Accelerating Innovation and Value Improvement
Overview
A global manufacturing company engaged Palarete to conduct a strategic review of its technical function with the goal of improving innovation performance and value improvement delivery. Although the company had strong technical expertise, its innovation pipeline and value improvement performance had plateaued. Annual net cost change (after accounting for cost increases) was effectively neutral, with gross CIP gains of 2–3% being offset by inflation and inefficiencies. Leadership sought to strengthen the innovation engine within the technical function creating a clear roadmap to achieve a net cost improvement of 3%+ per year, supported by stronger governance, capability building, and cross-functional alignment.
The Challenge
- Fragmented and inconsistent innovation pipeline with low project visibility and prioritization
- Weak linkage between innovation projects and business strategic objectives
- Limited portfolio management discipline and inconsistent review cadence
- CIP performance (2–3%) offset by cost inflation, resulting in a neutral net cost change
- Lack of structure for cross-functional idea generation and project selection
- Cultural barriers limited time or confidence to focus on innovation and experimentation
Our Approach
Current-State Assessment
Conducted stakeholder interviews and workshops to capture Voice of the Customer feedback. Reviewed systems, tools, and performance tracking used for innovation and CIP activities. Mapped current processes to identify inefficiencies and gaps in project visibility, ownership, and governance.
Duration: 4 weeks
Capability & Process Review
Assessed team capabilities across project portfolio management, value tracking, and execution. Evaluated the connection between functional projects and wider business priorities. Introduced structured innovation and CIP KPIs, including project value as % of COGS and net cost improvement year-on-year.
Duration: 3 weeks
Roadmap Development
Developed a three-tier roadmap: Quick wins focused on Kaizen and smaller-scale improvements; Medium-term portfolio governance and execution rhythm through consistent reviews; Long-term innovation and value-engineering capability to sustain 3%+ annual net cost improvement. Designed standard templates and dashboards for project visibility, prioritization, and value tracking.
Duration: 2 weeks
Implementation & Coaching
Launched early-stage implementation with coaching for functional leaders to build ownership and execution discipline. Facilitated cross-functional alignment workshops to connect technical projects to overall business objectives. Supported cultural development, creating time and space for innovation and encouraging recognition of improvement initiatives.
Duration: Ongoing
Results & Impact
2× Increase in Pipeline Visibility
Consolidated overview of all active and proposed projects
Clear Portfolio Governance
Defined cadence reviews, sponsors, and standard reporting established
Quick Wins Delivered
Kaizen events and short-term CIP projects driving immediate measurable value
Cross-Functional Alignment
Technical function priorities now directly support site strategic goals
Stronger Collaboration Culture
Functions jointly mapping value streams and identifying shared improvement opportunities
3%+ Net Cost Improvement Roadmap
Clear path defined to deliver consistent annual improvement, balancing immediate impact with long-term capability
"The process has brought clarity, structure, and energy back into innovation. We now have visibility, governance, and a roadmap, but most importantly, the culture is shifting to one that embraces creativity, collaboration, and continuous improvement."
Director of Technical Operations
Global Manufacturing Company
Key Learnings
- Innovation needs structure and culture — governance builds confidence; culture builds creativity
- Quick wins build belief — small successes inspire engagement and accelerate broader transformation
- Cross-functional collaboration is essential — alignment to site objectives ensures relevance and impact
- Time and recognition fuel innovation — space to create and celebrate success drives participation
- Capability building sustains progress — long-term improvement depends on coaching, not just tools
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