How to significantly increase the rate of organic growth? How to weave innovation into the fabric of the organization? How to take innovation to the next level?

1. April 2010
THE RISE OF THE INNOVATOR
Transforming and Sustaining Results:
a Case Study
Shape - Build - Sustain
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2. CONTEXT
Innovation As A Journey Big Bold
In order for an organization to fully embrace innovation as a Questions
way of life (not just theoretically, but behaviorally), we
recommend building capability and teaching others within the
system how to drive innovation initiatives and shape
conditions to support new behaviors and actions. Based on How to
our experiences helping numerous organizations transform, significantly
build and sustain a culture of innovation, we’ve selected a
increase the rate
case study to illustrate what is possible when an entire
system is aligned to make innovation part of daily life. These of organic
principles must be skillfully tailored to meet the needs of the growth?
specific organization at a specific point in time in order to
sustain the transformation over time.
Because building and sustaining an innovation culture is a
How to weave
long-term endeavor, the Pfizer Consumer Healthcare case
study outlines what is possible in the short, medium and long innovation into
term when implemented effectively. We emphasize this the fabric of the
because the context around making innovation a daily habit
will influence the success of the everything going forward.
organization?
Viewing this as an journey signals to the organization as a
whole that you are serious and committed to growing your
people and business in significant new ways.
How to take
innovation to the
next level?
Our Focus
We help leaders make
innovation a habit by helping
them and their organization
develop the right energy,
culture, process and
capabilities to create break-
through as well as sustaining
innovations
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3. Cultural & Organization Transformation
Pfizer High Level Description
Consumer The following pages outline ivibe global’s involvement in
Healthcare helping create and sustain a culture of innovation and
Case Study aggressive growth at Pfizer Consumer Healthcare (PCH). At
the start of the effort, PCH was a low growth business worth
about US$ 3 billion. Four years later, the division was sold to
Johnson & Johnson (JNJ) for about US$ 17 billion. JNJ cited
product alignment, global capabilities that complemented
JNJs and PCHs embedded culture of innovation as key
reasons for the purchase.
3 PHASES Core Elements
Shape the • Partner with senior leaders to develop and implement a
comprehensive growth strategy where innovation is
Journey embedded, not a separate plan or thing to do.
• Build case for change and train senior leaders to “lead”
innovation
• Implement a consistent innovation approach, process and
structures across brands, R&D, manufacturing and
geographies.
• Establish innovation leadership model, goals and metrics
• Enhance leadership abilities around risk taking,
experimentation and entrepreneurship through quick-cycle
learning programs
• Build capability in improving flow, mobility and generation of
insights and ideas within and across groups AND outside the
organization
Build • Create and develop a global network of innovation champions
to drive local innovation initiatives and culture change efforts
Capability • Significantly increase number of aggressive growth initiatives
• Refine and enhance processes and structures. Eliminate
ineffective practices and structures to amplify breakthrough
thinking and speed to market
• Expand training and network of colleagues in innovation
processes, tools and techniques
Sustain • Align recruiting, performance management, and related HR
the practices for managing for talent related to innovation
• Change physical environment to signal culture change,
Journey optimize new innovation related processes and enhance
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4. Shape the Journey
CONTEXT:
ARTIFACTS
The consumer healthcare industry was growing about 1% annually
during this period. Pfizer Consumer Healthcare leadership saw
innovation as a path to double industry growth. The Leadership Team
set forward a revised strategy where innovation was at the core of the
plans and associated actions.
STRATEGY MAPS
INTERVENTIONS:
• Instilled new ways of working and behaviors with senior leaders
during the strategy development and rollout process
• Conducted an innovation audit and implemented new structures
• Designed and implemented a global innovation leadership model,
process and associated training
• Established enterprise and functional innovation goals and metrics
• Implemented a global communication and recognition program
• Launched a few global innovation initiatives
PCH INNOVATION PROCESS
RESULTS:
• Achieved double market growth rate
• Achieved improvement in employee innovation survey results
• Created baseline for innovation portfolio and culture metrics PROCESS & SKILLS
• Implemented first wave of changes to support culture change and
organization transformation
Steven LaMonte, former Vice President of Integrated Growth
Solutions and Latin America - Pfizer Consumer Healthcare
!!!!!!!!!!!!!!!!!!!!!!! GOALS & METRICS
"ivibe global helped our teams develop the skills and attributes
necessary to accelerate our growth platforms. !They transferred their
energy, passion and experience around innovation to our colleagues. !
