A Programme by Ishmael Yamson & Associates Corporate Strategy Consultants & Brand and Channel Developers

1. Innovating for Growth
and Prosperity
A Programme by Ishmael Yamson &
Associates
Corporate Strategy Consultants, Advisors
and Brand and Channel Developers

2. The Strategic Context of
Innovation
What is Innovation?
The Role of Innovation
Why Innovate?
Where should Organisations Innovate?
Getting The Most Out Of Innovation
Seeing The Big Picture
Risks and Challenges
"You can only win the „war‟ with ideas,
not with spending cuts." Klaus Kleinfeld,
President and CEO, Siemens AG

3. Viewpoint
Everyone knows that
innovation is what drives
(business) success in the
21st century, right? –
Business Week,
March 3, 2010

4. From Your Stand Point
• How well do you know your organization?
• Where will your organization be 5 years from now and what will take it there?
• What do you think is being done right in your organization today? How is it
impacting the organization?
• What do you think is being done wrong in your organization today. How is it
impacting the organization?
• Is there a process for resolving what is not being done well?
• What role do you have to play in resolving what is being done wrong?
• What externalities are impacting on your organization and is there a clearly
defined process?
• How often do you spend time thinking about what you are doing?
• Would you describe your organization as innovative

5. What Is Innovation?
Some Perspectives Of
Innovation
•Survival and performance in an
era of uncertainty & discontinuity
•"Learning and innovation go
hand in hand. The arrogance of
success is to think that what you
did yesterday will be sufficient for
tomorrow." William Pollard
•"The winner is the chef who
takes the same ingredients as
everyone else and produces the
best results." Edward de Bono

6. What Is Innovation?
The Changing Nature
Of Innovation
• Old View Innovation is a broad, pervasive
– Individual originator/inventor phenomenon that goes on everywhere
– Innovation was a specialized • Is primarily built on the infrastructure of the individual
activity
– Adoption of mass production
– Business systems/models
followed the innovation The critical constraining factor is not
science – or R&D – but demand
• 21st century: Today • Means to an end model- Democratizing demand
– Partnerships for innovation
– Shared responsibility for
implementation
– Stakeholders benefits
Consequences for organisational
• Tomorrow models?
– Mass-customization,
– Open -source communities

7. What Is Innovation?
Strategy vs. Innovation
• Strategy is about delivering the organization‟s
• vision and goals, and
• long term objectives
• Innovation, is about how to maximise the
• new opportunities,
• new markets,
• new products and services,
• new operating models….
……. defined in the strategy
• There is really no such thing as innovation strategy, rather,
innovation is a tool in the execution of strategy

8. What Is Innovation?
Transformational Innovation:
Examples
1. Green public transport - South
Korea
• Sensor-driven magnetic recharging strips
embedded in roads
2.Charismatic churches in Ghana
•Transformed the way church services are held

9. What Is Innovation?
Radical Innovation:
Business Examples
1. Google – an innovation engine
• Mission: Organise all the world‟s information and make it universally
accessible and useful by collaborating
2. Plastic Bottles for soft drinks
• New business solution and a disruption in consumer accessibility

10. What Is Innovation?
Incremental Innovation:
Business Example
1. GINO range of products
• Continuous introduction of new products in new categories

11. What Is Innovation?
A Strategic Imperative
for all Organisations
• It is a key driver to Growth,
Efficiency, Productivity and
Prosperity
“A package should save more than it costs.”
Dr Ruben Rausing - Tetrapak

12. The Role Of Innovation
Enabler
• Innovation is an ENABLER to the delivery of corporate
strategy and plans.
• Innovation enhances
• goal delivery,
• achievement of differentiation,
• discovery of new markets or needs and
• Discovery of different ways of doing things

13. The Role Of Innovation
Driver of Competitiveness &
Prosperity
Prosperity
Competitiveness & Productivity
Innovative Capacity
Endowments
Resources and Capabilities

14. The Role Of Innovation
Redefines
Competition
• “Capability destroying “
– Disruptive innovation Build new
capabilities
– KAIST‟s car will change
road-building Increase
capabilities
in pace,
• “Capability enhancing“ and
scale and
– Collaborative Inter- impact of
Organizational Networks innovations
Make
– Hydrogen cars require a competitors‟
capabilities
new value chain irrelevant

