The 70-20-10 Innovation Framework is a strategic tool used by organizations to balance their investment across core, adjacent, and transformational initiatives. It suggests allocating 70% of resources to core business activities, 20% to adjacent innovations, and 10% to transformational efforts. This distribution helps companies maintain competitiveness while also investing in future growth and innovation.
Identify core, adjacent, and transformational projects within your organization. | Allocate resources according to the 70-20-10 rule: 70% to core, 20% to adjacent, 10% to transformational. | Implement projects while monitoring progress and adjusting allocations as needed. | Measure the impact of each type of project on overall business performance. | Refine and iterate the innovation strategy based on feedback and results.
Regularly review and adjust the resource allocation | Ensure clear definitions and criteria for categorizing projects | Foster a culture that supports all types of innovation
Encourages a balanced approach to innovation | Reduces risk by diversifying investment | Promotes long-term sustainability and growth
Can be challenging to correctly categorize projects | May lead to underfunding transformative ideas | Requires constant adjustment and monitoring
In companies seeking balanced growth | When diversifying product or service offerings
In startups or companies with limited resources | When immediate returns are a priority over long-term innovation