Driving Creative Innovation


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In today's knowledge worker environment, the need to share and leverage knowledge and insight is critical to success. Here I discuss creative innovation and key elements for success.

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Driving Creative Innovation

  1. 1. Driving CreativeInnovation by Steve Massi
  2. 2. Overview•Today’s brand environment is more challenging than ever•Brands are looking for ways to drive business impact faster and more efficiently•The needs to access, integrate and activate new capabilities and platforms are growing rapidly•The advent of social media has accelerated this demand•This presentation will lay out the foundations of creative innovation, what it is, why it is important, key elements and must do’s for success
  3. 3. What is Creative Innovation & Why?
  4. 4. What is it – some examples •Reynolds Wrap packet cooking –A new use for an existing product that drove profitable revenue and established a cultural framework for explosive new product development •Apple’s iPod –A combination of existing elements/technologies, brought together in a usable, beautiful way that exploded a category (MP3 players)Photos courtesy of: Reynolds/Alcoa, Apple
  5. 5. What is it – some examples •Old Spice communication campaign – Revitalized an old brand name by shifting target customer (male to female) and changing typical development and approval processes to create personal customer engagement and excitementPhotos courtesy of: Old Spice
  6. 6. What is innovation?•What is Innovation? – Change that creates a new dimension of performance. Peter Drucker (Hesselbein, 2002)
  7. 7. What is innovation? •Innovation is not invention – Invention can be an idea, a great idea – Most inventions or ideas fail because they do not drive profitability of ROI – Most companies focus on ideas or inventions – Innovation drives economic value* •In economics the change (innovation) must increase value, customer value, or producer value** •The term innovation may refer to both radical and incremental changes to products, processes or services. The often unspoken goal of innovation is to solve a problem***Knowledge@Wharton-Sirkin**Wikipedia
  8. 8. Why creative innovation?•Any aspect of our business requires direct or indirect sensitivity to creativity•Knowledge, insight, skills and motivation should embrace the driving concept of creativity•All areas must strive not just to ideate or invent, but to innovate
  9. 9. The elements of creativity Expertise/ Creative knowledge thinking skills Creativity MotivationHarvard Business School
  10. 10. Key Elements of Creative Innovation
  11. 11. It starts with knowledge and insight •Creativity and innovation start with knowledge and insight* – More than topline knowledge, which can drive idea generation – Must be deep customer insight that reveals true need*Knowledge@Wharton- Huston
  12. 12. The role of tacit knowledge •Tacit knowledge has been found to be a crucial input to the innovation process. A society’s ability to innovate depends on its level of tacit knowledge of how to innovate.* •Most service industries driven by “tacit interactions, activities and tacit knowledge” – By definition, tacit knowledge is knowledge that people carry in their minds and is, therefore, difficult to access. Often, people are not aware of the knowledge they possess or how it can be valuable to others. Tacit knowledge is considered more valuable because it provides context for people, places, ideas, and experiences. Effective transfer of tacit knowledge generally requires extensive personal contact and trust.**Wikipedia
  13. 13. Various industries and levels of tacit knowledge Where marketing fitsMcKinsey
  14. 14. Improving tacit interactions •Companies boost productivity by improving the efficiency of transformational activities (such as the extraction of raw materials) or of transactions (for instance, the work of the clerks in the accounts-payable function)… •But the productivity of marketing managers and lawyers can’t be raised by standardizing their work or replacing them with machines* •Companies can analyze work done in processes and root out wasteful activities so employees do more in less time. But companies don’t improve tacit interactions by forcing salespeople (or other tacit workers) to follow a uniform procedure.**McKinsey
  15. 15. Improving tacit interactions •Managing for effectiveness in tacit interactions is about fostering change, learning, collaboration, shared values and innovation* •Consistent, high-quality tacit interactions have a dramatic impact on innovation and economic value*McKinsey
  16. 16. For highly tacit, better interactions = better results High performer Managing tacit interactions has dramatic financial impact Low performerMcKinsey
  17. 17. Improving tacit interactions •Top performers have figured out that by managing tacit interactions more effectively, they can create competitive advantages that rivals in their sectors find hard to match…**McKinsey
  18. 18. Managing tacit interactions for creative innovation •To enable and encourage an environment where tacit interactions and knowledge sharing can flourish and grow – What needs to be done? – What incentives are needed?
  19. 19. What Needs To Be Done
  20. 20. We need to move from this Digital Technology Product Research Dev Knowledge/insight Account Sales Creative PR/Media Working off the same knowledge points But With A Silo’d, Diffuse Effort
