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Cycles
The simplest,	proven	way	
to build your business.
Course Alignment
Day 1 work in groups
You	will	need	to	talk	to	people	Wednesday	and	Thursday
Now	is	the	time	to	arrange	meetings
1. Personal Introductions
2. Review the True North
3. Decide on key roles
4. Any questions on the program
1. List and vote on key challenges
2. Map success – add to challenges
3. Update TRUE NORTH + sprint targets
Before	Mentor	Talks
After	this	talk
What you can expect today
Why
Alignment
First
What is
Innovation
Clarification of
your work later
in groups
A talk through
the work you’ll
do in groups
1
2
3
4
Is this innovation ?
Source: video: Three Steps for Creating an Innovative Culture (Gary Pisano)
+ =
Sales	up	30%
Price	up	250%
Wastage	down	40%
Despair.com
We hate all the senseless, wasted
time on employee motivation and
un-founded optimism
We	imagine	you	do	to,	buy	our	
products	and	show	your	true	
colors
Petrock.com
Pets take a lot of time and energy.
Your kids can have almost as much 
fun with a pet rock.
We even include a care guide
These all offer less
Mini	mills
Community	colleges
Discount	retailers
Retail	medical	clinics
Integrated steel mills
four-year colleges
Full-service department stores
Traditional doctor's offices
And this a lot
less…
 Low quality video
 No SD
 Bad Battery life
 More expensive than competition
But really, really	simple
13%	of	the	US	video	market	in	1	year
Successful Innovation
is not about being
10% cheaper,
20 % better
It	is	about	being	10X	better	
at	half	the	price
Or	
Half	as	good	at	1/10th of	the	
price
IMHO… Innovation is …
Meaningful	Unique
Value	Creation	
If consumers are not willing
to pay more, you are not
meaningfully unique
Value	Capture
If you are not earning more
you are not innovating
Innovation = Value Creation * Value Capture
Why Innovation is
important
The cycle of life
Source:	Driving	Eureka
Source:	Driving	Eureka
Innovation can
help you re-start
Why innovation
 Only insurance against irrelevance
 Only protection against commoditization
 Only hope of long-term customer loyalty
 The only real hope of long-term competitive advantage
It is ONE	Thing	you can do (if you do it well)
that will make everything else easier or
unnecessary
Arguably it	is	everything
3 Myths
1. It is all about big ideas
2. There are recipes for success
3. Soft creative culture
In	his	words..
He sold spark plugs to Industry
Fees for 2-3 day workshops
$100,000		– $	200,000
then the sparks worked
less and less
They analysed a mountain
of data
PEOPLE	Data:	innovation benchmarking data on over
100,000 managers.
PROCESS	Data:	As of this writing we have measured
over 6,000 teams during a day of brainstorming.
IDEA	Data:	market research on over
26,000 innovations.
They identified the share of
success due to ideas and systems
84 % systems16 % ideas
Myth	#	2
Recipes	for	Success
What is the “guru story”
1. “We’re all going to die”
2. “the bureaucracy is killing us” – so we have to go outside the
normal organizational structure to get the right things done.
3. “There is hope for a brighter future” – as long as we all
follow the guidelines and turn our organizations upside down.
4. “You have the power to make a change for the better” – even
if you occupy the low rung on the corporate ladder.
5. “Follow me”
Can	innovation	be	taught ?	
