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Innovation Benefits Realization for Industrial Research (Part-6)


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  • 1. Technology Innovation Management Framework for Industrial Research Part-6 Dr. Iain Sanders January 2005
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  • 5. CRAFTING A HOLISTIC INNOVATION ORGANISATION Platform 3: (Stages VI-IX)Integrating Technology Innovation with Business Function – Part I: Laying the Foundation
  • 6. PLATFORM 3: VI VI Form Innovation Teams  KEY COMPONENTS 1. Cross-functional representation 2. Full-time, dedicated team leaders 3. Rewards that recognize performance 4. Regularly scheduled meetings  ENERGIZING TEAMS  Make decisions without senior managers  Establish a common language  Offer team rewards  Provide continuous positive feedback  Establish shared norms & values  Motivate cross-functional members  Define personal objectives 6
  • 7. PLATFORM 3: VI Building Innovation Teams  Team-Building  Assemble, manage and train teams to foster innovation throughout the organization / working environment. 7
  • 9. PLATFORM 3: VI (A) Creating the Team The role assumed by a given team member is not identical to the member’s personality type, although roles and personality types are generally harmonious rather than in conflict A spectrum of roles necessary for the typical work team:  The Promoter: This person informs and persuades stakeholders regarding the work of the team  The Organizer: This person maintains schedules and budgets and, in general, serves to keep other team members “on the same page”  The Inspector: This quality-control agent pays careful attention to the production of the team and reports to members on their work as well as on the reliability of their sources of information  The Concluder: This person moves the team toward consensus judgements, stages of completion, and final sign-offs  The Innovator: This tam member brings fresh ideas and insights t the work of the team  The Specialist: This person makes sure the team is up to date on technological, marketing, or other information relevant to its work  The Implementer: This team member views the work of the team during development and upon project completion according to how it can be put to use in the real world 9
  • 10. PLATFORM 3: VI (A) Characteristics of Effective Teams You can determine the health of any team by looking for seven indicators: 1. Buy-in: Team members share a clear perception of their purpose and commitment to that purpose as “our” goal 2. Tolerance for disagreement: Team members handle differences of opinion as stimulating opportunity for testing and refining their work. They listen well. They can attack positions without attacking people 3. Comfort: Team members are relaxed with one another. They trust the intentions and integrity of fellow team members. They enjoy working together 4. Shared leadership: Even when the company has designated a specific team leader, the team allows de facto leadership to pass from member to member, depending upon the obstacles and tasks at hand for the team. Every member knows he or she can rise to leadership 5. Diversity: Whether differentiated by personality types, roles, culture, or other factors, the members of the team recognize and respect their mutual diversity 6. Reality checks: The team is not self-deceived regarding the quality of its work. Members assess team goals and progress in constructive ways that motivate the pursuit of excellence 7. Consensus-seeking: The team strives for, but does not insist upon, the support of all members for team decisions 10
  • 11. PLATFORM 3: VI (B) Leading Teams  What teams expect of their leaders (summary of seven years of surveys in Best Practice magazine, 1994)  Team members expect their leaders to be:  Honest 87%  Competent 74%  Forward-looking 67%  Inspiring 61%  Intelligent 46%  Fair-minded 42%  Broad-minded 38%  Courageous 35%  Straightforward 33%  Imaginative 32%  Dependable 31% 11
  • 12. PLATFORM 3: VI (B) Leading Teams A team’s mistakes can be accepted by management if:  It doesn’t have significant negative impact upon the company  It is a first-time mistake, not part of a pattern  Team members were working outside the team’s responsibilities  The team member was following explicit instruction or following the proper procedures  The team member was working with shared equipment that is not always available  The team learns from the mistake and is able to say how it will be avoided in the future  The mistake occurred within the scope of the team’s authority in pursuit of the goal  The team was really trying to do it right  The team’s actions were consistent with the policies and rules of the company  Incorrect information was given to the team  The team was taking initiative and taking risks  Procedures weren’t clearly defined  Different skill and ability levels of team members caused erratic results  There were extenuating circumstances  The situation was outside the person’s control  The error was not caused by negligence or lack of action  There were time constraints  There was poor training 12
  • 13. PLATFORM 3: VI (B) Leading Teams 1. Acquire the leadership skills needed not only to get the job done right, but to develop the people to do it 2. To determine whether delegated, elected, shared, or distanced leadership is most appropriate for your team, analyze the three P’s: your project, your people, and your plans for the future 3. Remember that teams look to the leader to tell the truth, know the business, and anticipate change as primary responsibilities 4. Seek out feedback from the team and those affected by the team not only to measure team performance but also to determine how your leadership role must evolve 13
  • 14. PLATFORM 3: VI (C) Participating on Teams  Qualities of Effective Team Members: 1. Team members should seek out cross-training opportunities whenever possible 2. Team members should not expect relationships on the team to feel comfortable at the beginning 3. Team members must be ready to place the welfare of the team ahead of the interests of their former work units and associates in the company 4. Team members must understand that teamwork is impossible apart from mutual respect among members 5. Team members must take responsibility as architects of team culture and conditions 6. Team members don‟t enter an ivory tower when they become part of the team. They are influential in the company to the extent that they remain trusted by the groups to which they link 14
