Innovation is essential for a company to differentiate itself from its competitors and thrive. But in highly regulated industries, such as healthcare, insurance and pharmaceuticals, running effective innovation programs can be challenging, according to The Harvard Business Review.
For innovation efforts to succeed, leaders must confront the regulatory barriers that impede them. Here are seven tips to do so, according to the report.
- Establish strong relationships with internal regulatory and legal staff. Those charged with leading innovation efforts often believe they're better off avoiding the legal, regulatory and compliance staff, but this is a mistake. Innovators will have to work with them at some point, and it's better to do so at the beginning stages of a new project or initiative when the stakes are still low. Working with them earlier on also gives them a chance to provide input and guidance when the idea is still malleable.
- Seek out an innovation ambassador within the legal or regulatory department. A legal or regulation expert who will champion innovation will fortify new initiatives with credibility within the organization and the industry, according to the report.
- Invite open discussions. Asking regulatory staff, "How can we…?" as opposed to "Can we…?" invites two-sided dialogue about how a certain goal can be accomplished despite restrictions.
- Get meetings on the calendar. Monthly meetings create the opportunity for consistent communication, collaboration and accountability. Although informal check-ins help, regularly scheduled meetings ensure legal, regulatory and compliance partners remain up-to-date and on board with the innovation agenda, according to the report.
- Work beyond "folk law." Healthcare and other industries include a lot of important rules and regulations for good reason. However, there are also many gray areas where the rules are unclear. Innovation can be bred in those gray zones, but often people become constrained by "folk laws" where the law is undefined, according to the report. However, once rules are identified as "folk laws," it's possible to move past them.
- Keep your pulse on the competition. Legal and regulatory teams are often wary of being the first to forge into uncharted waters. However, presenting them with information on how other organizations are pushing the envelope could make them more comfortable with innovation plans from their own company.
- Be patient. Change is always slow in industries that are heavily regulated, but innovation can still be successful. Expect setbacks along the way, be patient but be persistent.