Secrets of success to innovation and sustainability

Innovation and sustainability: Secrets of success

10 November 2012

2 © 2012 Hay Group. All rights reserved

World most admired companies in 2012 Source: Fortune/Hay Group

Most admired Most innovative in sector

1 Apple 1

2 Google 2

3 Amazon.com 1

4 Coca-Cola 1

5 IBM 1

6 Fedex 1

7 Berkshire Hathaway 1

8 Starbucks 1

9 Procter & Gamble 2

10 Southwest Airlines 5

14 BMW 1

15 General Electric 3

23 Singapore Airlines 1


Break-through ideas are often not the problem – leadership and

deployment or execution are the issues


Different types of innovation

New-to-consumer products and services that do not currently exist

New products and services for existing customers and new customers

Changes to existing products, services and processes

including cost reduction efforts


94 90 90

49 4753

0102030405060708090

100

My company runsunprofitable projects to try

new things

Employees spend muchtime discussing customers'

future needs

Leaders are effective athelping frontline employeesunderstand our long-term

strategy

Per c

ent o

f res

pond

ents

Top 20All others

Setting the stage for innovation

BCLs allow people to innovate smartly

Source: Hay Group 2011 Best Companies for Leadership study


100 10090 90

66 6863 62

0102030405060708090

100

To solve problems,leaders gather points of

view from multipleperspectives

My company providesstructured opportunities

for younger employees topromote innovative ideas

If you have an excellentidea you may bypass thechain of command with

no negativeconsequences

Ideas that come fromsubsidiary leaders are

just as likely to beimplemented as those

from headquarters

Per c

ent o

f res

pond

ents

Top 20All others

Broader perspectives – creating room for new ideas to be heard

The BCLs expand the pool, casting a wide net for ideas



95 95 9585

5161 61

39

01020

3040506070

8090

100

Balanced mix of localand international talent

in senior leadershippositions

Leaders are culturallysavvy and have the skillsto work effectively with

diverse teams

An appreciation of globalissues is a key jobrequirement in this

organization

Company recruits culturalminorities

Per c

ent o

f res

pond

ents

Top 20All others

Broader perspectives – ensure difference is valued

BCLs actively ensure cultural breadth and flexibility



“The basic problem confronting an organisation is to engage in

sufficient exploitation to ensure its current viability and, at the same time, devote enough energy to exploration to ensure its future

viability” (Mach)


“If I have listened to customers, I will be providing them with faster

horses” (Henry Ford)


Being large and successful at one point in time is no guarantee of continued survival: - life expectancy of firms in S&P 500:

1935: 90 years 1975: 30 years 2005: 15 years (Foster and Kaplan)


“It is not the strongest of the species that survive, nor the most intelligent, but the one that is most responsive to change”

(Charles Darwin)


n  Leaders embrace both “exploitation” and “exploration”

n  Articulate a strategic vision n  Top team combines both, works together, and has

dynamic capabilities n  Values, structures, processes to support n  Open eco-system n  Learning organisation


Ambidextrous organisations

Janus is a Roman god: he had two sets of eyes, one pair focusing on what lay behind, and the other on what lay ahead

Education

Secrets of success to innovation and sustainability