  • 15. PLATFORM 3: VI (C) Participating on Teams  Qualities of Effective Team Members (continued): 7. Team members must expect to be deeply influenced by other team members 8. Team members discover that their individual performance expectations expand dramatically when they embrace the “one for all and all for one” spirit of the team 9. Team members don‟t try to compete with one another for individual recognition; they contribute for group accomplishment 10. Team members learn to look upon their leader in a new way – more as a fellow team member than as a taskmaster or final decision-maker 11. Team members look upon training as a “must have” for team success, not a reluctant duty 12. Team members meet or exceed expectations primarily because they are the architects of those expectations 15
  • 16. PLATFORM 3: VI (C) Participating on Teams  Qualities of Effective Team Members (continued): 13. Team members take pride in setting a higher standard and maintaining a faster pace than traditional workers in the organization 14. Team members are ready to assist other team members without judging them 15. Team members recognize that they are empowered to try new things and take risks 16. Team members don‟t sweat the small stuff; conformity to administrative rules and procedures is not viewed as selling out 17. Team members don‟t keep secrets from one another. Knowledge is used for shared power, not personal power 18. Team members don‟t brush feelings under the carpet – or burden one another with irrelevant feelings 16
  • 17. PLATFORM 3: VI (C) Participating on Teams  Qualities of Effective Team Members (continued): 19. Team members take each other at face value. They do not impute motives unnecessarily 20. Team members “sell” one another on ideas, information, and perspectives 21. Team members believe their leader is as eager to learn and improve as they are 22. Team members can‟t be pigeon-holed according to viewpoints; these change over time 23. Team members make the decisions that logically should be made at the team level; they do not seek out decision-making power beyond their scope of authority 24. Team members value their leader and try to support his or her needs 17
  • 18. PLATFORM 3: VI (C) Participating on Teams 1. In selecting team participants, be aware of reasons why workers commonly resist membership on a team: lack of conviction, incompatible personal styles, and weak organizational support 2. Remember that effective teamwork requires mutual respect and trust among participants. Those qualities take time to develop 3. Don’t let an “ivory tower” spirit of superiority or elitism separate the team from the rest of the workforce 4. As a participant, prepare for team meetings by thoughtfully considering the agenda and planning for your own contributions 5. Practice active listening to draw the best from other team members and to strengthen the bonds of mutual respect and cooperation 18
  • 19. PLATFORM 3: VI (D) Using Teams Effectively  Team-based solutions fill a niche bounded by individual strategies and advisory groups  Specifically, team-based solutions are most appropriate when the problem is unstructured, calls for many points of view, requires broad areas of expertise, and group members share the interests of the parent organization  Four factors may impinge on the effectiveness of a team’s function:  Social Tension  Cohesiveness  Group Polarization  Groupthink 19
  • 20. PLATFORM 3: VI (D) Using Teams Effectively Social Tension  Social Tension refers to the natural uncertainty most people feel in a strange situation. Group activities remain a novelty for many people  Secondary tension is the result of struggles between group members and may manifest itself in several damaging behaviours:  Unexpected outbursts and shouting matches at team meetings  Limited participation or complete withdrawal by selected team members  Deliberate attempts to sabotage team activities Cohesiveness  Cohesiveness refers to members‟ feelings about the team. It reflects the degree to which members like being on the team, and it shows up in the ability of team members to get along with one another, and feelings of loyalty, pride, and commitment to the team Group Polarization  Research has indicated that groups may make more extreme decisions than individuals confronted with the same problem Groupthink  Occasionally, members of highly cohesive teams become so focused on a single course of action that they refuse to consider either alternatives or potential difficulties 20
  • 21. PLATFORM 3: VI (D) Using Teams Effectively Groupthink  The danger of groupthink is ever-present; teams should be ever vigilant in watching for the symptoms: 1. The illusion of invulnerability – a belief shared by team members that the team cannot make an error 2. An unquestionable belief that the team is above ethical or moral restraints and that their decisions are inherently moral 3. Collective rationalizations that lead team members to discount information that is inconsistent with their assumptions or decisions 4. Stereotyped views of competitors that suggest they are incapable of responding effectively to team initiatives or proposals 5. “Self-censorship” which effectively prevents members who disagree with team decisions from speaking up 6. An illusion of unanimity which implies that all members of the team agree with decisions even though some may have spoken in opposition 7. Pressure to conform applied to members who argue against team stereotypes, illusions, or commitments 8. The emergence of “mind guards” – members who protect the group from discordant information 21
