Establishing an innovation programme in the Government Context

Establishing and Innovation Programme
In the Government Context
An Innovation Catalyst™ Seminar
Prepared and Presented by
Marcus Tarrant
Managing Director
Mission HQ Pty. Ltd. ATF the Innovate Trust

Contact Details
Marcus Tarrant
Managing Director
Mission HQ Pty. Ltd. ATF the Innovate Trust
Marcus.tarrant@missionhq.com.au
+61 3 9005 9710
www.missionhq.com.au
© Mission HQ Pty. Ltd. All Rights Reserved
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Copyright ©2010 Mission HQ.
The format, structure and communication technique utilised in this document are the intellectual property of Mission HQ Pty. Ltd.
This document is strictly classified as “Commercial in Confidence” and intended only for recipients expressly authorised by Mission HQ. Any modification or distribution under altered expression, by any means, in its entirety or in parts, to any person without written approval from Mission HQ is expressly prohibited.
Natural Persons or bodies corporate may not copy, retransmit, distribute, publish or otherwise transfer any copyrighted material to third parties or contractors without the express permission of Mission HQ.
This document is intended to reflect MISSION HQ’s high-level overview of the Innovation process. It does not constitute formal professional advice or a recommendation to potential licensors, tax advisors, inventors or other third parties as to a course of action in respect of the processes addressed, and should not be relied on as such. All care is taken in the preparation of this document but MISSION HQ bears no responsibility as to the contents of this document and disclaims any liability with respect to its use or misuse.
Intellectual Property & Disclaimer

Seminar Agenda
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Some inspiration
Innovation is ugly, awkward, clunky, difficult and unknown. It lurks in garages, labs, fields, offices , cafes, pubs, the back of envelopes and around kitchen tables. Innovation is not about answers, but about finding the right problem. An innovation journey will take you through many loops, dead ends, and stale mates. It will force decisions you would rather not make. Innovation is a journey that changes both the destination and the traveller. Where will your journey begin?
By Marcus Tarrant
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About Mission HQ Pty. Ltd.
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Some recent past clients of Mission HQ and the team:

Mission HQ Overview
The team have undertaken the following projects
Federal and State Government
Department of Defence (DSTO) – Technology Transfer Advisory Group
Department of Industry and Resources (WA) – Investor Ready Programme Design and Opportunity Evaluation Framework
Department of Land ‘Landgate’ (WA) – Innovation programme design, and commercial engagement programme (Business Associations), technology commercialisation programme
CSIRO – IP management process
NICTA – Audinate Capital Raising 4.2m
CRC’s
CRC-ACS, CRC for Polymers, Dairy CRC
VC’s
Innovation Capital, Starfish Ventures – Austhink, Audinate, Ceram Polymerik etc.

How can we help?
Innovation programme review
Innovation training and workshops
Ideation sessions
Innovation process design and integration
Opportunity assessment frameworks
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Quote
`“There is no sausage crank for innovation, but it’s possible to increase the odds of a ‘eureka!’ moment by assembling the right ingredients”.
By Gary Hamel
economic growth and social development are the result of invention and innovation, i.e. the result of systematically applied knowledge.
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Innovation in the public sector
Innovation in public services is very important, but unfortunately receives little study.
Most research and analysis into innovation is at a policy facilitation level or focused on the private sector
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What is innovation?
Mini workshop – Creating an innovation mood board.
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What is an innovation Programme
Mini workshop – What does an innovation programme mean to us?
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Some more ideas on innovation
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Some macro drivers in public sector innovation
Political Environment
Changing public needs and modes of operation
Changing policy , regulation and compliance requirements
Reduced budget allocation
New technologies
Privatisation of government services
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A new perspective on Innovation
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You’re already doing it!
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BAU
Projects

Our dynamic innovation model
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BAU
Environ.
Strategy
Programmes
Projects

Understanding Innovation
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Breaking down the innovation models
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Workshop - Models of Innovation
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Open Innovation
Closed Innovation

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Innovation Programme Design
The Innovation Hexagon™
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The Innovation Hexagon™
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2. Process
1. Structure
Innovation Programme
Design
6. Skills
3. Information
5. Technology
4. Culture

