Driving business growth through Innovation. employee engagement, and academic/community/NGO strategic cooperation: 1. The need for proactive and intentional innovation, the critical importance of the role of the leader in setting Innovation as a enterprise priority/formal strategy, creating/maintaining an "innovation culture," having an innovation system, and executing both exploitive and exploration innovation 2. Making "employee engagement" a key priority and component of enterprise Human Capital strategy and to be included in the overall company strategy -- knowing the drivers, and having metrics (Global employee engagement is 13%: "engaged employees are involved in, enthusiastic about, and committed to their work and workplace" ) 3. Working and partnering with Business Management Academics and private/public partnerships to collaborate on business and community growth objectives, and for business professionals to better leverage "evidence-based" management data (e.g. the Academy of Management in US)

1. Global Drucker Forums
Vienna, Austria
2014 - 2016
Key Takeaways — Implications for Management
“Tell Me What You are Going to Do on Monday That’s Different”?
November 22, 2016
Mark Beliczky
The Carlyle Group
Washington, DC/New York, NY

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Favorite Viennese Talent Exports
Dame Stephanie Shirley (1933 - )
Software start-up in the 60s in England
Employed domestic part-time female employees
Company Valued at $3BN
70 staff members became millionaires
Peter Drucker: Father of Management Theory (1909 - 2005)
Author of 39 books over a period of 60 years
Writer, professor, management consultant and self-described “social ecologist”
Annual Global Drucker Forum - Vienna
Recipient of the US Presidential Medal of Freedom - Highest Civilian Award
Maria Amalia Deutschmann (1888 - 1979)
Governess/Educator: Budapest & Vienna
Family Matriarch
Global Mindset

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Innovation
“Creating Products and Services that Make Life Better”
Companies typically spend only 5% of time & resources on innovation HBR, Sept. 2014
Innovation: formerly “less fashionable”, today more a business imperative
“…Innovation has become the core driver of growth, performance and valuation.” McKinsey & Co.

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50 Smartest Companies 2016
MIT Technology Review:Top 10
Amazon (Seattle WA) $337BN valuation, Internet/Digital Media
Baidu (Beijing, China) $55BN, Internet Search and Ad Sales
Illumina (San Diego, CA) $20BN, World’s Largest DNA Sequencing Company
Tesla Motors (Palo Alto, CA) $28BN, Transportation
Aquino Energy (Pittsburgh, PA) $190MM capital raised, Batteries
Mobileye (Jerusalem, Israel) $8BN, Computing and Communication
23andME (Mountainview, CA) $1.1BN, Biotech - DNA Sequencing
Alphabet (Mountainview, CA) $491BN, Internet/Social Media
Spark Therapeutics (Philadelphia, PA) $918MM, Genetic Disease Treatment
Huawei (Shenzhen, China) Private, Computing/Communications/Mobile Devices

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10th Annual “50 Most Innovative Companies”
Boston Consulting Group
Top 5: Apple, Google, Tesla, Microsoft, Samsung
5 of Top 10 Non-Tech
Toyota, BMW, Daimler rank in Top 10
75% of Top 50 Non-Tech: Japan’s FastRetailing, Disney, Marriott
Chinese companies have not made inroads
Top 50 Global:
29 US
11 Europe
10 Asia
“Speed in Innovation” is on the Rise
#1 Obstacle to Innovation — Overly Long Development Times

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4 Underpinnings of Innovation
BCG 2015
Emphasis on Speed
Well Run, Lean R&D Processes
Use of Technological Platform
Systematic Exploration of Adjacent Markets
Dr. Christie Nordhielm, University of Michigan
Nike example and industry model/benchmark for market expansion — golf

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Leadership and Innovation
McKinsey & Co.
70% of Leaders Say Innovation Will Be a Top 3 Driver of Growth in Next 3-5 Years
65% of Executives Were Somewhat/Little/Not at All Confident About the Decisions They Make About Innovation
94% Say That People and Corporate Cultures Are the Most Important Drivers of Innovation
<50% Indicated That Innovation is Part of Their Strategic Planning
Top 2 Motivators of Behavior to Promote Innovation
Strong leaders who encourage and protect
Top executives who spend their time actively managing and driving innovation