  • 22. PLATFORM 3: VI (D) Using Teams Effectively Teams are appropriate for projects that have one or more of the following characteristics:  They are perceived as worthwhile to team members  They are not highly structured and routine projects. A project that has both of these characteristics is not the best use of a team approach. Some projects, such as new product development, have highly structured processes, but the problems thy tackle are anything but routine  Projects that call for knowledge or expertise beyond the scope of any one individual can benefit from a team-based approach  The project appeals to members‟ individual interests and match the goals of the organization Some organizational environments, like some projects, undermine effective teamwork: 1. Insufficient support and encouragement of key management and staff 2. Insufficient freedom from undue outside influence or interference 3. Insufficient access to adequate resources 22
  • 23. PLATFORM 3: VI (E) Problem-Solving with Teams The best teams employ a carefully crafted process distinguished by five elements: 1. Building and renewing the foundation for effective teamwork 2. Employing a structured problem-solving process 3. Employing specific problem-solving tools 4. Measuring their results 5. Designating a process champion Effective teams employ six steps designed to promote creativity, when appropriate, or structure, when needed: Step 1. Defining the problem Step 2. Describing the problem Step 3. Developing possible solutions Step 4. Selecting the most promising solution Step 5. Planning and implementing the solution Step 6. Evaluating performance 23
  • 24. PLATFORM 3: VI (E) Problem-Solving with Teams Step 1: Defining the Problem:  This is a critical step because the definition establishes the boundaries of the problem, the kinds of data needed, and the range of solutions  Defining the problem should culminate in a simple, one-page statement describing the specific problem the team intends to solve  The step isn‟t finished until all members of the team agree that it is a clear statement of the problem  In addition, it is often appropriate to get reactions from higher management and other affected groups. Their input may result in expanding or contracting the definition to include all relevant concerns 24
  • 25. PLATFORM 3: VI (E) Problem-Solving with Teams Step 2: Describing the Problem:  Different techniques are better suited to different types of problems, but at this stage detailed information is very important to determine various stages and degrees of a problem  Many statistical measures can b used to develop information and understanding about a problem. This information should enable the team to answer the following kinds of questions:  When was the problem first observed?  How often does the problem occur?  Who is affected?  How severely are they affected?  Effective teams avoid moving to the next step until they have a substantive body of information to identify he root causes of the problem and to lay the groundwork for developing the best solutions 25
  • 26. PLATFORM 3: VI (E) Problem-Solving with Teams Step 3: Developing Possible Solutions:  Most groups begin by generating a list of solutions that have been discussed previously and are familiar to most members. These „stock‟ solutions generally lead to disagreement, with members quickly taking sides  Team members must suspend judgement until a longer list of potential solutions has been generated  Effective teams regularly push themselves through stags 1-3 because they understand that truly creative and innovative solutions are most likely to emerge after commonplace suggestions have been voiced and everyone begins looking for something more 26
  • 27. PLATFORM 3: VI (E) Problem-Solving with Teams Step 4: Selecting the Most Promising Solution:  Selecting from among the potential solutions calls for thoughtful discussion and judgement. High-performing teams work systematically to find the most promising solution to satisfy the problem  Teams need to avoid three potential traps at this stage: 1. Taking the easy route: teams can skirt this trap by carefully reviewing all the alternatives before making a selection. They take even greater care when one solution appears to be the overwhelming favourite, and they search for its flaws as well as its selling points 2. Votes: are so widely used in our society that they seem to be the democratic way to resolve all issues. Votes are seductive traps and generally lead to inferior results 3. Enforced consensus and coalition formation: when feelings run high, teams may break into warring sides 27
  • 28. PLATFORM 3: VI (E) Problem-Solving with Teams Step 5: Planning and Implementing the Solution:  Many great ideas are never fully realized because of inadequate implementation  Once a decision has been made, care must be taken not to pass on responsibility for its implementation to someone else  Effective teams know that implementation is as critical as finding an appropriate solution. They are far less ready to relinquish responsibility and often insist on having a role in implementing their proposals  Once a solution has been selected, the team proceeds to outline the key implementation steps, establish deadlines, assign responsibility for completion of each step, and monitor progress 28
  • 29. PLATFORM 3: VI (E) Problem-Solving with Teams Step 6: Evaluating Performance:  Strong teams treat the conclusion of ach project as an opportunity to improve their own team processes  While ordinary teams take a break between projects, exceptional teams use this team to review their procedures, garner feedback, and search for ways to improve their individual an collective performance 29
  • 30. PLATFORM 3: VI (E) Problem-Solving with Teams Selective Problem-Solving Tools for each StepProblem-Solving Step Appropriate ToolsStep 1: Defining the Problem Brainstorming, problem Census, Man from MarsStep 2: Describing the Problem Man from Mars, Tally Sheet, Check Sheet, Run Chart, Histogram (Bar Chart), Scatter Chart, Pie Chart, Customer Survey, Employee Survey, Financial Reports & Projections, Marketing Reports, Customer Chain Analysis, Cause-Effect (Fishbone) DiagramStep 3: Generating Possible Brainstorming, Topic Census, Nominal Group Technique SolutionsStep 4: Selecting the Best “T” Graph, Screening SolutionStep 5: Planning Action Plan, Project Management Grid, Gantt Chart ImplementationStep 6: Evaluating the Results Brainstorming, Topic Census, Nominal group Technique, Screening 30
