“ Progress comes from a satisfactory philosophy of ignorance.” Richard Feynman
G.O.L.F. T.E.E CEO’s role in Innovation  Bill Burnett 06/08/09 [email_address]
G.O.L.F. <ul><li>G reat  O rganizational  L eaders  F acilitate … </li></ul><ul><li>? T. </li></ul><ul><li>? E. </li></ul>...
Manager or Leader? <ul><li>Almost all books on innovation come to the same conclusion.  </li></ul><ul><ul><li>Innovation d...
CEO Leadership Role <ul><li>Abandon practices that inhibit innovation. </li></ul><ul><li>Believe in the workforce. </li></...
What Business Are You In? <ul><li>Tuned In </li></ul><ul><li>Question:  </li></ul><ul><ul><ul><li>“ What business are you ...
Business -- Problem-Solving  vs. Innovation <ul><li>What is the difference between regular  “ problem-solving” and innovat...
Power of Knowledge <ul><li>“… acquiring and applying knowledge will become the key competitive factor. ” </li></ul><ul><li...
Business Innovation Defined <ul><li>We innovate to   </li></ul><ul><ul><li>Gain competitive advantage by creating new know...
The chicken or the egg? <ul><li>Start with a problem, look for a solution. </li></ul><ul><ul><li>When painting a car with ...
Business Innovation Defined <ul><li>We innovate to   </li></ul><ul><ul><li>Gain competitive advantage by creating  new kno...
How to Create  New   Knowledge <ul><li>“ New ”  means new to the human race. </li></ul><ul><ul><li>Discovery </li></ul></u...
Idea and Implementation <ul><li>Innovation requires two things: </li></ul><ul><ul><li>The ability to come up with the idea...
The idea <ul><li>What kind of person is good at  problem solving? </li></ul><ul><ul><li>Has the ability to see the  “ Big ...
What kind of person is good at problem solving? <ul><li>James March  –  Stanford </li></ul><ul><li>Stereo type: Problem so...
What kind of person is good at problem solving? <ul><li>Low Self-Monitor </li></ul><ul><ul><li>Unable/uninterested in read...
06/08/09 [email_address] What Do You Care What Other People Think!
Solving the Problem <ul><li>Define the Problem </li></ul><ul><li>See how everything fits: </li></ul><ul><ul><li>Big pictur...
Ideas plus Implementation <ul><li>It is not enough to have ideas about good solutions, the ideas must be implemented. </li...
Implementation Competency <ul><li>Willingness to take risks where there are lots of unknowns. </li></ul><ul><li>The passio...
Culture is Key <ul><li>The single most prevalent theme in  innovation literature is around the critical nature of culture....
CULTURE and INNOVATION 06/08/09 [email_address]
Culture and Innovation <ul><li>Model of Cultural Differences </li></ul><ul><li>Geert Hofstede: </li></ul><ul><ul><li>Power...
Culture and Innovation <ul><li>Model of Cultural Differences </li></ul><ul><li>Geert Hofstede: </li></ul><ul><ul><li>Power...
Uncertainty Avoidance <ul><li>Degree of tolerance for uncertainty and ambiguity. </li></ul><ul><li>Feeling either uncomfor...
Uncertainty Avoidance Obstacles <ul><li>Uncertainty avoiding cultures try to minimize the possibility of  situations that ...
Obstacles <ul><li>Problem Solving and Innovation mean change. </li></ul><ul><li>Change carries some risk. </li></ul><ul><l...
First Leadership Responsibility <ul><li>Trust </li></ul><ul><li>To overcome fear of risk the CEO must build a culture of t...
Building Trust <ul><li>Tell the truth, be transparent. </li></ul><ul><li>Truth trumps everything. </li></ul><ul><li>You ca...
Building Trust <ul><li>We are all equal in our adulthood. </li></ul><ul><ul><li>Change the lexicon  –  eliminate distincti...
Building Trust <ul><li>Eliminate Power and Prestige in the hierarchy. </li></ul><ul><li>Hierarchy is just a decision makin...
Build Trust <ul><li>We are in this together: </li></ul><ul><li>Establish a Layoff as Last Resort policy.  First we will: <...
Build Trust <ul><li>We are all unique. </li></ul><ul><li>Differences spur innovation </li></ul><ul><li>Therefore, we value...
Second Leadership Responsibility  <ul><li>Build Engagement </li></ul><ul><ul><li>Engaged employees self-motivate. </li></u...
