Roles and Skills Of a Chief Innovation Officer Final

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An analysis on the different skills required for being an effective Chief Innovation Officer, Chief Strategy Officer as well as Best Practices Skill sets

Roles and Skills Of a Chief Innovation Officer Final

  1. 1. The Role and Skills of a Chief Innovation Officer Author: Richard Platt Former Intel Corporate Innovation Program Manager
  2. 2. OBJECTIVE: Inform and share research findings, learning's and experience to shed more light on the role of Chief Innovation Officers. Role performed in degree, in a corporate environment, w/out the Cxx title Benchmarked multiple individuals looking for “Best-In-Class” examples enhancing an enterprise's competitive capabilities to create a model for the position Chief Innovation Officer (CIO) title has been around for <10 years A.K.A.: Chief Design Officer (Samsung) Chief Strategist / Chief Strategy Officer (Cisco) Chief Strategy and Innovation Officer (KPN) Corporate Innovation Champion (multiple companies) Chief Growth Officer (health care company) Chief Creator of Pleasant Surprises and Avoider of Unpleasant Surprises (blog recommendation from Foresight and Innovation website) All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 2 Copyright Protected
  3. 3. Issues with Chief Innovation Officer Role ISSUES: Read: “Can Corporate Innovation Champions Survive?” Multiple issues identified at 15 different corporations with these individuals Not always recognized that Strategy and Innovation are fundamentally tied together No direct connection with responsibilities and authority to execute between strategy and innovation No clear definition of responsibilities No clearly defined areas of expertise to qualify for position No definition of success metrics No professional standard definition of what a CIO actually should do No certifications identified for CIO’s No commonality in name of the position All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 3 Copyright Protected
  4. 4. Objective of CSIO (Chief Strategy and Innovation Officer) ASSUMPTION:† Strategy and Innovation are inexorably tied together, so whoever is responsible for innovation also must understand and actively support the agenda of the CEO, executing the strategy and influencing the organization at the ground floor Objective: Ŧ To identify and drive pursuit of new sources of revenue and profit from… Current, New or Expanded markets New or Enhanced products / services or New ways of working † Source: Adapted from HBR Article “The Chief Strategy Officer” October 2007 Ŧ Source: Adapted from Chief Innovation Officer, a blog about Foresight + Innovation. All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 4 Copyright Protected
  5. 5. Responsibilities of CSIO (Chief Strategy and Innovation Officer) Responsibilities: Ŧ Primary source for collective market and business intelligence Business equivalent of Military Intelligence known as G2 A point of entry for strategy and innovation development and plans Owner of the end-to-end innovation process Manager / Leader of Strategy & Innovation Group Small group of experts in innovation and strategy that reports to CEO Architect of Innovation infrastructure and corp. innov culture Maintainer of Innovation Process / Pipeline Advocate for breakthrough technologies / products / services and value enhancement Champion for company’s designers Seeds BU’s with training on systematic innovation methods and tools (co-owned with BU VP’s) Ŧ Source: Adapted from Chief Innovation Officer, a blog about Foresight + Innovation. All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 5 Copyright Protected
  6. 6. Roles of CIO / CSIO Identified Senior VP / VP Level position Reports directly / indirectly to CEO, typically works closely with Chief Technology Officer and others who have similar strategy responsibilities Senior Level design and technology advocate and champion Champions promising technologies or products to Executive board for funding and resource allocation Strategic Analyst / Analysis Looks for technology gaps, trends and opportunities for enterprise beyond current product, service and / or technology lines Assistant to CEO in achieving growth goals Helps “kick start” economic engine of enterprise; May interact and drive results at the BU level Acts as advocate for designers and a direct pipeline to senior management Champions and Deploys Systematic Innovation Methodologies and Strategy Analysis Tool use across enterprise Develops internal and external network of innovators and partners in moving corporate innovation agenda forward Creates partnerships with collaborators and non-competitors All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 6 Copyright Protected
