strategic innovation leadership df - perth

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Strategic Innovation Leadership

John Scotland BA Grad Dip Ed Grad Dip HRD

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Thomas EdisonThomas Edison

““I have not failed, I’ve just found 10,000 I have not failed, I’ve just found 10,000 ways that won’t work”.ways that won’t work”.

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Strategic Innovation Leadership

Fear, innovation and business success Innovation leadership attitudes and

competence The blueprint for workplace innovation How to build and lead the best teams for

innovation How to implement a proven creative

problem solving process in your organisation

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CrCreaeativitivityty and and

InInnonovvatationion

What are they??

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2000

1990

1980

1970

1960

1940

1920

1900

1850 • Systematic mgt.

• Scientific mgt.

• Group theory• Time and motion

• Industrial relations • Managerial grid

• Strategic planning • HR planning

• MBO • TQM

• Learning org. • BPR

• 5th generation mgt

Sources of Competitive Advantage Over Time

Coach and develop / Team FocusFlexible benefits / Soft valuesNetworked teams

ApproachesCommand and control / Individual focusFixed reward / hard systemsBureaucracy

Knowledge and Ideas

Capital

• Creativity & Innovation

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Innovation and

Financial Performance

-15-10

-505

101520253035

Bottom20%

Middle20%

Top20%

ROAMarket Share

Innovation

FinancialPerformancein % Points(using Bottom 20%

as benchmark)

(Soo, C. et al. 2002).

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“New Concepts in Innovation”Business Council of Australia (2006)

The prevailing view among Australian business leaders and Government agencies is an old one – that creativity is the domain of the artist or researcher.

OLD INNOVATION NEW INNOVATION

Australian business and public sector management is imbued with a sense of research and development but it lacks the skills, knowledge and confidence to work creatively and innovatively in the new business paradigm.

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Innovation Leaders 2006/07* Boeing (US) Virgin Atlantic (UK) Toyota (Japan) RBS (UK) Du Pont (US) Samsumg (S Korea) LEGO (Denmark) BP (UK) H&M (Sweden) Nokia (Finland)* Innovaro Ltd 2007

Reckitt Benckiser (UK)

PepsiCo (US) Tesco (UK) Apple (US) Aviva (UK) Google (US) Canon (Japan) Novartis (Switzerland) Microsoft (US) Adidas (Germany)# Note: No Australian Company

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Innovation Leaders 2006/07

Strategic Focus Insight Collaboration Process Organisation

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Managers’ Perceptions of Innovation

- An Exploratory Study

(September 2003 – March 2004)

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Yes = 44.5%

No = 25%Elaborated responses

(30.5%)

Only 9.3% reported having a formal innovation strategy and allocated budget in place

‘The Innovation Gap’

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Concept of Innovation not always clearly understood.

Most organisations don’t know how to cross the bridge between concept and implementing performance-based innovation strategies.

Whilst 44.5% of organisations claimed their organisation to be innovative only three had a formal innovation strategy in place.

Only one organisation offered their employees creativity/innovation related education and training.

Summary AIC Research Findings ‘THE INNOVATION GAP’

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Supporting factors Barriers

Leadership and support from top management

Culture, climate and identity

Resistance to change

Org culture and climate

Rewards and recognition

Competition and deregulation, need and diversity

Corporate structure

Workloads and Lack of skills

Supporting factors and barriers

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FFEEAARR

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Current State

Desired Future

Discrepancy

• Lack of useful ideas • Lack of skills or support for creative and strategic breakthroughs • Perhaps, other challenges and problems

Need

Innovation Champion

Strategy on how to get

there

Gap

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Business Creativity & Innovation Business Creativity & Innovation

Framework (BCIF)Framework (BCIF)

ProductProduct

PeoplePeople

ProcessProcessPressPress Innovation

4Ps

Innovation

4Ps ®

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People

ProcessProduct

Innovation 4Ps: A Whole System Innovation

Press

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Organisational Climate

Organisational Innovation

Organisational Culture

Leadership Style

Resources & Skills

Structure & Systems

Determinants of Organisational Creativity and Innovation (AIC)

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The First P of InnovationThe First P of Innovation

PressPress

Refers to the context

(ie: climate, culture and environment)

Press is short for pressure - that is, the context within which people, process and product operate. The environment, both internal and external to the organisation, presses in on and out from the organisation.

Innovation 4Ps

ProductProduct

PeoplePeople

ProcessProcessPressPress INNOVATIONINNOVATION

®

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Climate Survey - Impact of the Work Environment (KEYS)Innovation within the organisation depends upon:

• Organizational Motivation – the basic orientation of the organization toward innovation

• Resources – everything the organization has available to aid in the area targeted for innovation

• Management Practices – supporting freedom and autonomy in the conduct of work; challenging interesting work;

• Expertise – knowledge, talent and skill

• Creativity Skills – having a flexible problem-solving approach,.