Build Engagement <ul><li>Link personal values to the work. </li></ul><ul><li>Toyota ’ s 5  “ whys”. </li></ul>06/08/09 [em...
Build Engagement <ul><li>Create small teams of shared purpose linked to personal values. </li></ul><ul><li>Allow task and ...
Build Engagement <ul><li>Set team goals. </li></ul><ul><li>Set objective measurable goals as only measures of performance....
Build Engagement <ul><li>Define leadership behavior. </li></ul><ul><li>Allow the led to police leadership. </li></ul>06/08...
T.E.E. <ul><li>G reat  O rganizational  L eaders  F acilitate … </li></ul><ul><li>Trust </li></ul><ul><li>Engagement. </li...
Third Leadership Responsibility  <ul><li>Empower employees </li></ul><ul><ul><li>Match responsibility to authority. </li><...
Empower <ul><li>Save ideas: </li></ul><ul><ul><li>Build a  “ problem” database </li></ul></ul><ul><ul><li>Build a  “ solut...
Empower <ul><li>Reduce Smaller Risk </li></ul><ul><ul><li>Encourage team formation. </li></ul></ul><ul><ul><li>Idea can on...
Empower <ul><li>Reduce the Big Risk </li></ul><ul><ul><li>Identify your Supersynthesizers who are least familiar with the ...
Empower <ul><li>Pull in everyone: </li></ul><ul><li>Marriott ’ s  “ Red Tape ”  for everyone. </li></ul><ul><ul><li>Tag pr...
T.E.E. <ul><li>G reat  O rganizational  L eaders  F acilitate … </li></ul><ul><li>T rust </li></ul><ul><li>E ngagement </l...
CEO Leadership Role <ul><li>Trust </li></ul><ul><li>Engage </li></ul><ul><li>Empower </li></ul>06/08/09 [email_address]
06/08/09 [email_address]
Upcoming SlideShare
Loading in …5
×

Innovation CEO

871 views

Published on

The one thing a CEO can clearly take credit for (or blame for) is the degree to which a company is innovative.

Published in: Business, Technology
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
871
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
90
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide
  • Innovation CEO

    1. 1. “ Progress comes from a satisfactory philosophy of ignorance.” Richard Feynman
    2. 2. G.O.L.F. T.E.E CEO’s role in Innovation Bill Burnett 06/08/09 [email_address]
    3. 3. G.O.L.F. <ul><li>G reat O rganizational L eaders F acilitate … </li></ul><ul><li>? T. </li></ul><ul><li>? E. </li></ul><ul><li>? E. </li></ul><ul><li>to deliver innovation. </li></ul>06/08/09 [email_address]
    4. 4. Manager or Leader? <ul><li>Almost all books on innovation come to the same conclusion. </li></ul><ul><ul><li>Innovation depends upon the right ‘ innovative ’ culture . </li></ul></ul><ul><li>Does the right culture in a company develop from leadership or management? </li></ul>06/08/09 [email_address]
    5. 5. CEO Leadership Role <ul><li>Abandon practices that inhibit innovation. </li></ul><ul><li>Believe in the workforce. </li></ul><ul><li>Innovation is our natural state. </li></ul><ul><li>Innovation develops on the front line. </li></ul>06/08/09 [email_address]
    6. 6. What Business Are You In? <ul><li>Tuned In </li></ul><ul><li>Question: </li></ul><ul><ul><ul><li>“ What business are you in? ” </li></ul></ul></ul><ul><li>The answer for every business: </li></ul><ul><ul><ul><li>“ We ’ re in the business of continuous problem solving for our market. ” </li></ul></ul></ul><ul><li>Craig Stull, Phil Myers, and David Meerman Scott </li></ul>06/08/09 [email_address]
    7. 7. Business -- Problem-Solving vs. Innovation <ul><li>What is the difference between regular “ problem-solving” and innovation? </li></ul><ul><li>Why do we innovate? </li></ul><ul><li>We innovate when we want a competitive advantage: otherwise, any old solution will do. </li></ul>06/08/09 [email_address]
