Innovation

Innovation

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Roy MarkJanuary 2010

"The only

source of profit, the only reason to invest in companies in the future is their ability to innovate and their ability to differentiate.“

-- Jeffrey Immelt

How do we balance the blue-sky with core tasks

• Do you suffer innovation lethargy? • Its hard to be enthusiastic for the new when you have much to do on the old

• How do we implement new ideas effectively when we are so busy?

– how is innovation built into our DNA (become the norm rather than a project)?

– does a tight/survivalist strategy restrict innovation?

– can we do innovation without first getting better at compliance (the foundations)?

– innovation may need investment, are you willing and able to do this?

– how can you (the leadership team) give more freedom to managers - safely?

– how do you recognise and reward innovation?

– great ideas would be great ! , but should not concentrate entirely on new products or routes to market,

• Innovation should include ways of simply doing your job better at individual (self) as well as company wide to improve the foundation of the ‘big ideas’, eg,

• communicating better,

• planning your day better,

• trying new things, eg,

– job swoping in the team to spark ideas/understanding,

– “thinking of all the choices I have today how can I best add value”,

– how do we optimise what we already have,

• In other words its both the big ideas and the smaller incremental improvements

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http://en.wikipedia.org/wiki/File:ADN_animation.gif

Continuous Innovation LoopContinuous Innovation Loop hhRRMM

•"A culture of innovation can

be a company's primary source of competitive advantage, and can pay off steadily over the years.“

-- Stephen Shapiro, in '24/7 Innovation'

A Typical Innovation CycleA Typical Innovation Cycle

Focused Focused leadershipleadership

Deep Deep CompetencyCompetency

Active Active LearningLearning

Facilitative Facilitative CultureCulture

Enabling Enabling Structures & Structures & ProcessesProcesses

Intelligent Intelligent Decision Decision MakingMaking

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And so, my fellow Americans: ask not what your country can do for you—

ask what you can do for your

country.

John F. Kennedy, January 20, 1961

On the January morning when John F. Kennedy assumed the presidency, America was divided, its citizens torn by fears of war. Kennedy's speech—called the most memorable of any twentieth-century American politician—did more than reassure: it changed lives, marking the start of a brief, optimistic era of struggle against "tyranny, poverty, disease, and war itself."

Focused LeadershipFocused Leadership

• A leadership Team whoA leadership Team who;;• facilitate activity and energy, not idea generation facilitate activity and energy, not idea generation

in isolationin isolation

• Strategy needs to incorporate innovation Strategy needs to incorporate innovation

• Based on business improvement not concept Based on business improvement not concept alone (needs to be real)alone (needs to be real)

• Destroy dysfunction/blockers Destroy dysfunction/blockers

• Constantly nurture and encourage innovation Constantly nurture and encourage innovation and innovatorsand innovators

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All it takes is one idea to solve an impossible problem.--Robert H. Schuller

Deep CompetencyDeep Competency

• Employ talentEmploy talent

• Everyone involvedEveryone involved

• Incorporate into the corporate DNAIncorporate into the corporate DNA

• Effective implementationEffective implementation

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Facilitative CultureFacilitative Culture

• Able people are empoweredAble people are empowered

• Receptive management to ideas (from Receptive management to ideas (from anyone and anywhere)anyone and anywhere)

• Responsive and communicativeResponsive and communicativeorganisationorganisation

– everyone wants to be involvedeveryone wants to be involved

– We celebrate success We celebrate success

• Appropriate language usedAppropriate language used

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Active LearningActive Learning

• Multiple perspectivesMultiple perspectives

– Blue sky welcomedBlue sky welcomed

– Ideas Ideas

• up to strategic level innovationup to strategic level innovation

• down to doing the ‘day job’ that bit better at the most routine down to doing the ‘day job’ that bit better at the most routine levellevel

• External input encouraged to freshen up your External input encouraged to freshen up your thinkingthinking

• Learning/experience feeds innovationLearning/experience feeds innovation

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Enabling Structures & ProcessesEnabling Structures & Processes

• Adaptive structuresAdaptive structures• Risk managementRisk management

• PDRPDR

• 1-11-1

• Business Innovation ProcessBusiness Innovation Process

• RewardReward

• IncentivesIncentives

• CommunicationsCommunications

• CelebrationCelebration

• SelectionSelection

• Succession Succession

• Ideas champions created (formal or informal)Ideas champions created (formal or informal)

• Processes to control risk and costProcesses to control risk and costbut quick JDI permitted and encouragedbut quick JDI permitted and encouraged

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MIH (Making it Happen)

Intelligent Decision MakingIntelligent Decision Making

• Managers sustain momentum Managers sustain momentum

• Innovative managers succeed (and are seen to Innovative managers succeed (and are seen to by others)by others)

• Decisive commitments made Decisive commitments made

• Focus on what is achievable, possible not Focus on what is achievable, possible not reasons not to changereasons not to change

• Achievements used to build uponAchievements used to build uponfor future innovation encouragementfor future innovation encouragement

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If I had asked the public what they wanted,they would have said a faster horse.--Henry Ford

Specific Immediate ActionsSpecific Immediate Actions

• Review current 1-1 processes/team meetings and modify if necessary to Review current 1-1 processes/team meetings and modify if necessary to ensure greater innovation (although not necessarily described as such) is ensure greater innovation (although not necessarily described as such) is incorporatedincorporated

• Replace and improve old methods of reviewing change requests/needsReplace and improve old methods of reviewing change requests/needs

• Review management training content to ensure personal and team Review management training content to ensure personal and team innovation is included innovation is included

• Review and include within recruitment selection methods as appropriate for Review and include within recruitment selection methods as appropriate for the role, both internal and external the role, both internal and external

• Consider within job design and recognition schemes Consider within job design and recognition schemes

• Identify communication opportunities to promote both ‘big’ and ‘little’ Identify communication opportunities to promote both ‘big’ and ‘little’ innovations and examples of best practice innovations and examples of best practice

• Define what investment (if any) is required and the ROI eg, one off bonus Define what investment (if any) is required and the ROI eg, one off bonus for proven cost saving idea for proven cost saving idea

• Review and modify a mechanism for innovative ideas to be suggested and Review and modify a mechanism for innovative ideas to be suggested and reviewed and any budget necessaryreviewed and any budget necessary

• Ask what else could be done from others ?Ask what else could be done from others ?

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The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.--Michelangelo