  21. 21. To this Digital Technology Product Research Dev Knowledge Insight Account Sales Creative PR/Media Powerful innovation driven by disciplined collaboration
  22. 22. Collaboration – A Key Behavior for Innovation
  23. 23. Collaboration - a key behavior for innovation •A key enabler of tacit interactions is Collaboration – the recursive interaction of knowledge and mutual learning – between two or more people working together – toward a common goal, typically creative in nature (Wikipedia) Cooperation Coordination Collaboration * Lower Intensity Higher Intensity Short term, Informal relationships Longer term effort around a project Durable and pervasive relationships Shared information only Some planning and division of roles Common structure and commitment to common goals Separate goals, resources, and Some shared resources, rewards, and All partners contribute resources and structures risk shared rewards and leadership*AFRL
  24. 24. Collaboration - a key behavior for innovation •There are four working types of collaborations*: –Progressive collaboration • Communities of practice, knowledge-sharing sites, inter- organizational networks –Self-Organizing collaboration • Facebook, Twitter, LinkedIn, Yahoo groups –Remedial collaboration • Innovation or problem-solving teams, task forces, informal workarounds –Oppositional collaboration • Electronic caucuses, rumor mills, external associations*Accenture
  25. 25. Collaboration - a key behavior for innovation •And each brings different value*: –Progressive collaboration • Produces value indirectly, largely by adding depth to the understanding of a process or an activity that directly creates value –Self-Organizing collaboration • Helps people discover the common interests that often serve as the precursor to value creating activity –Remedial collaboration • Helps achieve value when a system is incapable of monitoring and correcting itself –Oppositional collaboration • Usually destroys value or dissipates it*Accenture
  26. 26. Collaboration - a key behavior for innovation •Enabling and encouraging a Collaborative Work environment has many benefits: – Creates tacit interactions – Improves tacit knowledge transfer – Broadens capabilities and expertise – Helps overcome locked-in ways of approaching problems – Encourages team participation – Improves morale and a sense of belonging – Utilizes human capital more effectively – Creates an innovative work environment and culture
  27. 27. Creating The Right Environment
  28. 28. Formalizing collaboration •Creating an insight driven, collaborative culture – Successful collaboration is based on three key principals – inclusion, motivators/incentives, alignment • You can’t collaborate if you don’t include • Create incentives supporting the right motivators • Alignment in/of decision making is crucial
  29. 29. Include the right people •Diversify by responsibility and personality at different points in the process –Encourages flexibility and imagination, discourages Groupthink –Include to make better decisions, provide better quality implementation, speed implementation of decision making •Experiment with the numbers –In research of Broadway musicals, seven is an optimal number for musical creation* –Different situations will require different resources* Brian Uzzi, Northwestern University’s Kellogg School of Management (Edward Boches , 10 rules for modern collaboration )
  30. 30. Create incentives to encourage collaboration •Most organizations use the “carrot and stick” reward system only to find it ineffective* •Knowledge workers are driven by higher order motivational needs*: –Purpose • Driven by a common cause or greater unifying purpose –Mastery • Desire for continual learning and improvement –Self-sufficiency/autonomy • Ability to perform at a high level and take responsibility for one’s actions*Daniel Pink: Drive, The surprising truth about what motivates us
  31. 31. Establish effective decision making •Increased collaboration requires disciplined decision making •Must establish criteria: –What is the decision to be made • Frame and split into sub-decisions if necessary –Who will play what roles • RASCI, RAPID, etc. –How will decisions be made • Voting, Directive, Consultative, Alignment –When must the decision be made • Consider execution and resource implementation as well
  32. 32. Summary
  33. 33. Driving creative innovation Deep insight Implement or Identify challenge or Prototype/test problem Collaboration to improve tacit interactions Development Alignment skills/tools towards SCAMPER, common goal brainstorm, or purpose etc. Establish parameters for decision making
  34. 34. Implications for brands •Team members must know the business reasons for collaboration - improve the frequency and quality of tacit interactions to drive innovation and economic value for clients and company •Consider investments that foster insight gathering, collaboration and tacit interactions – Information gathering and sharing tools/platforms, including social platforms – Employee training for improved collaboration and engagement – Behavior and outcome based benchmarks and measures for success
  35. 35. Thanks Please feel free to share or contact me • Steve Massi • stevemassi@verizon.net • linkedin.com/in/stevemassi • twitter.com/stevemassi • stevemassi.posterous.com