Arkaro Insights
Arkaro Insights is a podcast series produced by Arkaro, where we help B2B executives deliver better results with the latest ideas in change and innovation for your organisation.
About Arkaro
Arkaro is a B2B consultancy specialising in Strategy, Innovation Process, Product Management, Commercial Excellence & Business Development, and Integrated Business Management. With industry expertise across Agriculture, Food, and Chemicals, Arkaro's team combines practical business experience with formal consultancy training to deliver impactful solutions.
You may have the ability to lead these transformations with your team, but time constraints can often be a challenge. Arkaro takes a collaborative 'do it with you' approach, working closely with clients to leave behind sustainable, value-generating solutions—not just a slide deck.
"We don't just coach - we get on the pitch with you"
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Arkaro Insights
Building the Foundation: How Collaborative Culture Impacts Innovation Success
Welcome to the Arkaro Insights podcast. This episode is based on original content developed by Arkaro. At Arkaro, we're committed to innovation in everything we do—including how we share our insights. We've utilised advanced AI technology to transform our written expertise into this conversational format, making our content more accessible and convenient for our busy B2B audience. What you'll hear is a two-person discussion generated through AI voice technology, designed to deliver our insights in a more engaging way than traditional reading. As we continue to evolve this approach, we genuinely value your feedback. Thank you for listening to Arkaro Insights, where professional expertise meets innovative delivery.
What truly separates successful innovations from commercial failures? While we often blame technical flaws or misreading market signals, the bedrock of innovation success lies in something far more fundamental - your organizational culture.
Delving into groundbreaking research and real-world case studies, we uncover how a genuinely collaborative culture serves as the essential foundation for innovation success in B2B organizations. The evidence is compelling: cross-functional integration makes product launches 1.5 times more likely to succeed, while early sales team involvement drives 20% higher revenue from new products and 14% faster time-to-market.
We examine the devastating impact of functional silos - those invisible walls between departments that create costly handoff problems, missed customer insights, and inconsistent messaging. These barriers don't just slow progress; they fundamentally undermine your innovation potential. Leadership behavior proves critical, as executives either foster collaboration through their actions or inadvertently encourage competition and resource hoarding that cascades throughout the organization.
Psychological safety emerges as another vital component, creating environments where calculated risks and unconventional ideas can flourish. Like Pixar's approach, successful innovators balance nurturing early fragile concepts with implementing rigorous feedback mechanisms to strengthen and refine them over time.
For executives looking to transform their innovation culture, we provide actionable strategies: establishing truly cross-functional teams with decision-making authority, implementing innovation immersion programs to build cross-departmental empathy, aligning incentives to reward collective success, clarifying decision rights, and modeling collaborative leadership behaviors daily.
Unlike specific products that competitors can easily imitate, a deeply collaborative culture becomes embedded in your organization's DNA - creating a sustainable competitive advantage that delivers more accurate insights into customer needs, comprehensive solutions, stronger organizational alignment, and faster learning loops.
Ready to strengthen your innovation foundation? Visit arkaro.com to learn how we can help your organization foster this culture of collaboration, or email Mark Blackwell directly at mark@arkaro.com for a free consultation.
Welcome to the Arkaro Insights Podcast. We're here to help you, as B2B executives, deliver better results using the latest thinking on change and innovation within your organization.
Speaker 2:And today we're really digging into something absolutely foundational for making innovation work building a genuinely collaborative culture.
Speaker 1:That's right. We're drawing heavily on insights from Arkaro work, and specifically an article by Mark Blackwell. It's called Building the Foundation how collaborative culture impacts innovation success.
Speaker 2:Yeah, it's part of the great series he wrote, exploring the hidden roots often the cultural roots behind why so many product launches will stumble or even fail outright.
Speaker 1:And the core idea really is that these failures often aren't just about the tech going wrong, are they no?
Speaker 2:not at all. I mean sometimes, sure, but very often the immediate assumption is oh, it's a technical flaw, or maybe we misread the market somehow.