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The Building Blocks of an Innovation Organization
McKinsey & Co.
Integrate Innovation into the Strategic Management Agenda
Make Better Use of Existing & Untapped Talent for Innovation
Foster an Innovation Culture Based on Trust
People Understand their Ideas are Valued
Trust that it is Safe to Express Ideas
Oversee Risk Collectively

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Steps to Advance InnovationMcKinsey & Co.
Define the Kind of Innovation that Drives Growth and Helps to Meet Strategic Initiatives
Add Innovation to the Formal Agenda at Regular Leadership Meetings
Set Performance Metrics & Targets for Innovation

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Global Innovation Index
A Macro Global View
Bloomberg
6 Tangible Activities that Can Contribute to Innovation
R&D
Manufacturing
High Tech Companies
Post Secondary Education
Research Personnel
Patents
Top Countries
S. Korea
Japan
Germany
Finland
Israel
US
Sweden
Singapore
France
UK

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Employee Engagement
“Involved in, enthusiastic about, and committed to their work and workplace.”
Gallup Global Employee Engagement Survey (2000-2015)
“A highly engaged workforce means the difference between a company that outperforms its
competitors and one that fails to grow.”
Employee Engagement 2015: 13% Globally

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Engaged Employees
Rating of Workplace Elements
Having an Opportunity to Do What They Do Best Every Day
Having someone at Work Who Encourages Their Development
Believing Their Opinions Count at Work
“Engaged Employees are Involved in and Are Enthusiastic about and Committed to Their Work.”
— 2015 Gallup Tracking Interviews

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Disengaged Employees
Who they are and what they do…
Not Hostile or Disruptive
Show Up and Kill Time
Do the Minimum Required with Little Extra Effort to Go Out of Their Way for Customers
Less Vigilant
More Likely to Miss Work
Change Jobs When New Opportunities Arise
Thinking more about Lunch or Their Next Break

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Ways to Improve Engagement
Integrate Engagement into the Company’s Human Capital Strategy
Use Scientifically Validated Instruments to Measure
Understand Where the Company is Today and Where it Wants to Be
Align Engagement With Other Workplace Priorities

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Benefits of Improving Employee Engagement
“Research Reveals — Engaged Employees Have 5X Higher Shareholder Returns After 5
years” (Business2Community)
“Businesses with employee Engagement Scores Within the Top 25% Have 70% Fewer
Safety Incidents Than Those in the Bottom 25%.” (2016 Gallup Meta-Analysis Study)
“Companies with Engaged Workers Have 6% Higher Net Profit Margins.” (Towers Perrin)

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Driving Convergence: Business, Academia and Government
Resources, Experiences and Expertise to Share and Leverage…
Business and/with Academia
“They are like oil and water because they have different goals. Researchers are striving to find truth and
somebody working in the company is striving to find profit. The researcher wants to disclose his/her
findings to the wider world and the company does not necessarily want that.”
Dr. Mark Ebers
University of Cologne

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Business/Academic Centers of Excellence
Microsoft-Cisco-Intel - University of Melbourne
Aalto University Formal Business Partnership Programs, Finland
BP’s Energy BioSciences Institute - UC Berkeley
Audi’s Ingolstadt Institute - TU Munich
Karolinska Institute, Sweden
California Institute for Telecommunications and Information Technology - UC San Diego, UC Irvine
IBM - ETH Zurich
SKM - Imperial College London
GE Global Research - Munich
Siemens - TU Berlin, MIT
Nokia - Aalto University, UC Berkeley

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Insights From The Science/Business Innovation Board
Bringing Together Europe’s Leading Innovators, in Industry, Academia and Policy…
“Where companies and universities work in tandem to push from tiers of knowledge they
become a powerful engine for innovation and economic growth.”
“…dense web of rich and long-running collaborations in the region have given rise to new
technologies and a break neck pace and transformed industries while modernizing the role of the
university.”
“Today’s universities largely embrace a model of higher education developed over 100 years
ago. A new vision should include producing the highly-skilled workforce for a globally competitive
economy.”

