Innovation, Transformation and Culture


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My recent presentation to an Innovation Council on the importance of culture, strategy and social approaches. It all comes down to relationships.

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Innovation, Transformation and Culture

  1. 1. Culture  Eats  Strategy  for  Lunch  Every  Time      September  13,  2012   Ayelet  Baron   h<p://twi<   H<p://      
  2. 2. We  Trust  Strangers   nt   onte SOCIAL  MEDIA   MASS  MEDIA  AGE   lish  c PRE  MEDIA  AGE   AGE   Consumers    dictate    pub Talk  face  to  face   Talk  face  to  face   ty  to Talk  to  shop  worker     Phone  call   Talk  to  shop  worker     abili Consult  a  professional   Readers  le<ers   r   ume Phone  in;  TV  /  Radio   Cons Religious  InsOtuOons,  state,   monarchy  dictate  the  agenda   h"p://   Professional  media  dictate   Consumer  influence  channels    
  3. 3. THE RELATIONSHIP IS NO LONGER LINEAR Transparent   Social  media:  MarkeOng  and  PR   RelaOonship   Social  business:  People  and   Agile   business  processes   AuthenOc
  4. 4. What  MoOvates  Us?    give me the give me give meprestige of something $10,000a new title I want to do
  5. 5. About Me Former  Chief  Strategist,  TransformaOon  and  InnovaOon   OrganizaOonal  Results   Key  Drivers  of  InnovaOon  •  From  #4  to  #2  Country  in  Cisco   Introduced  •  A  culture  of  firsts  and  innovaOon    •  Top  3  “Best  Company  to  Work  For”   •  ExperimenOng  culture   in  Canada  over  the  last  3  years   •  “Connected  North”  •  300  new  R&D  jobs  in  Canada   •  VerOcal  Rainmakers   facilitated  by  $25M  grant  from  the   •  Reverse  Mentoring   Province  of  Ontario  –  just  the  start   •  Create  a  truly  “social  business”  •  Advisor  to  Federal,  Provincial  and   •  Enable  the  “future  of  work”   City  Governments    
  6. 6. About Me
  7. 7. Community     A  group  of  people  with   unique  shared  values,   behaviors,  and  ar?facts     The  social  era  will  reward  organizaOons  that  understand  they  can  create  more  value  with  communiOes  than  they  can   on  their  own   −Nilofer  Merchant,  11  Rules  for  Crea?ng  Value  in  the  Social  Era    
  8. 8. Technology Keeps Getting Faster Source:  h"p://,31813,2048601,00.html  
  9. 9. … But People Don’t Change as Fast Source:  h"p://­‐with-­‐homini-­‐1.html  
  10. 10. . We  Are  On  A  Collision  Course   h"p://  
  11. 11. People  Are  Now  The  Weakest  Link   h"p://  
  12. 12. What  Are  the  ImplicaOons  for  OrganizaOons?   Image  by  Dave  Gray,  The  Connected  Company  
  13. 13. Cost  of  Sales  is  Dropping         Cost  of   Content     CreaOon           Cost  of    InformaOon    DistribuOon          Cost  of  Sales   h"p://  
  14. 14. Margins  Are  Eroding         Cost  of    Discovery           Cost  of     Market     Access           Margins   h"p://
  15. 15.         Capture     of  t  acit     knowledge       Time  from     tacit  to     explicit     knowledge         Time  to   innova5on  InnovaOon  Cycle  Times  Are  Speeding  Up  
  16. 16. Overwhelmed  People  Shut  Down   Major   Change   Minor   Frame  of  Reference   TranslaOon  to  InternalizaOon   Confusion   PolarizaOon   Anxiety  
  17. 17. Play  A  Different  Game—One  Focused  On  Enduring   RelaOonships    
  18. 18. RelaOonships  as  CompeOOve  DifferenOator   Cost  Savings     Revenue   §  Loyalty   §  Preference   §  Forgiveness   §  PaOence   §  Time   §  Advocacy     §  Peer  support   §  CompeOOve  lockout     §  Issue  reporOng   §  AuthenOc  insights  These  quali?es  require  a  different  level  of  rela?onship  than  tradi?onal   transac?onal  rela?onships  