    8. 8. Power of Knowledge <ul><li>“… acquiring and applying knowledge will become the key competitive factor. ” </li></ul><ul><li>Peter Drucker </li></ul><ul><li>“… creating new knowledge will become the key to competitive advantage in the future. ” </li></ul><ul><li>Nonaka and Takeuchi </li></ul>06/08/09 [email_address]
    9. 9. Business Innovation Defined <ul><li>We innovate to </li></ul><ul><ul><li>Gain competitive advantage by creating new knowledge that solves a market problem. </li></ul></ul><ul><li>We seek to protect this new knowledge. </li></ul><ul><li>Innovation can start with a problem, or a solution. </li></ul>06/08/09 [email_address]
    10. 10. The chicken or the egg? <ul><li>Start with a problem, look for a solution. </li></ul><ul><ul><li>When painting a car with two tones, the paint bleeds. </li></ul></ul><ul><ul><li>3M Masking Tape </li></ul></ul><ul><li>Start with a solution, find a problem. </li></ul><ul><ul><li>Invented a glue that sticks hard to one surface then can be stuck and removed from a second surface. </li></ul></ul><ul><ul><li>3M Post-It ® </li></ul></ul>06/08/09 [email_address]
    11. 11. Business Innovation Defined <ul><li>We innovate to </li></ul><ul><ul><li>Gain competitive advantage by creating new knowledge that solves a market problem. </li></ul></ul>06/08/09 [email_address]
    12. 12. How to Create New Knowledge <ul><li>“ New ” means new to the human race. </li></ul><ul><ul><li>Discovery </li></ul></ul><ul><ul><ul><li>Charcoal burns hotter than wood </li></ul></ul></ul><ul><ul><li>Experimentation </li></ul></ul><ul><ul><ul><li>Build kiln technology to make charcoal </li></ul></ul></ul><ul><ul><li>Synthesis </li></ul></ul><ul><ul><ul><li>Waste: Natural Fibers + Starch = Briquettes </li></ul></ul></ul>06/08/09 [email_address]
    13. 13. Idea and Implementation <ul><li>Innovation requires two things: </li></ul><ul><ul><li>The ability to come up with the idea. </li></ul></ul><ul><ul><li>The ability to implement the idea. </li></ul></ul>06/08/09 [email_address]
    14. 14. The idea <ul><li>What kind of person is good at problem solving? </li></ul><ul><ul><li>Has the ability to see the “ Big Picture” and how all the details fit together. </li></ul></ul><ul><ul><li>Is broadly knowledgeable. </li></ul></ul><ul><ul><li>Seeks truth. </li></ul></ul><ul><ul><li>The “ Supersynthesizer” </li></ul></ul>06/08/09 [email_address]
    15. 15. What kind of person is good at problem solving? <ul><li>James March – Stanford </li></ul><ul><li>Stereo type: Problem solver character traits: </li></ul><ul><ul><li>Avoid contact with co-workers </li></ul></ul><ul><ul><li>Have high Self-Esteem </li></ul></ul><ul><ul><li>No respect for “ Authority” </li></ul></ul><ul><ul><li>Low Self-monitor </li></ul></ul><ul><ul><li>“ heretics, deviants, eccentrics, crackpots, weirdoes, and original thinkers ” . </li></ul></ul>06/08/09 [email_address]
    16. 16. What kind of person is good at problem solving? <ul><li>Low Self-Monitor </li></ul><ul><ul><li>Unable/uninterested in reading non-verbal (and verbal) signals. </li></ul></ul><ul><ul><li>Gives off wrong non-verbal signals. </li></ul></ul><ul><ul><li>Guided by inner compass – not influenced by others. </li></ul></ul><ul><ul><li>Won ’ t be following the herd. </li></ul></ul><ul><ul><li>The Individualist </li></ul></ul>06/08/09 [email_address]
    17. 17. 06/08/09 [email_address] What Do You Care What Other People Think!
