AIIE & Accept360 Webinar - Bridging the Innovation Execution Gap


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AIIE & Accept360 Webinar - Bridging the Innovation Execution Gap

  1. 1. Bridging The Innovation Execution Gap “ Next Practices ” In Innovation Management by the American Institute for Innovation Excellence
  2. 2. <ul><li>The American Institute for Innovation Excellence is a 501(c)(3) non-profit organization organized as a professional research “think tank.” </li></ul><ul><li>Under this organizational framework, the AIIE limits and dedicates its operations to promoting innovation excellence, for the exclusive and charitable benefit of government agencies, corporate entities and the greater good, through research, development, education and publication within the following focus areas: </li></ul><ul><ul><li>Innovation Management Best/Next Practices Development </li></ul></ul><ul><ul><li>Innovation Management Maturity Concepts </li></ul></ul><ul><ul><li>Innovation Execution Delivery Methodologies </li></ul></ul><ul><ul><li>Portfolio, Program and Project Execution Models </li></ul></ul><ul><ul><li>Innovation, Idea and Creativity Concept Education and Training </li></ul></ul>Who We Are…
  3. 3. <ul><li>Taken from a 2010 survey* of business executives, innovation management leadership and other business/innovation management practitioners: </li></ul><ul><ul><ul><li>Aging, inefficient and ineffective innovation and new growth-based processes, methodologies, tools, techniques, etc. </li></ul></ul></ul><ul><ul><ul><li>Creating, embedding and maintaining a culture of innovation </li></ul></ul></ul><ul><ul><ul><li>Reliable, repeatable, effective and efficient innovation capabilities </li></ul></ul></ul><ul><ul><ul><li>Growing gap between innovation/organizational strategy and operational execution </li></ul></ul></ul><ul><ul><ul><li>Workforce not skilled in creative problem solving, innovation or entrepreneurship </li></ul></ul></ul><ul><li>* November 2010 American Institute of Innovation Management LinkedIn Survey </li></ul>Innovation Management “Pain Points”
  4. 4. <ul><li>Research Question: </li></ul><ul><ul><li>“ Why does the innovation execution gap exist and what processes, tools, techniques and other leadership and/or management approaches can be developed to bridge that gap?” </li></ul></ul>
  5. 5. <ul><li>Review & Analysis: </li></ul><ul><ul><ul><li>Defining Execution and Strategy </li></ul></ul></ul><ul><ul><ul><li>Constructing the Strategy-Execution Roadmap </li></ul></ul></ul><ul><ul><ul><li>Identifying the Gap </li></ul></ul></ul><ul><li>Analysis: </li></ul><ul><ul><ul><li>Traditional Strategic Execution Models & Approaches </li></ul></ul></ul><ul><ul><ul><li>Recent Advances in Strategy Development and Execution </li></ul></ul></ul><ul><li>Concept Development: </li></ul><ul><ul><ul><li>Building an “Executable” Strategy </li></ul></ul></ul><ul><ul><ul><li>Building an Execution Focused Culture </li></ul></ul></ul><ul><ul><ul><li>The Strategic Innovation Roadmap </li></ul></ul></ul><ul><li>Implementation Recommendations: </li></ul><ul><ul><ul><li>Strategy-Execution Gap Closure Suggested Implementation Roadmap </li></ul></ul></ul>Research Approach
  6. 6. <ul><li>“ Companies typically realize only about 60% of their strategy’s potential value because of breakdowns in planning and execution ” </li></ul><ul><ul><li>– Harvard Business Review </li></ul></ul>Why Are We So Bad At Executing Against Stra tegy ? <ul><li>“ 82% of Fortune 500 CEOs feel their organization did an effective job of strategic planning. However, only 14% of those same CEOs indicated that their organization did an effective job of implementing the strategy” </li></ul><ul><li>- Forbes Magazine </li></ul>
  7. 7. What is “Execution?” <ul><li>Two possible definitions of &quot;Execution&quot; from </li></ul><ul><ul><ul><li>The manner, style, or result of performance; Implies action. </li></ul></ul></ul><ul><ul><ul><li>The act or an instance of putting to death or being put to death as a lawful penalty. </li></ul></ul></ul><ul><li>But action on what exactly? Strategy. </li></ul>Coincidence? In today's fast-paced, delivery-oriented business climate, the two definitions are logical partners.  ‘Execute...or be executed’ is the mantra of today’s business world and ‘execute’ in the organizational context means action.