15. Seeing The Big Picture
Proactive vs. Reactive Stage 3
Denial of
risks & Peril
Stage 2
Constructive Destruction Undisciplined Stage 4
pursuit of Grasping for
• Proactively reconstruct the more Salvation
competitive context
Stage 1
Strategic Inflection Hubris born Stage 5
out of Capitulation to
• Failure to see the perils of a success Irrelevance or
death
dynamic Environment
Barbarian Effects
• Making the competition
irrelevant
Source: How the Mighty Fall – Jim Collins
Different stages on the Growth Cycle
can be triggered by these 3 effects

16. The Role Of Innovation
An Instrument Of Good
Corporate Citizenship
Improve
Expand
Quality
Prosperity
of Life
• Creates a ring of
GOODWILL around Innovation
the organisation
Protect the
Eliminate Environment
poverty

17. Why Innovate?
Organisational
Benefits
• Securing current & future growth and prosperity
• Leading the cycle of competitive advantage
• Driving productivity and efficiency
• Remaining relevant
• Ensuring long-term survival
These benefits apply to Commercial, Non-profit and Public
sector organisations in different ways

18. Why Innovate?
Building to Last
• Deliver Sustainable
Growth, through
• Policy
• Processes
• Products/Services

19. Where Should Organisations
Innovate?
Think „Value-Chain‟
Structure
• Organisations
must recognize
the value-
Value END-USER
delivery chain Processes
Chain VALUE
requires
innovation at
every link to
Systems
succeed

20. Where Should Organisations
Innovate?
Focus on the Value-Chain
• Managing the delivery of more value with
decreased cost, while protecting
competitive positioning
• Applies to all strategy
– Cost: Lowest costs
– Service: Added-value
– Niche: Proprietary solutions

21. Critical Success Factors In Getting
The Most Out Of Innovation
Managing the Associated
Factors Impacting Success
Internal Environment
Organisational Culture
Organisational Structure
Enabling Technology
People Management
Implementation
Strategic Innovation Competencies Focus
Management of Leadership
Innovation Market Interface Speed
Strategy and Vision Commercialisation Process Quality
Future Scenarios Innovation Management Commitment
Competency Innovation Capability
Management
Technology Management
Resource
Management Idea and Creativity Management
Alliances and Intellectual Property
Networks

22. Critical Success Factors In Getting
The Most Out Of Innovation
Internal Environment
• Collaborative • Strategy
Assessment
• Structure & Organization
– Consumer
Knowledge • Financial Resources
– Market Knowledge • Human Resources
Innovation
Capability
Improved
• Managing Externalities • Innovation Culture
– Open Innovation • Information & Technology
Partners • Idea Generation/Creativity Process
– Competitive Forces
• Implementation of Innovation
• Managing for Continuity • Market Orientation & Operation
– Innovation Cycles
• Exploitation of the Innovation
– Innovation Portfolios

23. Seeing The Big Picture
Proactive vs.. Reactive
• Constructive Destruction
Proactively reconstructing the
competitive context
• Strategic Inflection
Failure to see the perils in a dynamic
environment
• Barbarian Effects
The curse of lethargy

24. Seeing The Big Picture
Scalability and Multiplier
Effects
• Ability to Exploit Benefits
– Longer
– Over more applications
– Greater value creation
• Expand Process efficiency
– Agile structures
– New opportunities from established lines of business
• Improved Operations – Better
– Coordination across firms
– Diffusion of best practices
– Performance benchmarking

25. Risks and Challenges
The Wrong Culture
 Excessive focus on the short-term
 Lack of exposure to innovation
 Discomfort with innovation, especially open innovation
 Cocooning:
 Not appreciating discontinuity as fundamental
 Not seeing why a culture of networking is important for open innovation
 Being too far away from the action
 Rewarding people for getting stuff done
 Risk-averse top executives
 The threat of uncertainty to individuals

26. Risks and Challenges
Innovator‟s Dilemma
• Bunker mentality
• Tunnel vision
• „New toy‟ syndrome

27. The Concepts of Innovation
Innovation – The Full Scope
The Principles of Innovation
The Elements of Innovation
Drivers of Innovation
Types of Innovation
Managing the Innovation Process

28. The Full Definition
The Concepts of
Innovation
CONCEIVING THE PROMISE
•Ideas
•Benefits BETTER & DELIVERING
CORE ORGANISATIONAL PROCESSES/SYSTEMS THE
DIFFERENT, PROMISE
•Implementation CONTINUOUSLY
•Delivery of
Goals
Incremental vs. Radical
Evolutionary vs. Revolutionary
Product & Service vs.. Process & Systems
New ways of doing things vs. Better ways of doing old things