  7. 7. Finding a Qualified CSO (Chief Strategy Officer) A good CSO candidate should be: Deeply trusted by the CEO Master of Multitasking Jack of All Trades Star Player A Doer, not just a Thinker Guardian of Horizon Two Influencer, not a Dictator Comfortable with Ambiguity Objective, (a.k.a. unbiased except about Growth) Excerpted from HBR Article “The Chief Strategy Officer” October 2007 All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 7 Copyright Protected
  8. 8. HBR Research Findings CSO’s… must engender commitment to clear strategic plans must drive immediate change must drive decision making that sustains organizational change balance strategy formulation and execution manage the time horizon (Phase I, II, and III) exert Influence appropriately have / develop IT and HR smarts Source: HBR Article “The Chief Strategy Officer” October 2007 All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 8 Copyright Protected
  9. 9. Consultants Viewpoint vs. Experience “Must have knowledge and background in HR, IT and Technology” -- Praveen Gupta innovation business consultant on www.realinnovation.com Both CIO’s that I worked for had the requisite HR, IT and Technology backgrounds The 1st one hired me to deploy Innovation Program 2nd CIO continued to support Innovation Program 3rd CIO was under extreme pressure to cut costs in 2006, anything not directly enabling IT was cut - Program was chartered to enable innovation in the manufacturing and design groups, was considered extraneous and was targeted. - The IT team transitioned the program to the most effective group of users. Personal Comment: Simply faced the realities of the marketplace and change in the corporate environment All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 9 Copyright Protected
  10. 10. Consultants Opinion on CIO position “Can Corporate Innovation Champions Survive” article written by 15 former Corporate Innovation Champions. Multiple recommendations, one unanimous conclusion is that job only lasts 3-4 years due to lack of executive level support, funding and political in-fighting Strongly indicates many DO NOT have the experience actually ‘making change happen’ in the Corporate environment – Opinion Driven Personally told by Intel CIO: “Richard go make it happen” – so I had to own it Difference between experience and opinion is in the results, the metric All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 10 Copyright Protected
  11. 11. Success Measures for CSIO (Chief Strategy and Innovation Officer) Success Measures: % of revenue and income generated from new sources % revenue growth from new products not previously planned for Amount of investment wrestled away from competitors, old products / services and old business practices % of reduced NPD cycle time % of reduction in Time-To-Market with new processes in place vs. old Ratio of pleasant to unpleasant surprises % increase in patent submissions Rate of Change in # of viable projects in innovation pipeline # of viable innov. projects / total # of innov. proposals # of commercial successes (measured over time) Source: Adapted from Chief Innovation Officer, a blog about Foresight + Innovation. As well information gathered on innovation metrics for the last 5 years All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 11 Copyright Protected
  12. 12. Is IT and the CIO the right place and person to drive Innovation? Consultants, IT and business trade journals recommend CIO’s (IT), and in some cases CEO’s, drive and enable innovation Findings: Both CEO and CIO (IT) should be involved: Enable and Measure – too many stories about failed 6 sigma and innovation efforts w/out the CEO’s active involvement, or no supporting infrastructure from IT 1. CEO and CIO’s plates Full – Available time and energy to drive implementation 2. Policy is set from corporate level, profitability occurs at the BU level, Need exists for an organization / person / process to assist in managing expectations and drive organizational change with senior BU management 3. Critically important for buy-in at the BU management and individual contributor level to have an independent process to manage exceptions to current product and technology Indicates a strong need for “Change Agent” skill set to achieve adoption (at least in US companies) All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 12 Copyright Protected
