Innovation Value Chain Framework
How well do you innovate? Click here to go to our online Innovation Value Chain audit.
Innovation matters. Not just for new ideas in service delivery – but to persuade existing supporters, staff and even board members that you're committed to really stepping up to the mark. And it also matters if you are to attract good new people – staff and supporters – to your cause.
But while almost everyone, from commercial and non-commercial sectors, agrees that innovation is important; only a small number of public bodies and charities, in our experience, are really embracing innovation.
Our work at =mc over the last 3 years has concentrated on helping public bodies and charities become more systematically innovative. That work suggests that the two key challenges for charities becoming more innovative is that few have a systematic process to drive it and a number have chosen inappropriate models to integrate it.
To do this we've introduced a model, based on some original Harvard research, which argues that innovation is a value adding-process chain. This chain has seven stages to ensure you move methodically from simply creativity – coming up with ideas – to genuine innovation –implementing the ideas and raising money from them. Each stage is important and involves some key skills and competencies.
At each stage you as an organisation can be strong or weak. The table below asks questions to help you to assess yourself. And you can also compare yourself to best practice.

|
Stage |
Challenges and consequences |
|
One: Ideation: idea generation |
Do you come up with enough new ideas internally? Does your organisational culture support this approach? You need lots of ideas to develop real creative momentum. If not you'll always be running to catch up with other agencies. You’ll also find it hard to tackle challenges you face as a result of demographic or other changes. |
|
Two: Integration: cross pollination |
Are ideas exchanged between branches or departments or HQ and regions? Do you have systematic processes to ensure this happens? If not you'll be missing out on chances to work in a joined-up way. This synergistic working is a key characteristic of successful organisations. |
|
Three: Information: external sourcing |
Do you consistently scan the environment – commercial and non-commercial – for new service delivery approaches and ideas you can adapt? What can you learn from innovative companies like Google or Apple? Is there a not-invented here syndrome? Are you allowing others to gain first-mover advantage? |
|
Four: Selection: identifying ideas |
Do you have a systematic process for identifying high potential/high payoff ideas? Is this process rigorous but open? Otherwise you may be developing ideas but not choosing the high pay-offs or only choosing ones that fit with current thinking. If you’re tackling serious or urgent issues you may need to be more innovative. |
|
Five: Support: developing ideas |
How are ideas assessed and progressed? What metrics do you use to establish what has real potential and what isn't going to make it? And how long can you wait to see if an idea has potential? If you don't have a rigorous development process you may waste time and energy on low pay-offs. |
|
Six: Launch: diffusion and returns |
How well are ideas rolled out to supporters, staff or beneficiaries? What expectations of financial and social return do you have? And over what period? If you have too short-term an approach ideas will never succeed. If you wait too long for results the opportunity window may have closed. |
|
Seven: Learning: establishing what can be improved |
How well are successes and failures recognised? How is learning captured and shared across the organisation? If you don't evaluate and review you may be doomed to make the same mistakes again. Is learning rolled out across the whole organisation once identified? How good is your knowledge management approach? |
How strong is your Innovation Value Chain? Click here to go to our online Innovation Value Chain audit.
=mc now has a dataset which allows you to benchmark yourself or your organisation against UK, US or international not-for-profit organisations.
If you would like a detailed Innovation Value Chain analysis – involving an online tool and interviews – that will help identify your strengths, contact our knowledge management specialist, David Segal.
If you'd like advice on how your organisation can get better at innovation - in fundraising or in other service areas - please contact us on +44 (0) 20 7978 1516.


