Why Singaporean SMEs must renew their focus on innovation

The recent roll out of the new 360 Productivity framework to help Singaporean SMEs become more globally competitive, has spurred renewed focus on innovation as a key driver of efficiency and work productivity.

Cultivating innovation however, is not something to be taken lightly. Those looking to harvest it should look at education and training.

No stranger to innovation, Singapore holds a strong focus on manufacturing and R&D, indeed Singapore’s manufacturing sector accounts for more than 25% of Singapore’s GDP. Singapore has fostered the talent, workforce, ideas and ultimately innovation, crucial in driving competitive advantage.

Yet, the very nature of innovation means one must continue to harvest it; adopt new technologies, better manage supply chains and optimise workflows, in order to reap the benefits – namely efficiency and productivity in the workplace.

The 360 Productivity framework, launched by the Workforce Development Agency (WDA) and Human Capital Singapore (HCS)is built on productivity and capability-related initiatives. It is not just about better technology; the initiative focuses on a truly 360 degrees approach to productivity; spurring innovation and embedding productivity into every process.

But whilst we all know how important innovation is in enabling businesses, particularly in the manufacturing industry, to increase efficiency and productivity, not everyone makes the link between innovation and education.

If we are to become truly globally competitive enterprises, we need to drive innovation from the inside out - this hinges on education and training. People are a company’s single most competitive lever; how an organisation harnesses the brainpower of its people will significantly influence its ability to innovate.

Start at the top

As with any change, innovation has to be led from the top. The leadership team will be fundamental in driving innovation and their understanding and commitment is a prerequisite to everything else.

Getting all of the leadership team on-board is important in generating excitement and ownership members throughout the organisation. They will need education, not only to understand and drive innovation themselves, but also to educate and train others within the organisation. That means creating the right environment for change.

Individuals in the leadership team need to understand best practice innovation processes, what culture is required to drive and sustain innovation, how to weave innovation into the company strategy, and how to measure innovation success, as well as their specific role in the process.

The leadership team represents the first stage of enthusiasts who will pull the organisation through the process of becoming more innovative. With its support, change will soon gain momentum. Moreover, its active commitment will be crucial for success and sustainability.

A culture of innovation

It is not just the leadership team that will have the most innovative ideas; those that are customer facing or on the factory floor, will have some great ideas on how to improve productivity and efficiency in the workplace too. You need to create a culture in which everyone - from the senior leadership to the shop floor - wants to contribute their ideas and drive innovation.

The problem most organisations face is they operate in a functional, top-down, hierarchal structure, where involving people from the bottom-up goes against the status quo. Trying an ‘innovative’ approach to management may be the key here.

A flatter organisation with emphasis on team-based culture, rather than the traditional functional silos, will not only help drive collective innovation, you will also likely see productivity and efficiency benefits elsewhere. With different departments working towards one overarching goal rather than competing with one another the potential benefits are endless.

This necessitates thorough education and training, as people will need greater understanding and awareness, not only of innovation but also the role they are expected to play in the new company hierarchy. Establishing a common definition of what innovation is, and a common language around it, will be key.

Empower people to drive innovation

Whilst innovative ideas are great, unless people feel empowered to create change, ideas will remain just that and will not take shape. Education, again, is vital. People need to know why change and innovation are important and understand their role in implementing the changes.

The more people are educated about what processes they own and how they can influence change, the more they will act responsibly, make the right decisions and feel energised by change.

By making the organisation’s policies and procedures readily available, people will be enabled to act without having to constantly refer to their managers, thus allowing them to make key decisions that will drive change.

Train people to implement innovation

Training is fundamental in successfully implementing new practices, behaviours and disciplines, and in making them sustainable.

This is where external consultants play an invaluable role; they have the skills and knowledge of best practice implementation, and can educate people to make informed decisions.

It is usually very difficult for internal people to provide such coaching, because they are too close to what’s going on and unable to see where behaviours are changing for the better, or more importantly, where they are not.

Ultimately a culture of innovation needs to come from within; lead from the top of the organisation and cascaded down through the organisation by internal agents of change – the key people at each level of the organisation. A good consultant will transfer their knowledge to you, so you can drive this culture of innovation from the inside out.

Recent events have provided the encouragement and vision to innovate to improve productivity and efficiency. But without sufficient education and training, innovation projects will fail. Ultimately if a person won’t change an organisation can’t.

The key to exciting the organisation, creating the right environment and empowering people to drive innovation, lies in education. It is upon this that not only your innovation drive depends, but perhaps the future of your entire organisation.