

There are numerous innovations out there that cost little or no money. The knowledge base project costs under $1,000. Innovation doesn’t need to be cutting edge; it can be as simple as changing processes within the business to be more efficient. The key is to listen to staff as they know what is not working. Business owners should be prepared to hear the brutal truth and should not make excuses to justify it, they should just look at ways to improve through innovation.

To determine individual innovation opportunities: 

• Ask staff – this is sometimes ineffective if there is not an open, honest culture. People may not be prepared to be upfront. (This is something that can be changed over time and this starts with the boss) 
• Provide an anonymous suggestion box – this can be effective but people will need to be encouraged to participate and follow-through on the ideas they come up with so they will feel appreciated. Recognition for a great idea also builds trust and the employees become very innovative when they feel the company cares. 
• Start a “Lunch Bunch” – Telco in a Box’s Australian CEO implemented this idea and it has worked well in helping them innovate. Once a month six people from different departments go to lunch for two hours, all expenses paid by the business, with the task to come back with the best three suggestions to improve the business. (The key here is to be prepared to take the suggestions very seriously and take action.) 
• Use a consultant – This idea is not popular with Telco in a Box but is an option all the same. Hiring a consultant can work as long as they don’t become a variable in the business. If the consultant can offer great ideas and staff can implement them, great. If the consultant must oversee the changes, then that variable when gone can leave the business back where it began.

So get innovating and get the business evolving to avoid the revolution.

Footnote*
Periodic high levels of chaos are caused by high levels of order over long periods of time. This is a common mistake made by many large Australian companies. However, like two glasses of red wine a day is considered healthy, low levels of ‘chaos’ is also considered healthy for a business. A constant frequency of chaos forces an organisation to explore better ways to do things, which naturally allows the business to evolve. This is the point organisations should strive for.