This presentation provides a KLC model we have used to establish a formal innovation group which can successfully ignite and sustain innovative thinking and new products, technologies and services

1. Innovative
Getting
Karen L. Cornelius
President
KLC Associates
Jeffrey T. Walsh
Executive Vice President
KLC Associates

2. Innovation
What is it?
Inventing a new
product or service
concept …
That may change
everything

3. Innovation
What is it?
Creatively extending a
concept to improve
upon an existing
product or service

4. Innovation
What is it?
Creating new
applications for an
existing product or
service

5. Innovation
What is it?
Adapting your
product or service to
increase adoption
rates
or
penetration of new
markets

6. Innovation
What is it?
Capturing
imagination

7. Getting Innovative
Creating a climate for Innovation
Make innovation a priority
•Formal skunkworks structure
• 3M 15% rule; encourage informal
skunkworks groups
Establish an innovation forum
Presentations on emerging social,
market, consumer, and
technological research and trends
Training on innovation models and
techniques
Work environment? Does it
stimulate creativity

8. Getting Innovative
Formal ‘Skunkworks’
An organisational
unit to transform
captured
imagination into
tangible products
and services

9. Getting Innovative
Formal ‘Skunkworks’
What goes wrong?
• Unit only has ‘creative’
members who cannot
construct a viable
business case

10. Getting Innovative
Formal ‘Skunkworks’
What goes wrong?
• Unit only has ‘creative’ members
who cannot construct a viable
business case
• Unit only has analytical
members …

11. Getting Innovative
Formal ‘Skunkworks’
What goes wrong?
• Unit only has ‘creative’ members
who cannot construct a viable
business case
• Unit only has analytical members …
Unit reports to a
•
conservative middle
manager who
suppresses new ideas

12. Getting Innovative
Formal ‘Skunkworks’
What goes wrong?
• Unit only has ‘creative’ members
who cannot construct a viable
business case
• Unit only has analytical members …
• Unit reports to conservative middle
manager who suppresses new ideas
• Unit is isolated from the
organisation

13. Getting Innovative
Formal ‘Skunkworks’
How to do it… (so it works)
1st step --Executive
sponsorship:
•Funding
•Buffering the unit
from hierarchy

14. Getting Innovative
Formal ‘Skunkworks’
Structure and Roles
One Unit – Two Sections
Into
system
‘Greenhouse’ Business Group
Group Dreams it Translates it

15. Getting Innovative
Formal ‘Skunkworks’
Greenhouse Group
Purpose:
Un
co
W nv
en
ha
g
tio
rin
na
t if l th
ity
ativ
in k
tu
… in g
cre
.?
Fu
Ideas
Capture New
oppor
Imagination tunitie
s
n
iratio
Insp
g D r ea m
cin eds
a
Surf et ne
ing
unm Intuitive leaps

16. Getting Innovative
Formal ‘Skunkworks’
Greenhouse Group
Roles:
•Create ideas
•Identify new opportunities
•Test ideas in customer and
employee clinics & innovation
forums
•Nurture and grow ideas

17. Getting Innovative
Formal ‘Skunkworks’
Greenhouse Group
Membership:
•Creative/ideation people
Creative
(MBTI NT/FP)
•Designers and inventors
•People with a history of break-
through thinking in solving
problems

18. Getting Innovative
Formal ‘Skunkworks’
Greenhouse Group
Inputs:
•Futurists’ projections
•Life-style and business trends
•Cutting edge developments
& ideas from other industries
•Consumer/market &
competitor research

19. Getting Innovative
Formal ‘Skunkworks’
Greenhouse Group
Environment
No conventional office furniture
Should stimulate creativity
R oun d
Colourful bean tables
bag chairs
Rugs
Posters and
art work
Flipcharts
Toys
and markers

20. Getting Innovative
Formal ‘Skunkworks’
Greenhouse Group
Vital Protection
No management reviews,
No assessment
No critiquing
..during greenhouse phase

21. Getting Innovative
Formal ‘Skunkworks’
Greenhouse Group
Helpful Tools in
g
inkin
would s
phor
Th
“What
Meta
make it possible?”
Creativity
Brainstorming Stimulating
Exercises
ping New uses
ap w
(ho
nd m ns’ a
Breakthrough io
Mi ect e like
RIZ nn
‘Co engin
Thinking
T n
is a in ? )
workshops k
nap

22. Getting Innovative
Formal ‘Skunkworks’
Business Case Group
Purpose:
• Assessing and ‘Translating’
best ideas into viable
business cases
• Guiding mature, fully
developed ideas through early
phases of implementation

23. Getting Innovative
Formal ‘Skunkworks’
Business Case Group
Roles:
• Translating concepts into
concrete products/services
• Building business cases
• Feasibility studies and cost
& profit analyses
• Industry analyses
• Product sourcing analyses
• Market/consumer research
• Project management

24. Getting Innovative
Formal ‘Skunkworks’
Business Case Group
Membership:
• People from finance, purchase,
marketing, planning & quality
• People from product/service
development and manufacturing
or service roll out
• People with strategic business
perspectives
• Project Managers

25. Getting Innovative
Formal ‘Skunkworks’
Business Case Group
Inputs:
• Greenhouse ideas
• Budget, finance data
• Company ‘brand’, Vision,
strategic goals
• Competitor information
• Market/consumer research

26. Getting Innovative
Formal ‘Skunkworks’
Key Process Elements
What NOT to do
Lobbing over
the wall

27. Getting Innovative
Formal ‘Skunkworks’
Key Process Elements
…Do This
When an idea leaves the
Greenhouse…
Form a project team with
members from both groups
to:
• Further develop the idea
• Create a robust business case

28. Getting Innovative
Formal ‘Skunkworks’
Key Process Elements
Composition of Project Team over Time
Business Case
Group Members
Greenhouse
Group Members

29. Getting Innovative
Formal ‘Skunkworks’
Key Process Elements
Project Team is not a ‘Secret Squirrel’ group.
It Solicits Inputs and Feedback From:
andd
Researrch an s
IInno esea ch
nnov ttherr R
vattiio e
Oh
a on O Grroup s
oup
n Foru elopmentt G
lopmen
Forum D ev e
D ev
ms
s
all
a Crross-ffun
tterrn C oss- unct
en ctionall
x iona
x
E
E
and clliiniics
and c n cs Emplloye
Emp oyee
all e
errn aomerr
e n ome Worrkshop
IIntt stt Wo kshops
n Functions which will s
Cu s
Cu Play a role in
implementing

30. Getting Innovative
Formal ‘Skunkworks’
Key Process Elements
DRAFT
Business
Case
Feedback Senior Management
Reviews
Approve
Reject

31. Getting Innovative
Formal ‘Skunkworks’
How to introduce the
approved innovation
Approve
into the system
depends on the
industry….and whether
It is a product Or…. a service

32. Getting Innovative
Formal ‘Skunkworks’
Cycle for Continuous
Innovation
Business Case
Group Members
Greenhouse
Group Members