    18. 18. Solving the Problem <ul><li>Define the Problem </li></ul><ul><li>See how everything fits: </li></ul><ul><ul><li>Big picture </li></ul></ul><ul><ul><li>Smallest relevant detail </li></ul></ul><ul><li>Define criteria </li></ul><ul><li>Evaluate alternatives against criteria </li></ul><ul><li>Pick solution </li></ul>06/08/09 [email_address]
    19. 19. Ideas plus Implementation <ul><li>It is not enough to have ideas about good solutions, the ideas must be implemented. </li></ul>06/08/09 [email_address]
    20. 20. Implementation Competency <ul><li>Willingness to take risks where there are lots of unknowns. </li></ul><ul><li>The passion to drive over obstacles. </li></ul><ul><li>Persistence. </li></ul>06/08/09 [email_address]
    21. 21. Culture is Key <ul><li>The single most prevalent theme in innovation literature is around the critical nature of culture. </li></ul><ul><li>Without the right culture, innovation will not happen. </li></ul>06/08/09 [email_address]
    22. 22. CULTURE and INNOVATION 06/08/09 [email_address]
    23. 23. Culture and Innovation <ul><li>Model of Cultural Differences </li></ul><ul><li>Geert Hofstede: </li></ul><ul><ul><li>Power Distance Index (PDI) </li></ul></ul><ul><ul><li>Individualism (IDV) </li></ul></ul><ul><ul><li>Masculinity/Femininity (MAS) </li></ul></ul><ul><ul><li>Uncertainty Avoidance Index (UAI) </li></ul></ul>06/08/09 [email_address]
    24. 24. Culture and Innovation <ul><li>Model of Cultural Differences </li></ul><ul><li>Geert Hofstede: </li></ul><ul><ul><li>Power Distance Index (PDI) </li></ul></ul><ul><ul><li>Individualism (IDV) </li></ul></ul><ul><ul><li>Masculinity/Femininity (MAS) </li></ul></ul><ul><ul><li>Uncertainty Avoidance Index (UAI) </li></ul></ul>06/08/09 [email_address]
    25. 25. Uncertainty Avoidance <ul><li>Degree of tolerance for uncertainty and ambiguity. </li></ul><ul><li>Feeling either uncomfortable or comfortable in unstructured situations. </li></ul><ul><li>Degree of tolerance of opinions different from what ’ s long established. </li></ul>06/08/09 [email_address]
    26. 26. Uncertainty Avoidance Obstacles <ul><li>Uncertainty avoiding cultures try to minimize the possibility of situations that are novel, unknown, surprising, different from usual They establish strict laws and rules, safety and security measures, and philosophy and religion are based on belief in absolute Truth; “there can only be one Truth and we have it.” They have little need to look further for truth. </li></ul>06/08/09 [email_address]
    27. 27. Obstacles <ul><li>Problem Solving and Innovation mean change. </li></ul><ul><li>Change carries some risk. </li></ul><ul><li>Problem solvers are not always risk takers. </li></ul><ul><li>“ Problem-solving doesn't correlate with risk-taking or willingness to be on the margins ” -- Mitch Kapor, founder and former CEO of Lotus. </li></ul>06/08/09 [email_address]
    28. 28. First Leadership Responsibility <ul><li>Trust </li></ul><ul><li>To overcome fear of risk the CEO must build a culture of trust. </li></ul><ul><li>Trust is a two-way street. </li></ul><ul><li>Trust will follow you around. </li></ul>06/08/09 [email_address]
    29. 29. Building Trust <ul><li>Tell the truth, be transparent. </li></ul><ul><li>Truth trumps everything. </li></ul><ul><li>You cannot solve problems if you don ’ t face them honestly and completely. </li></ul><ul><li>No tolerance for politics. </li></ul><ul><ul><li>Includes withholding information </li></ul></ul>06/08/09 [email_address]
    30. 30. Building Trust <ul><li>We are all equal in our adulthood. </li></ul><ul><ul><li>Change the lexicon – eliminate distinctions which imply adult to child relationships. </li></ul></ul><ul><ul><ul><li>“ Superior-subordinate ” </li></ul></ul></ul><ul><ul><ul><li>“ Senior - Junior ” </li></ul></ul></ul><ul><ul><li>Change to: </li></ul></ul><ul><ul><ul><li>“ Colleague ” </li></ul></ul></ul><ul><ul><ul><li>“ Team member ” </li></ul></ul></ul>06/08/09 [email_address]
    31. 31. Building Trust <ul><li>Eliminate Power and Prestige in the hierarchy. </li></ul><ul><li>Hierarchy is just a decision making tool. </li></ul><ul><li>Remove marks of distinction – Perks, Privileges, Executive dining rooms, etc.,. </li></ul>06/08/09 [email_address]