  8. 8. What Makes For Effective Execution? <ul><li>Clear and consistent vision of the strategy </li></ul><ul><li>Clear and consistent leadership commitment and attention from executive leadership ranks through middle / operational management </li></ul><ul><li>Defined goals, tactics, milestones, deadlines and metrics to support execution of strategy </li></ul><ul><li>Effective and efficient tracking mechanism to report against goals, tactics, milestones and deadlines </li></ul><ul><li>Clear and consistent responsibility, authority and accountability </li></ul><ul><li>Performance measurements tied to execution strategy </li></ul>
  9. 9. <ul><li>Project Management Discipline: </li></ul><ul><li>Do we know where we are going? </li></ul><ul><ul><li>What does “Done” look like? </li></ul></ul><ul><li>How are we going to get there? </li></ul><ul><ul><li>What is our plan? </li></ul></ul><ul><li>Do we have enough time, money and resources to reach the end? </li></ul><ul><ul><li>Have we connected resources to the plan? </li></ul></ul><ul><li>What may prevent us from reaching the end? </li></ul><ul><ul><li>Have we analyzed the risk and developed mitigation plans? </li></ul></ul><ul><li>Do we have some way to measure our progress? </li></ul>Execution Tools / Best Practices <ul><li>American Management Association’s Ten Step Strategy Execution Model : </li></ul><ul><li>Visualize the strategy </li></ul><ul><li>Measure the strategy </li></ul><ul><li>Report progress </li></ul><ul><li>Make decisions </li></ul><ul><li>Identify strategy projects </li></ul><ul><li>Align strategy projects </li></ul><ul><li>Manage projects </li></ul><ul><li>Communicate strategy </li></ul><ul><li>Align individual roles </li></ul><ul><li>Reward performance </li></ul>
  10. 10. What is “Strategy?” <ul><li>Strategy , or strategic direction, is… “ the course of action that leads to the achievement of the goals of an organization's vision and mission .” </li></ul><ul><li>When looking through the lens of innovation: </li></ul><ul><ul><li>How does the execution of an innovation-related action plan add value to your strategic intent? (vision and mission) </li></ul></ul><ul><ul><li>How does execution upon strategy target the goals, tactics and measurements of the critical organizational functions? (objectives) </li></ul></ul><ul><ul><li>How can the organizations key assets and resources, with respect to innovation, have the greatest potential to provide strategic and competitive advantage? </li></ul></ul>“ The main role of innovation management is to bridge executive decision-making and strategic direction with the execution of project-based initiatives and front line operations of the organization.”
