2. Is there an easy-to-handle instrument to communicate the change that needs to happen?August 2010

3. Succesful Change Management programs always have a solid and easy-to-commuicate understanding of what will change Likeanynewventure, a changeprogramneedstohave an elevatorpitch “In one minute or less describe what the change will be” To plan for details successful Change programs need a tool to indicate where Change will happen and which details need to be planned A compass is a good tool for navigating in unknown territory The Change compass is a good tool for navigating a Change program It will indicate the dimensions in which Change will happen 2

4. N The Change compass: Organizational Change can happen in one to eight dimensions (simultaneously) 3 Business mission Skills Goals and KPIs Capacities Processesand IT Structures Mindset/ Values Rolesandworkstyles Source: BCG

5. Examplefrom a Change project: „implementing R&D-driven Open Innovation“ in the R%D organizationof a global FMCG company (1) Changes in business mission From “Having the best researchers in the industry peer group” …… to “Making the knowledge of the world available” Change in goals and KPIs Goals such as R&D productivity and R&D budgets had to be re-evaluated Performance / incentive system for R&D Managers needed to be adjusted. Up so far, a part of the annual bonus consisted of the IP contribution, measured by the number of patents filed. Now this is not in line with OI, since R&D managers are actually incentivised not to search outside for clever ideas or to immediately file for patent when an external idea comes in Changes processes and IT A number of new processes had to be designed A smaller number of existing processes, e.g. the management of the R&D project portfolio, had to be adapted 4

6. Examplefrom a Change project: „implementing R&D-driven Open Innovation“ in the R%D organizationof a global FMCG company (2) Changes in roles and work styles For managing the interaction between the internal key innovation players and the external co-innovating community a new role had to be installed Intensity and style of internal co-operation would change in some points, e.g. between innovators and the Patents department. Additionally, the lab managers need to develop co-operation and project management skills with a rather large number of sometimes unknown external innovators Changes in mindsets External co-operation had to be based on new paradigms, e.g. “From ‘Not Invented Here’ to ‘Proudly Discovered Here’’ or “Hiding is less important than Sharing” or “Work-Around is less important than Partnering” Changes in skills Internal key innovation players need to acquire new skills, e.g. on how to write good scientific challenges or on how to use the IT platform. 5

7. About … Frank Matteswww.open-innovators.com More than 15 years of experience in managing projects and innovation Worked for medium-sized national consulting companies as well as for The Boston Consulting Group Worked at C-level for an IT and a Professional Services company Author of several books and articles Currently working at www.hlp-online.de Contact +49-(0)171-6866774 frank.mattes@t-online.de 6