This document summarizes survey results from 164 executives at companies with over $1 billion in revenue regarding how innovation teams collaborate with business units. It outlines two models for this relationship: an intertwined model where innovation and business units closely collaborate, and an insulated model where they operate more independently. Emerging best practices are discussed, such as business units helping set innovation targets and providing funding or expertise. The document concludes by noting upcoming events from the Innovation Leader organization.

1. Innovation and the
business units

2. > About us
> Survey data
> Two models for connectivity
> Emerging practices…and a challenge
> What’s next

3. > About us
We’ve built the largest community of corporate innovators, strategy execs, and
R&D leaders — and we work hard to help them achieve real impact in their
organizations. We’re an unbiased source of research and case studies. A
convener of the best events on corporate innovation. And we curate the best
guidance and insights from our partners below…
www.innovationleader.com

4. > Survey data
We surveyed 164 executives at $1B+ companies in January 2017, for our research
report on innovation teams and their ties to the business units. The full 35-page
report is available to IL members at innovationleader.com/research.

5. > Survey data
We asked about how the agenda is set…

6. > Survey data
And who supplies funding…

7. > Selected survey comments
“The innovation group has to not act like it sits in an ‘ivory tower,’
with no understanding of how the company actually runs, and what
it’s good at.”
“Every company and project is different, but one consistent
experience is the underestimate of time, effort, sponsorship
required for a successful hand-off.”
“We have not been successful when new solutions are ‘thrown over
the wall’ to the BU for deployment.”
“Clearly define launch/growth metrics, and have both R&D and the
business unit agree on them.”
“Get lots of friends in the business units and flatter them
continuously over lunch with beers.”

8. > Two models: Intertwined

9. > Two models: Insulated

10. > Emerging practices
Business units may:
• Help set targets for the innovation group to work on
• Provide funding or resources
• Lend or rotate people through the innovation group to
offer expertise
• Provide input on projects, or access to customers for
input
• Giving the thumbs up or thumbs down to projects that
will either launch, be shelved, or require more work
• Take responsibility for launch/commercialization.

11. > …and a challenge
CEOs and senior leaders need to do better at creating
accountability for business units that roll out new ideas.
• Is the CEO or another senior executive paying attention to the
milestones it is expected to hit, and asking whether members of
the innovation team are continuing to support it as promised?
• Are staffers in the business unit committing the time and
resources promised?
• Are there “after action” reviews when products launch, or fail to
launch, to analyze what went right and wrong, and what could be
improved next time?

12. > What’s next for us…
March/April/May: Conference calls with Starbucks, Staples, and Manulife
March/April/May: Executive roundtables in Boston, Atlanta and Toronto
April 25-27: Atlanta Field Study (only 9 spots remain)
June: Next issue of our print magazine, Washington DC Field Study
For more on membership: donna@innovationleader.com