Ques3on How do we get ahead, and stay ahead, when everything is so uncertain?
Agenda • Introduc3ons • Five Innova3on Drivers • Where and why we lost our way • Why “business as usual” is a barrier • What do we do now?
Introduc3ons • OVO is an innova3on consul3ng and soHware development ﬁrm, focused primarily on development of sustainable, repeatable innova3on processes • I’m Jeﬀrey Phillips, a senior consultant with OVO and author of two books – Relentless Innova3on and Make us more Innova3ve
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OVO Capabili3es We help ﬁrms Innovate on Purpose™ by deﬁning strategic goals and implemen3ng consistent processes
Disappearing Trade Barriers Free trade provides access to markets for far more compe3tors, increasing oﬀerings and heightening compe33on
Increasing Rate of Change • The rate of change is accelera3ng • Adop3on rates increasing • ATen3on spans decrease
Increasing Customer Expecta3ons • We want more, expect more and demand more from our products and services and the ﬁrms we buy from • As technologies improve, we expect more from our products and services
Increasing Access to Informa3on • The cost of compu3ng power is dropping, and access to the internet is increasing • BeTer informa3on access means more people have more opportuni3es
Decreasing Cost of Entry • The internet reduces cost of entry, reduces marke3ng costs and increases awareness • Anyone can sell anything to anyone else • Costs and barriers decrease or disappear
What’s blocking innova3on? Two Barriers – BAU and Middle Management
Business as Usual Every ﬁrm relies on a set of well-‐deﬁned and well understood business processes, expecta3ons, perspec3ves and decision making policies that become the basis for how the business operates. This “business as usual” model ensures work is done eﬃciently and eﬀec3vely.
Highly Eﬃcient/Second Nature Business as usual ensures that the business hits on all cylinders, driving greater eﬃciency and eﬀec3veness. Middle managers work to ensure the business as usual opera3ng model is constantly improved and reinforced.
Innova3on is unusual Many ﬁrms aTempt to manage innova3ve ideas in their “business as usual” frameworks. But these frameworks reject everything about innova3on. Innova3on detracts from the eﬃcient, eﬀec3ve model that has delivered consistent quarterly results.
You are cer3ﬁably insane Insanity: Doing the same thing over and over again and expec3ng diﬀerent results.
The Third Way Stop modifying the ideas and start modifying the processes.
Eﬃciency Experts Middle Managers are the eﬃciency experts in the business. They know how to get more done with less. While execu3ve may request innova3on, compensa3on and rewards are 3ed to short term goals. Middle Managers have received training in Six Sigma, Lean and other eﬃciency tools, but liTle or no innova3on training.
Stuck in the Middle Middle Managers are stuck in the middle, aTemp3ng to balance the demands for innova3on from the execu3ves while keeping the rest of the organiza3on working to an eﬃcient, eﬀec3ve, consistent model. Middle Managers beneﬁt more than any other group from “business as usual”
Crea3ng an Innova3on Business as Usual Where do you start? With the things that mo3vate your team. Communica)on and compensa)on and culture. People will do what they are led to do (communica3on), what they are paid to do (compensa3on) and what the environment indicates they should do (culture).
Compensa3on Asking for innova3on but compensa3ng and rewarding for business as usual is excep3onally frustra3ng to your team. As ra3onal actors, people will naturally revert to their “day jobs”, since innova3on is risky anyway, and not part of their compensa3on or reward systems. If you want innova3on, change compensa3on and reward structures to recognize it.
Culture One of my favorite sayings is “Culture eats strategy for breakfast”. In other words, corporate culture is more powerful than any individual or strategy. If your corporate culture is structured to favor business as usual, innova3on will always be diﬃcult. You must change the culture to create an innova3on business as usual.