  13. 13. Differentiating Skills Needed (Author’s Experience) “Change Agent” skill set developed through experience (see failures) ...had to improve upon influence gaps before I could see the program achieve success the way I knew was possible Used failure as a learning mode to improve and address gaps in political power, effectiveness and influence. Requires: Proactive feedback loop for maximum effectiveness, put another way………. “Adapt on the Fly” In Actuality, this should not be viewed as failure by you or others since….. “It’s NOT failure, it’s Rapid Prototyping” (Author’s Perspective) All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 13 Copyright Protected
  14. 14. Change Agent Skill Challenges • Process for Change Management – www.change-management.com (HIGHLY Recommended) • Individual Change Agent skill set is different. – Can learn some of from books, but the test is only through applying that knowledge in different contexts (experience), which hopefully culminates in wisdom. Wisdom of Change Agency: – “Know What to do” – “Know When to do it” – “Know Where to do it” – “Know How to do it” – “Know Who to do it with” – “Know Why you do it” -- you’d better know before you even begin down this path. All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 14 Copyright Protected
  15. 15. Importance of Background Some consultants have said that experience in R&D and product groups isn’t necessary Relevancy of my background: Engineering (product and technology design) Manufacturing (new product development / introduction) Product and Process Development Program and Project Management New Product Development and Continuous Improvement Tools Corporate strategy R&D Technology Development Experience was CRITICAL to seeing where to apply the methods to get the BIG results and have adoption of the Program become a reality Result: Intel Systematic Innovation (TRIZ) program continues on in a different group, outside of IT organization All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 15 Copyright Protected
  16. 16. What Skills does a Corporate or Chief Innovation Officer need? Demonstrable Skills in: 1. “Creative and Innovative” skill set (preferable to NOT think like everyone else, an ‘outsider’ mentality) 2. Standard Behavioral Skill Set Note: More 3. Basic understanding of Micro and Macro detailed explanation in Economic Theory Backup of 4. Knowledge in Systematic Innovation methods presentation (a.k.a. Analogous Thinking Skills) 5. Strategy Tools & Skills (Used Internally and Externally) 6. Change Agent Skill Set (Uses change mgmt processes) 7. Integrative Thinking Skills (“How Successful Leaders Think” HBR June 2007 Roger Martin– curriculum taught at the Rotman School of Management, Toronto Canada) I. Salience II. Causality III. Sequencing IV. Resolution Source: HBR June 2007 “How Successful Leaders Think” as well as personal experience and those benchmarked All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 16 Copyright Protected
  17. 17. Final Comments • Much more could be added in the way of skills, e.g. “Real Options Theory”, and other important knowledge, I covered what I believed to be the most relevant • If you want to learn the skills of this position the approach I advocate is “hands-on”, this is not for the “play-it-safe” types. It’s called Applied Learning • There isn’t a school you can go to for all of this, so what else are you going to do to get the skills you need? • How else are you going to be able to grow and learn if you don’t take a few risks in life? • More detail on the what, who and why in the backup • My hope is you got some value out of the presentation. Thank you If you have any feedback or questions please feel free to contact the author at rplatt_inov8@yahoo.com Mobile: (503) 929-0239 All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 17 Copyright Protected
  18. 18. BACKUP All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 18 Copyright Protected
  19. 19. Skills in Detail Behavioral Skill Set – Intel uses 21 different behavioral skills when it interviews potential job candidates. – Political nature of this position indicates more than a passing level of demonstrable competence in at least the 21 behavioral skills. – Some companies analyze for as many as 45 behavioral skills. Resource: http://www.uwstout.edu/place/behavior.html Basic understanding of Micro and Macro Economic Theory – Role and position shares accountability for the responsibilities of the CEO, specifically helping kick start economic engine of the firm. – Critically Important to understand WHAT the forces at play are All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 19 Copyright Protected