Speaker 1:Right.
Speaker 2:But our experience at Arkaro working across industries like agriculture, food, chemicals it consistently points to something deeper, more fundamental.
Speaker 1:Which is the culture.
Speaker 2:Exactly the underlying cultural dynamic. So our aim today is to really unpack why a collaborative culture isn't just a nice extra.
Speaker 1:It's not just fluffy stuff.
Speaker 2:Definitely not. It's the essential bedrock. It's what allows you to take those brilliant innovative ideas and actually turn them into real world commercial success.
Speaker 1:Okay, so let's get right into that then. This idea of culture as the foundation. The article uses this analogy of building a house you can have amazing architectural plans, the most innovative designs, but if that foundation is weak, the whole thing's at risk.
Speaker 2:It doesn't matter how great the blueprints are.
Speaker 1:And Arcara's work suggests and this really struck me that a collaborative culture is well a better predictor of innovation success than even having solid processes or lots of R&D funding.
Speaker 2:It is a striking point, isn't it? But when you think about why, it starts to make perfect sense. Innovation just isn't a solo sport.
Speaker 1:No.
Speaker 2:It absolutely requires different functions, different parts of the business to mesh together to work seamlessly.
Speaker 1:And when that foundation, that collaborative piece, is weak or cracked.
Speaker 2:That's when you see even really promising, brilliant innovations hit these unnecessary roadblocks, these hurdles during commercialization and that's where the potential for failure really skyrockets.
Speaker 1:Okay, so one of the biggest cracks in that foundation, it seems, is these functional silos we hear so much about. Oh, definitely. You know R&D working away in their lab, product management in their office, marketing and sales doing their things separately. The article calls it an innovation killer. Can you paint a picture of the problems this actually creates day to day?
Speaker 2:Yeah, absolutely Think about it like this. Maybe R&D develops what they think is a fantastic new product feature, technically brilliant, right, but because they're disconnected from, say, customer support, they have no idea that users are actually tearing their hair out over a totally different problem with the current product. Maybe the interface is just confusing, so a lost insight right there, totally lost, and flip it around. The sales team might be hearing crystal clear signals from customers about a new need, something changing in the market, but that crucial intelligence it just doesn't make its way back effectively to the technical teams who could actually act on it. It's like different limbs of the same body working against each other.
Speaker 1:Right, right. And then there's what Blackwell calls these costly handoff problems. I can just picture this A new product moves from R&D to maybe manufacturing or marketing.
Speaker 2:And vital information just gets dropped, lost in translation. Maybe the features R&D prioritized aren't what the market values, or the sales team gets the wrong message.
Speaker 1:Which leads to confusion.
Speaker 2:Exactly, and it can also mean overlooking really practical constraints If your manufacturing folks or regulatory or the supply chain team aren't looped in early.
Speaker 1:You find out too late.
Speaker 2:Way too late. You might discover these huge roadblocks. Maybe you can't actually make it efficiently, or it doesn't meet regulations or you can't source the materials really late in the game.
Speaker 1:When it's expensive to fix.
Speaker 2:Hugely expensive, yeah, and time consuming. The article gives this great, or maybe painful, example of a chemical company Breakthrough polymer additive. Technically amazing, but the sales team couldn't actually commercialize it effectively because customers couldn't handle it properly. Practical limitations discovered way too late.
Speaker 1:Ouch, yeah, that's a tough lesson, and you also mentioned inconsistent product information reaching the customer. That feels like a direct consequence of Silers, doesn't it?
Speaker 2:Absolutely Different. Teams have slightly different understandings, maybe different priorities, and they end up communicating conflicting details. Customers get confused, maybe frustrated.
Speaker 1:Which undermines trust.
Speaker 2:Precisely, and maybe the most damaging thing silos do is block the integration of customer feedback. You know marketing and sales, they're out there on the front lines.
Speaker 1:They hear everything.
Speaker 2:They're gathering these incredibly valuable insights about what customers truly need, what's working, what's not, but if that feedback doesn't flow back smoothly, directly, consistently, to R&D and product development?
