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Regional innovation program operating model strawman v1

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This document is a Request for Comment.

By way of background, the document came about as I was preparing to teach a course on “Organizing for Innovation” in an MBA class called “Technological Innovation.”

As I was reading through the material, it occurred to me that I was having a hard time finding practical advice on how one would realistically setup a holistic Innovation Program. There was lots of, “best practice advice”, but little concrete models.

In the field, I’d seen several companies try to roll out Innovation Programs, but because they only focused on one small part (such as Ideation), the programs ultimately failed to deliver real business results. My hypothesis was that you cannot run a Corporate Entrepreneurship program piecemeal, it needs to be holistic.

So the basic question is: Suppose you had to build the ideal holistic innovation program from the ground up for a large company / MNC. At some point, you would need to define a tangible operating model with specific streams of work against which, you would staff actual people. The Operating Model would need to cover the scope of the functions and a set of activities to deliver against goals over Period X. So what would the Operating Model look like?

This deck is a strawman.

PS: I also happen to be in Asia Pacific, so my context is a regional organization in a global MNC.

Published in: Business, Education

Regional innovation program operating model strawman v1

  1. EXAMPLE REGIONAL INNOVATION PROGRAM CHARTER Selena Sol presents….. selena@selenasol.com http://www.linkedin.com/pub/eric-tachibana/0/33/b53 http://www.slideshare.net/selenasol because doing it haphazardly sucks
  2. This document is a Request for Comment. By way of background, the document came about as I was preparing to teach a course on “Organizing for Innovation” in an MBA class called “Technological Innovation.” As I was reading through the material, it occurred to me that I was having a hard time finding practical advice on how one would realistically setup a holistic Innovation Program. There was lots of, “best practice advice”, but little concrete models. In the field, I’d seen several companies try to roll out Innovation Programs, but because they only focused on one small part (such as Ideation), the programs ultimately failed to deliver real business results. My hypothesis was that you cannot run a Corporate Entrepreneurship program piecemeal, it needs to be holistic. So the basic question is: Suppose you had to build the ideal holistic innovation program from the ground up for a large company / MNC. At some point, you would need to define a tangible operating model with specific streams of work against which, you would staff actual people. The Operating Model would need to cover the scope of the functions and a set of activities to deliver against goals over Period X. So what would the Operating Model look like? This deck is a strawman. PS: I also happen to be in Asia Pacific, so my context is a regional organization in a global MNC.
  3. 2012 STRATEGIC INTENT VISION Start-up the Applied Innovation function in Asia MISSION • Agree on a clear plan and operating model to facilitate and govern the launch of the process • Make a real, visible commitment – marketing messages and budget/resource allocation • Develop and launch a controlled Ideation program • Select 3-5 internal ventures to back • Make it a priority of stakeholders to deliver results (incentives to invest and protected spaces to fail) VALUES Excitement, Vision, Commercial, Disciplined While it may be shepherded by a small group of designated evangelists, innovation must be owned by everyone at all levels or it will not become part of the firm’s DNA. WHERE WE WANT TO GO HOW WE GET THERE OUR COMPASS Leverage both incremental and disruptive innovation to drive client delight, excite our brand, develop new revenue streams, slash the cost base, and inspire and engage employees Why we exist - Innovation Program Strategic Intent 3 Innovation is the successful commercialization of ideas. Innovation may be small and incremental or large and game changing
  4. What we do - Ensuring a fertile landscape for innovation 4 STRATEGY INFRASTRUCTURE CULTURE STAFFING GOALS Define and communicate a clear vision of why innovation matters, where we aspire to be because of innovation, and what success means tangibly. Agree on, indoctrinate, and live out the values that will help us achieve our vision. Agree on, rollout, and monitor a practical tactical mission and plan that will help us deliver the vision. ACTIVITIES • Define Strategic Intent (Vision, Mission, Values) aligned to platform and business goals • Define and execute Communications Plan • Align operational tactical plans to strategy • Measure and monitor execution of strategy IMMEDIATE WORKPLAN GOALS Ensure that the environment is as conducive to innovation as possible. ACTIVITIES • Budget and resourcing allocation • Applied Innovation Labs • Ideation & Collaboration Tools • Incentives & other policies • Physical environment IMMEDIATE WORKPLAN GOALS Create a culture