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Collective Future Vision for Business Education: AACSB International
Dr. Santiago Iñiguez, Dean and Professor of Strategic Management at IE Business School, Board Chair od AACSB International
5 Main Roles for Business Schools in Society Going Forward
Acting as Catalysts for Innovation
Co-Creators of Knowledge
Hubs of Life-Long Learning
Leaders on Leadership
Enablers of Global Prosperity

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Closing the Research-Practice Gap: Evidence-Based Management (“EBM”)
Managerial Decisions and Organizational Practices Informed by the Best Available Scientific Evidence
Key Benefits of EBM
Improved Managerial Decision Making/Outcomes
Reduces the Use of Ineffective Management Practices
Well-Informed Managers Developing Substantive Expertise
Brings Together Scholars, Educators and Management
Practitioners

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Evidence-Based Management (“EBM”)
Managerial Decisions and Organizational Practices Informed by the Best Available Scientific Evidence
Business Students Often Give More Attention to Colorfully Written,
Unsubstantiated Opinion Than to Less Vivid Research Evidence
Management Field Lacks a Repository/Community Which Translates Evidence
into its Implications
Best Practice Examples: Medicine and Policing
More and More Management Scholarly Research Includes “Practice Implications”

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EBM Case Study
Google: Project Oxygen
Google Historical Belief of Manager Success: “Deep Technical Expertise”
Bosses Left Their People Alone and They Helped Mainly with Technical Support
Google Chose to Dig Deeper and Conduct Research
Accumulated and Analyzed 10,000 Observations About Managers

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Google: Project Oxygen
Key Findings
Behaviors of Highly Effective Managers (rank order)
1. Be a Good Coach
2. Empower Your Team and Don’t Micromanage
3. Express Interest in Team Members’ Success and Personal Well-Being
4. Don’t Be a Sissy: Be Productive and Results-Oriented
5. Be a Good Communicator and Listen to Your Team
6. Help Your Employees with Career Development
7. Have a Clear Vision and Strategy for the Team
8. Have Key Technical Skills

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Google: Project Oxygen
Key Findings Continued…
Outcomes
Early Adopters Led Top-Performing Teams
Happier Employees
Lower Employee Turnover
Statistically Significant Improvement in Manager Quality for 75% of Worst Performing
Managers
CEO Alignment
Speed Up Decision-Making
Simplify Management
Recapture Nimbleness and Innovative Spirit

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Partnership Potentials of Business and Governments/Society
Business Partnership Action (BPA)
Hubs/Centers for Excellence — Bringing/Working Together
Government
Business
Donors
UN
NGOs

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UN Post 2015 Sustainable Development Goals
5 Action Areas: Business, NGOs, Government, UN and Communities
Building Trust Across Sectors
Open and Inclusive Planning & Development
Create In-Country Multi-Stakeholder Platforms
Partnership Best Practices
Build Institutional Capacity for Partnering
The Partnering Initiative: Dr. Darian Stibbe
Supporting and Building Partnerships to Achieve Prosperous, Inclusive
and Sustainable Business and Society

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“What I Decided to Do Differently Monday Morning”

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New and Emerging
Drucker Forum 2016
Blockchain: 2nd Era of the Internet (Ethereum Platform)
Distracted Management
Struggle Stories vs. Achievement Stories: Do Not Have to Be a Genius
Fix vs. Growth Mindsets: Dr. Carol Dweck

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“Management is doing things right; leadership is doing the right things.”
Peter Drucker
Mark Beliczky
The Carlyle Group
markbeliczky@gmail.com
571-228-2341