• Intrinsic Motivation – the desire to solve the problem or accomplish a task

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Blueprint for Innovation Culture Climate Analysis (KEYS)

Business Creativity and Innovation Index (BICI)

Strategic Approach to Innovation in your Organisation

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Components of Individual Creativity

CreativitySkills

IntrinsicMotivation

Expertise

C

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Organisation Creativity

IncreasingEnergy &EffectivenessUnder Pressure

BuildingTrusting

Relationships

Creatingthe Future

Innovation & Unique Potential

Success

Initiative

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Innovation within the Organization

ManagementPractices

Organizational Motivation

Resources

I

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Innovation within the organization depends upon:

Organizational Motivation – the basic orientation of the organization toward innovation; shared vision; providing rewards and recognition; lack of internal politics, and lack of overemphasis on the status quo.

Resources – everything the organization has available to aid in the area targeted for innovation, including time, funding, information and materials.

Management Practices – allowing freedom and autonomy in the practice of work; providing challenge; specifying clear strategic goals and forming work teams comprised of individuals with diverse skills and perspectives.

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Impact of the Work Environment

WorkEnvironment

Individual/TeamCreativity

ResourcesManagement

Practices

OrganizationalMotivation

Task Motivation

ExpertiseCreativity

Skills

Creativity

InnovationI

C

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Impact of the Work Environment on Performance

What you CAN do: Talent

What you WILL do: Motivation

HOW you will do it depends upon your intrinsic motivation

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The Second P of InnovationThe Second P of Innovation

ProcessProcess

What are the mechanisms and processes that lead to innovative products, services, processes

or procedures?

Innovation 4Ps

ProductProduct

PeoplePeople


®

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4-Power Innovation4-Power Innovation

ClarifyPinpoint the problem to solve

IdeateCome upwith newideas

DevelopRefine ideas into strongsolutions

ImplementPut the plan into action

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Converging thinking

Judging, assessing options, focusing, making decisions.

DivergingDiverging andand ConvergingConvergingDivergingDiverging andand ConvergingConverging

Diverging thinking

Generating lots of options and ideas, making lists.

Green light = speed Red light = brakes on!

These are two mutually exclusive mental activities

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The Third P of InnovationThe Third P of Innovation

PeoplePeople

Addresses the issues related to PEOPLE, such as individual differences and

teamwork

Innovation 4Ps

ProductProduct

PeoplePeople


®

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FourFourSightSight Preferences Preferences

Clarifier

Ideator

Developer

Implementer

Diagnostic Thinking

Visionary Thinking

Evaluative Thinking

Tactical Thinking

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On average, it takes about On average, it takes about 3,000 raw ideas3,000 raw ideas to lead to a to lead to a

commercially successful product or processcommercially successful product or process

0

500

1000

1500

2000

2500

3000

Projects

Ideas

Stevens & Burley, 1997Stevens & Burley, 1997

ExperimentsInitial ideas

New product

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Team ProfileTeam Profile

-4

-3

-2

-1

0

1

2

3

4

Clarifier Ideator Developer Implementer

Peak Preference

Low Preference

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The Fourth P of InnovationThe Fourth P of Innovation

ProductProduct

What makes products, services, practices or procedures innovative?

Innovation 4Ps

ProductProduct

PeoplePeople


®

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ELABORATION & SYNTHESIS

Characteristics of an INNOVATIVE Characteristics of an INNOVATIVE

Product or ServiceProduct or Service Characteristics of an INNOVATIVE Characteristics of an INNOVATIVE

Product or ServiceProduct or Service

NOVELTY

RESOLUTION

Originality

(Is it new or different?)

• Does it solve the problem or help manage the challenge?

• Is it useful and practical?

• Does it work?

• Does it provide value?

• Is it cost-effective

• Is it understandable?

• Is it well presented?

• Is it attractive and credible?

• Will people ‘buy it’?

• Can it be commercialized?

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Ideas Management Ideas need to be:

Generated Captured and Retrievable Evaluated Developed Implemented Rewarded Measured

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Innovation Leadership:Attitudes

Deliberate climate creation and cultural influence

Innovation vision Encourage challenge & risk taking Collaboration Resources for innovation Celebration

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Innovation Leadership:Innovation Competence

Model and coach for innovation and creativity

Develop innovation teams and leaders

Generate breakthrough ideas Capitalise on intrapeneurship Customer Service Insight into drivers and opportunities

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Innovation Leadership:Metrics, systems and prcatices

Measure innovation costs & benefits Incorporate innovation in

performance management Establish supportive systems Use innovation to increase profit Seek to accelerate breakthrough

thinking

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Thankyou