Speaker 1:You end up building stuff people don't need.
Speaker 2:Or stuff that misses the mark.
Speaker 1:Yeah, there's research from the PDMA, the Product Development and Management Association, showing that proper cross-functional integration makes product launches one and a half times more likely to succeed.
Speaker 2:One and a half times. That's significant.
Speaker 1:It's huge. It really underscores the tangible cost of letting those silos persist.
Speaker 2:It really does. Now the article makes a specific point about sales engagement not just getting them involved at the end to sell the thing, but bringing them in much, much earlier. Why is that so critical?
Speaker 1:Well, it's fascinating. Actually Bringing sales in early does way more than just prep them for the launch. Okay, when they're part of the process from closer to the beginning, they develop a real sense of ownership commitment. It becomes their product too in a way Interesting Buy-in. Exactly. Plus, they bring that crucial real world perspective. What are customers really asking for? What are the competitors doing, what's actually feasible to sell and support out there in the market? They know the practicalities.
Speaker 2:They ground the innovation in reality Precisely. There was a study by the Aberdeen Group that found companies involving sales early C on average 20 percent higher revenue from new products 20 percent. And get this a 14 percent faster time to market.
Speaker 1:Wow, ok, those are compelling numbers, hard to argue with.
Speaker 2:They really are. It just shows the impact of getting that commercial view integrated right from the start, not just bolted on at the end.
Speaker 1:OK, so if collaboration is this vital and silos are this damaging, let's talk about leadership, because it's not just about org charts, is it? It's about how the people at the top behave. What are some leadership behaviors that actively undermine collaboration?
Speaker 2:Oh, absolutely, Leadership sets the tone. Period If leaders operate in their own silos or if their actions, maybe unintentionally, encourage internal competition over collaboration.
Speaker 1:That just cascades down.
Speaker 2:It ripples through the entire organization. The article points out several really damaging behaviors, things like resource hoarding.
Speaker 1:Protecting their own budget or team.
Speaker 2:Yeah, exactly. Instead of directing resources to the best overall opportunities for the company, then there's credit claiming individuals or teams trying to grab all the glory.
Speaker 1:Which discourages teamwork.
Speaker 2:Totally Selectively sharing information is another big one. It breeds mistrust between functions, shifting blame when things inevitably go wrong.
Speaker 1:Always toxic.
Speaker 2:Always and actively fostering internal competition which, as you mentioned earlier, can lead to those zombie projects.
Speaker 1:Still love that term the projects that just won't die but aren't going anywhere useful.
Speaker 2:Right. They just keep consuming resources because maybe a particular leader is championing them for internal political reasons, not because they're the best bet for the company.
Speaker 1:And research backs this up. Right McKinsey found that senior leadership involvement and actually role modeling collaboration are critical.
Speaker 2:Absolutely critical.
Speaker 1:Yeah.
Speaker 2:It's not enough for leaders to just say collaboration is important. They have to live it. They need to be seen actively breaking down barriers, making connections, fostering communication between different groups.
Speaker 1:And creating psychological safety. That term came up.
Speaker 2:Yes, crucially important, cultivating psychological safety.
Speaker 1:Okay, psychological safety we hear that phrase a lot now what does it really mean in this context for innovation, and why is it so essential?
Speaker 2:Well at its heart. It's about creating an environment, a team atmosphere, where people feel safe enough to take calculated risks OK, Safe enough to voice ideas that might seem a bit unconventional, maybe even challenge the status quo and, importantly, safe enough to admit mistakes or raise concerns without fearing they'll be punished, blamed or made to feel stupid.
Speaker 1:Because innovation isn't straightforward.
Speaker 2:Not at all. No, it inherently involves uncertainty. You're exploring unknowns? Not at all. It inherently involves uncertainty. You're exploring unknowns. Not every idea is going to work out Right, and if people are afraid to speak up, afraid to suggest something different or point out a potential flaw early on, you're basically shutting down the very creativity and critical thinking you need.
