http://daniellock.com/ How to unlock value and productivity with creativity, experimentation and innovation.

1. Drive value and
productivity
with
EXPERIMENTATION
AND INNOVATION
A publication of
Daniel Lock
Consulting.

2. Want to skip ahead? Here’s what we’re going to cover.
A. COMMON MANAGEMENT APPROACH
• The test and learn environment
B. INNOVATION THROUGH PARTNERSHIP
• How competitive collaboration works
C. THREE KEY STAGES
• Create the perfect managed experimentation process
D. MAKING INNOVATION FLY
• How one of today’s great innovation leaders works

3. COMMON
MANAGEMENT
APPROACH
The Test and Learn Environment

4. How experimentation
works in business today
•
•
Large scale and company-wide, or
Conducted by small focus groups
targeted for purpose
The problem with these approaches:
• Can be large, unwieldy, and
difficult to manage, or
• Lack of resource and seen as
peripheral to business strategy

5. EFFECTS OF
EXPERIMENTATION ON A
BUSINESS
Properly managed and
measured
experimentation affects
a business by charting:
•
•
•
Business course and strategy
Products and Services
Industry and business positioning

6. INNOVATION
THROUGH
PARTNERSHIP
How Competitive Collaboration
Works

7. Spreading your
experimental
wings
•
•
•
•
•
Create an innovation culture
Go large scale, and bring on board external expertise
Create faster innovation
Increase internal knowledge base
Extend customer base

8. The Story of Nestlé
1
2
An inbred innovative culture
Managed internally to large scale
3
Created ‘Sharing is Winning’
Strategy
4
Partners with some of the world’s
largest companies

9. THREE KEY STAGES
Create the perfect managed
experimentation process

10. 1)
ESTABLISH
TRUST

11. Middle managers are often unwilling to take risk:
• Failure often leads to no bonus, no pat rise, possible firing
• So business strategy is narrowly framed
• Conducted in a risk averse atmosphere
• Leading to Rigidity and over-planning
CEO’s and Strategy Officers must learn to trust middle management
• Reward innovative failure
• Release the middle manager from constraints of risk aversion
• Allow greater experimental nature

12. 2)
ESTABLISH
GOODWILL

13. Establishing goodwill
requires
•
•
•
•
Leadership from the top
Direction that creates an innovative and experimental culture
Metrics of success (and failure) measurement
Learning from past experience and innovating the experimental model

14. The Example of 3M
In establishing company-wide goodwill 3M
management took several initiatives:
1
A mandate for employees to ‘change the basis of
competition within your business unit.’
2
Allowing risks to be taken
3
Time allotted to develop novel and revolutionary
strategies, products, and services.
Further to establishing such a high
level of goodwill from board level all
the way down, 3M also expects 25%
of revenues to come from products
launched in the previous three years.

15. 3) CREATE
BUSINESS
VALUE

16. VALUE
Set a charter for risk and
experimentation, and an
expectation of a flow of new
products and services.
Without value creation, then an
innovative and experimental culture is
redundant, even bankrupt.
Ensure the partners to your innovation
are encouraged to be innovative and
experimental in their approach.
Lead from the top, with a culture of
innovation and experimentation
pointed firmly toward value creation
• Ensure your innovation partners
benefit from the following:
• Well defined responsibilities
• Encouraged to take risks
• A defined set of success metrics

17. MAKING
INNOVAGTION FLY
How one of today’s great
innovation leaders works

18. Learn to innovate
from Yann Barbaux
Chief Innovation Officer at Airbus, Head of EADS Innovation Works
• Fostered trust and goodwill throughout internal innovation partnerships
• Mandated fast and systematic screening at each decision making level
• Provided senior management guidance down the line
• Encouraged experimental attitudes to strategy and product development
• Defined clear roles and goals

19. Without the leadership, and experimental entrepreneurship of Yann Barbaux, Airbus
may never have produced the….
AIRBUS A320

20. BY Daniel Lock.
Twitter: @DanielLock | Web: DanielLock.com

21. Do you have business
goals that require
innovation …
…can help with that.

22. What
does?

23. How
does it.