Aesc / Blue Steps Innovation Survey

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Aesc / Blue Steps Innovation Survey

  1. 1. Innovation Diagnostic Survey Results March 2012
  2. 2. 2AESC_BlueSteps Results to Participants vfBOS Key findings of the Innovation Diagnostic Survey • While two-thirds of companies make innovation a top 3 priority, less than a quarter of executives feel they are very effective at it • Companies struggle with many aspects of the innovation process, and thus there is no simple fix • High-performers in innovation show significantly higher revenue growth rates than other companies (average annual revenue growth of 13% versus 5%) • Likewise, innovation high-performers are massively advantaged in employee loyalty (eNPS of +23 versus -56 for others), thus innovation success fosters employee engagement, while failure leads to disillusionment • Innovation high performers tend to perform well on the 12 innovation success factors. Specifically, they have identified clear models of innovation, set goals well, and have built a “culture” of innovation. They have both internal organizational alignment and effective decision-making throughout the process • Conversely, companies who are struggling with innovation tend to perform poorly on all innovation success factors but are particularly weak on: -Structure, roles, and decision making -Culture of innovation -Idea screening and development -Portfolio management • Overall, success in innovation appears to come from focusing the organization on the problem, adhering to solid management practices, and making decisions effectively
  3. 3. 3AESC_BlueSteps Results to Participants vfBOS 0 20 40 60 80 100% % believe their companies are effective on the 12 innovation success factors Respondents 23 0 20 40 60 80 100% % agree innovation is a top 3 corporate priority Respondents 67 TWO THIRDS OF EXECUTIVES AGREE THAT INNOVATION IS A TOP PRIORITY LESS THAN A QUARTER THINK THEIR COMPANIES ARE VERY EFFECTIVE AT INNOVATION Innovation is critically important, but less than a quarter think their companies are very effective at it Source: Innovation diagnostic survey March 2012 (n=437)
  4. 4. 4AESC_BlueSteps Results to Participants vfBOS -60 -40 -20 0 20 40% Employee loyalty (NPS score) High performer 23 Other -56 0 20 40 60 80 100% High performer 72 Other 57 Org effectiveness score based on quality, speed, yield and effort scores 0 20 40 60 80 100% % of companies with sales growth >5% annually High performer 72 Other 41 13% 5% Mean revenue growth rates: 6% 3% Mean annual TSR: HIGHER REVENUE GROWTH BETTER DECISION-MAKING EFFECTIVENESSHIGHER EMPLOYEE LOYALTY Innovation high performers see higher sales growth, employee NPS and decision-making effectiveness Note: High = top quartile of ‘innovation average’ scores; Other = the rest; Org effectiveness score is equal to average of (quality DM score, speed DM score, yield DM score, 1 – effort DM score) – where DM stands for Decision Multiplier; TSR data 2000-2010; Revenue growth rates 2008-2011 Source: Innovation diagnostic survey March 2012 (n=437)
  5. 5. 5AESC_BlueSteps Results to Participants vfBOS Innovation Strategy Organization Idea Generation& Development ScalingPortfolio 2 3 41 Innovation high performers excel on all of the 12 innovation success factors Weak Average Strong Innovation goals and models1 Organizational alignment2 “BothBrain” talent: partnerships & mgmt.3 Structure, roles, and decision making4 Culture of innovation5 Idea generation6 Idea screening and development7 Prototyping and testing8 Portfolio management9 Project management1010 Scaling and launch strategy1111 Launch alignment and ongoing execution1212 Note: High = top quartile of ‘innovation average’ scores; Low = bottom quartile; Average = all other; TSR data 2000-2010; Revenue growth rates 2008-2011 Source: Innovation diagnostic survey March 2012 (n=437) High performerAverage performerLow performer Mean revenue growth 3.7% 6.2% 13.0% Mean annual TSR 1.5% 3.0% 6.1%
  6. 6. 6AESC_BlueSteps Results to Participants vfBOS 0 20 40 60 80 100% Overall innovation performance (% strongly agree) Innovation is one of the top 3 priorities of our company 80 31 12 We have defined our innovation goals and track our performance against those targets 60 16 3 I believe we are a best-in-class innovation organization in our industry 57 10 1 We are innovative in how we approach and solve issues at all levels of the organization 44 5 Our company’s overall strategy is sufficiently innovative and forward-looking to achieve success 72 9 2 Innovation high performers have better innovation performance overall Note: High = top quartile of ‘innovation average’ scores; Low = bottom quartile; Average = all other; TSR data 2000-2010; Revenue growth rates 2008-2011 Source: Innovation diagnostic survey March 2012 (n=437) Mean revenue growth Mean annual TSR High performer 13.0% 6.1% Average performer 6.2% 3.0% Low performer 3.7% 1.5%
  7. 7. 7AESC_BlueSteps Results to Participants vfBOS We currently have projects in the portfolio that will help meet or exceed our future innovation financial targets Innovation performance is based on the average scores of the following four questions We have consistently met or exceeded our innovation goals We invest adequately in preparing for major market disruptions through innovation Note: High = top quartile of ‘innovation average’ scores; Low = bottom quartile; Average = all other; Mean annual TSR data 2000- 2010; Revenue growth rates 2008-2011 Source: Innovation diagnostic survey March 2012 (n=437) We have a winning repeatable model for innovation that we apply consistently across geographies and categories + ++MAINTAIN STRONG PORTFOLIO MEET INNOVATION GOALS PREPARE FOR DISRUPTION ACHIEVE REPEATABLE MODEL

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