  20. 20. Skills in Detail (continued) Systematic Innovation Methods / Analogous Thinking Skills: This is the HOW of achieving the results that CEO’s, shareholders and stakeholders are looking for, mainly growth. Must be able to know WHERE to kick start the economic engine of the company with what he/she does. “Analogous Thinking”: seeing patterns to different types of problems and utulizing principles or trends to solve them. • When practiced on a # of different problems, it starts to become more ingrained in the thinking, having the effect of seeing pattens to problems and potential solution paths in multiple domains • Seen in many Advanced Systematic Innovation students (>850 engineers and scientists taught) "Genius is the capacity to see 10 things where the ordinary man sees one“ -- Ezra Pound All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 20 Copyright Protected
  21. 21. Skills in Detail (continued) Change Agent / Change Management Skill Set – This is where you learn the “HOW to” and “WHO to” that I mentioned earlier – admittedly this one can be tougher, but not impossible. It includes Organizational Development (OD) knowledge, a certain degree of political savviness and diplomatic awareness. Resources: “Real Change Leaders” – by Jon R. Katzenbach www.change-management.com www.12manage.com Get a senior level manager to act as your mentor If you’re new to the position or just want to learn more I recommend the Applied Learning Method; applying what you learn on the job. All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 21 Copyright Protected
  22. 22. Skills in Detail (continued) Strategy Tools and Skills Strategy and innovation are inexorably tied together. Strategy pulls everything together, without it innovation is rudderless over the long term. This is the knowing WHEN, WHAT, WHERE and WHO with aspect to the role Example (when its lacking): Innovation for innovation’s sake, a pointless exercise and one where the results don’t manifest nor where the enterprise needs them to actually be. Multiple Tools and Frameworks: (here are a few I recommend) “O-O-D-A Loop” Analysis – John Boyd “Hammer and Pivot” – Evan Dudik Competitive Intelligence Analysis – Multiple authors “Strategic Hypothesis” Testing – Evan Dudik Values Based Management – Multiple authors “Blue Ocean Strategy” Analysis – Reńee Mauborgne and W. Chan Kim Methods of UCLA’s Anderson School of Management – Richard Rumelt Strategic Organization – Kaplan and Norton Different business variations on the “Art of War” – Sun Tzu and multiple authors Multiple others…e.g. M. Porter, C. Christensen, others All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 22 Copyright Protected
  23. 23. Skills in Detail (continued) Integrative Thinking Skills: Creative Resolution: specifically doesn’t buy-in to fear based arguments, nor typical attitudes of compromise, sacrifice and trade-off, since its known that there are principles that govern resolution to these typical and limited ways of thinking. Sophisticated Causal Thinking: knows the difference between symptoms and effects and finding the true root cause of an issue which is the basis of decision making. Consideration of the Whole: a.k.a. “Holistic Viewpoint” where one uses Systems thinking analysis types of tools in approaching problems, they don’t disconnect pieces to be handled separately. Broadening Salient Features: The ability to creatively think differently than their peers. Otherwise you get sucked into “drinking the Kool-Aid” of the status quo. Why I recommend more than a passing knowledge of TRIZ and other analogous thinking methods. More on these subjects at these websites: http://www.rotman.utoronto.ca/integrativethinking/definition.htm http://www.triz-journal.com All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 23 Copyright Protected
  24. 24. Who Was Benchmarked Modern Day Models: Eelco Block – Corporate Strategy and Innovation Officer (KPN Telecom N.V. – Netherlands) Choi Gee Sung – Chief Design Officer (Samsung – S. Korea) Note: Models were selected due Wook Sun – Snr. VP of Samsung Advanced Institute of to their “game Technology (Samsung – S. Korea) changing” thesis or applications in Sun Lin Chou – Snr. VP of Technology and Manufacturing the domain of Group – R &D / Tech Dev (Intel – US) their area of responsibility, Steve Jobs – CEO (Apple – US) whether that was in business or in Historical Models: the ultimate Col. John Boyd (Author “O-O-D-A Loops” – US) competition, warfare. Musashi Miyomoto (Author “Book of 5 Rings” – Japan) Sun Tzu (Author “Art of War” – China) Rene Quinton (Author “Soldier’s Testament” – France) Field Marshall Erwin Rommel (Author “Attacks” – Germany) All Rights Reserved Author: Richard Platt -- Former Intel Corporate Innovation Program Manager 24 Copyright Protected

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