how to make innovation a way of life by engaging the creative thinking skills of every individual by...
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Dr. Min Basadur
Creative Learning Innovation Marketplace
Lisbon, Portugal,
October 15, 2009
How to make innovation a way of life by engaging the creative
thinking skills of every individual
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Min Basadur
• Engineering Physics, University of Toronto
• Procter & Gamble
• McMaster University
• Basadur Applied Creativity
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Characteristics of an Effective Organization
Flexibility React
Efficiency Routine
Adaptability Proactive
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Adaptability
Anticipating problems, trends, opportunities
Seeking new technologies and methods
Deliberately disrupting
Finding new work
Accepting new ideas promptly
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Good Examples
Flexibility Tylenol
Efficiency Toyota
Adaptability 3M
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Adaptability Requires DifferentThinking Skills
Problem Finding is the key
Innovative Organizations do not wait for problems.
They find them!
They Deliberately Drive Change!
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Problem Finding Cultures
• Toshiba
• Japanese Employee Suggestion Systems
• Procter and Gamble
• Frito-Lay
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Problem Finding Culture
• Toshiba
-New Scientists and Engineers
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Japanese World Class Employee Suggestion Systems
Not optional
Golden eggs
Natural work teams- find, solve and implement
Motivation, group interaction, job satisfaction
Top down impetus; strategic alignment
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P&G’s Situation
1 Revenues flat
2 No new products
3 A bad economy (never before experienced)
4 Acquisitions blocked
5 Oil embargos: uncertain supplies of raw materials
6 Culture not used to dealing with uncertainty
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P&G’s Innovation Strategy
1 Communicate a compelling business need– set a motivating goal
2 Create inter-disciplinary teams all over the organization
3 Employ a common creative process for problem solving
4 Share information to identify best opportunities
5 Track implementation
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P&G President’s Concrete Goal
Improve Costs by 4% of Sales Annually
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Creative Problem Solving Process
The Structure:Inter-disciplinary teams deliberately seeking changes
The Goal: $400
Million Savings
P&G’s Innovation Strategy
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P&G’s Connect + Develop Program
Look externally first for innovation needs.
Define innovation broadly - technology, products, markets, packaging, design, manufacturing processes, new business models, new ways to go-to-market
P&G is Still Changing
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QUESTION: What is Leadership in the 21ST Century?
Answer #1: Driving change
Answer #2: Developing new leaders who can engage others in driving change
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• Start with PRIORITIES…..
• Get your BEST people on it.
• You need a PROCESS for change…..
• Then you MEASURE it…..
• There must be CONSEQUENCES…..
• Teach EACH other (how to do it best).
• Permanent change TAKES TIME…..
How DO You Drive Change?
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Frito-Lay’s Situation
CostsProfit
Margin
1970s 1990s1980s
Revenues
Projected if inflationary costsnot flattened
2000s
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Frito-Lay’s Goal
CostsProfit
Margin
1970s 1990s1980s
Revenues
2000s
Flatten Costs inFive Years
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Creative Process
Inter-disciplinaryTeams
Offset
Inflation
Frito-Lay’s Innovation Strategy
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Frito-Lay: Make the Business Need as Measurable as Possible and Start at the Top
Apply a Creative Process
Begin With Vice-Presidential Inter-disciplinary Team
Goal: $500 Million in
Five Years to the
bottom line
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Creative Process
Commercialization Teams involving R&D, Sales, Marketing, Manufacturing, and Customers
Commercialize More New
Products Each Year
Another Specific Innovation Strategy
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Creative Process
Structure (e.g. interdisciplinary teams)
Problem or Business
Need
A Generic Innovation Strategy
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Creative Process
So what is a “creative process”?
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The Process Has Four Stages
Generating“Getting things
started – finding new problems &
opportunities”
Conceptualizing“Defining problems &
putting ideas together”
Optimizing“Turning abstract ideas into practical solutions
and plans”
Implementing“Getting things
done”
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But we all have different styles…
Innovative Results
=Content
+Process
+ Process Skills
+ Style
+Tools
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Different Process Styles
Optimizer
Implementer Generator
Conceptualizer
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Some People Have Strong Process Preferences
Strong Implementer
Strong Optimizer
Strong Generator
Strong Conceptualizer
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What Our Research Shows about the Different Process Style Preferences
1 Everyone is a blend of preferences
2 States not traits
3 You can be skilled in all four quadrants
4 Heterogeneous teams perform more innovatively (but have less satisfaction)
5 Generators are in short supply in corporations
6 Different jobs/functions favour different quadrants/styles (this can cause much wasted time and frustration)
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Not Enough Time Devoted to Conceptualization and Optimization
An organization attempting to
establish new financial products
quickly in a very competitive
environment, but encountering a
high percentage of failures.
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Not Enough Generators
A typical group of managers from a large aerospace
company serving the aircraft, airline,
and aerospace industries and having trouble expanding into
new products and new markets
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Great ideas but no action!J24
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Slide 32
J24 take out company nameJanet; 30-03-2009
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Directors College
Many directors have enjoyed successful careers due to their implementation skills
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A small “Spin Off”company especially
created for generating new
product opportunities but
only a few trickling in…..