  • 31. PLATFORM 3: VI (E) Problem-Solving with Teams 1. Initiate all team projects with team-building activities to prepare the group for the task ahead 2. Periodically provide time and initiate activities needed to reestablish the elements of effective teamwork 3. Approach all problems with a structured methodology that includes defining the problem, describing it in detail, developing possible solutions, selecting the most promising solution, planning and implementing the solution, monitoring progress, and evaluating team performance 4. Use proven problem-solving tools to support team activities at every step of the problem-solving process, documenting the problem and plans for its solution 31
  • 32. PLATFORM 3: VI (F) Trouble-Shooting Team Obstacles When problems do surface among team members etc., skilled trouble- shooting can help the team overcome its obstacles  Problem 1: Disruptive Individuals on the Team  The Team Leak: this team member violates the trust of other team members by a constant stream of memos to management  The Sphinx: this person sits silently through most team meanings. His or her attitude is generally doubtful, if not downright cynical, about the team‟s efforts and processes  The Word Hog: often, Word Hogs haven‟t worked closely with a team before. In their enthusiasm to contribute, they over-do and, consciously or unconsciously, deprive other team members of their chance to participate  The Contrarian: this person raises objection to an obsession. Most of these objections are quibbles that add nothing to the team‟s discourse  The Buzzer: this person talks about shopping, the weather, traffic conditions, company politics, and what‟s for lunch – virtually any topic not associated with the team‟s goals  Problem 2: The Runaway Team  Many teams make the mistake of exceeding the scope of their authority 32
  • 33. PLATFORM 3: VI (F) Trouble-Shooting Team Obstacles  Problem 3: The Do-Nothing Team  At the other end of the spectrum from the Runaway Team is the Do-Nothing Team – the team that meets and meets, drafts memos and outlines future reports, but never seems to accomplish meaningful work or produce results  Problem 4: The Divided-Loyalties Team  Especially when cross-functional teams have been assembled from highly competitive, cohesive divisions within the company, it is likely that members will consider themselves temporary emissaries to the team from their “home base” rather than as loyal team members  Problem 5: The Team in Turmoil  Even after managers have selected presumably complementary members for a team, the interpersonal chemistry between members can be wrong – and explosively so. The Team in Turmoil is one that cannot meet for more than 15 minutes without shouting matches or seething silences 33
  • 34. PLATFORM 3: VI (F) Trouble-Shooting Team Obstacles 9 ways to bring teams and team members back into productive work: 1. Praise: for everyone, especially those who respond to immediate feedback 2. Leading Questions: for people who respond to a signal or need to overcome their reticence 3. Explanations: for people who are motivated by understanding the reasons for doing something 4. Requests: for people who like to be asked 5. Advice: for people who prefer guidance or are influenced by the logic of the situation 6. Promises: for people who find the task unattractive or need extra motivation 7. Orders: for people needing exact instruction and where compliance is essential 8. Criticism: for people who respond to negative feedback 9. Threats: for people who do not respond to more positive methods, and where compliance is essential 34
  • 35. PLATFORM 3: VI (F) Trouble-Shooting Team Obstacles 12 Symptoms of troubled teams: 1. Watch for team members who seek individual recognition rather than recognition for the entire team 2. Listen for complaints from individual members who feel they had to go along with the majority on the team in spite of their own opinions 3. Observe the „bench‟ players who sulk on the sidelines because they don‟t like the way things are going on the team 4. Pay attention to team members who always seem to be pouring oil on choppy waters. These members are averse to conflict (even when it is productive) 5. Spot the “blamers” on the team, particularly those who chastise the leader for all the team‟s problems 6. Watch for isolated entrepreneurs on the team – those who are bent on setting their own goals and choosing their own methods, no matter what the feelings of the rest of the team 35
  • 36. PLATFORM 3: VI (F) Trouble-Shooting Team Obstacles 12 Symptoms of troubled teams (continued): 7. Listen for inappropriate “talking out of school” by team members. These individuals may seek out managers and other co-workers as an audience for their tales of woe about team mistakes and internal difficulties 8. Weigh the message being sent by individual team members who want to bring their clones onto the team as new members 9. Watch for signs of impatience on the part of some team members who can‟t or won‟t spend time discussing how the team functions 10. Take careful note of team members or entire teams who turn in half- baked work or consistently miss deadlines, often with excuses about inadequate time, resources, or assistance 11. Track absenteeism 12. Look for signs of premature celebration on the part of some team members 36
  • 37. PLATFORM 3: VI (F) Trouble-Shooting Team Obstacles 1. Treat team problems as normal, not special. Problems are an inevitable part of desirable processes of change and adaptation 2. Be prepared for five common team problems: the disruptive individual, the runaway team, the do- nothing team, the divided-loyalties team, and the team in turmoil 3. Watch for the twelve symptoms of troubled teams. These signal a wise leader to take early action 4. Troubleshoot the troubleshooters, making sure that those responsible for teams are not also those causing the team’s major problems 37