29. The Full Definition
The Innovation Canvas:
The Value Chain GOVERNMENT
A TYPICAL COMPANY
ORGANIZATION
• Map out the full value
chain that uniquely drives HUMAN RESOURCE
PROCESSES
MANAGEMENT
growth and prosperity - it
PROCESSES AND SYSTEMS
is not a “one size fits all”
TECHNOLOGY DEVELOPMENT
• It defines the boundaries
of the “how” of the
innovation
• It must “captivate” the
whole organization and FUNCTIONS & CORE ACTIVITIES
not just a team or
department

30. The Principles of Innovation
The Principles at
Core of
work Corporate
Strategy
Embedded in
Goal
• These principles of Organization's
Culture Driven
innovation are time
tested and durable
Consumer &
• They should underpin Sustainable Customer
Oriented
PRINCIPLES
Innovation in the OF
INNOVATION
organization
• How the principles are Simplicity
Measurable
Impact
applied is dependent on
what the organization
wishes to achieve Inward &
Outward
Balanced
Innovation
through innovation. Looking Portfolio

31. The Elements of Innovation
The Interdependent
Elements
Leadership
• The elements in Completion/
and
Fruition Environment
Innovation are interlinked
• Leadership, People and
Ideas are central to the Teamwork &
Buy-in People
success of innovation
Structured
Approach Ideas
Creativity

32. The Drivers of Innovation
Corporate Strategic Agenda
- Defines the “why” of the innovation
Leadership
- Develops and owns the strategic context for innovation
Desire to Excel
- The ambitions of the organization - Out-performing competition
- Cultures & Values
Capabilities
- People to mine for and implement ideas - Competences
- Resources to fund Innovation
Consumers & Customers
- The “mining field” for ideas that work
- The “demanders” of ideas that work

33. Types of Innovation
Different Areas
Marketing Structure
•What is changed?
•What is the scope of Change?
•Incremental
Product/
•Radical Business Strategy
Service
Process Technology

34. Types of Innovation
The Conclusion
Different Approaches Kweku needs a ladder
Technological
solution
The Challenge
Kweku has difficulty
getting to the boxes on the
high selves How can we make it
easier for Kweku to
get to the boxes?
Organizational
solution
Another Conclusion
Lower the selves & re-
arrange the boxes

35. Types of Innovation
Extending the horizon
of the Problem
Radical
Standing in a different place
How can I effectively and
efficiently supply electricity to
consumers?
Incremental
The Immediate Problem
How can I make payment
for electricity easier for
consumers?
Now Future

36. Types of Innovation
Different Ways Organizational Capabilities
Vs. Strategic Scope
Improve the core activities - Develop New Capacities Create Revolutionary Change
Take something that works and
add a new wrinkle to it
•New Capabilities •New Capabilities
Organizational Capabilities
Develop new capabilities - Find •Limited Strategic Scope •Unlimited Strategic Scope
a new way to do something e.g. GPHA with inland ports
within an existing marketplace or network in W Africa
service area. Improve Core Activates Exploit Strategic Advantage
Exploit strategic advantage -
Extend a competitive advantage
into a new market or service area •Existing Capabilities •Existing Capabilities
•Limited Strategic Scope •Unlimited Strategic Scope
Create revolutionary change – e.g. VAS to mobile phone
users (data)
Create new organizational
capability and use to Strategic Scope
fundamentally change how
organization operates

37. Mining
IDEAS
SELECTING
The Basic
Ideas
Innovation Process
VALIDATIN
G the
Innovation
CONSTRUCTI
NG the
Innovation
IMPLEMENTIN
G the
Innovation
Sharing the
LEARNING’S
Managing the Innovation Process
ROLLING OUT
the Innovation

38. Managing the Innovation Process
• What will be the decision points
(GATES) in the Innovation Process?
• What PRINCIPLES will apply at
each stage?
ROLLING OUT
the Innovation
LEARNING’S
Sharing the
SELECTIN
IMPLEM
ENTING
Innovati
Innovati
ATING
VALID
CONST
Innova
• HOW will decisions be made?
Mining
NG the
IDEAS
RUCTI
Ideas
tion
the
the
on
on
G
• WHO will be RESPONSIBLE for
WHAT? (Gate Keepers)
• What ROLES will the rest of the
organization play at each stage?