Maybe we selected the wrong mix of people?
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Too Many Conceptualizers?
An organizational development team in a large health insurance company are having difficulty moving forward. They are unable to make a final decision on which innovation strategy to recommend to headquarters.
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A pretty well balanced team, wouldn’t you say?
An interdisciplinary team leading a new quality of work life initiative at a large hospital
J25
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Slide 36
J25 create case study to tell the story; Well balanced group but they are having troubleJanet; 30-03-2009
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The leaders of the same large hospital. They are being asked to get involved in the new quality of work life initiative. But they are awful busy doing the day-to-day work.
What will be the interdisciplinary team’s biggest challenge?
J26
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Slide 37
J26 Create case study on side for animation Janet; 30-03-2009
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A major high tech software company fearing falling behind
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Why teams are often not creative
• Unaware of others’ problem solving styles • No common process (for synchronizing thinking)• Impatient• Overly focused on solutions• Lacking tools for complex thinking• Mixing thinking skills
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Thinking Skills
Innovative Results
=Content
+Process
+ Process Skills
+ Style
+Tools
Deferral of Judgment
Separate divergentand convergent
thinking
No JudgmentNo Logic
RelaxQuantity
Stream of optionsRadical options
Think in picturesBuild onto fragments
Yes JudgmentYes Logic
Clarify meaningsUse relevant criteria
Focus on a fewConsider risky
optionsModify and refine
Move toward action
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Killer Phrases•A good idea, but….•Against company policy.•All right in theory.•Be practical.•Costs too much.•Don’t start anything yet.•It needs more study.•It’s not budgeted.•It’s not good enough.•It’s not part of your job.•Let’s make a survey first.•Let’s sit on it for a while.•That’s not our problem.
•The boss won’t go for it.
•The old timers won’t use it.
•Too hard to administer.
•We have been doing it this way for a long time and it works.
•Why hasn’t someone else suggested it before if it’s such a good idea?
•Ahead of the times.
•Let’s discuss it.
•Let’s form a committee.
•We’ve never done it that way.
•Who else has tried it?
Killer Phrases stop innovative thinking
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Together: Process, Thinking Skills, Styles
Optimizer
Implementer Generator
Conceptualizer
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Innovative Results =
Content+
Process+
Process Skills+
Style+
Tools
A tool for Problem Definition
We can’t because…
We don’t have any others…
The bulb burned out…
It would cost too much…
It’s not on our list…
We don’t do it that way here…
How might we…?
HOW MIGHT WE?... A Culture Changing Tool
Framing problems for optimistic attack
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THE CHALLENGE for Both Large and Small Organizations …
How might we engage our employees in using their creativity in continually reducing our costs and increasing our revenues?
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The Why? / What’s Stopping? Analysis
A tool for Problem Definition
Step 1: Ask “Why? / or What’s stopping us? of the challenge
Step 2: Answer in a complete simple statement
Step 3: Transform the answer into a new challenge (How might we…?)
Innovative Results =
Content+
Process+
Process Skills+
Style+
Tools
Defining Problems Before Jumping to Solutions is Difficult for Many People
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Irish Spring
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Challenge Statement
HMW make a better green striped bar?
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Irish Spring Challenge Map
HMW make a better green striped bar?
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Irish Spring Challenge Map
HMW make a bettergreen striped bar?
HMW regain market share?
Why?
Why?
HMW make a more refreshing bar?
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Coast
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These are Extraordinary Times
Recovery will not be “Business as Usual”– consumer confidence damaged– much smarter in future spending– new unknown situation creates fear and insecurity
Only the more innovative organizations will survive– by differentiating themselves
Collaborative innovation will be highly valued– joint creative problem solving – unexpected innovative ideas for both.
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In Tough Economic Times…Enlightened Leadership is Needed
Unfortunately, many organizations do not have it.
They adopt a Reactive mindset– Make short term cost reductions which
-Reduce quality-Weaken capacity for new growth-Lose good people
Rather than being Pro-Active– Create innovative improvements which increase quality– Make strategic changes to prosper – Engage their people in using their brain power– Find ways to differentiate ourselves
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Creative Process
Structure: Engage your people in finding good problems to solve all over the organization
Business Problem or
Need:
Find new business
and improve
Costs
Suggested Recessionary Innovation Strategy
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Engaging the Brainpower of your Employees is FREE!
But it takes Creative Leadership!
Leaders must learn skills in facilitating the creative process to drive change in the 21st century
What if every leader in Portugal were a skilled facilitator?
What if every employee in Portugal were engaged in creative problem solving by their facilitative leaders?
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The Creative Process Ends in Action
Optimizing
Implementing Generating
Conceptualizing
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Your structure
Creative Process
Skills
Your Problem or Business
Need
What will be Your Innovation Strategy ?
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The End
Thank you!
Questions?