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Innovation culture

  1. 1. Copyright © 2010 John Wiley & Sons, Inc. 15-1
  2. 2.  Improve top line, bottom line or market share  Strengthen balance sheet  Strengthen brand/reputation  Increase workforce retention (incent stakeholders)  Enhance community engagement  Improve environmental performance  Attract investors/acquirers "Discovery consists of seeing what everybody has seen and thinking what nobody has thought.” — Albert von Szent-Gyorgy
  3. 3. Joseph Schumpter (1936)  Introduction of a new good, or a new quality of good  Introduction of a new method of production - need not include new technologies)  The opening of a new market  The securing of a new source of supply  The creation of a new organization Innovator’s Alliance (2012)  Exploring and adopting new methods of creating value  Generating new ideas  Conducting R&D to develop new products  Continuous improvement in all functional areas  Finding new ways to deliver products and services "Creativity is thinking up new things. Innovation is doing new things." - Theodore Levitt
  4. 4. "It isn't the incompetent who destroy an organization. The incompetent never get in a position to destroy it. It is those who achieved something and want to rest upon their achievements who are forever clogging things up.” — F. M. Young "The difficulty lies not so much in developing new ideas as in escaping from old ones.” — John Maynard Keynes Copyright © 2010 John Wiley & Sons, Inc. 15-4
  5. 5. "Innovation is fostered by information gathered from new connections; from insights gained by journeys into other disciplines or places; from active, collegial networks and fluid, open boundaries. Innovation arises from ongoing circles of exchange, where information is not just accumulated or stored, but created. Knowledge is generated anew from connections that weren't there before.” — Margaret J. Wheatley 15-5
  6. 6. Rewards and Recognition: • Performance metrics associated with collaboration • Reward action, and risk taking • Recognize sharing of idea / provide feedback on idea • Showcase success stories of collaboration Flexible Learning and Development Practices: • Encourage learning from mistakes • Allow unstructured time for self-study or learning • Formal program for peer training Supportive Organizational Practices: • Encourage cross-functional teams • Establish ground rules for collaboration • Openness to input from external experts 15-6
  7. 7. Lack of Reciprocity: • Stealing other people’s ideas • Focusing only on self needs and not helping others Restrictive Organizational Practices: • Hierarchical structure that restricts interactions I • Lack of clarity between functions • Lack of shared objectives Financial and Legal Constraints: • Lack of technologies to allow distance collaboration • Fear of IP loss leads to excess legal hurdles Judgment: • When people judge ideas prematurely • Judge people for posting questions 15-7
  8. 8. Changing the way people behave and make decisions Behaviors are influenced by the individual, team and corporate culture • What gets rewarded and what gets punished • What gets noticed and what is ignored • What requires permission, where forgiveness is asked Challenge is changing the balance • What will be the effect, and what are the unintended side-effects 15-8 "The things we fear most in organizations - fluctuations, disturbances, imbalances, are the primary sources of creativity." — Margaret J. Wheatley
  9. 9. “Leaders have a disproportionately large effect on the cultures of organisations and systems. By their behaviours, leaders create the conditions that either hinder or aid innovation.” - Maher, Plsek, Price, Mugglestone “Senior leaders often have an emotional investment in the status quo without even realising it” - Gary Hamel
  10. 10. 1. There is a natural tendency for organizations to keep doing what they’re doing and resist changes. In the absence of a force, they will continue to do what they’ve always done. 2. Larger organizations require more force to change what they are doing than smaller organizations. 3. For every force there is a reaction force that is equal in size, but opposite in direction. When someone exerts a force on an organization, he or she gets pushed back in the opposite direction equally hard. 10
  11. 11. Resources Financial Technology People External Business Information Quality Management Project Management Decision Support Processes Leadership Incentives Communications Risk Tolerance Culture Strategy Product Leadership Customer Intimacy Oper. Excellence Disruptive Offerings
  12. 12. Product Leadership Customer Intimacy Operational Excellence Disruptive Offerings
  13. 13. Financial Technology People External partnerships
  14. 14. Business Information Quality Management Project Management Decision Support
  15. 15. Business Information Quality Management Project Management Decision Support
  16. 16. Leadership Incentives Communications Risk Tolerance
  17. 17. We are going to focus on three aspects;  Experimentation, and lean decision-making  Trusting versus controlling  Ideation
  18. 18. “Do not be afraid of day-to-day failures — learn from them. (As they say at Google, “don’t run from failure — fail often, fail quickly, and learn). Cherish your history, both the successes and mistakes. All of these behaviors are the way to get better at programming. If you don’t follow them, you’re cheating your own personal development.” - Ben Collins-Sussman (Subversion, code.google.com) "The essential part of creativity is not being afraid to fail." — Edwin H. Land
  19. 19. • Develop an innovative idea you would like to consider • Create a hypothesis that is testable (i.e. there is demand fo a recycled version at a premium price) • Determine the cheapest, fastest and simplest experiment you could undertake to support (or disprove) hypothesis • Complete the experiment and gather the results • Interpret the results, see if your hypothesis was confirmed and move to next steps
  20. 20. • Most organizations started based on trust • Over time rules (controls) introduced to ensure conformity minimize risk and the likelihood of errors • These rules had unintended side effects; can be outdated • Challenge is to remove controls without damage • Looking at trust behaviors a useful framework • Four dimensions types of trust behaviors “Organizations, by their very nature are designed to promote order and routine. They are inhospitable environments for innovation” Ted Levitt
  21. 21. Trusting: • Disclosing • Reliance • Receptiveness Capability: • Competence • Experience • Judgment Trustworthiness: • Consistency • Benevolence • Alignment Communication: • Accuracy • Explanation • Openness
  22. 22.  Clear understanding of why innovation is important  Innovation strategy is clear and well communicated  Method/process for collecting and evaluating ideas  There is the requisite support for innovation  Leadership support  Alignment of incentives  Allocation of necessary resources  Open decision support system  Make and implement decisions in a timely manner "A new idea is delicate. It can be killed by a sneer or a yawn; it can be stabbed to death by a quip and worried to death by a frown on the right man’s brow." — Charles Brower
  23. 23. 1. Change starts at the top 2. Innovation need shared throughout organization 3. Innovation strategy and direction developed 4. Resources made available 5. Procedures changed 6. Improved management of innovation process 7. Incentives and recognition modified 8. Experimentation embraced 9. Communication increased (internal and external) 10. Results (and benefits) quantified
  24. 24.  Experimentation is critical decision-making tool  Success rewarded, failure is a learning opportunity  New projects viewed as an innovation portfolio  Cross functional teams; weak ties innovation become critical source of innovation  Active communication and engagement, internally and externally
  25. 25. Identified challenges of changing the culture, especially critical role of leadership. Changing culture requires some changes in what you do (both by example and through explanation). We will make available tools to identify your “innovation quotient” and trust behaviors Working these with your team starts the journey, although you may want external help Hopefully, you can share some of the issues with other Innovators Alliance chapter members Thank you 25

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