3 INNOVATION TALES
Tale 1: Pet Projects
by Julian Keith Loren
+1.510.396.0888
jkl@digiratti.com
www.linkedin.com/in/juliankeithloren

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Once upon a time there was a CEO.
He wanted to help his company grow and
beat its competitors.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 3

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
The CEO decided to implement a
Personal-Project or Pet-Project Program.
10% Your Own
90% Regular
Innovative Projects
Work
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 4

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
He knew that Pet-Project Programs were
yielding great results to some firms, and was
sure that it would be a huge success.
Google
Genentech
3M
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 5

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
The employees were very excited!
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 6

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
There was a Product Manager who wanted
to create an innovation that was sexy and
timeless—her great “product legacy.”
A
Venus di Milo
Lava Lamp
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 7

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
A Salesperson imagined a product that
would sell itself.
Self-Changing
Diapers
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 8

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
A Project Manager dreamed of
an innovation that was not innovative.
Innovation is
too unpredictable
and risky!
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 9

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
An Engineer thought of something really
cool and technologically complex.
A system that
allows users to
create virtual
museums of
places.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 10

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
A Financial Analyst imagined a product with
a huge margin & good ROI for the consumer.
Manufacturing
Cost: $0.50
Electronic Pet CPA. Sales Price: $29.95
Care for your CPA, and
it will give you
real tax advice.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 11

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
The Financial Analyst and the Product
Manager needed some help from Engineering
to complete designs and a prototype.
Can you help us?
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 12

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
But all of the Engineers had ideas of their
own that they had been waiting for years to
realize.
No way! Do it yourself!
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 13

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
So the Product Manager and Financial
Analyst left the company, and formed a very
successful new firm making Venus-di-Milo-
shaped Electronic Pet CPA Lava Lamps.
How many units did
we sell this month?
5.4 Bagillion.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 14

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
After a few quarters, the CEO reviewed the
results of the Pet Project Program.
In the Engineering Department, morale and
employee retention rates were at an all-time
high.
We love working here!
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 15

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
But much more than 10% of time was being
spent on pet projects, and few of the
resulting innovations looked like viable
products.
We love working on our stuff!
(And we don’t care if it sells)
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 16

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Many talented individuals from other
departments had left the company, and those
that remained had overwhelmingly negative
feelings about the Pet Projects Program.
It takes twice as
long to get
Engineering to do
anything now!
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 17

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
The CEO wondered why Pet Project Programs
had worked at those other firms, but not at
his company.
Hmmmm.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 18

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
While the he was thinking, two dragons
named “Shareholders” and “The Board”
arrived.
Hi, guys!
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 19

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
They roasted the CEO with their fiery breath,
and devoured him.
Ouch!
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 20

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Maybe the CEO should have tried an
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 21

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Each team has a member who can
help realize or prototype innovations.
Multi-disciplinary inputs produce
more robust INNOVATION SET,
rather than a single-faceted, lone innovation.
Each team has members who contribute ideas
related to fiscal viability and marketing.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 22

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Each team has a member who can
help realize or prototype innovations.
Multi-disciplinary inputs produce
a more robust INNOVATION SET,
rather than a single-faceted, lone innovation.
Each team has members who contribute ideas
related to fiscal viability and marketing.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 23

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Each team has a member who can
help realize or prototype innovations.
Multi-disciplinary inputs produce
a more robust INNOVATION SET,
rather than a single-faceted, lone innovation.
Each team has members who contribute ideas
related to fiscal viability and marketing.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 24

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Improve morale and foster a culture of innovation
across your WHOLE organization.
Build bridges across inter-departmental
communication and cultural gaps.
Generate clusters of innovations
that support each other and have
much better chances of successful realization
and broad, long-term adoption.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 25

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Improve morale and foster a culture of innovation
across your WHOLE organization.
Build bridges across inter-departmental
communication and cultural gaps.
Generate clusters of innovations
that support each other and have
much better chances of successful realization
and broad, long-term adoption.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 26

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Improve morale and foster a culture of innovation
across your WHOLE organization.
Build bridges across inter-departmental
communication and cultural gaps.
Generate clusters of innovations
that support each other and have
much better chances of successful realization
and broad, long-term adoption.
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 27

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Autonomous, Multi-Disciplinary Team Innovation
(AMTI) Programs can be powerful, but are not a
complete innovation solution.
AMTI can be great at creating a strong innovation
culture and improving morale & retention.
AMTI should always be implemented as part of a
comprehensive program covering the Full
Innovation Life Cycle℠
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 28

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Autonomous, Multi-Disciplinary Team Innovation
(AMTI) Programs can be powerful, but are not a
complete innovation solution.
AMTI can be great at creating a strong innovation
culture and improving morale & retention.
AMTI should always be implemented as part of a
comprehensive program covering the Full
Innovation Life Cycle℠
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 29

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Autonomous, Multi-Disciplinary Team Innovation
(AMTI) Programs can be powerful, but are not a
complete innovation solution.
AMTI can be great at creating a strong innovation
culture and improving morale & retention.
AMTI should always be implemented as part of a
comprehensive program covering the Full
Innovation Life Cycle℠
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 30

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Innovation Portfolio Management Innovation Measurement & Metrics
Innovation’s Role & High-Level Innovation Strategies
Innovators:
Innovation Organizational Culture
Recruiting, Rewarding,
Alignment Optimization Supporting FILC
Retaining
Orchestrated Rigorous Full Innovation Life
Iterative Design
Ideation Idea Cycle℠ (FILC) Innovation
through FILC
Vetting Effectiveness:
“Ideation,” & Dramatically Improving
Brainstorming, Strategic Rates of Realization and
High-Level Design
Idea Creation Grouping Broad & Viable Adoption
& Prototyping
Open Pet-Project Autonomous, Multi-Disciplinary
Innovation Programs Team Innovation
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 31

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
Innovation Portfolio Management Innovation Measurement & Metrics
Innovation’s Role & High-Level Innovation Strategies
Innovation is
AMTI just 1 small part Innovators:
Organizational Culture
Recruiting, Rewarding,
Alignment Optimization Supporting FILC
Retaining
of developing an effective
Orchestrated Rigorous Full Innovation Life
Innovation Management Design
Iterative
Ideation Idea Cycle℠ (FILC) Innovation
through FILC
Vetting Effectiveness:
Practice
“Ideation,” & Dramatically Improving
Brainstorming, Strategic Rates of Realization and
High-Level Design
Idea Creation Grouping Broad & Viable Adoption
& Prototyping
Open Pet-Project Autonomous, Multi-Disciplinary
Innovation Programs Team Innovation
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 32

3 Innovation Tales : Tale 1 : Pet Projects ROUGH DRAFT
If you would like to further explore what AMTI
and Full Innovation Life Cycle techniques
could do for your organization,
please contact:
Julian Keith Loren
+1.510.396.0888
jkl@digiratti.com
THE INNOVATION MANAGEMENT CONSULTING FIRM℠
1/1/2009 © 2009 Julian Keith Loren. All Rights Reserved. 33