Leading Innovation & Value Creation

Andrew L. Urich, J.D.

Puterbaugh Professor of Ethics & Legal Studies

Spears School of BusinessOklahoma State University

aurich@okstate.eduwww.andrewurich.com

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

Charles Darwin

Innovation

Eliminate impediments to innovation

Collaboration Implementation Value Creation

Eliminate impediments to innovation

1. Understanding the Urgent Need for Innovation

2. Lack of engagement3. Apply “Real” Capitalist ideas within the

organization4. Overcoming fear and resistance to

change5. Facing reality

Organizational Restraints to InnovationBureaucracy & the Status Quo

Risk taker to Risk avoidance Cash poor to Cash comfortable Contribution to Playing favorites Opportunities to Problems Create value to Doing your job Marketing & sales to Finance & bean-counting Momentum to Inertia Working to Meetings END

GM: Smart People Trying Hard My first car: ’66 Cadillac Coupe de Ville I’ve rooted for GM ever since, but I never

bought another one of their cars

GM History

1950’s - Half of all cars in the US

GM History Things turned South with the Vega

Why is it So Hard to Face Reality?

Why is it So Hard to Face Reality?

“What we see depends mainly on what we look for.”

Sir John Lubbock (1834 – 1913)

English Archeologist

“When things change, the truth is what we need to change.”

Spencer JohnsonAuthor, Who Moved My Cheese

Focus on What Matters

Focus on What Matters

Focus on What Matters

Focus on What Matters

There is value creation in what you don’t do

Southwest Airlines: The King of “No!” No food No choice of planes No assigned seats No extra baggage No first class No shared reservation system No expensive equipment

Failure to say “no” leads to disaster

1999 “The most versatile vehicle on earth”“Lifestyle support vehicle”

1999 “The most versatile vehicle on earth”“Lifestyle support vehicle”

Why Don’t They Give Us an Owner’s Manual For Our Brain?