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Copyright © Stephan Klaschka Consulting, 2014
Changing employee mindset to boost collaboration and engagement for extreme business results
DISCLAIMER: All views and opinions expressed here are my own. In no way do I speak in behalf of any company or organization that ever employed me or that I worked for in any capacity.
Stephan Klaschka
former Director, Global Innovation Management and Strategy,Boehringer Ingelheim
Intrapreneurship Conference 2014Eindhoven, NL – December 12, 2014
Copyright © Stephan Klaschka Consulting, 2014
• Where organizations struggle
• Disrupting within - Examples
• Does it work?
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Overview
Copyright © Stephan Klaschka Consulting, 2014
Boehringer Ingelheim• Founded 1888 in Ingelheim, Germany
• Family-owned global corporation
• Largest privately held Top 20 Pharma
• FORTUNE Global 500
• Focus on Human Pharmaceuticals, Biopharmaceuticals and Animal Health
• 47,000+ employees, 142 affiliates
• EUR 14+ ($17+B) billion net sales in 2013Boehringer Ingelheim Center, HQ in Germany
Research areas Examples of disease areas
Respiratory diseases Asthma, COPD
Cardio-Metabolic diseases Atherosclerosis, Type 2 Diabetes
Oncology Lung cancer, solid tumors
CNS diseases Alzheimer’s disease, chronic pain, Parkinson’s disease
Immunology Multiple sclerosis, psoriasis, rheumatoid arthritis
Copyright © Stephan Klaschka Consulting, 2014
Mark Twain
“If you stand still, you will fall behind.”
“If you always do what you always did, you will always get what you always got.”
Albert Einstein
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Copyright © Stephan Klaschka Consulting, 2014
Top 10
“R&D spend” “Innovative Companies”
No Pharma!Spend on R&D ≠ “Most Innovative”
Copyright © Stephan Klaschka Consulting, 2014
Where to find small elephants?
growth front office10
10X
Copyright © Stephan Klaschka Consulting, 2014
Source: www.innovisio.blogspot.com
Disruptive Innovation
10%
10X
Enable thinking outside the box
Transition disrupts organization
Manage resistance to change
Copyright © Stephan Klaschka Consulting, 2014
“Organizational Immune System”
• Management shiftfrom discovery to delivery
• Rejects disruptive change
– Avoid risk
– Favor Predictability
– Protect Investments
– Long-term Strategy
– Seeks Control
– Sub-optimization
– Comfortable status-quo
– …
• Protects big elephants
• Limits growth and opportunity
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Copyright © Stephan Klaschka Consulting, 2014
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Example: Internal Venturing or “Angel Investing”
$32k seed funding for proof-of concept project
X
Y
OPU 1 save $4.2M/p.a.
OPU 3
ROI 6x
Goal: “in-silico” modeling reduces API production in Development!
International Project
ROI 400x
OPU 1 save $180k/p.a.
OPU 1
OPU 2
ROI 131x
X
Co-development novel application w/ vendor
ROI 131x
ROI 131x
OPU 4
OPU 2Y
X
ROI (tbd)
OPU 4
OPU 3
OPU 4
OPU2
(conservative estimates of savings potential)Local OPU project
OPU 3
Z
Lessons:
• Aimed at 10X returned 100+X
• Non-threatening proof-of-concept (POC)
• “First investor” psychology opens funding
• Splitting cost validates business commitmentensures strategic alignment
• Career development for the intrapreneur
• Executive returned with more ideas
• Model adopted by other business functions
Copyright © Stephan Klaschka Consulting, 2014
“School for Intrapreneurs” (SFI)
Approach
• Innovation skills can be learned – so we teach them
• Less a training, more a development experience
Goals
• Free the intrapreneurial spirit and direct the passion
• Build supportive ecosystem to shift corporate mindset
– Develop intrapreneurial skills systematically
– Encourage and enable employees to take charge
– Prepare executives to benefit from intrapreneurs
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Copyright © Stephan Klaschka Consulting, 2014
SFI Overcomes Obstacles
Connects grass-root ideas with executive sponsors (vertical) Intrapreneurs self-identify, out-of-the-box thinkers
Strategic alignment for funding; avoid “corporate immune system”
Enables employees results, visibility, career opportunities
Cuts across functional and geographical silos (horizontal) Connect to innovate, collaborate, network globally
Higher quality ideas developed in diverse teams
Bridge the “Idea to Implementation” gap Generate and develop ideas to be prioritized, funded and implemented
Provide internal venture funding if needed
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Copyright © Stephan Klaschka Consulting, 2014
