Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

CoExistence: Today’s Performance Engine and Tomorrow’s Innovation Energy


Published on

There are four powerful and competing forces operating in all organizations today: (1) the turbulence of daily work, (2) incremental process improvement, (3) sustaining innovations, and (4) disruptive innovations. All are essential but truly different in most respects. In a perfect environment, with finite resources, an organization would have all operating together in harmony, with the right proportion of resources devoted to each.
How do you get the balance right in your organization between today and tomorrow?

  • Be the first to comment

  • Be the first to like this

CoExistence: Today’s Performance Engine and Tomorrow’s Innovation Energy

  1. 1. ©2014  FCB  Partners.  All  rights  reserved.   Brad  Power  and  Steve  Stanton   Webinar:    March  25,  2014   CoExistence:  Today’s  Performance  Engine  AND   Tomorrow’s  Innova=on  Energy    
  2. 2. Are  You  Tuning  the  Performance  Engine  or   Innova=ng?   The  Performance  Engine   An  Innova=on  Ini=a=ve   —  Day-­‐to-­‐day   —  Sustaining,  incremental   —  Repeatable,  predictable   —  Occasional   —  DisrupKve,  radical   —  Uncertain  outcomes   1
  3. 3. Can  You  Create  an  Organiza=on  that  Embraces   Con$nuous  Innova$on?    Why  Now?   Drivers   —  Social,  mobile,  ‘Big  Data’,  cloud,   sensors,  cameras   —  SoOware  is  eaKng  the  world   Threats   —  Shorter  produce  lifecycles   Opportuni=es:  Role  Models   —  High-­‐tech  disruptor:  Google   —  Retail  and  high-­‐tech  disruptor:   Amazon   —  Product  disruptor:  3M   2
  4. 4. Amazon’s  Approach  to  Con$nuous  Innova$on   Innova=on  Examples   —  Kindle   —  Web  services   —  Amazon  Prime   —  Drones?   Management  System   —  Think  big:  the  everything  store   —  Focus  on  customer  value   —  Disrupt  yourself  (used  books,   Kindle)   —  Set  up  lab  in  Silicon  Valley  (A9,   Lab  126)   —  AcquisiKons  (Zappos)   —  Missionary  (relentlessly   disrupKve)  and  mercenary   (calculaKng  and  ruthless)   3
  5. 5. Google’s  Approach  to  Con$nuous  Innova$on   Innova=on  Examples   —  Driverless  car,  maps   —  YouTube   —  Google  Glass   —  Google  Fiber,  Project  Loon   —  Google  Goggles   Management  System   —  Google[x]  (moonshots)   —  AcquisiKons  (Makani)   —  20%  Kme   —  Quick  demos   —  Run  lots  of  experiments  and  let  the   market  decide   —  Fail  fast  and  learn,  scale  up  quickly  if   it  shows  promise   —  Culture  of  openness,  analyKcal   rigor,  and  respect  for  workers   4
  6. 6. 3M’s  Approach  to  Con$nuous  Innova$on   Innova=on  Examples   —  Scotch  tape   —  Post-­‐Its   —  Thinsulate   Management  System   —  15%  rule  (free  Kme)   —  InnovaKon  centers,  labs   —  Technical  council,  forums   —  30%  rule  (new  products)   —  6%  rule  (R&D  spending)   —  Seed  capital   —  Technical  career  track   —  Rewards  (Carlton  Society,   Golden  Step)   5
  7. 7. 6  ©2014  FCB  Partners.  All  rights  reserved.   What  do  we  mean  by  CoExistence?   —  There  are  four,  powerful  and  compeKng  forces  operaKng  in   all  organizaKons  today:   –  The  turbulence  of  the  day  job   –  The  incremental  process  improvement  world   –  The  search  for  sustaining  innovaKons   –  The  hunt  for  disrupKve  innovaKons   —  All  are  essenKal,  but  truly  different  in  most  respects.   —  In  a  perfect  environment  with  finite  resources,  an   organizaKon  would  have  all  operaKng  together  in  harmony,   with  the  right  proporKon  of  resources  devoted  to  each.  
  8. 8. 7  ©2014  FCB  Partners.  All  rights  reserved.   Tidal  Forces  at  Play   The  Turbulence  of   Daily  Opera=ons   Incremental   Improvement   Sustaining   Innova=on   Disrup=ve   Innova=on   Day  Job   Six  Sigma   Lean   ReinvenKon   Current  op  model   Current   Current   New   Work   Improve   Change   Transform   Performance   Engine   Performance   Engine   ConKnuous   InnovaKon   ConKnuous   InnovaKon   OperaKon   OperaKonal   Excellence   OperaKonal   Excellence   Product  Leadership   Sameness   Beper  Sameness   Much  Beper   Sameness   Different   Stable   Small  Incremental   Bigger  Incremental   DisconKnuous   Today’s  results   Near  Future   Near  Future   Farther  Future  
  9. 9. 8  ©2014  FCB  Partners.  All  rights  reserved.   Propor=onal  to  Disrup=on?   Stable  World   Change   Coming   Disrup=on   Now!   You?   Daily   OperaKons              90%                    85%                    75%   Incremental   Improvement                  5%                        5%                      5%   Sustaining   InnovaKon                    5%                        5%                      5%   DisrupKve   InnovaKon                          5%                    15%  
  10. 10. 9  ©2014  FCB  Partners.  All  rights  reserved.   However…   —  On  one  hand,  organizaKons  absolutely  must  drive  their  Performance   Engines  to  produce  the  processes  and  results  that  are  needed  for  today’s   customers.   —  On  the  other  hand,  organizaKons  must  also  generate  ConKnuous   InnovaKon  Energy  to  prepare  for  and  evolve  into  successful  futures.   —  In  many  organizaKons,  these  two  imperaKves  are  in  direct  conflict  and   resource  investment  is  imbalanced.   —  In  reality,  as  most  large  tradiKonal  companies  compete  for  scarce   resources,  the  Performance  Engine  almost  always  wins  the  lion’s  share.   —  Sustained  success  requires  a  well  designed  and  evolving  strategic   balance  between  the  Performance  Engine  and  ConKnuous  InnovaKon.  
  11. 11. 10  ©2014  FCB  Partners.  All  rights  reserved.   Brad:  Where  to  Start?   1.  Build  the  sense  of  urgency:   How  big  is  the  threat  of   disrupKon?  OpportuniKes?   2.  Form  a  guiding  coaliKon   3.  Develop  a  vision:  IdenKfy   ‘moonshots’  driven  by   emerging  technology   4.  Organize:  Process  owners,   Process  innovaKon  lab   5.  Define  and  start  tracking   process  innovaKon  measures   10
  12. 12. 11  ©2014  FCB  Partners.  All  rights  reserved.   Steve:  Where  to  Start?   1.  Measure  and  allocate  resources  explicitly  across  4   domains   2.  Ensure  discrete  sponsorship  for  each  domain   3.  Do  less   4.  Sharpen  strategy  and    strategic  planning  outcomes   5.  DramaKcally  improve  ‘sensing’  processes   6.  Be  even  more  paranoid   7.  Have  balanced  measures  and  execuKve  incenKves   8.  Think  Big,  Start  Small,  Learn  Fast