Principled Innovation LLC

Innovation is about more than making money

February 25th, 2007

BusinessWeek recently reviewed the new innovation tome, Payback: Reaping the Rewards of Innovation, by James P. Andrew and Harold L. Sirkin. The reviewer, Michael Arndt, summarizes the authors’ central argument this way:

The authors’ main point is never to forget that innovation is only a means to make money. There are indirect benefits from innovation, of course, such as boosting morale and enhancing brand image. But unless innovation equals profit, it’s not worth it.

While the authors’ perspective may be correct when it comes to the corporate sector, this view is very much misplaced when thinking about innovation in the association community. Of course, associations should pursue product, service, experience and other forms of innovation to create new economic value for stakeholders and capture new revenue streams for themselves. Business model innovation is also desperately needed throughout our community so we can build financially sustainable associations for the future.

The deeper relevance of association innovation, however, will emerge only when we embrace it as a strategy for reinvigorating and realizing the fundamental democratic values that have always animated our organizations. Associations want to be long-term, impact players in the industries and professions they serve. To accomplish this important goal, they will need something more precious than money: the enduring spark of inspiration in members and other stakeholders, derived from a renewed commitment to achieving mission, that makes active participation an attractive option.

In this context, mission does not mean paying lip service to a so-called “mission statement” developed by a committee as a politically-expedient compromise. A genuine sense of mission reflects a profound commitment to making a lasting difference on issues and ideas that matter through an open, intelligent and distributive approach to stewardship that enables innovation. Conveying this sense of mission to others demands that association leaders use the language of core association values, including collaboration, collective action, community, contribution, engagement, equity, meaning, opportunity, reciprocity, responsibility, transparency and trust. These words, and the ideals they embody, are essential elements of the new lexicon of association success.

The pursuit of innovation will help associations make more money, and that’s a desirable outcome. But if the work of innovation isn’t also about something more, it’s not worth it.

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