that encourages innovative behavior. ACTIVITIES • Identifying and coaching out derailing behaviors • Formally celebrating / communicating success & failures • Propagating stories/legends IMMEDIATE WORKPLAN GOALS Ensure that we have enough intrapreneurs with the right diversity of capabilities and in the right organizational roles (seniority & coverage) to instigate and drive change and that we remove staff who would derail the program. ACTIVITIES • Organizational Design, role definition, and diversity strategy • Sourcing • Screening • Induction • Training • Mobility • Pruning IMMEDIATE WORKPLAN INITIATIVES Incorporate wording around innovation into Vision statement Q3 LL Syndicate new Strategic Intent through skip-levels Q3 AR Write & Execute Comms Plan Q3 AR Agree on departmental metrics and targets Q3 LL End-of-year Townhall Q4 LL INITIATIVES Allocate 2013 budget to incubate 2-3 projects Q4 LL Complete setup of Tokyo R&D Lab Q3 GT Create Innovation Space on intranet collaboration tool Q3 GT INITIATIVES Start publishing Innovation Newsletter Q3 AR Kickoff Innovation Awards program Q4 AR Develop training program on Failure- Friendly Leadership Q4 GT INITIATIVES Define Innovation Core Capabilities and Derailers Q3 TM Develop Training program for Interviewers Q3 TM Propose 2013 Personal Objectives ladder for innovators Q4 Tm
  5. What we do - Ensuring a fertile landscape for innovation 5 INCULCATE IDEATE INCUBATE INNOVATE GOALS Use Culture, Staffing, Communications, Environment, and Infrastructure to drive day-to-day innovative thinking and behavior by empowering employees. They can do it. They have authority to do it. They have the space and time to do it. They have the tools and training to do it. They have the organizational tolerance of failure to do it. ACTIVITIES • Innovation Culture stewardship • Coordination with staffing & leadership development • Innovation & collaboration tools identification & deployment • Reporting & other communications • Intrapreneurial coaching & mentorship support GOALS Ensure a fluid, rapid flow of ideas from inside and outside, from top to bottom, and across the organization’s business lines and functions. Make it easy for anyone to find out to whom new ideas should go. Provide an infrastructure that allows the organization to ponder, capture, share, filter & qualify good ideas and to save ideas that are good, but not ready to incubate. ACTIVITIES • Manage ideation & collaboration tools & programs (and archive) • Problem statement definition & qualification • Drive External Innovation (competitors, customers, universities, wild cards, etc) program, linkages, and agreements GOALS Create space, budget, and project management support to convert good ideas into practical prototypes and pilots. Track, measure, and monitor projects and spend to ensure efficient and effective deliverables. ACTIVITIES • Manage R&D Labs • Manage skunk works projects & internal ventures • Lobby for and manage venture budget • Execute stage-gate and governance processes to qualify and monitor venture projects GOALS Transform the right set of prototypes into commercial change. Launch new products to market or implement organizational change on a wide scale. ACTIVITIES • Facilitate front-to-back business sponsorship from ideation stage through commercialization) • Oversee productionization / commercialization and change management • Internal sales and marketing • Track business benefits INITIATIVES Blah blah blah blah blah INITIATIVES Project A Project B Project C INITIATIVES Project A Project B Project C INITIATIVES blah blah blah
  6. How we are organized - Org structure 6 Nomineer from BU 1 Nomineer from BU 1 Nomineer from BU 2 Nomineer from BU 2 Incubation Manager Incubation Manager Change Manager Change Manager BU 1 CTOBU 1 CTO BU 2 CTOBU 2 CTO BU 3 CTOBU 3 CTO BU 4 CTOBU 4 CTO Technology Leadership Team Inculcate WG Inculcate WG Ideation WG Ideation WG Incubation WG Incubation WG Innovation WG Innovation WG Innovation Organization CTOCTO BU = Business Unit WG = Working Group of volunteers RM = Relationship Manager = Hardline = Matrix reporting Or is it better to organize by themes like cloud computing or mobility rather than the 4 from slide 4 ??? HR RMHR RM Finance RMFinance RM Strategic Innovation Evangelist Strategic Innovation Evangelist BU CEOBU CEOBU CEOBU CEO BU CEOBU CEOBU CEOBU CEO Product Management Team
  7. How we are organized - Org structure 6 Nomineer from BU 1 Nomineer from BU 1 Nomineer from BU 2 Nomineer from BU 2 Incubation Manager Incubation Manager Change Manager Change Manager BU 1 CTOBU 1 CTO BU 2 CTOBU 2 CTO BU 3 CTOBU 3 CTO BU 4 CTOBU 4 CTO Technology Leadership Team Inculcate WG Inculcate WG Ideation WG Ideation WG Incubation WG Incubation WG Innovation WG Innovation WG Innovation Organization CTOCTO BU = Business Unit WG = Working Group of volunteers RM = Relationship Manager = Hardline = Matrix reporting Or is it better to organize by themes like cloud computing or mobility rather than the 4 from slide 4 ??? HR RMHR RM Finance RMFinance RM Strategic Innovation Evangelist Strategic Innovation Evangelist BU CEOBU CEOBU CEOBU CEO BU CEOBU CEOBU CEOBU CEO Product Management Team

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