how whirlpool changed an industry and women can drive it!
TRANSCRIPT
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
How Whirlpool Changed an IndustryAnd how women can drive it!
Dr. Nancy TennantApril 13, 2011
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
A NEW CENTURY OF OPPORTUNITY
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
~$18B+ Revenues
#1 Global Share
Whirlpool Corporation
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NORTH AMERICA REGION• ~$9.6B Sales• 29,000 Employees
LATIN AMERICA REGION• ~$4.7B Sales• 25,000 Employees
EUROPE REGION• ~$3.2B Sales• 12,000 Employees
ASIA REGION• ~$900 M Sales• 5,000 Employees
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield 4
99 Years of Transformation
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield 5
Heading Towards a Commodity
-2.3% CAGR from ’92 -’99
1992 1993 1994 1995 1996 1997 1998 1999
Ave
rage
Tic
ket
($)
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
FROM TO
What Is Innovation About?
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Leading Innovation
First
Steps
Turbo
Charge
Embedding
InnovationLeadership
Tension
Focused
InnovationInnovation
Burst
1999 2010+2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009
Competitiveness Confidence
Composure
Composure
Composure Focus
7
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Whirlpool Corporation’s10-Year Transformation
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Leadership Challenge #1
Beginning Turbo
Charge
Embedding
InnovationPoint of Leadership
Tension & TransitionFocused
Innovation
Innovation
Burst
1999 2010+2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009
CEO sees opportunity for sustainable growth
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
CEO Sees Growth Stagnating
Innovation from Everyone and Everywhere
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Adopted …
Innovation must come from Everyone
Tap the best thinking in the world
Expect investment up-front without immediate pay-off
Big change requires a massive scalable approach over time
Rejected …
Cookie Cutter Approach
Great Man Theory
Training only
Skunkworks
R&D only
Hiring Consultants to innovate
Many Possible Innovation Approaches
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield 12
Innovation Approach
Embedded innovation
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Outcomes Enabled by Management Systems
OPERATIONAL ORGANIZATIONAL
Driven by the strategy With the right governance
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Management System
Change the Systems….Free the People
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
I-Heroes
“One who acts for a larger
purpose in the face of risk and
beyond the actions expected
in the role he or she occupies”Schulman (1996)
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Leadership Challenge #2
Beginning Turbo
Charge
Embedding
InnovationPoint of Leadership
Tension
Focused
Innovation
Innovation
Burst
1999 2010+2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009
Chairman & CEO and Executive Committee
Sense of urgency
Customer-focused
Willing to take risk
Breakthrough mind-set
Transitioning
CEO/Chairman role
Senior Leadership Group
Content with the current
state
Internally focused
Risk averse
Short-term execution
mind-set
Wait and see on new
leader
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield 17
Leadership Conference 2004
13 Charter Airplanes
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Learnings
Emotional experience that caused our leaders to:
• Deeply question why they were not embracing innovation
• Realize they had not engaged their organizations in idea generation and innovation embedment
• Commit to lead with impact, passion, and drive results
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Transformational Leadership: Theme throughout the Week
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Leadership Challenge #3
Beginning Turbo
Charge
Embedding
InnovationPoint of Leadership
Tension & TransitionFocused
Innovation
Innovation
Burst
1999 2010+2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009
Leaders owning and driving Innovation…new CEO/Chairman driving scale
20
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield 21
S-Curve of Embedded InnovationThe Tipping Point in 2004
Steady State/Continuous Improvement
Launch
Scaling
Sustaining
Proof of Concept
Time
Breakthrough
Mo
re R
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rce
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tha
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utp
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Mo
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P
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L2004
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Triple Diamond Process
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OPEN INNOVATION TOOL-KIT
Nurture
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
EXAMPLE STEP 1 Discover
A commodity business
What were our industry
orthodoxies?
• Buy once, come back in 10
years
• Consumers won’t pay for a
premium filtering system
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
EXAMPLE STEP 1 Discover
A commodity business
What were our industry
orthodoxies?
• Buy once, come back in 10 yrs
• Consumers won’t pay for a
premium filtering system
Why limit ourselves to:
• Sell once and not again in 10 years?
• A commodity market
Idea: a water service delivery business
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
We immersed in the consumers’
world:
• Purified water is a priority, I need
something I can trust
• Families are busy and they miss
the weekly delivery
• Consumers can’t trust delivery
service
• It’s a hassle!
Identified the viability of a new
business model
EXAMPLE STEP 2 Develop
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
A sales force in the market place
Consumers are
wiling to spend $X
a month in water
We sell hard
goods
A natural extension to maintain a rental business
A simplified process to bring it home
Why not sell a “water service”?
Core Competence: Leverage?
Result: Eco-House
New needs?Customer Insights:
Challenges?Orthodoxies
EXAMPLE STEP 3Nurture
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2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Eggo Countertop
washer
In-sink dishwasher
TM
Innovation Results – Products and Services
Eco-House
Rental business
27
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Average
Ticket ($)
$250
$275
$300
$325
$350
$375
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
ASV CAGR (3.4)%
‘97 – ‘02
Before innovation embedment Innovation embedded
ASV CAGR +3.9 %
‘02 – ‘09
Innovation Results – Top Line Revenue
28
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
20032004
20052006
20072008
2009
1.30
2.00
3.30 3.50
4.00
4.70
4.20
0.10 0.20
0.75
1.60
2.50
3.04 3.13
$ Billions
Innovation Results – Pipeline
29
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Leadership Challenge #4
Beginning Turbo
Charge
Embedding
InnovationPoint of Leadership
Tension & TransitionFocused
Innovation
Innovation
Burst
1999 2010+2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009
Maintaining composure in the face of turbulent times
30
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Focused Innovation
31
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Drive the Right Portfolio
Examples
- Right forums, right
decisions
- Set the right
dimensions
- Alignment to strategy
by assigning goals
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X% Y% Z%
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Innovation Results – Products
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Gladiator® Bike ClawA new solution to an old problem
Vantage™ laundry pairFirst washer with a USB port
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield 34
Four Leadership Lessons in our Journey
Steady State/Continuous Improvement
Launch
Scaling
Sustaining
Proof of Concept
Time
Breakthrough
Mo
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Support from the top of the organization
1
A few leaders will be Innovation heroes
2
Leaders need to challenge content feeling
in the organization
3
Leaders need to focus efforts in challenging business environment
4
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield
Leading Innovation
First
Steps
Turbo
Charge
Embedding
InnovationLeadership
Tension
Focused
InnovationInnovation
Burst
1999 2010+2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009
Competitiveness Confidence
Composure
Composure
Curiosity Focus
35
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield 36
2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass. [email protected] Shield 37