  11. 11. Creating An Executable Strategy <ul><li>Executable strategic plans have: </li></ul><ul><ul><li>High-level, phase-based deliverables </li></ul></ul><ul><ul><li>Detail-level milestones and tasks </li></ul></ul><ul><ul><li>Accountability and governance structures in place </li></ul></ul><ul><ul><li>Performance metrics established and validated </li></ul></ul><ul><ul><li>Resources who are identified, secured, trained and empowered </li></ul></ul><ul><ul><li>Communication and collaboration plans established </li></ul></ul><ul><ul><li>Risks assessed and mitigation plans documented </li></ul></ul>
  12. 12. Strategy Development Tools / Best Practices <ul><li>Strategic Planning Model </li></ul><ul><li>Scenario Planning </li></ul><ul><li>OGSM </li></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Goals </li></ul></ul><ul><ul><li>Strategies </li></ul></ul><ul><ul><li>Measures </li></ul></ul>
  13. 13. The Strategy-Execution Roadmap
  14. 14. Turning Strategy Into Execution <ul><li>Clearly define the end result and be courageous to kill the effort if it strays from its intended result </li></ul><ul><li>Articulate and communicate the linkage between strategy and operations </li></ul><ul><li>Establish accountability and ownership by encouraging existing supportive behaviors, discouraging unsupportive behaviors, educating / “up-skilling” where necessary and punishing where appropriate </li></ul><ul><li>Ensure the leadership team is cognizant of common obstacles and are provided with methods of removing, overcoming or otherwise mitigating them </li></ul><ul><li>Communicate often, listen intently and support fast feedback loops </li></ul><ul><li>Free the process of rigorous oversight or burdensome process </li></ul><ul><li>Share credit, reward, recognition and celebration in success and learned failure </li></ul>
  15. 15. The Innovation Execution Gap Model
  16. 16. The Trouble With “Day-To-Day Operations” <ul><li>Root Cause of the Idea Gap: </li></ul><ul><ul><li>“ Day-to-Day Operations” </li></ul></ul><ul><li>Suggested Solutions: </li></ul><ul><ul><li>Reduce day-to-day operational responsibilities </li></ul></ul><ul><ul><li>Increase resources </li></ul></ul><ul><ul><li>Design performance incentives / disincentives </li></ul></ul><ul><ul><li>Remove work flow and/or process-based obstacles </li></ul></ul><ul><ul><li>Establish frequent and focused communication on work balance </li></ul></ul><ul><ul><li>Design a roadmap, plan or other structure and make it visible </li></ul></ul><ul><ul><li>Be honest about changes and share both the benefits and the risks of the strategy </li></ul></ul><ul><ul><li>Establish a specialized team to work outside of the day-to-day operations </li></ul></ul>
  17. 17. Suggested Solutions for: “The Execution Gap” <ul><li>Provide innovation leadership training and a hands-on practice lab where they can both identify and eliminate unsupportive behaviors as well as build supportive skill sets </li></ul><ul><li>“ Incentivize” or otherwise structure their pay, bonus and other performance based goals to align with the desired outcome </li></ul><ul><li>Establish an idea and/or innovation management process that allows ideas and information from both directions to by-pass the middle management layer entirely </li></ul><ul><li>Hold middle / operational management accountable, including punishment for non-conformance, to executive directive </li></ul>
  18. 18. Creating A Climate / Culture of Innovation Execution <ul><li>Treat innovation as business discipline and demand appropriate rigor, methodology and tools be applied </li></ul><ul><li>Leverage a universal, dedicated platform to ensure that everyone speaks a common innovation language and understands the process flows associated with innovation management activities </li></ul><ul><li>Focus employee innovation attention to the problems / opportunities that matter most to the organization </li></ul><ul><li>Balance the innovation execution portfolio across all types of innovation…sustaining, incremental, breakthrough, etc. </li></ul><ul><li>Encourage a diversity of thought, participants, leaders and approaches </li></ul><ul><li>Force collisions between networks and ideas </li></ul><ul><li>Encourage smart risk-taking and fast failure </li></ul>
  19. 19. Common Success Factors for Strategic Innovation Execution <ul><li>Clear vision and precisely defined outcome </li></ul><ul><li>Measureable and easy to recognize milestones </li></ul><ul><li>Assignment of responsibility, accountability and authority </li></ul><ul><li>Assignment of appropriate resources to complete the work </li></ul><ul><li>Communication of accountability, including reward and/or punishment for behaviors, actions and engagement </li></ul><ul><li>Appropriate processes, tools and methodologies for use by the execution resources </li></ul>