  • 38. PLATFORM 3: VI (G) Supporting the Team What is the curriculum for training team players? By whatever titles, training programs across industries emphasize four topics:  Self-Direction  Training departments have the double challenge of undoing old assumptions about he nature of work and instilling, through conceptual and experiential lessons, the skills necessary for self-direction as participating team members  Value Complementary Talents  Trainers have the often difficult task of convincing traditional workers to accept diversity as a value, not a hindrance, to teamwork  Mastering New Administrative Responsibilities  Trainers face the challenge of teaching workers not only to stay within a budget, but how to create one, negotiate for resources in the organization, hire necessary personnel, and monitor performance through fair evaluation procedures  Developing Cross-Functional Skills  Trainers must change workers used to saying “that‟s not my job” to team members willing to say “it‟s our job”. The “best thoughts of the best minds” are supposed to b active on the effective team, with no artificial classifications , or role definitions to limit team discussions and action 38
  • 39. PLATFORM 3: VI (G) Supporting the Team Externally Directed Team Recognition 1. Compliment the work of the team in a memo to top management 2. Invite a company leader to attend a team meeting with the purpose of praising the team 3. Create social occasions where the team is honoured informally 4. Ask a newsletter writer in the company or in your industry to develop an article about the work of the team 5. Seek out professional speaking opportunities (at conferences, service organizations, or industry interest groups) where your team can present aspects of its processes or work 6. Speak well of the team as often as possible in as many company forums as possible 7. Nominate the team for competitions and awards within your industry 39
  • 40. PLATFORM 3: VI (G) Supporting the Team Internally Directed Team Recognition 1. Free the team to establish its own work hours and work sites 2. Ask the team to mentor a les successful team 3. Make available to the team new technology or other special resources not generally available in the workplace 4. Share your own challenges with the team and ask their advice 5. Take the time to respond in detail to reports and other communications sent from the team 6. Let the team members know why they were chosen for the team and the high expectations top management has for the team‟s work 7. If the team has none of its own, develop a catchy, affectionate nickname for the team that can be used as a compliment. At Xerox, for example, one top photocopier sales team is known as the “Assassins” 40
  • 41. PLATFORM 3: VI (G) Supporting the Team 1. Provide training so that traditional workers can develop the skills and abilities necessary for effective team participation 2. Realign resources, performance evaluations, and compensation policies to suit team-based work 3. Establish organizational safety nets so that, when team members take reasonable risks, they feel supported and safe – that they aren’t endangering their reputations, positions, or compensation levels in the organization 4. Integrate team experiences into the worklife of the company so that non-team employees can learn what team-based work is all about 41
  • 43. PLATFORM 3: VII VII. Influencing and Leading Others  People Management 1. Understanding Behaviour: Identify and apply incentives to motivate different personality types develop an innovation mindset, stimulate creative thinking and seek new market, product or process possibilities. 2. Motivators 3. Financial Rewards 4. Non-Financial Rewards 5. Influence Games & Strategies: Convince decision-makers and strategic planners of the value and significance of cultivating an innovation mindset. 43
  • 44. UNDERSTANDING BEHAVIOUR Platform 3: (Stages VII, Part 1)Integrating Technology Innovation with Business Function – Part I: Laying the Foundation
  • 45. PLATFORM 3: VII(1) VII(1). Understanding Behaviour A. Motivational Patterns B. Emotional Patterns C. Thinking Patterns D. Action Patterns E. Interaction Patterns F. Group Patterns 45
  • 46. VII(1).A. MOTIVATION PATTERNS Under- standing Behaviour 1. Basic Fascinations (Motivators) Driven by: INFLUENCE (BEING IN CHARGE)Driven by: AFFILIATION Driven by: ACHIEVEMENT (PEOPLE) (SUCCESS) 46
  • 47. VII(1).A. MOTIVATION PATTERNS Under- standing Behaviour 2. Carrot or Stick? Driven: AWAY FROM Driven: TOWARDS 47
  • 48. VII(1).B. EMOTIONAL PATTERNS Under- standing Behaviour 3. Measure of Self-Esteem Confidence at: WORK Confidence in: Confidence through: RELATIONSHIPS SOCIAL ACTIVITIES 48
  • 49. VII(1).B. EMOTIONAL PATTERNS Under- standing Behaviour 4. Sunshine or Flowers? Focus on: NEGATIVES (PESSIMISM) Focus on: POSITIVES (OPTIMISM) 49
  • 50. VII(1).B. EMOTIONAL PATTERNS Under- standing Behaviour 5. How High Can You Go? Focus on: SENSATION- WARY Focus on: SENSATION- SEEKING 50
  • 51. VII(1).C. THINKING PATTERNS Under- standing Behaviour 6. A Sense of Importance Importance of: VISUAL INPUT / OUTPUTImportance of: AUDITORY Importance of: KINAESTHETIC INPUT / OUTPUT INPUT / OUTPUT 51
  • 53. VII(1).C. THINKING PATTERNS Under- standing Behaviour 7b. Time Preference Focus on: THE PASTFocus on: THE PRESENT Focus on: THE FUTURE 53
  • 54. VII(1).C. THINKING PATTERNS Under- standing Behaviour 8. Woods or Trees? Focus on: THE DETAILS Focus on: THE BIG PICTURE 54
  • 55. VII(1).C. THINKING PATTERNS Under- standing Behaviour 9. Equilibrium or Metamorphosis? Move towards: DIFFERENCE Move towards: SAMENESS 55
  • 56. VII(1).C. THINKING PATTERNS Under- standing Behaviour 10a. How Do You Get Your Proof? Focus on: WRITTEN EVIDENCEFocus on: Focus on: VISUAL HANDS-ONEVIDENCE EVIDENCE Focus on: VERBAL EVIDENCE 56
  • 57. VII(1).C. THINKING PATTERNS Under- standing Behaviour10b. Who Needs To Give You Proof? Prefer: OWN JUDGEMENT Prefer: Prefer:TRUSTED CREDIBLE FRIEND ROLE MODEL Prefer: OBJECTIVE PROOF 57
  • 59. VII(1).D. ACTION PATTERNS Under- standing Behaviour 11. Starting / Finishing Strategy? Interested & Motivated in: FINISHING THINGS Interested & Motivated in: STARTING THINGS 59