  19. 19. Social  Approaches  Enable  Scalable  RelaOonships   Friendship   Recogni5on   Development   Partnership   Awareness   Awareness   Understanding  of   Contextual  trust   Forgiveness   Encounter Resonance     compa5bility   Contextual  loyalty   Advocacy     Piqued  interest   Contextual    Defense   Acknowledgement   advocacy     Universal  trust   of  rela5onship   Universal  loyalty   Social  Media  (Content-­‐Based)  Engagement   Community  (RelaOonship-­‐Based)  Engagement   In-­‐Person  Engagement  
  20. 20. Top  5  Community  Uses   Cost-­‐EffecOve  Customer  Support   1    (Autodesk,  AT&T,  CA  Technologies,  Google)   2   Engineering  Ecosystems    (Red  Hat,  SAP,  Yahoo!,  Oracle,  eBay)   3   Cost-­‐EffecOve  Market  Development    (Ford,  Pepsi,  BarclaysCard,  EDR,  Zipcar)   Internal  Efficiency     4   InnovaOon    (CSC,  BASF,  Nike)   5    (Boston  Children’s,  Dell,  SAP)  
  21. 21. Measurable  But  Not  Immediate  Return Investment  
  22. 22. Community  Maturity  ModelTM  
  23. 23. CommuniOes  Mature  and  Change    Phase  1  –  Strong    Phase  2  –    Phase  3  –  Phase  4  – Hierarchy   Emergent   Community   Networked   Community   Impact   Transform   Growth   Pull   Behavior   Change   Time  
  24. 24. Direct  Impact:     Measuring  Cost  and  Quality  Gains  Process  Element   Type  of  Community   Metric  Research  and  Discovery   Market  network,  communi5es  of   Quality   prac5ce,  customer  communi5es,   •  Be"er  inputs   partner  communi5es   •  Be"er  alignment  with  markets   ProducOvity   •   Faster  5me  to  answer/insight  Work  Status     Team  networks,  func5onal   ProducOvity   communi5es   •  Reduced  mee5ngs   •  Micro-­‐mentoring   •  Alignment   •  Focus  on  issue  resolu5on  Data  Analysis   Team  networks,  func5onal   ProducOvity   communi5es,  communi5es  of  prac5ce,   •  Shared  ownership  of  analysis   customer  communi5es,  partner   •  Broad  buy-­‐in  of  issues  and  framing   communi5es   •  Faster  awareness  and  buy-­‐in  for  analysis  Content  Development   Team  networks   ProducOvity   •  Ongoing  alignment  as  content  is  developed   •  Less  wasted  work  Stakeholder  Review   Team  networks,  communi5es  of  peers/ ProducOvity   prac5ces   •  Transparent  decision  making  process   •  Be"er  sensing  of  poten5al  responses     (crisis  management)   •  Shared  ownership  of  decision    Communica5on  of  Informa5on   Func5onal  communi5es,  communi5es   ProducOvity  and  Decisions   of  prac5ce,  customer  communi5es,   •  Alignment  and  shared  situa5onal  awareness   partner  communi5es,  organiza5on-­‐ Quality   wide  networks   •  Be"er  understanding  of  reac5ons  (crisis  management)  
  25. 25. Indirect  Impact:    Measuring  Revenue  and  Growth  Process  Element   Type  of  Community   Metric  Fla"en  Access  to  Knowledge   Communi5es  of  prac5ce,  func5onal   Reduced  Time  to  Innovate   communi5es   •  Quickly  gather  exis5ng  exper5se   •  Understand  accurate  state  of  development   Improved  Quality   •  Add  to  exis5ng  knowledge  rather  than  replica5ng   Reduced  Waste  and  DuplicaOon   •  Know  what  the  organiza5on  knows  Tacit  Opportuni5es   Market  network,  communi5es  of   InnovaOon  Quality  and  Demand   prac5ce,  customer  communi5es,   •  Ability  to  understand  issues  before  they  are  ar5culated   partner  communi5es   InnovaOon  Cycle  Time   •  Solve  problems  in  step  with  demand  forma5on,  not   sequen5ally    Customer-­‐led  Crea5on  and  Co-­‐ Customer  communi5es,  partner   InnovaOon  Extension  Crea5on   communi5es   •  Fills  roadmap  gaps   •  Reduces  investment  in  high-­‐risk  projects   Demand  GeneraOon   •  Develops  customer  advocates  Listening  and  Watching   Market  networks,  func5onal   Alignment  and  Revenue  Growth   communi5es,  communi5es  of  prac5ce,   •  Align  products  and  communica5ons  with  exis5ng   customer  communi5es,  partner   conversa5on  and  language  which  improves  relevancy  and   communi5es   adop5on    