Probably not, but the principles that make it
work can be…
Gurus sell you recipes
to sell you ingredients
I believe you can “learn	to	cook”, so
you can choose which recipe fits your
company, select your ingredients and
most importantly, still be able to cook
when you’re missing ingredients
Continuous
improvement is not a
conservative strategy
It is about action every day, regular
failure and an unwillingness to
accept there is any product, or
process that cannot be further
improved
Myth	#	3
Soft	Creative	Cultures
A good innovation culture
is NOT soft
Source:	video:	Three	Steps	for	Creating	an	Innovative	Culture	(Gary	Pisano)
Everyone	Wants
 Tolerance for failure
 Willingness to Experiment
 Collaborative
 Freedom to speak up
 Flat
The	reality	
 Intolerance for
incompetence
 Demand disciplined action
 Individual accountability
 Brutal Condor
 Strong Leadership
Companies become innovative step by step
Each stage is dependent on the previous
stages
Partnerships
Persistence
Processes	
Purpose	/	Passion	
Innovation
Over 90% of companies go through these stages sequentially. That means the right way to move forward is almost 
always to simply to identify the stage a company is at now and then work on what will get them to the next stage
Stage	2
Stage	1
Stage	3
Stage	4
FACTS
THREE	YEARS	OF	RESEARCH…
WITH	OVER	400	COMPANIES	
SEVEN	DRIVERS	OF	
INNOVATION	SUCCESS
7	Key	Learnings:
1. Strategic alignment is the cornerstone of
successful innovation
2. If you want to give autonomy, you need to have
strategic alignment first
3. If you get alignment, attitudes and learning
orientation in place, systems will follow
4. The right balance disruptive/incremental is
key
5. Proactivity is the one thing you need to reward
6. If you are in a big company or a small company
you need to act like you are in a successful start
up
7. Walk before you run
Even Simpler
Purpose
Process
Persistence
The challenge:
Make this information
actionable…
The Solution
= Theory
Good Theory
 Based on Facts
 Parsimonious (simple)
( Think E = MC2 )
 Prescriptive
 And something that can be tested…
The importance of
theory
For years people looked at birds and concluded feathers are linked to the ability to fly
 Yes, birds have feathers
 But, people with feathers cannot fly
Observation	 Theory
My innovation theory
in simple terms
"We are what we repeatedly do. Excellence, then, is
not an act, but a habit." ~ Aristotle
What we are willing to repeatedly do is determined
by our desires , abilities and systems (and systems
are what drive everything)
The goal :
Level 1 to Level 3
LEVEL 1	‐ INNOVATION	AS	AN	EVENT
This is where most companies find themselves. They
conduct brainstorming sessions or hold random
contests to generate new ideas.
LEVEL	2 ‐ INNOVATION	AS	A	CAPABILITY
The organization puts in place structures and
processes to define problems, generate and evaluate
solutions, and develop action plans to implement
those solutions.
LEVEL 3	‐ INNOVATION	AS	A	SYSTEM
The ultimate level involves creating an environment
where innovation is embedded in everything you do.
With embedded innovation, people innovate to deal
not only with “problems or challenges” that are
presented to them but with everything they do.



1	*	1	*	1	*	1	=	Beauty
1	*	1	*	1	*	0 =	Failure
The ABCs is a method to
make this possible
CO M M UN ICATE
ALIG N BUILD CH ECK SYSTEM S
    Bigger Ideas, faster at lower risk
X    Chaos, wasted energy
 X   Weak Ideas, small improvement
  X  Resources wasted on bad ideas
   X Small wins, no big improvements
RESULTS
Class Break
10 min
This lecture is available on slack
Alignment
The hard math
of Innovation
Total
100 products launched 100
About 40% not doing a real job 60
About half not doing enough to get hired 30
About half hired profitablly 15
Successes 15
Source Success Rate
Frost & Sullivan, "Growth Process Toolkit: New Product
Development,” 2008. 1%
Andrew Campbell and Robert Park, ‘Stop Kissing Frogs,” Harvard
Business Review, July-August 2004. 1%
Dr. John Sviokla, “The Calculus of Commerce,” Diamond Cluster
International, Inc. 2004. 3%
Corporate Strategy Board, "Stall Points,” 1998. Cited in Clayton
Christensen and Michael Raynor, "The Innovator’s Solution,” , 2003. 5%
Andrew Campbell and Robert Park, ‘Stop Kissing Frogs,” Harvard
Business Review, July-August 2004. 10%
Kevin J. Clancy and Randy L. Stone, "Don’t Blame the Metrics,” Harvard
Business Review, June 2005. 10%
Corporate Strategy Board, "Overcoming Stall Points,” 2006. 10%
PriceWaterFlouseCoopers, "Shaking the Money-Tree,” slide 33, U.S.
Venture Liquidity 2001-2007, Q3 2008. 11%
Average 8%
Average Success Rate VC (2018) 11%
Dr. Robert G. Cooper, "Doing it Right,” Product Development Institute
Inc., 2006. 25%
Facts
A	poster	child
A simpler View
Happy	to	pay	for	the	
Value
Not	willing	to	pay	enough
(Hard	kill)	
willing
to	PAY
Sad	to	Kill not	willing	
to	PAY
no JOB a real JOB
Easy	Kill
Winners	learn	to	do	things	better	over	time
And	build	different business	models
Value	Creation	*	Value	Capture	=	Success
A very important fact
Autonomy is negatively
correlated with
innovation results
 In most companies, there is not clarity on
what they are doing for customer (70% of
companies)
 People get lost in what they are doing.
Innovation Results
Low Cutomer High Custom
7
57
49
21
Low High Low Hig
Autonomy Autonom
FocusFocus
But not if you’re
customer focused
 In most companies, there is not clarity on
what they are doing for customer (70% of
companies)
 People get lost in what they are doing.
When	customer	focus	is	high.	Autonomy	
is	positively correlated	with	results.
Innovation Results
Low Cutomer High Customer
71
57
49
21
Low High Low High
Autonomy Autonomy
FocusFocus
Why?… Needs first, not ideas
first !
Develop
a	solution
Find
a	need
Find
a	need
Develop
a	solution
Find
a	market
IDEAS first
NEEDS first
5 - 10%
Find
a	market
70%
Success	rate	*
*	According	to	Strategyn	research	on	outcome	driven	innovation…
What	for	who	before	how…
Ask	how	more	value	/	value	capture	Culture	
Then	get	started		with	a	clear	mission
Objective
Working on the right things to start
Right Things
Wrong
Right Things
Right
Wrong things
Wrong
Wrong Things
Right
Doing	the	wrong	things	right	…	
Makes	you	wrong
(RTW	is	better	than	WTR)
A fast (very fast) case study
SNCF
Reducing Overcrowding on Trains
Details Objective
 New construction in Paris –
demand now
 Traffic getting worse –
more demand soon
 No way to increase capacity
on specific lines
(e.g. Periphery to Paris)
How to reduce standing or
negative feelings associated
with standing on the train
Tools to come to
alignment
1 | What
2 | check
What has
value
3 | how
better
4 | how to
5 | Share
Why you gotta be clear !!
only	55%
of	the	middle	managers	can	name	even
1
of	their	company’s	top	five	priorities
A tool to make
things clear …
(Step #5)
Our commitments to you
Our parent company is a state-owned
industrial and commercial enterprise with a
public service mission (EPIC)—and we’re
proud of that.
As a linchpin—and architect—of shared
mobility, we work hard every day to keep our
promises to our customers.
We serve the public.
Getting you there is our business.
We make social progress a priority.
Our role has always been to promote regional
development and reduce regional inequality.
We offer fares that are right for you.
We’ve got specially designed solutions—for
large families, jobseekers, students and more
Get	people
Where	they	need	to
Go	and reduce	auto	
traffic
A	modern,	efficient
railway	network
A	better,	faster	trip
What	are	the	jobs	of	people	standing	?
(ways	to	solve	their	job)
What is my job ?
Example	:
Expensive prepared
Dinner Waterloo
station with flowers
I get home Apologize and
show I care
So I don’t sleep
on the couch
People only buy
products / services
to get
a job done
and they will pay
a lot more
to get
the right job done
Pick your core job(s)
Comfort	during	the	trip
Take	the	Car
The	energy	I	have	when	I
get	to	work	
I	go	to	work Make	my	travel	
easy	
Be	fresh	and	happy
when	I	arrive	at	
work	and	home
Work alone
Who is standing now ?
Who Situation Objective Outcome How progress measured
Daily	Commuter I	go	to	work
Make	my	travel	less	
tiring
Fresh	and	happy	
when	I	arrive	home
Feelings	verus	alternative	
transport	methods
Culture is	the	thing	that	makes	
everything	possible
Public	Service
Some	desire	to	
innovate
More	desire	to	
stay	the	same
Customer	Centric
Willing	to	treat	
different	people	
differently
Greed	is	good
See	the	value	of	
treating	people	
different
Build	the	Basics	
now
Could	we	change	how	to	do	things	
to	deliver	or	capture	more	value
The basics
A	business	model	=	4	parts
A	sustainable	BM	is	usually different in	
at	least	2	ways
Step by	step
Create,	sell,	capture	value
WHO
WHAT
WHY
value
HOW
Value
proposition
Profit
mechanism
Value
chain
Pick your core job(s)
Subscriptions
Reduction	
cards
Ord.	tickets
Peak	hour	
Commuters
And	other
A	seat	1st or
2nd class	on	a	std
SNCF	train
If	we	don’t	change	something,	more	people	standing	
will	get	more	and	more	frustrated
Things	that	could	be	
changed
 Type of tickets
 Pricing
 Train design
 Perceptions of seating
 Change how you stand
(chargers, TVs, desks,
etc)
How to use the cards…
Pick 3 at random and really think about how
you could change your business to match
Steal the best business models
55 pattern cards,
which are able to
explain over 90%
of all business
model
innovations in the
last 150 years
A ticket with a
Sit-down add on
Auction the Seats ?
No Seat
Tickets
Seats at a price
Work in groups
30 Min
Instructions
1. Open these 2 files
2. Review Cards together
3. Identify at least 2 possible business models
changes to Increase	value	provided	
AND/OR	capture	more	value
4. Then fill in the TRUE NORTH (slide 2 of
document 2)
http://tiny.cc/remoteBMcards
http://tiny.cc/remoteBMI
subscriptions
Reduction	
cards
Ord.	tickets
Peak	hour	
Commuters
Discount	for
Frequent	travel	
some	hourly	
discounts
A	seat	1st or
2nd class
If	we	don’t	change	something	more	people	standing	
will	get	more	and	more	frustrated
Your business model Innovation
subscriptions
Reduction	
cards
Ord.	tickets
Peak	hour	
Commuters
Discount	for
Frequent	travel	
some	hourly	
discounts
A	seat	1st or
2nd class
If	we	don’t	change	something	more	people	standing	
will	get	more	and	more	frustrated
Then a
TRUE NORTH
TRUE Truly Simple
N
Narrative. Why it is 
important (the story)
O Objective
R
Restrictions: We are not 
interested in
T Tactical Constraints: No new capacity (already full)
H Here is the place to start
Return
Work in groups
Your results …
• The goal here was not to have make something perfect, but
to get you thinking about putting strategic choices into the
TRUE NORTH format
• When I run TRUE NORTH workshops, I work with
companies for 2-3 hours
Question: how could this
process be applied to your
work in groups
Suggestion:
The power of
TRUE NORTH
Healthy
Fast Food
POWER OF THE
M I S S I O N 	
STATEMENT
“Wendy’s Mission is to deliver superior
quality products and services for our
customers and communities through
leadership, innovation and partnerships.”
Do people know
what to do next?
“Wendy’s Mission is to deliver superior
quality products and services for our
customers and communities through
leadership, innovation and partnerships.”
TRUE
Truly Simple Healthy Fast Food
N
Narrative. Why it is 
important (the story)
When consumers are looking for ordinary fast food 
they have lots of choices; Wendys needs to be the 
choice for healthy fast food
O
Objective
Better and healthier food  that consumers notice is 
healthier and better. And they will talk about it
R
Restrictions: We are 
not interested in
Being classfied as a health food place. For many health 
food = no food
T
Tactical Constraints:
The margin needs to be the same as before
H
Here is the place to 
start
See Subways: Jared Campaign
Day 1 work in groups
Before Mentor Talks
1. Personal Introductions
2. Review the True North
3. Decide on key roles
4. Any questions on the program
After this talk
1. List and vote on key challenges
2. Map success – add to challenges
3. Update TRUE NORTH + sprint
targets
You will need to talk to people Wednesday and Thursday
Now is the time to arrange meetings
Group work
Guidance
Final
Deliverable
1. Update TRUE NORTH
2. Up to 3 targets for the Sprint
Up	to	3	targets	for	the	Sprint
Target 1
Target 2
Target 3
Watch this VIDEO
On challenge mapping
https://www.youtube.com/watch?v=JTqCR84fzeg
Exercise Draw
the Map
Watch video together
1. Facilitator takes the marker
2. Write the “user” on the left
3. Write the “objective” on the right
4. Start filling in what happens in between
(until the time is up)
Discover Learn Use
Exercise Sprint
Questions
What all the reasons you could fail
1. List key challenges
2. Vote on challenges
3. The decider chooses
If stuck, watch this video:
Dot voting…
 Voting (or creating a poll) gives your team the
ability to quickly form a hierarchy of ideas and
improve idea synthesis. You can initiate multiple
voting sessions to really dig down.
 Here's how:
 Just click on the dot voting box in top-left corner,
and “Start Voting Session.”
 Choose the number of votes per person and name
the session
 Also choose whether you would like any member of
the mural or only facilitators of the mural canvas to
have the ability to end the voting session
 Start voting! To vote, click directly on the desired
element(s). To de-select a vote you've already cast,
hold the SHIFT key while clicking on it.
 End the session by clicking “End Voting Session”
when everyone is finished.
https://youtu.be/LX24speZ0X8
Final
Deliverable
1. Update TRUE NORTH
2. Up to 3 targets for the Sprint
Up	to	3	targets	for	the	Sprint
Target 1
Target 2
Target 3
Meeting request
A new contact
Hi Elise, I see you are interested in TRIZ
and Innovation. Would you be willing to do
an expert interview for a student project
on: The use of TRIZ to classify academic
articles to make it easier to find articles
that really spark new ideas. If yes, sign up:
http://tiny.cc/trizexpert
Someone you know
Hello Floor,
I would like to ask for your help. Would you be willing to participation in an
expert interview on 'how to train managers to manage remote innovation
teams’?
The context
------------------
The future is going to be more and more remote. More managers will need to
have the ability to manage remote innovation teams. But how do you train
people to manage these teams? Innovation is not something you learn from a
book, but from doing. We are now in the 3rd week of an innovation sprint
designing a new type of learn by doing training program. We have identified
a way to train managers while they manage a remote innovation team
working on some of their hardest innovation challenges. Our current
thinking is a 5-week program with teams of students certified in remote
innovation management.
Could you help?
---------------------
We still have a lot of questions about how to do this best and would like to
ask if you are willing to participate in an expert interview. In exchange for
your time, you will be able to learn about advances in remote working and
leading innovation teams.
Could you please fix a time that works for you using this link?
http://tiny.cc/remote-expert-k
Kind regards,
Bryan

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2 Cycles Remote Innovation - Alignment

  • 1. Cycles The simplest, proven way to build your business. Course Alignment
  • 2. Day 1 work in groups You will need to talk to people Wednesday and Thursday Now is the time to arrange meetings 1. Personal Introductions 2. Review the True North 3. Decide on key roles 4. Any questions on the program 1. List and vote on key challenges 2. Map success – add to challenges 3. Update TRUE NORTH + sprint targets Before Mentor Talks After this talk
  • 3.
  • 4. What you can expect today Why Alignment First What is Innovation Clarification of your work later in groups A talk through the work you’ll do in groups 1 2 3 4
  • 5. Is this innovation ? Source: video: Three Steps for Creating an Innovative Culture (Gary Pisano) + = Sales up 30% Price up 250% Wastage down 40%
  • 6. Despair.com We hate all the senseless, wasted time on employee motivation and un-founded optimism We imagine you do to, buy our products and show your true colors
  • 8. These all offer less Mini mills Community colleges Discount retailers Retail medical clinics Integrated steel mills four-year colleges Full-service department stores Traditional doctor's offices
  • 9. And this a lot less…  Low quality video  No SD  Bad Battery life  More expensive than competition But really, really simple 13% of the US video market in 1 year
  • 10. Successful Innovation is not about being 10% cheaper, 20 % better
  • 12. IMHO… Innovation is … Meaningful Unique Value Creation If consumers are not willing to pay more, you are not meaningfully unique Value Capture If you are not earning more you are not innovating Innovation = Value Creation * Value Capture
  • 14. The cycle of life Source: Driving Eureka
  • 16. Why innovation  Only insurance against irrelevance  Only protection against commoditization  Only hope of long-term customer loyalty  The only real hope of long-term competitive advantage It is ONE Thing you can do (if you do it well) that will make everything else easier or unnecessary Arguably it is everything
  • 17. 3 Myths 1. It is all about big ideas 2. There are recipes for success 3. Soft creative culture
  • 18.
  • 19.
  • 20. In his words.. He sold spark plugs to Industry Fees for 2-3 day workshops $100,000 – $ 200,000 then the sparks worked less and less
  • 21. They analysed a mountain of data PEOPLE Data: innovation benchmarking data on over 100,000 managers. PROCESS Data: As of this writing we have measured over 6,000 teams during a day of brainstorming. IDEA Data: market research on over 26,000 innovations.
  • 22. They identified the share of success due to ideas and systems 84 % systems16 % ideas
  • 24. What is the “guru story” 1. “We’re all going to die” 2. “the bureaucracy is killing us” – so we have to go outside the normal organizational structure to get the right things done. 3. “There is hope for a brighter future” – as long as we all follow the guidelines and turn our organizations upside down. 4. “You have the power to make a change for the better” – even if you occupy the low rung on the corporate ladder. 5. “Follow me”
  • 25. Can innovation be taught ? Probably not, but the principles that make it work can be…
  • 26. Gurus sell you recipes to sell you ingredients I believe you can “learn to cook”, so you can choose which recipe fits your company, select your ingredients and most importantly, still be able to cook when you’re missing ingredients
  • 27. Continuous improvement is not a conservative strategy It is about action every day, regular failure and an unwillingness to accept there is any product, or process that cannot be further improved
  • 29. A good innovation culture is NOT soft Source: video: Three Steps for Creating an Innovative Culture (Gary Pisano) Everyone Wants  Tolerance for failure  Willingness to Experiment  Collaborative  Freedom to speak up  Flat The reality  Intolerance for incompetence  Demand disciplined action  Individual accountability  Brutal Condor  Strong Leadership
  • 30. Companies become innovative step by step Each stage is dependent on the previous stages Partnerships Persistence Processes Purpose / Passion Innovation Over 90% of companies go through these stages sequentially. That means the right way to move forward is almost  always to simply to identify the stage a company is at now and then work on what will get them to the next stage Stage 2 Stage 1 Stage 3 Stage 4
  • 31. FACTS
  • 32. THREE YEARS OF RESEARCH… WITH OVER 400 COMPANIES SEVEN DRIVERS OF INNOVATION SUCCESS 7 Key Learnings: 1. Strategic alignment is the cornerstone of successful innovation 2. If you want to give autonomy, you need to have strategic alignment first 3. If you get alignment, attitudes and learning orientation in place, systems will follow 4. The right balance disruptive/incremental is key 5. Proactivity is the one thing you need to reward 6. If you are in a big company or a small company you need to act like you are in a successful start up 7. Walk before you run
  • 34. The challenge: Make this information actionable… The Solution = Theory Good Theory  Based on Facts  Parsimonious (simple) ( Think E = MC2 )  Prescriptive  And something that can be tested…
  • 35. The importance of theory For years people looked at birds and concluded feathers are linked to the ability to fly  Yes, birds have feathers  But, people with feathers cannot fly Observation Theory
  • 36. My innovation theory in simple terms "We are what we repeatedly do. Excellence, then, is not an act, but a habit." ~ Aristotle What we are willing to repeatedly do is determined by our desires , abilities and systems (and systems are what drive everything)
  • 37. The goal : Level 1 to Level 3 LEVEL 1 ‐ INNOVATION AS AN EVENT This is where most companies find themselves. They conduct brainstorming sessions or hold random contests to generate new ideas. LEVEL 2 ‐ INNOVATION AS A CAPABILITY The organization puts in place structures and processes to define problems, generate and evaluate solutions, and develop action plans to implement those solutions. LEVEL 3 ‐ INNOVATION AS A SYSTEM The ultimate level involves creating an environment where innovation is embedded in everything you do. With embedded innovation, people innovate to deal not only with “problems or challenges” that are presented to them but with everything they do.   
  • 39. The ABCs is a method to make this possible CO M M UN ICATE ALIG N BUILD CH ECK SYSTEM S     Bigger Ideas, faster at lower risk X    Chaos, wasted energy  X   Weak Ideas, small improvement   X  Resources wasted on bad ideas    X Small wins, no big improvements RESULTS
  • 41. This lecture is available on slack
  • 43. The hard math of Innovation Total 100 products launched 100 About 40% not doing a real job 60 About half not doing enough to get hired 30 About half hired profitablly 15 Successes 15 Source Success Rate Frost & Sullivan, "Growth Process Toolkit: New Product Development,” 2008. 1% Andrew Campbell and Robert Park, ‘Stop Kissing Frogs,” Harvard Business Review, July-August 2004. 1% Dr. John Sviokla, “The Calculus of Commerce,” Diamond Cluster International, Inc. 2004. 3% Corporate Strategy Board, "Stall Points,” 1998. Cited in Clayton Christensen and Michael Raynor, "The Innovator’s Solution,” , 2003. 5% Andrew Campbell and Robert Park, ‘Stop Kissing Frogs,” Harvard Business Review, July-August 2004. 10% Kevin J. Clancy and Randy L. Stone, "Don’t Blame the Metrics,” Harvard Business Review, June 2005. 10% Corporate Strategy Board, "Overcoming Stall Points,” 2006. 10% PriceWaterFlouseCoopers, "Shaking the Money-Tree,” slide 33, U.S. Venture Liquidity 2001-2007, Q3 2008. 11% Average 8% Average Success Rate VC (2018) 11% Dr. Robert G. Cooper, "Doing it Right,” Product Development Institute Inc., 2006. 25% Facts A poster child
  • 46. A very important fact Autonomy is negatively correlated with innovation results  In most companies, there is not clarity on what they are doing for customer (70% of companies)  People get lost in what they are doing. Innovation Results Low Cutomer High Custom 7 57 49 21 Low High Low Hig Autonomy Autonom FocusFocus
  • 47. But not if you’re customer focused  In most companies, there is not clarity on what they are doing for customer (70% of companies)  People get lost in what they are doing. When customer focus is high. Autonomy is positively correlated with results. Innovation Results Low Cutomer High Customer 71 57 49 21 Low High Low High Autonomy Autonomy FocusFocus
  • 48. Why?… Needs first, not ideas first ! Develop a solution Find a need Find a need Develop a solution Find a market IDEAS first NEEDS first 5 - 10% Find a market 70% Success rate * * According to Strategyn research on outcome driven innovation…
  • 50. Objective Working on the right things to start Right Things Wrong Right Things Right Wrong things Wrong Wrong Things Right
  • 52. A fast (very fast) case study SNCF Reducing Overcrowding on Trains
  • 53.
  • 54. Details Objective  New construction in Paris – demand now  Traffic getting worse – more demand soon  No way to increase capacity on specific lines (e.g. Periphery to Paris) How to reduce standing or negative feelings associated with standing on the train
  • 55. Tools to come to alignment 1 | What 2 | check What has value 3 | how better 4 | how to 5 | Share
  • 56. Why you gotta be clear !! only 55% of the middle managers can name even 1 of their company’s top five priorities
  • 57. A tool to make things clear … (Step #5)
  • 58. Our commitments to you Our parent company is a state-owned industrial and commercial enterprise with a public service mission (EPIC)—and we’re proud of that. As a linchpin—and architect—of shared mobility, we work hard every day to keep our promises to our customers. We serve the public. Getting you there is our business. We make social progress a priority. Our role has always been to promote regional development and reduce regional inequality. We offer fares that are right for you. We’ve got specially designed solutions—for large families, jobseekers, students and more Get people Where they need to Go and reduce auto traffic A modern, efficient railway network A better, faster trip
  • 60. What is my job ? Example : Expensive prepared Dinner Waterloo station with flowers I get home Apologize and show I care So I don’t sleep on the couch People only buy products / services to get a job done and they will pay a lot more to get the right job done
  • 61. Pick your core job(s) Comfort during the trip Take the Car The energy I have when I get to work I go to work Make my travel easy Be fresh and happy when I arrive at work and home
  • 63. Who is standing now ? Who Situation Objective Outcome How progress measured Daily Commuter I go to work Make my travel less tiring Fresh and happy when I arrive home Feelings verus alternative transport methods
  • 67. The basics A business model = 4 parts A sustainable BM is usually different in at least 2 ways Step by step Create, sell, capture value WHO WHAT WHY value HOW Value proposition Profit mechanism Value chain
  • 68. Pick your core job(s) Subscriptions Reduction cards Ord. tickets Peak hour Commuters And other A seat 1st or 2nd class on a std SNCF train If we don’t change something, more people standing will get more and more frustrated Things that could be changed  Type of tickets  Pricing  Train design  Perceptions of seating  Change how you stand (chargers, TVs, desks, etc)
  • 69. How to use the cards… Pick 3 at random and really think about how you could change your business to match
  • 70. Steal the best business models 55 pattern cards, which are able to explain over 90% of all business model innovations in the last 150 years
  • 71. A ticket with a Sit-down add on
  • 74. Seats at a price
  • 76. Instructions 1. Open these 2 files 2. Review Cards together 3. Identify at least 2 possible business models changes to Increase value provided AND/OR capture more value 4. Then fill in the TRUE NORTH (slide 2 of document 2) http://tiny.cc/remoteBMcards http://tiny.cc/remoteBMI subscriptions Reduction cards Ord. tickets Peak hour Commuters Discount for Frequent travel some hourly discounts A seat 1st or 2nd class If we don’t change something more people standing will get more and more frustrated
  • 77. Your business model Innovation subscriptions Reduction cards Ord. tickets Peak hour Commuters Discount for Frequent travel some hourly discounts A seat 1st or 2nd class If we don’t change something more people standing will get more and more frustrated
  • 78. Then a TRUE NORTH TRUE Truly Simple N Narrative. Why it is  important (the story) O Objective R Restrictions: We are not  interested in T Tactical Constraints: No new capacity (already full) H Here is the place to start
  • 80. Your results … • The goal here was not to have make something perfect, but to get you thinking about putting strategic choices into the TRUE NORTH format • When I run TRUE NORTH workshops, I work with companies for 2-3 hours
  • 81. Question: how could this process be applied to your work in groups
  • 85. POWER OF THE M I S S I O N STATEMENT “Wendy’s Mission is to deliver superior quality products and services for our customers and communities through leadership, innovation and partnerships.”
  • 86. Do people know what to do next? “Wendy’s Mission is to deliver superior quality products and services for our customers and communities through leadership, innovation and partnerships.” TRUE Truly Simple Healthy Fast Food N Narrative. Why it is  important (the story) When consumers are looking for ordinary fast food  they have lots of choices; Wendys needs to be the  choice for healthy fast food O Objective Better and healthier food  that consumers notice is  healthier and better. And they will talk about it R Restrictions: We are  not interested in Being classfied as a health food place. For many health  food = no food T Tactical Constraints: The margin needs to be the same as before H Here is the place to  start See Subways: Jared Campaign
  • 87. Day 1 work in groups Before Mentor Talks 1. Personal Introductions 2. Review the True North 3. Decide on key roles 4. Any questions on the program After this talk 1. List and vote on key challenges 2. Map success – add to challenges 3. Update TRUE NORTH + sprint targets You will need to talk to people Wednesday and Thursday Now is the time to arrange meetings
  • 89. Final Deliverable 1. Update TRUE NORTH 2. Up to 3 targets for the Sprint Up to 3 targets for the Sprint Target 1 Target 2 Target 3
  • 90. Watch this VIDEO On challenge mapping https://www.youtube.com/watch?v=JTqCR84fzeg
  • 91. Exercise Draw the Map Watch video together 1. Facilitator takes the marker 2. Write the “user” on the left 3. Write the “objective” on the right 4. Start filling in what happens in between (until the time is up) Discover Learn Use
  • 92. Exercise Sprint Questions What all the reasons you could fail 1. List key challenges 2. Vote on challenges 3. The decider chooses If stuck, watch this video:
  • 93. Dot voting…  Voting (or creating a poll) gives your team the ability to quickly form a hierarchy of ideas and improve idea synthesis. You can initiate multiple voting sessions to really dig down.  Here's how:  Just click on the dot voting box in top-left corner, and “Start Voting Session.”  Choose the number of votes per person and name the session  Also choose whether you would like any member of the mural or only facilitators of the mural canvas to have the ability to end the voting session  Start voting! To vote, click directly on the desired element(s). To de-select a vote you've already cast, hold the SHIFT key while clicking on it.  End the session by clicking “End Voting Session” when everyone is finished. https://youtu.be/LX24speZ0X8
  • 94. Final Deliverable 1. Update TRUE NORTH 2. Up to 3 targets for the Sprint Up to 3 targets for the Sprint Target 1 Target 2 Target 3
  • 95. Meeting request A new contact Hi Elise, I see you are interested in TRIZ and Innovation. Would you be willing to do an expert interview for a student project on: The use of TRIZ to classify academic articles to make it easier to find articles that really spark new ideas. If yes, sign up: http://tiny.cc/trizexpert Someone you know Hello Floor, I would like to ask for your help. Would you be willing to participation in an expert interview on 'how to train managers to manage remote innovation teams’? The context ------------------ The future is going to be more and more remote. More managers will need to have the ability to manage remote innovation teams. But how do you train people to manage these teams? Innovation is not something you learn from a book, but from doing. We are now in the 3rd week of an innovation sprint designing a new type of learn by doing training program. We have identified a way to train managers while they manage a remote innovation team working on some of their hardest innovation challenges. Our current thinking is a 5-week program with teams of students certified in remote innovation management. Could you help? --------------------- We still have a lot of questions about how to do this best and would like to ask if you are willing to participate in an expert interview. In exchange for your time, you will be able to learn about advances in remote working and leading innovation teams. Could you please fix a time that works for you using this link? http://tiny.cc/remote-expert-k Kind regards, Bryan