39. Managing the Innovation Process
MINING For Ideas
Needs
WHAT could be done?
• Ideas can come from anywhere in the
organization
• Consumer/Customer needs Problems
• Organizational Opportunities
• Operational Excellence
• What the tools should help do
• Deep Consumer/Customer Understanding Opportunities
• Review Organizational & Strategy
• Review Process & Systems
• Outcome
• Lots of raw, unrefined ideas

40. Managing the Innovation Process
SELECTING the
Ideas
What SHOULD be done?
• Ideas must be sieved and the best
ones selected
• Relevance
• Impact
• Resources to explore
• What the tools should help do
• Logic Framework
• Outcome
• Nuggets of great Ideas that
“fit” the organization

41. Managing the Innovation Process
VALIDATING the
Innovation
CAN IT be done?
• This is about
• Impact
• Viability, Scalability & Risks
• Capability/Capacity
• Resources to Implement
• What the tools should help do
• Value Creation Analyses
• The level of interest (internal & external)
• Outcome
• Ideas/Innovation that the organization has
capacity to develop and implement

42. Managing the Innovation Process
CONSTRUCTING
the Innovation
HOW will it be done?
• The Innovation refined and developed
• Allocation of Resources
• Action Standards
• Organizational Readiness
• Innovation ready for Implementation
• What the tools should help do
• Management of the project
• Team Operating Framework
• Outcome
• An Innovation that is ready for
implementation

43. Managing the Innovation Process
IMPLEMENTING
the Innovation
DO it
• The Innovation implemented and
supported for success
• Core to the Organization
• Embedded in the organization
• What the tools should help do
• Monitoring & Evaluation
• Measure against Scorecard
• Rewards Systems
• Outcome
• A new addition to the organization's
portfolio & activities

44. Managing the Innovation Process
Sharing the
LEARNING‟S
Has it been SUCCESSFUL?
• Post-implementation lessons
• For both failures & successes
• What the tools should help do
• Evaluate Performance
• Evaluate Project
• Monitoring & Evaluation
• Measure against Scorecard
• Outcomes
• A set of lessons that will inform
future Innovations

45. Managing the Innovation Process
ROLLING OUT the
Innovation
Can we apply it elsewhere?
• Demand
• “Willing” takers
• “Ready” takers
• What the tools should help do
• Rollout a toolkit

46. Managing the Innovation Process
MIX of Balanced
Innovations
Hi Impact
A Balanced Portfolio of
Innovations is an important
outcome of a good
management of the
innovation process
• Allocation of Resources
• Cross-functional cohesion
• Delivery of Strategic
Goals
• Continuous feed-stock of
Lo Impact
ideas
Low Resource Hi Resource

47. Managing the Innovation
Process
Remember ...
• The Innovation Process is not a “one size fits all”
• It begins with Creative Ideas
• Creative Ideas are just a starting point for innovation
• Ideas must be transformed into something useful
• There must be an Organizational Alignment to
Innovation
• There must be a Management balance
• Managing the Innovation Process vs. Being managed by it
• Too much creativity vs. too much structure

48. Using the Tools
Generating & Prioritizing Ideas
Process Toolkit
Innovation Management Tools
Designing and Using Innovation Management Process
Putting Innovation Management Processes Into Action Into
Action

49. Generating & Prioritising Ideas
Idea Generation and
Validation
Simple
Questions
Answered
Product or
Who
Service
Innovation
What When
WHAT
IS THE
RIGHT
TOOL?
Process Supply Where How
Innovation Chain
Innovation
Why
Why Fit with Will
Should Strategy Anyone
We Do & Want
This Principles This

50. Generating & Prioritising Ideas
The Listening and
Exploration Tool
Adds to what I know Observations and Ideas Search
Personal experience Personal experience
Direct Consumer/Customer Contact Direct Consumer/Customer Contact
In-situation observations In-situation observations
External expert collaboration External expert collaboration
Evidence hunting Evidence hunting
Reviewing commissioned market research Reviewing commissioned market research
Confirms what I know In-situation External expert
Personal experience observations collaboration
Direct Consumer/Customer Contact
Direct
In-situation observations Consumer - Evidence
External expert collaboration Customer hunting
Contact
Evidence hunting
Reviewing commissioned market research
Personal Surprising Commissioned
experience or weird market research

51. Generating & Prioritising Ideas
Turning Ideas Into Write down the
Innovation Challenges problem, need • Why is this real?
issue or
1. Avoid opportunity
ambiguity
What is causing • Why has this occurred?
• Ask "why?“ this? • What is behind this?
until you can
no longer
• Burning platforms:
answer yourself What other • how urgent is the solution
issues are at needed?
stake? • what are „others‟ doing
2. Turn ideas about this need?
into short, What solutions • Brainstorm ideas to
simple can be created
to respond to
pursue
• Generate lots of ideas
challenges the need? first – no criticism