1. Structuring for Innovation
Incentives
Org Structure
Programme Management
Budget
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1.A. Incentives
Incentives can be complex in government environments:
Numerous human resources issues
Budgetary issues
Unions and impact of rewarding individuals
Try to be creative:
A letter from the director rewarding outstanding performance
Invest in the idea, but make it public
Public recognition and support of innovative ideas
Offer more time to spend on innovative projects
Small Gifts (Movie and dinner tickets)
Create competitions
Attendance at conferences
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1.B. Organisational Structure
Break down silo’s
Enable cross functional and cross level teams
Allocate time (Innovation doesn’t just happen)
Get people from remote locations together
Hold offsite sessions to remove organisational constraints
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1.C Programme Management
Programme management ties your functions together.
A programme is the level at which benefits accrue.
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1.D. Budget
A great place to start is by centralising a project budget
Business Unit
Site
Department level
Selling innovation as something new is hard. The facts are that innovation is already a part of what you do.
All you are looking to do is give it a name and some support.
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2. Process
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Develop Vision and Strategy
Operational Processes
Define business concept and long term vision
Develop business strategy
Develop long term vision
Develop & Manage Products & Services
Manage product and service portfolio
Develop products and services
Market & Sell Products & Services
Understand markets & customers
Develop go to market approach
Develop sales strategy
Develop & manage marketing plans
Develop & manage sales plans
Deliver products & services
Plan for and acquire necessary resources
Procure materials and services
Produce/Manufacture/Deliver product
Deliver service to customer
Manage logistics and warehousing
Manage Customer Service
Develop customer care/customer service strategy
Plan and manage customer service operations
Measure and evaluate customer service operations
Develop & Manage Human Capital
Manage Information Tech.
Manage Financial Resources
Program & Portfolio management
Manage knowledge & improvement
Manage External relationships
Support Processes
Manage OH&S
Develop & manage HR
Manage information
Perform planning & mgmt acct.
Maintain project/ program methodology
Determine environment
Build Stakeholder relationsipos
Create & manage organisational performance metrics
Recruit, source & select employees
IT Customer relationships
Perform revenue accounting
Develop OH&S Programme
Manage Portfolio
Manage gov.& ind. relationships
Benchmark performance & manage change
Develop & Counsel
Continuity and Risk
Perform general acct. & reporting
Train & educate employees
Manage board relations
Manage Programmes
Reward & retain employees
Develop IT solutions
Manage fixed assets & proejcts
Monitor OH&S Programme
Develop enterprise wide knowledge management
Manage legal & ethical issues
Re-deploy and retire employees
Deploy IT solutions
Process Payroll
Ensure compliance
Manage Projects & resource allocation
Manage Innovation
Manage Public Relations program
Manage Employee info.
Support IT services.
Process payables & expenses.
Manage remediation