    32. 32. Build Trust <ul><li>We are in this together: </li></ul><ul><li>Establish a Layoff as Last Resort policy. First we will: </li></ul><ul><ul><li>Eliminate bonuses </li></ul></ul><ul><ul><li>Cut Executives’ salary </li></ul></ul><ul><ul><li>Reduce salary across the board </li></ul></ul>06/08/09 [email_address]
    33. 33. Build Trust <ul><li>We are all unique. </li></ul><ul><li>Differences spur innovation </li></ul><ul><li>Therefore, we value our differences. </li></ul>06/08/09 [email_address]
    34. 34. Second Leadership Responsibility <ul><li>Build Engagement </li></ul><ul><ul><li>Engaged employees self-motivate. </li></ul></ul><ul><ul><li>Engaged employees seek excellence. </li></ul></ul><ul><ul><li>Engaged employees solve problems. </li></ul></ul><ul><ul><li>Engaged employees self manage. </li></ul></ul>06/08/09 [email_address]
    35. 35. Build Engagement <ul><li>Link personal values to the work. </li></ul><ul><li>Toyota ’ s 5 “ whys”. </li></ul>06/08/09 [email_address]
    36. 36. Build Engagement <ul><li>Create small teams of shared purpose linked to personal values. </li></ul><ul><li>Allow task and job rotation. </li></ul><ul><li>Listen; ask questions; coach; support; help; find resources; don ’ t order. </li></ul>06/08/09 [email_address]
    37. 37. Build Engagement <ul><li>Set team goals. </li></ul><ul><li>Set objective measurable goals as only measures of performance. </li></ul><ul><li>Adjust goals for unpredictable events. </li></ul><ul><li>Welcome passion </li></ul>06/08/09 [email_address]
    38. 38. Build Engagement <ul><li>Define leadership behavior. </li></ul><ul><li>Allow the led to police leadership. </li></ul>06/08/09 [email_address]
    39. 39. T.E.E. <ul><li>G reat O rganizational L eaders F acilitate … </li></ul><ul><li>Trust </li></ul><ul><li>Engagement. </li></ul><ul><li>? E. </li></ul><ul><li>to deliver innovation. </li></ul>06/08/09 [email_address]
    40. 40. Third Leadership Responsibility <ul><li>Empower employees </li></ul><ul><ul><li>Match responsibility to authority. </li></ul></ul><ul><ul><li>Take all offers. </li></ul></ul><ul><ul><ul><li>Never kill an idea. </li></ul></ul></ul><ul><ul><ul><li>Let teams make decisions. </li></ul></ul></ul>06/08/09 [email_address]
    41. 41. Empower <ul><li>Save ideas: </li></ul><ul><ul><li>Build a “ problem” database </li></ul></ul><ul><ul><li>Build a “ solution ” database </li></ul></ul><ul><li>All great ideas look bad at first. </li></ul><ul><ul><li>“ When an employee comes to me with an idea, how do I know a good one from a bad one? ” </li></ul></ul>06/08/09 [email_address]
    42. 42. Empower <ul><li>Reduce Smaller Risk </li></ul><ul><ul><li>Encourage team formation. </li></ul></ul><ul><ul><li>Idea can only be presented by a partner. </li></ul></ul><ul><ul><li>Allow minimal investment thresholds. </li></ul></ul><ul><ul><ul><li>2 sponsors (minimum) - $ 5,000 </li></ul></ul></ul><ul><ul><ul><li>3 sponsors - $15,000 </li></ul></ul></ul><ul><ul><ul><li>4 sponsors - $ 25,000 </li></ul></ul></ul><ul><ul><ul><li>… </li></ul></ul></ul>06/08/09 [email_address]
    43. 43. Empower <ul><li>Reduce the Big Risk </li></ul><ul><ul><li>Identify your Supersynthesizers who are least familiar with the problem. </li></ul></ul><ul><ul><li>Ask them to evaluate the problem definition. </li></ul></ul><ul><ul><li>Ask them to evaluate the solution alternatives. </li></ul></ul>06/08/09 [email_address]
    44. 44. Empower <ul><li>Pull in everyone: </li></ul><ul><li>Marriott ’ s “ Red Tape ” for everyone. </li></ul><ul><ul><li>Tag problems and they get fixed. </li></ul></ul><ul><ul><li>Everyone sees it working. </li></ul></ul>06/08/09 [email_address]
    45. 45. T.E.E. <ul><li>G reat O rganizational L eaders F acilitate … </li></ul><ul><li>T rust </li></ul><ul><li>E ngagement </li></ul><ul><li>E mpowerment </li></ul><ul><li>to deliver innovation. </li></ul>06/08/09 [email_address]
    46. 46. CEO Leadership Role <ul><li>Trust </li></ul><ul><li>Engage </li></ul><ul><li>Empower </li></ul>06/08/09 [email_address]
    47. 47. 06/08/09 [email_address]

    ×