As a result, innovation become part of how we worked, not an
additional thing to fit into our busy schedules."
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5. Build Capability
CONTEXT: ARTIFACTS
Pfizer Consumer Healthcare achieved some significant results from early
innovation efforts which gave confidence to double focus on developing
an innovation culture and capabilities. At the same time, innovation was
not applied consistently across the global enterprise - many opportunities
existed to further align and weave innovation into the fabric of the
organization. INNOVATION
COMMUNITY
INTERVENTIONS:
• Established innovation certification program and trained a global
community of innovation experts
• Established internal and external open source networks to gain new
insights, develop new solutions and get closer to the customer
• Recognized innovative colleagues through team and individual awards
• Conducted annual employee innovation surveys to gauge progress
and address issues and opportunities across the global company
• Continued to support leaders to effectively to recognize and develop
innovative talent on their teams
• Launched numerous innovation initiatives with support from
enhanced learning systems including action learning workshops to
deepen skill and habits of innovation across the organization
RESULTS:
• Achieved double industry rate of growth for second year
• Exceeded innovation portfolio NPV and reduced launch cycle time
from an average of 39 to 24 months
• Implemented additional structures to support growth & innovation
• Achieved significant improvements in all areas globally in annual
employee innovation survey
• Training efforts exceeded targets
Peter Wentworth, former Vice President Global HR - Pfizer Consumer
Healthcare METRICS & ACTION
!!!!!!!!!!!
“ivibe global helped us build innovation capacity throughout our global
organization. They led the design and implementation of a portfolio of
practical, business-driven initiatives which significantly impacted our
operating style, the value of our R&D pipeline, and yield from consumer
insight to products on the shelf. !Most importantly, they helped build a
core of highly skilled and engaged colleagues who sustained the drive for
global innovation and grew our business at double the industry
standard.”
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6. Sustain the Journey
CONTEXT:
ARTIFACTS
Pfizer Consumer Healthcare achieved above double industry-level
growth and significant improvements in the annual employee innovation
survey. The company began to initiate significant innovation projects with
suppliers and other partners to drive additional new sources of growth.
HR and other internal processes and functions were revamped to
amplify breakthrough thinking, collaboration and speed to market across
brands, functions and geographies. Opportunities for improvement and
refinement continued to exist, especially around more disruptive
innovation opportunities.
INTERVENTIONS:
• Conducted an innovation audit to pinpoint opportunities and define
how to achieve the next level of innovation and aggressive growth
across the company
• Launched additional internal and external collaboration networks
• Enabled innovation skill development for all employees
• Revised various business and HR practices to reinforce innovation
practices
• Revamped work spaces to be more conducive to different work
styles, team preferences and encourage effective collaboration and
problem solving
• Launched new structures and funding mechanisms to manage
innovation
RESULTS:
• Achieved almost 2.5X the industry rate of growth organically
• Continue to enhance innovation structures globally
• Global innovation community making significant impact
• Exceeded expectations and results from annual employee innovation
survey
• Exceeded expectations on innovation related metrics
!Jeff Semenchuk, former Vice President Global Innovation - Pfizer
Consumer Healthcare (now head of Citi Group Growth Ventures)
!!!!!!!!!!!!!!!!!!!!!!!
"ivibe global helped us weave innovation into the fabric of our company
through a tailored approach to cultural transformation and
organizational readiness. !Under their able leadership and guidance, we
tripled the value of our company, achieved record profits year over year
and created a motivated and engaged work force.”
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7. About ivibe global
ivibe global is a growing international innovation consultancy focused
on sparking creativity and making innovation a habit. !ivibe global
enables leaders and organizations catch and sustain the innovation
vibe by helping develop new insights, deliver new products and
services to the market and transforming the organization’s culture. !
Through initiative support, coaching, training and creating the right
conditions, ivibe global helps organizations stimulate, generate and
motivate to achieve breakthrough and sustainable results.
To learn more, please contact: Catch the Spark
David Lipsky
+1-845-353-1002
david@ivibeglobal.com
Whole Brain Innovation
Delivering Value
Our Philosophy
We believe that every individual
and organization is one spark
away from greatness and is
able to attract any possibility if
they first believe it, second
pursue it and third celebrate it
when they do accomplish their
goal.
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