How Whirlpool Changed an Industry and Women Can Drive It!

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How Whirlpool Changed an Industry and Women Can Drive It!

  1. 1. How Whirlpool Changed an Industry And how women can drive it! Dr. Nancy Tennant April 13, 2011 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com
  2. 2. A NEW CENTURY OF OPPORTUNITY 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 2
  3. 3. Whirlpool Corporation NORTH AMERICA REGION EUROPE REGION • ~$3.2B Sales • ~$9.6B Sales ~$18B+ Revenues • 12,000 Employees • 29,000 Employees #1 Global Share ASIA REGION LATIN AMERICA REGION • ~$900 M Sales • ~$4.7B Sales • 5,000 Employees • 25,000 Employees 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 3
  4. 4. 99 Years of Transformation 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 4
  5. 5. Heading Towards a Commodity -2.3% CAGR from ’92 -’99 Average Ticket ($) 1992 1993 1994 1995 1996 1997 1998 1999 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 5
  6. 6. What Is Innovation About? FROM TO 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 6
  7. 7. Leading Innovation 1999 2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009 2010+ Composure First Embedding Leadership Innovation Focused Turbo Steps Innovation Tension Burst Innovation Charge Competitiveness Confidence Composure Focus Composure 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 7
  8. 8. Whirlpool Corporation’s 10-Year Transformation 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 8
  9. 9. Leadership Challenge #1 1999 2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009 2010+ Beginning Embedding Point of Leadership Innovation Focused Turbo Innovation Tension & Transition Burst Innovation Charge CEO sees opportunity for sustainable growth 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 9
  10. 10. CEO Sees Growth Stagnating Innovation from Everyone and Everywhere 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 10
  11. 11. Many Possible Innovation Approaches Rejected … Adopted …  Cookie Cutter Approach  Innovation must come  Great Man Theory from Everyone  Training only  Tap the best thinking in the world  Skunkworks  Expect investment up-  R&D only front without immediate  Hiring Consultants to pay-off innovate  Big change requires a massive scalable approach over time 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 11
  12. 12. Innovation Approach Embedded innovation 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 12
  13. 13. Outcomes Enabled by Management Systems OPERATIONAL ORGANIZATIONAL Driven by the strategy With the right governance 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 13
  14. 14. Management System Change the Systems….Free the People 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 14
  15. 15. I-Heroes “One who acts for a larger purpose in the face of risk and beyond the actions expected in the role he or she occupies” Schulman (1996) 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 15
  16. 16. Leadership Challenge #2 1999 2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009 2010+ Beginning Embedding Point of Leadership Innovation Focused Turbo Innovation Tension Burst Innovation Charge Chairman & CEO and Executive Senior Leadership Group Committee  Content with the current  Sense of urgency state  Customer-focused  Internally focused  Willing to take risk  Risk averse  Breakthrough mind-set  Short-term execution mind-set  Transitioning  Wait and see on new CEO/Chairman role leader 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 16
  17. 17. Leadership Conference 2004 13 Charter Airplanes 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 17
  18. 18. Learnings Emotional experience that caused our leaders to: • Deeply question why they were not embracing innovation • Realize they had not engaged their organizations in idea generation and innovation embedment • Commit to lead with impact, passion, and drive results 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 18
  19. 19. Transformational Leadership: Theme throughout the Week 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 19
  20. 20. Leadership Challenge #3 1999 2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009 2010+ Beginning Embedding Point of Leadership Innovation Focused Turbo Innovation Tension & Transition Burst Innovation Charge Leaders owning and driving Innovation…new CEO/Chairman driving scale 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 20
  21. 21. S-Curve of Embedded Innovation The Tipping Point in 2004 More Output Resources Steady State/ Continuous Improvement than P Sustaining U 2004 L L Breakthrough P U More Resources Scaling than Output S Launch H Proof of Concept Time 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 21
  22. 22. Triple Diamond Process OPEN INNOVATION TOOL-KIT Nurture 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 22
  23. 23. EXAMPLE STEP 1 Discover A commodity business What were our industry orthodoxies? • Buy once, come back in 10 years • Consumers won’t pay for a premium filtering system 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 23
  24. 24. Discover EXAMPLE STEP 1 What were our industry A commodity orthodoxies? business • Buy once, come back in 10 yrs • Consumers won’t pay for a premium filtering system Why limit ourselves to: • Sell once and not again in 10 years? • A commodity market Idea: a water service delivery business 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 24
  25. 25. Develop EXAMPLE STEP 2 We immersed in the consumers’ world: • Purified water is a priority, I need something I can trust • Families are busy and they miss the weekly delivery • Consumers can’t trust delivery service • It’s a hassle! Identified the viability of a new business model 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 25
  26. 26. Nurture EXAMPLE STEP 3 Orthodoxies Challenges? Result: Eco-House We sell hard Why not sell a goods “water service”? Customer Insights: New needs? Consumers are A simplified wiling to spend $X process to bring it a month in water home Core Competence: Leverage? A sales force in A natural the market place extension to maintain a rental business 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 26
  27. 27. Innovation Results – Products and Services EggoTM Countertop washer Eco-House In-sink dishwasher Rental business 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 27
  28. 28. Innovation Results – Top Line Revenue $375 Before innovation embedment Innovation embedded $350 ASV CAGR +3.9 % $325 ‘02 – ‘09 Average ASV Ticket ($) CAGR (3.4)% $300 ‘97 – ‘02 $275 $250 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 28
  29. 29. Innovation Results – Pipeline $ Billions 4.70 4.00 4.20 3.30 3.50 3.04 3.13 2.50 2.00 1.30 1.60 0.75 0.10 0.20 2003 2004 2005 2006 2007 2008 2009 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 29
  30. 30. Leadership Challenge #4 1999 2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009 2010+ Beginning Embedding Point of Leadership Innovation Focused Turbo Innovation Tension & Transition Burst Innovation Charge Maintaining composure in the face of turbulent times 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 30
  31. 31. Focused Innovation 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 31
  32. 32. Drive the Right Portfolio Examples - Right forums, right decisions - Set the right dimensions - Alignment to strategy by assigning goals X% Y% Z% 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 32
  33. 33. Innovation Results – Products Vantage™ laundry pair Gladiator® Bike Claw First washer with a USB port A new solution to an old problem 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 33
  34. 34. Four Leadership Lessons in our Journey 4 Leaders need to focus More Output Resources efforts in challenging Steady State/ Continuous Improvement than business environment P Sustaining U L L Breakthrough 1 3 P Support from the top Leaders need to of the organization U challenge content feeling More Resources Scaling than Output in the organization S Launch H Proof of Concept 2 A few leaders will be Time Innovation heroes 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 34
  35. 35. Leading Innovation 1999 2000 - 2002 2003 - 2004 2005 - 2007 2008 - 2009 2010+ Composure First Embedding Leadership Innovation Focused Turbo Steps Innovation Tension Burst Innovation Charge Competitiveness Confidence Curiosity Focus Composure 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 35
  36. 36. 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 36
  37. 37. 2011© All Rights Reserved. Based on the book Unleashing Innovation, Snyder & Duarte, 2008 Jossey Bass.Blue Shield Nancy_A_Tennant@whirlpool.com 37

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