book.chapter The garage role

Business markets are constantly changing, so companies that simply learn and adapt never get ahead. True market leadership comes to firms that succeed in harnessing creativity to deliver major business innovations. Without fresh, innovative ideas flowing steadily, organizations can at best only grow at the same pace as their industry. Where do these game-changing ideas come from? Often, they originate in "garages"—special units that bring together the analytical and creative sides of a business to generate practical new concepts. A good corporate garage leverages the established rules, procedures and principles of the company (the "bizz") and combines them with the dynamic, buzzing innovative energy of the organization. This fusion of order and chaos, this creative tension, is what produces valuable original ideas. The "bizz" represents the fundamental building blocks of the company: proven leadership methods, efficient operational processes, and strategic alignment across divisions. Without that solid business foundation, even the most ingenious ideas would lack substance and fail to add real value. The "buzz," on the other hand, encompasses the dynamic, attention-grabbing, fun aspects of innovation that stimulate fresh thinking. This includes offering internal and external motivation to employees, promoting communication flows, and facilitating collaborative interactions. Finally, the "stuff" consists of the tangible organizational resources—the facilities, knowledge, skills, and business processes—needed to convert innovative ideas into products and services that customers want. Stuff provides the means for execution. An effective corporate garage requires achieving an optimal balance between all three elements. An organization with only "bizz" and "stuff" would have robust processes and capable staff but lack strategic vision and initiative. A company powered by "bizz" and "buzz" would be very dynamic yet unable to reliably deliver what customers need. And a business composed of just "buzz" and "stuff" would have ample resources and creativity but get very little done in any organized fashion. The garage concept originated in the entrepreneurial technology sector with firms like Hewlett-Packard, but it is now being adopted more widely. Other companies are realizing that combining analytical planning with passionate dynamism in a semi-autonomous unit can produce winning innovations. The key is managing the natural tension between order and chaos to generate optimal creative outcomes. For most organizations, the main barrier to success is that one or more components—either the methodical "bizz," the energetic "buzz," or the operational "stuff"—are underdeveloped. The goal is to unlock hidden creativity by bringing all elements together in a well-designed garage environment. Establishing a garage requires courage, willingness to take smart risks, and securing adequate resources. But the returns can be immense. Within these units, ideas are freed from bureaucratic constraints and can be quickly advanced from concept to reality with the right attention and support. The excitement and satisfaction of seeing your business grow through homegrown innovations is unmatched. As visionary business leader Carly Fiorina put it, "Believe that together we can do anything. Invent.". The key is to combine the best of big and small—to design a structure that harnesses your company's scale while preserving an agile, entrepreneurial spirit5. Balance the methodical with the dynamic. Blend left-brain analytics with right-brain creativity. Manage the natural tension between order and chaos. Do this, and your corporate garage will be primed to deliver the next game-changing business innovation.