  • 60. VII(1).D. ACTION PATTERNS Under- standing Behaviour 12. Options / Procedures Strategy? Find / Follow an: EFFECTIVE PROCEDURE Seek Out / Generate lots of: ALTERNATIVES 60
  • 61. VII(1).D. ACTION PATTERNS Under- standing Behaviour13. Proactivity / Reactivity Strategy? Pushed: REACTIVE Jump: PROACTIVE 61
  • 62. VII(1).D. ACTION PATTERNS Under- standing Behaviour 14. Judging / Perceiving Strategy? Go with the flow: PERCEIVE MORE Mover-shaker: JUDGE MORE 62
  • 63. VII(1).E. INTERACTION PATTERNS Under- standing Behaviour 15. Awareness of Others Scale Unaware / Self-absorbed: SELF-FOCUSED Sensitive / Aware: OTHER-FOCUSED 63
  • 64. VII(1).E. INTERACTION PATTERNS Under- standing Behaviour 16. Extrovert / Introvert Strategy? Recharge Batteries: BEST ALONE Recharge Batteries: BEST WITH OTHERS 64
  • 65. VII(1).E. INTERACTION PATTERNS Under- standing Behaviour 17a. External / Internal Inspiration? Take the lead from Others: EXTERNALLY INSPIRED Take the lead from Self: INTERNALLY INSPIRED 65
  • 70. MOTIVATORS, FINANCIAL, NON-FINANCIAL REWARDS Platform 3: (Stages VII, Parts 2, 3 & 4) Integrating Technology Innovation with Business Function – Part I: Laying the Foundation
  • 71. PLATFORM 3: VII (Parts 2, 3 & 4) Establish Reward Systems Motivators (0=Least, 5=Most) 1. 4.49: Sense of personal accomplishment 2. 4.06: Peer recognition 3. 3.74: Top management exposure 4. 3.37: Career advancement 5. 2.97: Compensation 6. 2.74: Peer pressure 7. 2.23: Part of job description 8. 2.06: Mandate or edict Financial Rewards 1. One-Time Individual Bonus (44% Prefer) 2. Bonus Based on New Product Performance with No Penalty for Failure (48% Prefer) 3. One-Time Team Bonus (53% Prefer) 4. Bonus Based on New Product Performance with Penalty for Failure (40% Prefer) 5. Team Invests & Shares in Financial Returns (40% Prefer) Non-Financial Rewards 1. Recognition (Pats on the Back) (96% Prefer) 2. Increased Job Responsibility (81% Prefer) 3. Social Interaction with Senior Management (63% Prefer) 4. Awards (Plaques, etc.) (66% Prefer) 5. Increased Budget / Control Authority (39% Prefer) 71
  • 72. Developing Our People andInfrastructure
  • 73. How - and Thank You Remuneration Working Party (staff, managers, PSA, HR).  Recommended a remuneration structure that incorporated:  Economic movement;  Market relativity;  Reward for individual performance;  Affordability (the size of the budget pool);  Achievement of the IRL business plan;  Career movement and career options; and  Transparency, clarity, equity and consistency.  Considered a superannuation scheme. Remuneration Steering Group (GMs, PSA) Staff feedback about the performance management system gathered 2003 and 2004. 73
  • 74. INFLUENCE GAMES & STRATEGIES Platform 3: (Stages VII, Part 5)Integrating Technology Innovation with Business Function – Part I: Laying the Foundation
  • 75. PLATFORM 3: VII (Part 5) Persuading Others  What Motivates Us to Act? The desire to GAIN The desire to AVOID LOSS To make money To avid criticism To save time To keep possessions To avoid effort To avoid physical pain To achieve comfort To avoid loss of reputation To have health To avoid loss of money To be popular To avoid trouble To experience pleasure To be clean To be praised To be in style To gratify curiosity To satisfy an appetite To have beautiful possessions To attract the opposite sex To be an individual To emulate others To take advantage of opportunities 75
  • 76. PLATFORM 3: VII (5) Influence Games A. Laying the Foundation: 1. Defining Goals: What influence games do you need to play? 2. Organizing to Influence: How should you organize your government relations efforts? 3. Cultivating Relationships: With whom do you need to build relationship capital? B. Crafting Winning Strategies: 1. Identifying Leverage Points: Where do you need to exert influence? 2. Building Coalitions: Who are your potential allies and adversaries? 3. Framing Arguments: What messages do you want to send? 76
  • 77. PLATFORM 3: VII (5) Influence GamesC. Coalition Building 1. Map the influential players. Who are the key decision makers? Who holds sway over them? Who are your potential allies and adversaries? 2. Identify potential alignments. What foundations can be laid to establish alliances? 3. Assess winning and blocking coalitions. Whom do you need to get on board? Which parties seem positioned to coalesce and oppose you? 4. Shift the balance of forces. How can you convince the convincible? 5. Shape the agenda. How can you define “the problem” favourably? 6. Alter perceptions of alternatives. How can you shape others‟ perceptions of their options? 7. Exploit the power of deference. Who influences the people you need to influence? 8. Leverage the power of commitment. How can you propel potential allies onto the slippery slope toward commitment? 9. Set up action-forcing events. What will induce potential allies to make the necessary tough choices? 10. Plot out a sequence to build momentum. What is the best strategy for approaching others? 77
  • 78. PLATFORM 3: VII (5) Hybrid Strategies Model  Government and business need a framework for developing hybrid strategies: strategies both for a. identifying and playing key games and for b. shaping the rules.  The term hybrid emphasizes the need for businesses to develop strategies to both 1. play varied and potentially linked games and 2. shape the creation, interpretation, and enforcement of rules.  There are five key components to this model: 78
  • 79. PLATFORM 3: VII (5) Hybrid Strategies Model 1. Business strategy as game playing 2. Value-net games and public interest games 3. Governments as rule makers, referees, and players 4. Multi-level games 5. Linked games 79
  • 80. PLATFORM 3: VII (5) Hybrid Strategies Model 1. Business strategy as game playing  In the new lexicon of business strategy, companies participate in ongoing games in which economic value gets created and distributed. Games are a useful metaphor because outcomes (market share, profits) in business are the result of interactions among the strategies of a set of players. The games businesses play involve a mix of cooperation to create value and competition to divide up (or claim) the value that has been created. Companies make moves as they play these games and these moves interact. They also seek to shape the rules in advantageous ways, for example, by undertaking a merger, or entering a new market. 80
