The TIPS Flow in the Company Life Cycle

What kind of innovator does your business need?

In an earlier article titled Growing with the flow, I discussed that, like living things, companies develop by passing through distinct phases in their life cycle. What’s also true is that as a company develops from a startup to a multinational corporation, different basic innovator dimensions dominate at different stages of a company’s life. Let me explain.

The four dimensions of innovators

Over the past few years, I’ve been developing an innovation-focused personality profiling system, and am currently fine-tuning it for market release in the first quarter of 2014. This system that we call TIPS is based on the idea that your natural work style, thinking style, life style and innovation style depend on the mix of four basic dimensions that drive your mental focus and energy. These four dimensions are: THEORIES, IDEAS, PEOPLE, and SYSTEMS (which together make for the acronym TIPS).

When assessed on their combinations of these fundamental orientations, people fall into 11 types: Theorists, Ideators, Partners, Systematizers, Conceptualizers, Promoters, Organizers, Technocrats, Coaches, Experimenters, and All-rounders. Each of these innovation styles can contribute to a company’s innovation efforts, but different innovation styles come to the forefront at different stages in the corporate life cycle.

How different dimensions drive and affect a company during its life cycle

Let’s follow the life of a company to better understand how the need for the various innovator types — and their profiles — changes as it goes from a tiny new venture to a mighty behemoth:

Phase 1: Great companies start with great IDEAS
The idea on which a business is founded may be to fill an unmet need. An example of this is YouTube, whose founders Chad Hurley, Steve Chen, and Jawed Karim noticed the lack of an easy way to share videos on the web. The idea might also be to exploit a new technology or method, as in the case of Polaroid, founded by Edwin H. Land. The more radical, game-changing, and bold the idea, the more risky it is, the more reward it offers, and the more it can change the world. Ideators, the idea creators, often create and lead start-ups through their initial phase.

Phase 2: Spread the word about the IDEAS to PEOPLE
The second phase of company growth calls on both the IDEAS and the PEOPLE dimensions. Once a new product has been developed, then it’s time to build a brand and promote both the product and the brand. Among the 11 innovator types, the Promoter is most naturally suited to create convincing campaigns and to spread the word to the market.

Phase 3: Get PEOPLE for Sales and Delivery
This third phase is all about PEOPLE. You need to find the right people to sell your brand and product, and ensure satisfactory delivery and customer care. Partners are the innovator type most needed at this stage of a company’s development.

Phase 4: PEOPLE use SYSTEMS to tame the chaos
Sooner or later, if your sales team is successful, you will have a new problem: your organization will have problems keeping up with growth and maintaining consistent quality in products, delivery and services. This phase involves mostly the PEOPLE and SYSTEMS dimensions, as management realizes the need for organization at the front end, as well as a need for a more sophisticated back-end organization to ensure consistent service quality and customer care. The Organizer is the innovator type best suited to bring both order and a focus on service to a fast-growing company.

Phase 5: Build smooth-running SYSTEMS
As a company matures into a large corporation, the SYSTEMS dimension gains added importance. Senior management focuses on efficiency and productivity. The Systematizer is the right kind of person needed to drive and direct the transformation of a company into an efficient, productive corporation that is self-sustaining and not dependent on any one individual.

Phase 6: IDEAS improve the SYSTEMS
Once well-oiled SYSTEMS have been put in place, they can be shaped to improve the company. In order to do this, IDEAS are needed, along with the willingness to experiment and tinker with things to find the right business model, delivery channels, and partnerships to multiply the firm’s value. The Experimenter is the innovator type best able to figure out how to make the company successful in different markets, countries or even industries.

Phase 7: Reinvent yourself and start a new cycle — or decline and perish
By this time, your once-tiny startup has become a mature multinational corporation. However, natural systems have another phase in their life cycle: decline and, finally, death. Sooner or later, a new technology, business idea, or venture will emerge which challenges your company’s existence. If your company cannot adapt, renovate or reinvent itself — often because everyone in the company ignores the world-changing events around them — your company will start to decline, and may even perish, the victim of Schumpeter’s “creative destruction”.

 

What about THEORIES?

If you’ve been paying attention, you may have noticed that we’ve only mentioned the IDEAS, PEOPLE and SYSTEMS. Where do THEORIES come in? The answer is: Always.

Theories and information inform your actions at every phase of the cycle. However, the focus of the theories shifts as the other dimensions come to the fore.

  • When IDEAS are most important, you need conceptual or creativity-related theories, such as basic research.
  • When PEOPLE are the focus, your firm needs marketing and human capital-related knowledge.
  • Building strong, flexible SYSTEMS requires a good theoretical grounding in operations, efficiency, and process.

And those innovator types we haven’t mentioned yet —Theorists, Conceptualizers, Coaches, Technocrats, and All-Rounders? Their role is in creating, disseminating, and applying theories and information throughout all phases of the corporate life cycle.

 

This article is published in parallel in the Bangkok Post on August 15 2013.
© Dr. Detlef Reis 2011.

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