By: Tristan Zuber, Dairy Foods Specialist, Harvest NY Program
Henry Ford once had the desire to take the motor car and make it available to the multitudes. He didn’t actually invent the automobile, but what he did invent revolutionized the entire manufacturing and automobile industry as we know it today. The process innovation of the new assembly line reduced the time it took to produce a car from more than 12 hours to about 90 minutes, which in turn allowed Ford Motor T’s to be sold at less than $300 – making car ownership a staple to the American dream.
Innovation within the dairy industry does not require developing a new type of assembly line or even a new product that can revolutionize an entire category. One does not need to come up with the most creative ideas to inspire a revolutionary development. Your organization’s people may already have provocative ideas for inspiring innovation, yet they fail to bring their ideas to fruition due to a culture that lacks support for these sorts of ideas.
Apple, Google, and 3M are among some of the most innovative companies in the world according to Booz & Company. What makes these companies the most innovative is not necessarily the amount they spend on Research & Development, but rather the culture they have developed that incubates innovation. Let’s take 3M, for example. 3M spends approximately 6% of its revenue on research and development. In comparison to others in their sector, this is not an extreme amount. However, 3M continues to develop new products and remain competitive in the marketplace. They attribute this to the fact that they challenge those closest to their products to improve upon them. They do this by encouraging employees to step outside of their traditional roles and responsibilities, assigning 15% of their time to participate in other projects that are of interest to them. Employees are encouraged to collaborate across sectors and at their other locations around the world. Outside of the company, 3M works alongside their customers to understand their needs and desires. 3M has proven that those with an existing interest in the company’s success can be your best resource. This has resulted in the development of projects that lead to the creation of Scotch Brand Tapes, Post-It Notes and automobile window treatment.
So how can you, as a low margin dairy company encourage this sort of change – whether it be process, product, or idea? Follow the lead of other companies who have historically been considered innovative, even if they are from another sector. Starting with management, encourage leadership and innovation in any form. Create a culture that will inspire new ideas and challenge the status quo. Offer opportunities for employees to develop new skill sets and take on new responsibilities. Reward success but also recognize that failure is not always bad. Recruit people that match your culture, are passionate about your company and industry and are driven to bring thoughts to the next level. These companies should focus on the big picture, and evaluate progress regularly. Additionally, remain ahead of or at the very least aware of industry changes and consumer demand. You and your organization may also be inspired by something outside your industry that can be made applicable to your own. What if our industry thought in a way that Spencer Johnson thought in his book Who Moved My Cheese? One of his quotes is, “What would you do if you weren’t afraid?” What would your company do if you weren’t afraid?
In June, American Dairy Association & Dairy Council, the Northeast Dairy Association & Dairy Council and Cornell Dairy Foods Extension held the first ever Northeast Fluid Milk Forum. The goal of this Forum was to address the question: how can we reduce and diminish the effects of the decline in fluid milk consumption? Though a rather ambitious task, our industry does have the capability to accomplish this because we have a great product, but we do need to be innovative with what we are given.
As an industry, we must foster greater innovation by focusing on the big picture on what is happening in the entire beverage sector as a whole. Developing more convenient products, finding new ways to process milk, going beyond the standards of identity and focusing on consumer segments we have ignored in the past could be the ticket. By leveraging existing talent, collaborating with stakeholders, encouraging creativity and leadership we can work toward these goals. I am positive your company has also set other large goals where many of these principles can be applied. As proven by Henry Ford, 3M, and other progressive thinkers ideas can become reality to enhance lives. To move forward, the dairy industry will need to better leverage our resources, dream big, and create a culture that inspires innovation.