2. Sample innovation process: The Stage Gate
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2. Process Integration Points
Prince 2
PRINCE (which stands for Projects in Controlled Environments) was first developed by the UK government in 1989 as the standard approach to IT project management for central government.
PRINCE2 has been widely adopted and adapted by both the public and private sectors and is now the UK"s de facto standard for project management.
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2. Process Integration Points (Cont.)
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3. Innovation Information
Who are our customers?
What do they think of what we do?
What else could we do for them?
Internal K Base
Water Cooler
Intranet
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4. Innovation Culture
Meaningful work
understanding how each person’s activity fits with the overall strategy and goals.
Risk taking culture
tolerance of failure as a pathway to learning
Customer orientation
seeking to deliver value rather than just deliver.
Agile decision making
nothing kills a culture of innovation faster than slow decisions. Maintaining momentum is key
Organisational intelligence
having the ability to integrate requirements from a number of sources
Open communication
innovation often stems from cross functional collaboration
Empowerment
Providing a level of independence in decision making
Planning
Understanding and working with resource constraints
Learning organisation
the share and capture of new knowledge and encoding of existing knowledge.
Books
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Some Crowd-sourced thoughts
Create diversity
compelling need | relevance;
Innovation drives culture (opposite to: culture drives
innovation)
Foundation, risk aversion
Intangible, language key determinant
Fearful cultures crush innovation
What goes on when management is not looking?
Ability to make mistakes
How do you react to failures?
Relaxed environment - Physical environment
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More Crowd-sourced thoughts
Innovation and risk taking – willing to experiment, take risks, encourage innovation
Outcome orientation – oriented to results vs oriented to process
People orientation – degree of value and respect for
people. Are people considered unique talents, or is an engineer an engineer
Individual vs Team orientation – are individuals most highly noted, or are collective efforts
Aggressiveness -- taking action, dealing with conflict
Stability – openness to change
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5. Technology
What support tools do we have?
Intranet
Innovation Portal
State government innovation resources
Federal innovation resources
The web
Software programmes?
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5. Technology
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5. Technology
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5. Technology
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5. Technology
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6. Skills
What training resources do we have:
Attendance at conferences and events
Onsite bespoke training
Access to reading materials (online subscriptions)
Books on innovation (The Innovation Library)
Internal blogs on innovation (Intranet)
Postings and articles online
Power users
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Where to focus and where not to focus
when establishing an innovation programme
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Where to focus
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Where to focus (Cont.)
A formal proposal evaluation process that involves all relevant functions
Escalation mechanisms to defend rejected ideas, sending them to the innovation leader
Cross functional sponsors assigned to each idea
Idea tracking from inception to implementation
Process discipline and continuous visibility of idea sharing status
Supplier reward system to ensure suppliers are fairly rewarded for ideas that contribute to sustainable business success.
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Where not to focus
Wrong Motivation.
Disgruntled employees looking for a way to vent their issues.
Lack of Training.
Don't’ assume that employees know how to generate innovative ideas.
Incremental Innovation.
Employees tend to only generate ideas related to their immediate sphere of influence.
Often cross functional or cross process ideas generate the greatest ROI
Irrelevant to Customer Needs.
No mechanism for incorporating the voice of the customer
Irrelevant to organisational Needs.
No alignment between the ideas and organisational strategy or policy
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Where not to focus
Too Many Ideas and Poor Processes.
Most ideas never go anywhere (often for good reason), this leads to employees feeling despondent
Overwhelmed Managers.
An unpopular policy or faulty process can lead to a deluge of almost identical ideas, leaving the innovation manager overwhelmed.
Lack of Transparency.
A suggestion box is not transparent.
Lack of Oversight.
Often a selected idea is given to others to manage through the delivery process
Wrong Message.
They encourage limited, anonymous ideation in isolation and without any feedback, as opposed to open and collaborative ideation that leads to breakthrough innovation and adds real value.
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Some real roadblocks to innovation
FUD – fear, uncertainty, doubt
Trust – talking to right people
Funding – budget
Lack of needs identification
People – biggest roadblocks: resistance to change | corporate culture
Lack of knowledge and listening
Bureaucracy – political process
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Implementing an Innovation Process
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Planning Your Innovation Programme
What do we want to achieve from an innovation agenda?
What can we learn from other innovation models and experiences?
Why has it taken us so long to get our innovation programme moving?
How will resource the programme and fund associated initiatives?
How will we prioritise our projects?
What kinds of innovation are we looking for, how do we know if it is “good”?
What capabilities do we posses in house?
What capabilities do we lack and can these be supported via training?
Are we considering open or closed innovation models?
How does our innovation programme fit within our landscape of existing projects.?
Managing how will we manage competing priorities?
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Case Study
Our experiences with the WA Government
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what are intangible assets?
Programme Parameters
Leverage statutory authority status
>1m PA allocated for innovation programme establishment
Quick wins a core component of the early activity
Plan was to leverage existing Intellectual Assets initially and invest further in product development
Increase ROI on $110m allocation PA and reduce allocation over time.

The programme in their own words
The Innovation Program is a first for government in Western Australia. It is based on the research of best practice trends and information gathered from both internal and external sources, including public and private enterprises.
Many organisations have recognised the need for innovation and implemented a system with various degrees of success.
The challenge has been to develop a program that maintains the initial impetus and allows success to occur in a repeatable way.
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Why Innovate?
It is recognised by global businesses that the key to increasing commercial revenue and remaining competitive, and therefore sustainable, is innovation. Innovation harnesses enthusiasm and allows staff to be creative. It motivates people to be involved, by allowing them to be heard, and breaks down internal silos bringing people together to share ideas.
An innovation program allows for the incorporation of all our values; creativity, excellence, growth and learning, community, sustainability and celebration.
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Conclusions
Establishing an innovation programme is a journey not just a destination.
There needs to be support from the Corporate Executive and funding availability.
Innovation is a mindset not a business unit, although centralised funding is recommended.
The more people who are able to be involved the greater the momentum and the higher the chance of success.
Innovation cannot become a part of the culture if the lag between idea and production is too great.
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How can we help
Provision of innovation training services
Innovation process design and integration
Innovation programme establishment
Outsourced management of innovation programmes
Establishment of objectives and metrics for innovation management
Facilitation of the creation of an innovation culture.
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Establishing an innovation programme in the Government Context

by Marcus Tarrant

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