Speaker 1:You're filtering out the potentially great ideas along with the bad ones.
Speaker 2:Precisely Google's big study Project Aristotle really highlighted psychological safety as like the number one factor in their highest performing teams.
Speaker 1:And it's not just about avoiding blame, is it? It's also about being able to have honest conversations, constructive feedback. The article mentions Pixar.
Speaker 2:Yeah, pixar's approach is fascinating. They have this culture where they really nurture those very early fragile ideas, give them space. But they also have these incredibly robust, honest feedback loops, the brain trust sessions, where people give candid critique to make the idea stronger. It's not personal, it's about the work.
Speaker 1:So it's a balance, encouraging the initial spark but then having the rigor to refine it.
Speaker 2:Exactly that. You need that safe space for the initial, maybe half-baked, ideas to emerge. Steve Jobs used to talk about the importance of those spontaneous hallway conversations, right?
Speaker 1:Yeah.
Speaker 2:But then as ideas develop, you absolutely need mechanisms for rigorous evaluation, for candid feedback, to identify flaws early and strengthen the concept. Encourage risk early, Demand validation later.
Speaker 1:That makes a lot of sense. Okay, this all sounds great in theory, but let's get practical. For the B2B executives listening, what are some concrete steps they can actually take to start building this kind of collaborative culture?
Speaker 2:Okay, yeah, practical steps Based on Arkaro work. There are definitely some key strategies. One big one is creating truly cross-functional innovation teams.
Speaker 1:Okay, but what does truly mean there?
Speaker 2:It means not just having a representative from each department show up occasionally. It means having active participants from R&D, marketing, sales operations, maybe even customer service involved from the start of a significant project.
Speaker 1:With real input.
Speaker 2:Yes, and real decision-making authority within the scope of the project. Getting all those diverse perspectives and accountabilities in the room early avoids so many downstream problems.
Speaker 1:Right gets everyone on the same page from day one. What else?
Speaker 2:Implementing what we sometimes call innovation immersion programs can be really powerful.
Speaker 1:Immersion.
Speaker 2:Well, for example, having technical teams spend a day or even a week out in the field observing customers using their products, really seeing the challenges firsthand.
Speaker 1:Ah, getting out of the lab.
Speaker 2:Exactly and, conversely, maybe have commercial teams spend time understanding the R&D process, the technical trade-offs involved.
Speaker 1:Building empathy between the groups.
Speaker 2:Precisely. It breaks down those us versus them walls. We had one client where engineers shadowed sales reps on customer visits. It completely changed their perspective on customer pain points and led to much more user-centric features.
Speaker 1:I like that Shared experience. What about incentives? That always drives behavior.
Speaker 2:Absolutely crucial. You have to look hard at how you measure and reward performance. Are your incentives set up in a way that pits functions against each other?
Speaker 1:Like rewarding departmental KPIs above all else.
Speaker 2:Yeah. Or are there also collective rewards tied to the successful launch and market performance of new innovations? You need to align incentives to encourage cooperation and reward shared success. Celebrate wins as a team.
Speaker 1:Makes perfect sense. Shift the focus to the collective goal. Any other key steps.
Speaker 2:Well, establishing clear decision rights is really important too. Who provides input? Who makes recommendations? Who has the final say at each stage gate?
Speaker 1:Avoids that decision by committee paralysis.
Speaker 2:Exactly, or the opposite, where no one feels empowered to decide. Clear decision rights keep things moving. And finally, maybe the most critical piece, as we discussed, senior leaders have got to model collaborative leadership.
Speaker 1:Walk the talk.
Speaker 2:Absolutely. Their actions, how they interact, how they communicate, who they praise, how they allocate resources speak volumes. They need to be visibly breaking down silos themselves.
Speaker 1:And it's not just collaboration between functions, right. The article also highlights bringing different types of people together within teams. Diversity of thought.
Speaker 2:Yes, absolutely. Different thinking styles, different professional backgrounds, different levels of experience, even generational diversity.
