Spotlight on Innovation Mr. Adam Walz, M.Ed., PDI Ninth House Mrs. Véronique-Sophie Bounaud, Axa May 18 th , 2010
What is Innovation? <ul><li>“ Innovation is the specific instrument of entrepreneurship…the act that endows resources with a new capacity to create wealth.” </li></ul><ul><li>— Peter F. Drucker </li></ul>
Climates for Generating Innovation Still Need Work — Mary O’Hara Devereaux, Human Resource Planning Society , April 2006 * Percent Strongly Agree
The Need for Innovation <ul><li>“ What’s likely to kill you in the new economy is not somebody doing something better, it’s somebody doing something different.” </li></ul><ul><ul><ul><ul><ul><li>─ BusinessWeek , Michael Bloomberg </li></ul></ul></ul></ul></ul>
Innovation Prevention: Organizational Hazards People learn very quickly which behaviors are rewarded in any system. Recognition/Rewards: “ This isn’t on your list of goals; we need you to focus.” Too many stakeholders can kill greatness. Structure/Hierarchy: “ We have to get buy-in from all levels before taking any action...” Initial negativity smothers ideas and opportunities before they can develop. Culture/Mind-Set: “ Let me just play devil’s advocate for a minute…”
Barriers to Innovation <ul><li>What are your organization’s biggest challenges to innovating? </li></ul>
Three Specific Questions <ul><li>What makes innovators different from other employees? </li></ul><ul><li>How can we increase our workforce’s innovative capacity? </li></ul><ul><li>How can enterprise 2.0 tools support the people-side of innovation? </li></ul>
What makes innovators different from other employees? Innovators have developed and honed a strong set of discovery skills.
The Innovator’s DNA Source: Dyer, Gregerson, & Christensen, The Innovator’s DNA. HBR December, 2009
"Everyone who has ever taken a shower has had an idea. It's the person who gets out of the shower, dries off, and does something about it that makes a difference.“ — Nolan Bushnell
How can we increase our workforce’s innovative capacity? 1. Engage the masses 2. Adopt innovation-friendly practices 2. Leverage individual differences 3. Align talent to your innovation cycles
1. Engage the Masses Source: McKinsey 2010 Global Survey. What successful transformations share
2. Adopt Innovation-Friendly Practices <ul><li>Dress code: “You must wear clothes”. </li></ul><ul><li>An organization that is flat, transparent, and non-hierarchical. </li></ul><ul><li>A company-wide rule that allows developers to devote 20% of their time to any project they choose. </li></ul><ul><li>“ Keep the bozos out” and reward people who make a difference. </li></ul>Source: Gary Hamel, “Management à la Google,” WSJ, April 26, 2006.
<ul><li>ROWE – “Results-Only Work Environment” </li></ul><ul><li>Productivity is up an average 35% in departments that have switched </li></ul><ul><li>Factoid: It wasn't imposed from the top down. </li></ul><ul><li>Created CultureRx – subsidiary to help other companies go clockless. </li></ul><ul><li>Next Challenge: Implement ROWE in stores. </li></ul>2. Adopt Innovation-Friendly Practices Source: Michelle Conlin, “Smashing the Clock,” BusinessWeek, December, 2006.
<ul><li>Workers set own hours, pay, and hire boss </li></ul><ul><li>All jobs are 6-month temporary assignments. </li></ul><ul><li>Employees elect the corporate leadership and initiate moves into and out of new/existing businesses. </li></ul><ul><li>No org charts, no five-year plans, no dress code, no titles, no offices, no administrative assistants, no HR department. </li></ul>2. Adopt Innovation-Friendly Practices Source: Ricardo Semler, “The Seven-Day Weekend,” Portfolio Hardcover Publishing, 2004.
3. Leverage Individual Differences High Risk Taking Low High Low Creativity Challenger Innovator Practicalizer Sustainer Modifier Synthesizer Planner Dreamer The Creatrix ® Model — Creatrix®. A Richard Byrd Company, 2005.
4. Align Talent to Your Innovation Cycles Source: Geoffrey Moore, Dealing with Darwin Core Context Mission Critical Non-Mission-Critical Manage Mission-critical Processes At Scale Extract Resources To Repurpose For Core Invent Differentiated Offering Deploy Differentiation At Scale IV III II I Deploy Invent Offload Manage Fund next innovation
How can enterprise 2.0 tools support the people-side of innovation? Enterprise 2.0 tools are capable of creating greater transparency, knowledge-sharing, community, and accountability.
Case Study: Qualcomm Our goal was to deliver an innovative learning program that would instantly engage participants and develop strong leadership skills. One of our challenges was to create a program that participants would find immediately valuable and that would be highly relevant for their roles. 15,500 EMPLOYEES, WIRELESS COMMUNICATIONS SCALABLE, ENGAGING, BLENDED LEARNING DEVELOPMENT PROGRAM FOR HIGH-POTENTIAL LEADERS RESPONSIBLE FOR MAJORITY OF REVENUE, AND CRITICAL TO BUSINESS SUCCESS 52% INCREASE IN SKILL LEVEL AND/OR KNOWLEDGE FOLLOWING COMPLETION OF PROGRAM; SCALED TO FIT GLOBAL DEVELOPMENT NEEDS; LEVERAGED TECHNOLOGY TO CONTROL COSTS