Cultivating Innovation And Deciding What To Fund

nesta-spending-2012-13

Chart of Nesta spend from their Annual Report 2012-13

I spent over 15 years of my career involved with bids, ranging from the small to the very large. They were all in the hi-tech area and focused on innovative solutions to a wide variety of business problems. Sometimes they involved bids for internal funding, to develop a new product idea, but more usually for external project funding (and usually in alliance with other parties).

Over this period I had experience from both sides of the fence: reviewing bids and giving feedback and submitting bids and receiving feedback. It’s a tricky area to get right: not to waste time on putting together a bid that will not get anywhere (for a host of reasons, which are often only clear afterwards, if at all) to the opposite, of being clear as why you’ve (really) won over other competing bids.

In the light of this I was interested to read about the approaches the charity Nesta are taking in cultivating innovative approaches in the areas that they focus on, including social innovation.

Nesta is a very interesting organisation and more info on them and their projects can be found from their site. In summary (here):

Nesta (formerly NESTA, National Endowment for Science, Technology and the Arts) is an independent charity that works to increase the innovation capacity of the UK.

The organisation acts through a combination of practical programmes, investment, policy and research, and the formation of partnerships to promote innovation across a broad range of sectors.

Nesta was originally funded by a £250 million endowment from the UK National Lottery. The endowment is now kept in trust, and Nesta uses the interest from the trust to meet its charitable objects and to fund and support its projects.

The key points so far are (with some extracts, see here for details):

1. Ideas matter, teams matter more

We’ve tried different approaches. Pitching sessions are useful, but you need to allocate enough time to get beyond the pitch and have a conversation; and one conversation is never really enough.

2. Information has a cost

One technique that seems to work is conference calls where we answer questions and clarify our goals before we ask teams to tell us their proposals.

3. Every contact should aim to add value

Often that’s about designing the selection process in a way that increases the knowledge or skills of the teams applying. We’ve held workshops on how to prototype and test ideas, connected people with coaches and experts, and supported teams to develop their theory of change.

4. Reach out for different perspectives

We haven’t found a simplistic formula that we can apply to our selection processes (if you know of one, please get in touch). What we do know is that we get much better decisions when we seek out different perspectives.

5. Expect iteration, know when to walk away

Sometimes the right thing to do is walk away; never easy after you’ve invested not only money, but your time and reputation into an innovation.

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