There is a lot of confusion today about the differences and similarities between innovation and improvement and almost a competition in some organizations about which is more important. Both are essential to success and understanding their co-existence is critical. Arguably, most innovations are improvements and a fair portion of improvements include innovation.
In the Chinese checkers Venn diagram above, if yellow pieces mark innovation and blue improvement, then the green overlap signifies BOTH. Certainly, the overlap will vary by industry, business and other mechanisms, however the overlap is likely more extensive than most people realize, and it is greatly misunderstood in many organizations to the detriment of both initiatives. Setting clear expectations in both arenas and capitalizing on their shared space, will set the organization up for success. If innovation is thought of as a unique or new method, idea or product then improvement is the positive change to existing methods and products. Continuous improvement is when there are consistent, frequent sometimes incremental improvements to methods and products. The lines, of course, blur when an improvement contains a unique feature that significantly differentiates the method or product and conversely when an innovation spawns one or many somewhat small positive improvements to methods and products.
Let’s talk first about their similarities and overlaps. Both innovation and improvement focus on better, simpler solutions to problems the customer or organization face and both involve change within the organization – sometimes significant, sometimes minor. Innovation and well managed, enlightened improvement efforts also share some tools [think mind maps, brainstorming, lateral thinking, etc.]. Additionally, most mainstream methodologies for both innovation and improvement can be traced back to variations of the time-honored Deming Wheel, Plan-Do-Check-Act, or scientific thinking for businesses.
Moving to the dissimilarities, innovation and improvement require different mindsets and must focus on different outcomes. A simple, often used example to explain the difference between the two involves lighting: enhancing the candle’s performance would be improvement the lightbulb was an innovation. Simply focusing on improved candles would never result in a light bulb! What makes an innovation an innovation is its uniqueness, and newness and what makes it an improvement is its meaningfulness. Improvement teams must focus on the today – and how to make the current methods and products better, more efficient and simpler. Innovation teams must focus on disruptive and unique, new methods, products and ideas.
While improvement efforts must stay grounded in the present and innovation efforts must leap into the future, both initiatives are important in every business. The struggle between these two efforts should not be allowed to force either total integration nor separation of the efforts. Understanding and exploiting the overlap and synergies of innovation and improvement while
