The 70-20-10 rule in innovation is actually borrowed from the 70-20-10 rule in learning, which states that: “70% of learning happens through on-the-job experience. 20% of learning happens socially through colleagues and friends. And 10% of learning happens via formal training experiences”.
Google’s then-CEO Eric Schmidt used this ratio in relation to innovation. It is a guideline that suggests employees should spend 70% of their time focused on core business model innovation, 20% on related projects, and 10% dedicated to unrelated and new projects.
Its purpose is to ensure that enough time is committed to keep the company running while still leaving enough time for innovation, which is very important as creativity requires energy, peace of mind, and perspective.
The 70-20-10 rule has been adopted by organizations ranging from Google to Coca-Cola, as well as many smaller businesses around the globe. It is a strategy that works for many reasons, including but not limited to;
Crucially, when implemented correctly, the rule aligns with the organization’s short-term and long-term innovation needs.
The main driving forces of innovation are customer experiences, revenue growth, and product development. Therefore, when crafting strategies like the 70-20-10 rule, it's vital to remember the core drivers of innovation: customer experiences, revenue growth, and product development. By staying mindful of these key elements during implementation, organizations can effectively allocate resources to nurture creativity and achieve tangible progress aligned with their innovation goals.
When considering this particular methodology, the following steps will point your team in the right direction;
In short, successfully implementing the 70-20-10 rule involves realigning resources, setting clear innovation goals, empowering employees to explore new ideas, fostering risk tolerance, embracing data-driven decision-making, and celebrating successes.
Introducing the 70-20-10 approach to innovation will require a mindset shift from the entire team. Nonetheless, you will struggle to implement the philosophy without the right tools. With a decentralized innovation management program, you can turn it from an idea into a discipline capable of transforming your entire company.
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