Speaker 1:Why is that so powerful?
Speaker 2:Because innovation thrives on varied perspectives. When you bring together people who think differently, they challenge each other's assumptions, they spot blind spots. They come up with more creative solutions. It's often called collective intelligence.
Speaker 1:Makes sense.
Speaker 2:Multigenerational teams, for instance, can be fantastic. You blend the perhaps more digitally native or disruptive thinking of younger folks with the deep industry knowledge and pattern recognition of more experienced colleagues.
Speaker 1:Best of both worlds?
Speaker 2:Potentially, yes, with the deep industry knowledge and pattern recognition of more experienced colleagues. Best of both worlds? Potentially, yes. We saw this with an agricultural inputs client. They deliberately mixed functions, seniority levels, backgrounds on their innovation teams. The concepts they developed were more robust and they had far fewer surprises during commercialization.
Speaker 1:So it sounds like investing in a collaborative culture isn't just about launching better products now. It's about building a lasting advantage.
Speaker 2:That's a really key takeaway, I think. Unlike a specific product, which competitors can often imitate, a deeply ingrained collaborative culture is much, much harder to copy. It becomes part of your organization's DNA.
Speaker 1:And that leads to.
Speaker 2:Well, it leads to a more accurate read on unmet customer needs because you're getting insights from everywhere. It leads to solutions that address the whole customer experience, not just a technical feature. You get better organizational alignment behind launches, faster learning loops when you get market feedback and that continuous integration of customer insight back into R&D. Knowledge sharing really is the glue.
Speaker 1:Knowledge sharing links culture to innovation performance.
Speaker 2:Spot on. It becomes a sustainable competitive edge.
Speaker 1:Okay. So for everyone listening, maybe reflecting on their own organizations now, what are some key questions they should be asking themselves, to kind of gauge the health of their innovation culture.
Speaker 2:Yeah, the article suggests some really good reflective questions, things like how effectively do your different functional teams really collaborate, day in, day out, through the whole innovation cycle?
Speaker 1:Not just on paper.
Speaker 2:No, in practice. Do your technical folks and your commercial folks speak the same language? Is there genuine mutual respect there?
Speaker 1:Good one.
Speaker 2:Are your sales teams involved early and meaningfully, or are they just brought in at the end Right? How do your senior leaders visibly show up? How do they model and reinforce collaboration? What signals are they sending?
Speaker 1:And that balance we talked about.
Speaker 2:Yes. How does your organization handle risk? How do you balance we talked about yes how does your organization handle risk? How do you balance encouraging that necessary early stage risk taking with the need for rigorous validation later on? Answering those honestly can give you a pretty good snapshot of your innovation foundation.
Speaker 1:This has been incredibly insightful. We've really unpacked why that collaborative culture is just so fundamental for innovation success, Pulling from Arkaro experience and Mark Blackwell's article.
Speaker 2:Yeah, we've looked at the dangers of silos, the real power of getting sales involved early, how leadership behaviors make or break collaboration.
Speaker 1:The absolute necessity of psychological safety and, importantly, those practical steps you can actually take to start building this.
Speaker 2:And the powerful thing is, by focusing on these cultural elements, these often sort of softer aspects that get overlooked, b2b companies can seriously improve their innovation odds and build a much more resilient, adaptable business for the future.
Speaker 1:Absolutely so. If you want to learn more about how Arkaro can help your B2B organization foster this kind of collaborative culture and really drive better results from change and innovation efforts, please do visit us at arkaro. com.
Speaker 2:And you can also follow Arkaro on LinkedIn for ongoing insights.
Speaker 1:And if you'd like to discuss your own specific challenges and opportunities in this area, Mark Blackwell offers a free consultation. You can email him directly at mark at Arkaro.
Speaker 2:He'd love to hear from you.
Speaker 1:Thank you so much for tuning in to the Arkaro Insights podcast. If you found this deep dive helpful, please do share it with your colleagues.