  • 81. PLATFORM 3: VII (5) Hybrid Strategies Model 2. Value-net games and public interest games  We will focus on these two categories of business games, both of which may or may not involve government. Value- net games have to do with cooperation and competition among businesses. Public interest games pit coalitions of businesses, and even entire industries, against non- business organizations like unions, consumer groups, and environmental organizations. 81
  • 82. PLATFORM 3: VII (5) Hybrid Strategies Model 3. Governments as rule makers, referees, and players  In both value-net games and public interest games, governments establish the rules by which the players operate, acting as rule makers. But governments also interpret and enforce the rules, effectively acting as referees. Governments may even participate directly as players, for example, as customers in value-net games or as initiators of policy changes in public interest games. 82
  • 83. PLATFORM 3: VII (5) Hybrid Strategies Model 4. Multi-level games  Many influence games involve multiple interacting levels of government – local, state, federal, and international. Actions at one level can influence what goes on at other levels. Understanding these interactions is critical to devising good influence strategies. 83
  • 84. PLATFORM 3: VII (5) Hybrid Strategies Model 5. Linked games  Many influence games also have both value-net and public interest components. A merger, for example, needs government approval; it may also elicit the opposition of environmental groups. Thus it is often essential to understand and manage linked games. 84
  • 85. PLATFORM 3: VII (5) 5 Strategies and Counter-Strategies 1. Imitation: 1. Forestalling Imitation:  Companies seek to imitate  Businesses seek to protect others‟ successful their intellectual property products, processes, and from imitation through systems while preventing patents, copyrights, and imitation of their own. trademarks and by designating critical information as trade secrets. Companies often turn to the courts to referee disputes over intellectual property. 85
  • 86. PLATFORM 3: VII (5) 5 Strategies and Counter-Strategies 2. Combination: 2. Blunting Combination:  Companies seek to increase  Businesses seek to prevent concentration within their competitors‟ strategic industry, and their own combinations by raising position in it, by acquiring or antitrust questions or merging with other challenging deals in court. businesses. Competitors Sometimes businesses form (and affected customers and coalitions with competitors, suppliers) may seek to block customers, and suppliers for these moves. this purpose. Even if they fail to kill the deal outright, antitrust authorities may demand substantial concessions in order to approve the deal. 86
  • 87. PLATFORM 3: VII (5) 5 Strategies and Counter-Strategies 3. Shutout: 3. Winning Standards Wars:  Companies seek to have  Governments can play their own technologies central roles in standards accepted as standards, wars. Sometimes winning a shutting out competing government contract to technologies. Developers of develop a new technology competing technologies represents an inside track to engage in “standards wars”. establishing a technology as a standard. In other cases, governments may favour domestic standards over foreign ones or one domestic standard over another. 87
  • 88. PLATFORM 3: VII (5) 5 Strategies and Counter-Strategies 4. Entry: 4. Deterring Entry:  Companies seek to enter  Businesses seek to deter or new markets, either alone or delay competitors‟ entry into in alliances or joint ventures. a market by calling on Their products or services governments. Government may essentially duplicate may also prevent incumbent existing offerings, or they companies from taking may offer attractive actions to discourage the substitutes based on entry of new competitors. different technologies. Companies whose markets are threatened attempt to exclude potential competitors and oppose their efforts to establish a beachhead. 88
  • 89. PLATFORM 3: VII (5) 5 Strategies and Counter-Strategies 5. Holdup: 5. Preventing Holdup:  Companies seek to promote  Governments may act to competition in their prevent companies from customer or supplier “holding up” their customers industries by encouraging or suppliers. Typically, the the entry of new companies, vehicle is antitrust review by development of substitutes, the Federal Trade and fragmentation of Commission in the U.S., the upstream and downstream Justice Department, or other industries through agencies. contracting practices. Customers and suppliers seek to prevent being “held up”. 89
  • 91. PLATFORM 3: VIII VIII Measure Progress & Returns 3 categories of Measure  Company-wide  Team  Individual Return on Innovation  = Sum [Cumulative net profits generated from new products Launched] -------------------------------------------------------------------------------------------- Research costs + Development costs + Incremental Production Investments + Initial Commercialization Pre-launch Costs 3 Purposes for Indices 1. Provide a snapshot in time of how well the innovation effort is progressing 2. Help calibrate the appropriate allocation of people resources & financial investments 3. Offer a diagnostic tool that can be used to pinpoint potential problem areas that might need fixing or shoring up 91
  • 92. PLATFORM 3: VIII Measure Progress and Returns  Top 10 Innovation Indices 1. Survival Rate (3 years) 2. Success or Hit Rate (3 years) 3. R&D Innovation Effectiveness Ratio 4. R&D Innovation Emphasis Ratio 5. Innovation Sales Ratio 6. Newness Investment Ratio 7. Innovation Portfolio Mix 8. Process Pipeline Flow 9. Innovation Revenues Per Employee 10. Return on Innovation 92