  26. 26. SAP  Social  Strategy:  Driving  InnovaOon   SOCIAL SOCIAL SOCIAL SOCIAL I N N O V A T I O N   C O M M E R C E   I N T E L L I G E N C E   I N S I G H T  Use  the  wisdom  of  the   Leverage  our  reach   Enable  customer   Extract  intelligence  from  crowd  to  drive  higher   and  influence  to  drive   success  through  the   observable  customer  quality  soluOons  and   speed  and  to     acOve  sharing  of   behaviors  and  innovaOons  that  be<er   dramaOcally  increase   knowledge,  soluOons   conversaOons  to  equip  meet  customer  needs   leads  and  revenues   and  best  pracOces  to   our  colleagues  with  and  therefore  have   both  organically  and   drive  excellence  and   insight  into  customer  greater  market  success   through  targeted   innovaOon   hot  topics,  burning  and  impact   campaigns   issues  and  new   opportuniOes  
  27. 27. Digital,  Social  and  CommuniOes  at  SAP  •   SAP  Community  Network   –  2.5  million  members   –  3,000+  discussion  posts  per  day   –  9,200  acOve  bloggers   –  9.3  million  total  messages  •   –  2  million  unique  visitors  per  month   –  72  countries,  40  languages  •   SAP’s  presence  on  social  media   –   Over  1  million  friends  and  fans  •   Social  media  tools  and  governance    •   Events   –  SAP  TechEd,  SAP  Technology  Forum  
  28. 28. Factoids   of  companies   describe   themselves  as   fully  socially   networked    Amount  of  value  that  could  be  generated  annually  from  corporate  use  of  social  technologies   All  Rights  Reserved,  The  Community   Roundtable,  2012  
  29. 29. We  Want  to  Learn  from  ExecuOves   Sco<  Monty,  Head   Mark  Bertolini,  CEO  of  Aetna   Linda  Y.  Cureton,  CIO  of  NASA   of  Social  Media  Ford       Sandy  Carter,  SVP  IBM   Mark  Yolton,  SVP  SAP  
  30. 30. We  Need  to  Understand  the  ExecuOve  Journey       TradiOonal   Piqued     Experimental     Social   Networked             Tes5ng  the   Social  business  is   Command  and   Commi"ed  to  a   Engagement   waters.  Not   integrated  into   control.  Primary   few  social   with  key   suppor5ve  of   the  DNA  of   modes    of   ac5vi5es,  but   stakeholders  via   the  use  of  social   doing  business   communica5on   most   new  social   as  a  viable   with  all   are  in  person,   communica5on   channels.   solu5on  for   cons5tuents.   phone  &  email.   s5ll  occurs   Beginning  to  see   business.  Silos   Opera5ons  are   No  use  of  many-­‐ through   correla5on   and  not   op5mized  for   to-­‐many   tradi5onal   between  social   connected  to   collabora5on   communica5on   channels.  Seeing   ac5vity  and   the  business   and  innova5on.   tools.     quick  wins.     business  results.   workflow.                      
  31. 31. Social  business  cannot  be  fully   achieved  if  execu?ves  do  not  incorporate  social  approaches  in  the  business  –  in  what  they   say  and  what  they  do     People  not  tools  drive   innova?on    
  32. 32. 4 In Summary
  33. 33. Organizations that Go Up and Down1 Hold You Back
  34. 34. 2 Break down the silos We  compartmentalize  creaOvity   Try  to  control  it,  set  targets,  apply  rules   Make  it  the  domain  of  parOcular  job  Otles   Or  box  it  into  brainstorming  sessions    
  35. 35. Focus on3 Relationships
  36. 36. Community management is4 the bedrock capability in driving innovation
  37. 37. A  massive  opportunity  to  have  a  different  relaOonship  with  your  customers,  partners  and   employees   Co-­‐creaOon,  crowdsourcing,  crowdfunding  
  38. 38. Contact  Me: