This presentation discusses how to establish a connection between innovation projects and business strategies. It examines common problems that arise from a disconnect, such as innovation projects not solving real problems or achieving expected cost savings. The presentation provides tips for structuring the project management process, including setting project themes aligned with business objectives, conducting business case analyses, and partnering with finance. It also addresses ensuring innovation fits the company's culture through considering the culture of urgency, risk-taking, and documentation. The goal is to strengthen existing cultural aspects and manage innovation based on organizational strengths.

1. Between Innovation and Business Strategy
Creating Partnership
Jeremy Jay V. Lim, CSS-BB, PMP
Six Sigma Program Manager

2. This is a presentation about the sharing of tips on how to establish the
connection between the innovation that we do and our business
strategies.
This presentation also reminds us to do the right innovation that
matters to the business.
First, let's try to examine if we are facing situations where we ask
ourselves these questions on the following slides.

3. We do Six Sigma but
where are our Cost
Saves?

4. Why is my Six Sigma
project not being
supported?

5. Why are our projects not
solving the real problem?

6. These problems arise coming from the great disconnect between
innovation and the company's business strategies.
Even at present, not one company is spared from this problem and
there's still a continuous effort to align the two even for companies
with high maturity levels.
Now, if we will talk about the ways to solve this kind of problem, we
will be looking at 2 perspectives and talk about the next steps from
within these 2 contexts as shown in the next slide - Project
Management Process and Fitness to the Company's Innovation
Culture

7. Now, let's tackle the 1st context - the lack of structured
Project Mangement Process.
TBM Consulting has reported survey results that paints a
picture of an existing disconnect between projects
undertaken by Project Managers versus business objevtives
as shown in the next slides.

8. The Disconnect
coming from lack of structured
Project Management (PM) Process

9. TBM Consulting, www.tbmcg.com, 2012
PM's Dilemma
Project managers understood the link of
their project to the company objectives.
Of the Project managers understood how
their projects were prioritized and chosen
1 out of 4
Only
50%
Only

10. PM's DilemmaTBM Consulting, www.tbmcg.com, 2012
Every project points toward its own objective

11. TBM Consulting, www.tbmcg.com, 2012
Maintaining a line-of-sight connection between
projects and objectives is critical
PM's Dream

12. Tips on the Project Management
PM Process

13. Tip No. 1
Set strategically aligned project themes
if your company does not have a structured project planning process, a good starting point is to select projects based
on your core priority objectives.
You may decide to do projects focusing on Operating Cost Reduction, Inventory Reduction, Service TAT Reduction,
Customer Satisfaction, Increase Revenue , etc.

14. Project Themes based on Business Objectives
Balanced Scorecard
Business Strategies
You can also use Six Sigma to help you
get to close or achieve your targets
instead of using old standard ways.
Below shows the process of identifying Six Sigma or innovation projects based on the company
Balance Scorecard or Performance Measurement System.

15. Tip No. 2
Go through the Business Case Analysis
GO? No GO?OR
By going through the Business Case analysis, we are compelled to look into the impact, risks
and the alignment to business objectives of a project in mind before deciding to push through.

16. Tip No. 3
Partner up with a Finance Analyst
To validate project saves, impact and strategic alignment
to business objectives

17. Tip No. 4
Establish structured Project Management Process
from Project Identification to Project Closure
Without a standard structured project
management process, the tendency is for the
innovation project leaders to jump right into
execution and experience immature project
closure.
Having that process would ensure everyone uses
the right approach from identifying, executing
and closure of projects.

18. Tip No. 4
Mesh together Project Management Practices with
the Six Sigma Program Governance
Six Sigma Project's success can be further nhanced by applying some of Project Management processes and best practices in the knowledge
areas such as Project risk management, Scope management, Stakeholder management, etc.
These are things not taught in a Six Sigma class because its strength is in problem solving and not much on project management side.

19. Next ,there are times that even with good project governance,
good people in place, good projects to work on
Still, they don't fly and the only reason we can think of is because
the introduced innovation program does not fit the company's
innovation culture.
Let's examine how fitness of innovation to the organizational
culture comes into play.

20. The Disconnect coming from the lack of fit of the
to the organization's Innovation Culture

21. Innovation Culture is influenced
by the Innovation Strategy
FAST PACE
INCREMENTAL
MANAGED PACE
INNOVATIVE
SLOWER PACE
DISRUPTIVE
Increase Market Share
Introduce New Products
Disruptive Innovation
“Alchemy of Business Growth”, Mehrdad Baghai, et. Al, 1999, NY, Orion
Profit
Time (years)
Horizon 1 Strategy
Horizon 2 Strategy
Horizon 3 Strategy
Business growth strategy drives your Innovation strategy.
Innovation strategy hones the innovation culture.

22. What things do
we look out for in
a company’s
innovation
culture?

23. Culture of Urgency
Do you have a culture where innovation has
to be done fast and that project Champion
and Sponsors are more comfortable with
mini-projects that lasts around 3 months
rather than going for end-to-end type of
projects which, say, finishes in 12 months?
If that is the case, you may want to have
more mini-projects in your project list or
portfolio with big projects broken down into
small Lean initiatives.
It is also worthwhile to adapt Agile SCRUM
for IT-enabled projects.

24. Culture of Risk Taking
Are people in your organization or company
comfortable with radical changes?
Is your project champion comfortable pushing
forward projects where there are uncertainties
in terms of acceptability and success?
If the answer to both is NO, then it is suggested
that you pursue more incremental
improvement projects with a sure-fire change
management program to ensure that concerned
people are informed, aware and would accept
the introduced changes.

25. Culture of Doing Less Paper works
Action-orientedDocument savvy vs.
Do you have a culture where people are more inclined to deliver results on time rather
than document before proceeding to execution of the innovation?
If that is the case, it is suggested to adapt an innovation method that requires less paper
works or documentation so that more time can be spent on actually working on the
project. You may also consider simplifying your project documentation if some are
really necessary.

26. To manage Innovation Culture play with the
Organization's Strengths
Tip No. 4
Folks, it’s harder to create a new culture than just strengthening the culture in place already.

27. Innovation and Business Strategy
Creating Partnership Between
Balanced Scorecard
Business
Strategies
Innovation
Projects
Six Sigma & CPI
PM Process
Alignment to Objectives
Innovation Culture
Strategic Fit
In this presentation, we discussed ways on how to align innovation and business strategy. We
focused on 2 contexts – Structured PM Process and Fitness to the Innovation Culture.

28. Between Innovation and Business Strategy
Creating Partnership
is very important!!

30. Watch out for the
book version
of this presentation
COMING SOON!!
In this book, you’ll know more about:
Business Model Creation
Balance Scorecard
Innovation Techniques
Aligning Innovation to Business Strategies

31. About Me
Jeremy Jay V. Lim
CSS-BB, PMP, MSEM, BPM
Email: jeremyjay_lim@yahoo.com
Twitter: smartgeek1375
Facebook Page:
Sigma Process Excellence
Currently a Six Sigma Program Manager
Black Belt for over 10 years
Currently preparing for Master Black Belt
certification and
certification for highest title as ASQ-Manager of
Quality and Organizational Excellence
Has worked in Manufacturing, BPO & Fin’l Svcs
Has done TPM, Six Sigma, RAD, BPM, BPR and PMO
Guest speaker in Six Sigma conferences
Authored BPM whitepapers
Part-time professor of Quality and Proj. Mgt.
Passionate about Value-driven Change
and Innovation