  • 93. PLATFORM 3: VIII Top 10 Innovation Indices1. SURVIVAL RATE (3 YEARS)  A measure of the harsh reality of market acceptance. Indicates how many commercialized new products are still on the shelf or in distribution after a three-year period. This index provides a bare-bones minimum look at how your new products are cutting it in the market. Formula Calculation:  Number of commercialized new products still on the market ------------------------------------------------------------------------------- Total number of new products commercialized 93
  • 94. PLATFORM 3: VIII Top 10 Innovation Indices2. SUCCESS OR HIT RATE (3 YEARS)  A measure of how well commercialized new products are performing financially relative to the original revenue or profit forecast. This metric provides insights on two different fronts. First, it indicates the accuracy of the process for forecasting new product revenues or profits, a process that takes place in the business analysis and market testing stages. Second, it provides a clear measure of the financial revenue or profit performance of all commercialized new products. A hit rate of more than 50-60 percent is excellent. Formula Calculation:  Number of new products exceeding three-year original revenue forecasts ------------------------------------------------------------------------------------------------- Total number of new products commercialized 94
  • 95. PLATFORM 3: VIII Top 10 Innovation Indices3. R&D INNOVATION EFFECTIVENESS RATIO  A measure that shows how much bang you‟re getting for your R&D buck. Of course, the measure does not provide a precise correlation because of the lag between R&D expenses and results. It is a good metric to use to judge whether you are spending enough in R&D and whether you are spending it wisely. It also shows whether R&D investments can successfully be converted into new products that yield a solid return in gross profits. The reason for tracking gross profits versus net profits is to avoid all the debate and usual “clutter” that is associated with sales and marketing costs. This way you can look more directly at the contribution from new products. Formula Calculation:  Cumulative three-year gross profits from commercialized new products ---------------------------------------------------------------------------------------------- Cumulative three-year R&D expenditures allocated solely to new products 95
  • 96. PLATFORM 3: VIII Top 10 Innovation Indices4. R&D INNOVATION EMPHASIS RATIO  A measure that clearly indicates how much of your total R&D investment is being allocated toward the development of new products. Depending on your innov- ation strategy and the importance of new products to your overall growth goals, this ratio can be adjusted appropriately. Usually, at least 50-75% of total R&D expenditure is dedicated to innovation when it has a high level of importance. Formula Calculation:  Cumulative three-year R&D expenditures allocated solely to new products ---------------------------------------------------------------------------------------------- Cumulative three-year R&D expenditures 96
  • 97. PLATFORM 3: VIII Top 10 Innovation Indices5. INNOVATION SALES RATIO  This measure indicates the overall magnitude of your innovation efforts compared to the total company revenue size. If innovation is important to growth, this ratio will usually be 15-25 percent or more annually. Formula Calculation:  Cumulative third-year annual revenues generated from commercialized new products ------------------------------------------------------------------------------------------------- Total annual revenues 97
  • 98. PLATFORM 3: VIII Top 10 Innovation Indices6. NEWNESS INVESTMENT RATIO  A measure that indicates the level of investment being allocated to totally and radically new innovations. This metric should be examined in concert with the innovation portfolio mix. Formula Calculation:  Cumulative three-year expenditures allocated to new-to-world or -country products --------------------------------------------------------------------------------------------- Cumulative three-year new product total expenditures 98
  • 99. PLATFORM 3: VIII Top 10 Innovation Indices7. INNOVATION PORTFOLIO MIX  This measure gauges the percentage of and actual revenues coming from each type of new product commercialized. Usually 30-40 percent of new products are in the new-to-the-world and new-to-the-company categories if a truly balanced portfolio is to be maintained. Formula Calculation:  Percentage of new products (by number and revenues) commercialized by type:  New-to-the-world, -country  New-to-the-company  Line extension  Product line improvements  Repositioning 99
  • 100. PLATFORM 3: VIII Top 10 Innovation Indices8. PROCESS PIPELINE FLOW  A measure that provides a snapshot of how full the new product development pipeline is. It is based on your company‟s historical conversion factors in terms of how many concepts are typically needed to yield a commercialized new product. It gives you a fairly good way to project the number of future commercialized new products that your current pipeline will generate. Formula Calculation:  Number of new product concepts in each stage of the development process at year-end 100
  • 101. PLATFORM 3: VIII Top 10 Innovation Indices9. INNOVATION REVENUES PER EMPLOYEE  This ratio should continue to increase over time as the experience base of the people doing innovation increases. This measure also provides insight about the effectiveness of additional resource allocations. Formula Calculation:  Total annual revenues from commercialized new products ------------------------------------------------------------------------------------------------- Total number of full-time equivalent employees devoted solely to innovation initiatives 101
  • 102. PLATFORM 3: VIII Top 10 Innovation Indices10. RETURN ON INNOVATION  This is the grand-daddy measurement that provides a holistic look at the total return generated in terms of cumulative net profits from all innovation investments. Formula Calculation:  Cumulative three-year net profits from commercialized new products ------------------------------------------------------------------------------------------------- Cumulative three-year new product total expenditures (for all commercialized, failed, or killed new products) 102