  20. 20. Linking It All Together
  21. 21. ENVISION <ul><li>Vision </li></ul><ul><ul><li>What is the Mission/Vision of the organization and how do innovation and strategy align? </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Have you defined your objectives? </li></ul></ul><ul><li>Tactics </li></ul><ul><ul><li>What actions are needed to deliver those objectives? </li></ul></ul><ul><li>Priorities </li></ul><ul><ul><li>Are the tactics and objectives prioritized? </li></ul></ul>
  22. 22. ROADMAP <ul><li>Using outputs from Envision… </li></ul><ul><li>Governance </li></ul><ul><ul><li>Define the leadership and oversight required to execute </li></ul></ul><ul><li>Resources </li></ul><ul><ul><li>Assign an appropriate amount of resources (people, money, time and space) to ensure success </li></ul></ul><ul><li>Risks </li></ul><ul><ul><li>Try to identify risks (speed bumps) along your roadmap and define mitigation plans (alternate routes/detours) </li></ul></ul><ul><li>Initiatives </li></ul><ul><ul><li>What specific projects or initiatives will be launched to meet the planned objectives? </li></ul></ul>
  23. 23. ALIGN <ul><li>Using outputs from Envision-Roadmap… </li></ul><ul><li>Communicate </li></ul><ul><ul><li>Share, inform, collaborate, harvest ideas… </li></ul></ul><ul><li>Empower </li></ul><ul><ul><li>Provide people with the responsibility and authority to be successful </li></ul></ul><ul><li>Teaming </li></ul><ul><ul><li>Team up “dreamers” with “doers” </li></ul></ul><ul><li>Direction </li></ul><ul><ul><li>Ensure strategic intent is included in planning </li></ul></ul>
  24. 24. MANAGE <ul><li>Using outputs from Envision-Roadmap-Align… </li></ul><ul><li>Oversight </li></ul><ul><ul><li>Provide enough direction, guidance and support without creating bureaucracy </li></ul></ul><ul><li>Risk Management </li></ul><ul><ul><li>Resolving issues and executing on risk mitigation plans </li></ul></ul><ul><li>Performance </li></ul><ul><ul><li>Linking reward and recognition to results </li></ul></ul>
  25. 25. EXECUTE <ul><li>Using outputs from Envision-Roadmap-Align-Manage… </li></ul><ul><li>Project Management </li></ul><ul><ul><li>Follow a disciplined execution model/approach </li></ul></ul><ul><li>Metrics </li></ul><ul><ul><li>Measure and adjust </li></ul></ul><ul><li>Change Management </li></ul><ul><ul><li>Guide and manage the change </li></ul></ul><ul><li>Leadership </li></ul><ul><ul><li>Lead with courage, respect and resolve </li></ul></ul>
  26. 26. Linking It All Together
  27. 27. Bridging The Gap Between Innovation Strategy & Execution <ul><li>Ensure that innovation management is treated as a true business discipline within the organization and is provided appropriate resources and leadership engagement </li></ul><ul><li>Establish a robust, but flexible, process for managing innovation and for transitioning from concept to action </li></ul><ul><li>Connect executive decision-making and strategy with the front line operations of the organization. </li></ul><ul><li>Enable an organizational climate where change is managed effectively and ideas to enhance execution are supported </li></ul><ul><li>Build the appropriate organizational structures, including resources, that support execution, empowerment and decision-making </li></ul>
  28. 28. To Innovate…Execute To Execute…Lead <ul><li>Figuring out what problems you want to solve... takes execution </li></ul><ul><li>Collecting ideas from employees, management, vendors, partners and customers... takes execution </li></ul><ul><li>Filtering ideas and deciding which ideas you want to commercialize... takes execution </li></ul><ul><li>Committing resources, both financial and human, toward commercialization... takes execution </li></ul><ul><li>Developing a solid project plan to move the idea to reality... takes execution </li></ul><ul><li>Marketing the product/service and making the idea known to the world... takes execution </li></ul><ul><li>Making a profit on an idea... takes execution </li></ul>
  29. 29. Full Research Report Available: <ul><li>American Institute for Innovation Excellence </li></ul><ul><li> </li></ul><ul><li>Click on: </li></ul><ul><li>Research </li></ul><ul><ul><li>Published Research </li></ul></ul><ul><ul><ul><li>Fall 2011 Report </li></ul></ul></ul>