SFI a 3-Stage Program
Doorway•Awareness & Interest• 2 hours self-guided online
• ‘Story telling’ format
• Sharing experiences
Pathway• Incubate & Accelerate
• 3-5hrs/week, in teams, 12 weeks
• Videos, guides, online group work
• Pitch to experts & executives
• "Green belt“ certificate
Journey
• Building an Intraprise• ~2-3 hrs/wk over 6 months
• Coaching, Networking
• Performance Plan
• Mentor PATHWAY cohort
• “Black belt“ certificate
Intrapreneursself-identify
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~5% intrapreneurial
~2% implementers
Mentoring
Copyright © Stephan Klaschka Consulting, 2014
Not “one-size-fits-all”
“School for Intrapreneurs”
Sustainability• Recruitment• ROI Success stories• Recognition & Awards• Adopted by global Leadership Development Programs• “Disruptive Innovations” event series, external perspectives• Social Intrapreneuring with Ashoka
Key Success Criteria: Alignment• Intrapreneurial Passion• Company Strategy• Company Culture
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Lessons:• Zero-barrier entry for participants = everyone can sign up
• “Levels the playing field” for employees effectively
• Safe space valued by employees to experiment
• Gives disruptive, more risky “growth” ideas a chance
• 2nd chance for previous rejections (rebrand, refine)
• “Intrapreneurial experience” over class-room learning
• Talent self-identifies based on merits (bottom-up)
• Alumni network become hard-core change agent “force”
• Built in mentoring creates a virtuous cycle (alumni, recruits)
• Executive pitches validate strategic alignment
• Changed company culture incl. leadership thinking
• Extends beyond company borders
Copyright © Stephan Klaschka Consulting, 2014
Image: possibilmente.org
Business Alignment and ROI
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Project Sponsorship
• Transitioned all projects pitched to executives
• 54% of projects sponsored
Image: motivationalmemo.com
Image: possibilmente.org
“Blues-MT” broke even in 2-3 monthsROI 2.6x in 1st year (write-off) $1.2M p.a. in following years
“Big Picture” break-even in 5-6 months
Online service with 55k hits/weekSaves $10++ million/year, reduces regulatory risk of $650+ million
Each completed project pays SFI for
years: 1:10 ROI = 10X
Project Return-of-Investment (ROI)
Copyright © Stephan Klaschka Consulting, 2014
How do we know it works?
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Image : cedarcliffdental.com
Copyright © Stephan Klaschka Consulting, 2014
Behavior Change
Enrollment
• Next class waiting
• More diverse participants Countries: 9 11 +29%
OPUs: 10 17 +70%
Bus. Funct.: 9 17 +89%
Org. Network Analysis (ONA)
• Sponsored team characteristics
– Reached out more to new communication partners
– More team members.
• Non-sponsored teams
– Inward focus, reduced communication
• No indication for bias re. sponsorship based on
– Gender
– Country of employment
– Closeness to sponsors
– Brokerage (=intermediate)
– Communication with unique individuals
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Image: business.time.com
Image : fmsasg.com
Lessons:
• Established a metrics for employee behavior change
• Identified statistical significant team success criteria
• Validated absence of bias for sponsorship
• ONA adopted globally for organizational engagement
• Changes the organizational culture includestalent management, organizational development– ongoing…
Copyright © Stephan Klaschka Consulting, 2014
Image: http://techchange.org/online-courses/social-intrapreneurship-for-innovation-in-health-and-wellness/
Copyright © Stephan Klaschka Consulting, 2014
Image: innovationmanagement.se
Shifting Mindset Beyond…
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Konzept für Führungskräfte zur Implementierung einer Innovationsstrategie
by Philipp Gellert and Martin Müller,Business Innovation and Change Management,
University of Applied Science in Munich, Germany, 2014
Employee innovation mindset
Resources
Long-term
Copyright © Stephan Klaschka Consulting, 2014
Bottom-line?
“It is not how many ideas you have. It’s how many you make happen.”
- Advertisement of Accenture
“Not one-size-fits-all!”
“Culture eats strategy for breakfast!” - Peter Drucker
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Copyright © Stephan Klaschka Consulting, 2014
Contact
Stephan Klaschka Consulting
email: [email protected]
phone: +1-917-595-0951
web: www.StephanKlaschka.com
blog: www.OrgChanger.com
Twitter: @OrgChangerSkype: StephanKlaschka
LinkedIn: www.linkedin.com/in/stephanklaschka/