Building an innovation culturePresentation Transcript
Building an Innovation Culture A Perspective From Silicon Valley George Anders Author of ‘The Rare Find’ Co-Recipient of the Pulitzer Prize
What You Won’t Hear Today
Surprise! Big Companies Innovate, Too
So, Who’s On the Innovators’ List? Global Total Overlooked Legends Surprises Neighbors Amazon Maroc Telecom Intuit Apple Tencent Reckitt Google Bharat Heavy BAE Systems L’Oreal Atlas Copco Rolls-Royce Toshiba Campbell Soup Unilever
But InnovationCan’t Take HoldUnless PeopleAre Ready ForChange
Hallmarks of an Innovation Culture• Building Customer-Centered Goals• Making Disruption A p p e a l i n g• Learning to Experiment Safely• Hiring for Transformation
The Logic of Putting Customers First Improved Products Happier Customers Business Success
Jeff Bezos tracks452 metrics. Ofthese, 80% relateto customers.
Meeting targets at Amazon means:• Making the site easier/faster• Constantly expanding SKUs• Minimizing address errors• Speeding up delivery times
A MZ Ne x e c u t i ve s a r ea s k e d t os p e n d t wod a y s ay e a rwo r k i n gi n a c a l lc e n t e r .
How to Make Disruption Appealing
Focus on Innovation Metrics: % of Revenue From New Products2520151050 Top Performers Laggards Source: Accenture
Harness the Power of Small Teams
Build Informal Networks to Get Things Done
Reinforce Internal Awareness of Change
Learning to Experiment Safely
Most New Ideas Won’t Make ItLaunches Can Be Rare … Especially at Big Companies 100 80 100 60 80 40 20 60 0 40 20 0 Mid-Size Cos Big Cos. Sources: Accenture, PhRMA
Acting Like a Startup Can Help• Thrive on bare-bones budgets• Launch with ‘minimally viable products’• Do lots of A/B tests to see what works best• Upgrade your product often with new iterations• Don’t be afraid to drop a flawed idea in favor of a better one.
“If you’re notembarrassed by thefirst version of yourproduct, you’vereleased it too late.”- Reid HoffmanFounder of LinkedIn
What Are Your Tolerance Levels?
You’re Only as Bulky as You Choose From July 2002 to January 2007 …Microsoft 5,000 engineers built Vista Apple 450 engineers built Jaguar … and Panther … and Tiger. 0 1000 2000 3000 4000 5000
Hiring for Transformation
Consider Your Own Best Hires (Odds Are That He or She)• Started in the Top Third but Not Top 5% of All Your Picks• Surpassed Expectations Again and Again• Grew Greatly as a Leader and Influencer• Gained Skills That Weren’t Even on Anyone’s List At the Time of Hiring• Lives and Breathes the Best of Your Organization’s Culture
“Good-to-greatcompanies placemore weight oncharacter than onspecific skills orexperience.”Jim CollinsGood to Great
No Matter Where We Seek Talent …
… These 7 Traits Keep Appearing Desire to Learn Efficiency Judgment Resilience Compati- Self- bility Reliance Curiosity/ Acumen
So How Do Busy Recruiters Spot The Best of the ‘Jagged CVs’?
Half the Edge Is in Interviewing
Instead of Resorting to Familiar But Ill-Suited Techniques … Airplane Chatter The Prosecutor
Focus on Vital Areas That Go Beyond the LinkedIn Profile • What Do You Endlessly, Relentlessly Want to Do? • How Do You Work Your Way Through Tough Spots? • Are You a Good Fit for Us?
If in Doubt, Consider the Steve Jobs TestWould You Hire Him? 10-Second CV Education: Reed College dropout after one year. First Job: Phone hacker Current Job: Started Apple Computer, a 2-Person Company Appearance: Looks like Ho Chi Minh
Transformative Hires Will Test You;Are “Flaws” Offset by Rare Strengths?• Limited direct experience – can be offset by an intense, proven knack for fast learning• A career stumble or two – forgivable if it fuels self-awareness, resilience and drive.• Personalities that take a few moments to appreciate – tolerable if core character is solid.
Even Uncommon Traits May Matter• Amazon.com => F r u g a l i t y• Linear Technology => T i n k e r i n g• McKinsey => S t r i v e r s ’ Et e r n a l Dr i v e• P&G => C a n Y o u Mu l t i t a s k ?• What Traits Matter for RBS?
The Second Edge: See What Intriguing Candidates Do on the Web
How Stripe Found 978 Security Experts (while everyone was playing “Capture the Flag.”)
Facebook and the Puzzle Master
Wrapping Up: How Big Companies Can Build Innovation CulturesBuild Customer-Centered GoalsMake Disruption A p p e a l i n gLearn to Experiment SafelyHire for Transformation