52. Generating & Prioritising Ideas
CLARIFYING THE CHALLENGE
AND THE POSSIBLE SOLUTIONS

53. Process Toolkit
Desired Outcomes
• Successful Innovation:
– Responsive to consumer/user needs, within a
clear strategic context
– Scalable, Replicable and Effective
• Effective Organization
– Climate and culture that embraces innovation
– Commitment to implementation

54. Process Toolkit
The Idea Brief
Use the BOSCARD
Project Name Constraints
Clear expectations of end-users
Clear expectations of the business
Internal and external limiting factors
Background Assumptions
What is the end-user need? Of end-users to satisfy or over-deliver on
Of the organization to manage
Of partners to manage
Opportunity: Resources
Why innovate to address this need? Core Project Team
Sponsor - Stakeholders - Gatekeeper
Other resources
Within Scope Deliverables
Different products, services, processes and other Analysis of Ideas; Qualitative research; Simulated-Test-
innovations required to fully address the end-users‟ Market
needs?
Outside Scope
What will you not do or address by implementing the
idea?

55. Process Toolkit
Stakeholder
Management
• Dynamic Procedure
– This is a dynamic process from project definition through planning and
execution of the project.
– Identify and analyze stakeholders (customers, consumers, suppliers,
investors, community & society and our people) Application
• Define stakeholder questions •To identify the
• Prepare interview checklists stakeholders and
their needs and
expectations
• Interview stakeholders • Most useful to
• Prepare reports and get feedback build relationships
with key
stakeholders and to
• Resolve potential conflicts identify scope,
• Keep stakeholder analysis confidential to the team priorities and key
risks for the project.
• Finalize the innovation brief with stakeholders
• Ensure consistency with organizational strategy

56. Process Toolkit
Stakeholder Interviews Power
Influence
• Objectives
What are stakeholders‟ goals? Referees Players
What do they want to achieve in
relation to this particular project Keep Satisfied Manage expectations
• Past reactions Reports Actively involve
How have they reacted to this Visits Invest time
project (or similar projects) in the
past? Stake
• Impact Benefits
Do the changes generated by this Victims &
project impact the stakeholder Bystanders Beneficiaries
positively or negatively?
Keep Informed
• Future Minimal effort
How are they likely to react in the Reports and
Reports only
future? Guest member follow up
Contact

57. Process Toolkit
Feedback and Conflict
Resolution
• Request feedback
• Provide progress Summaries to Stakeholders
• Address apparently differing views & clarify
misunderstandings
• Manage conflicting expectations
• Provide appropriate data
• Develop options for resolution
• Take responsibility for resolving issues with
stakeholders

58. Process Toolkit
The Innovation Brief
Project Name Constraints
Clear expectations of end-users and the business
Internal and external limiting factors
Outside the team‟s direct influence.
Background Assumptions
A few lines describing the context of the project .e.g. Of end-users to satisfy or over-deliver on
strategic fit, starting point, opportunities Of the organization and partners to manage
To help maintain focus when facing (a lot of) uncertainty
Objective: Risks
A statement of business goals to be achieved AND a Brainstorm the uncertainties that may make the project
statement of the result for the project team fail to proactively create solutions to deliver the objective
Within Scope Deliverables
The team‟s own choice of different products, services, Concrete outputs, tangible and measurable that will lead
processes and other innovations required to fully address to the desired objective
the end-users‟ needs (empowered by the gate keepers)
Outside Scope Analysis of Ideas; Qualitative research; Simulated-Test-
What externalities must be managed?. Market

59. Sample Innovation Brief
Project Name: Best-Veg
Background Constraints
• Opportunity to make claims on •Launch timings must align with the lean season for
“the Goodness of Vegetables” vegetables
• Claims must comply with local regulations for food
Objective safety and claims.
•Establish the ultimate “Goodness Assumptions
of Vegetables” platform by We can find compelling & internally/externally
launching a premium range of approved claims for at least three vegetables in order
packed vegetable with specific to justify the platform
health claims in Q2 2011 SMART
Risk
Within Scope Inability to source/secure commercial quantities of
organic vegetables
• We will start by developing five
standard packs. Deliverables
• We will test packs and claims for • Develop five recipes on pilot scale, ready for
five single and mixed veg packs. consumer testing by Q2 2010
• We will conduct a critical path test • Conduct claims workshop Q3 2010 and achieve
with one variant only. claims approval by Q3 2010
• We will source organic vegetables • Conduct consumer testing of recipes & claims, and
Outside Scope select winning variants by Q1 2011
• We will not conduct clinical trials – • Confirm commercial feasibility of organic vegetable
claims will be based on existing sourcing by Q1 2011
evidence. •Develop communication & prepare hand-over to
launch countries by Q2 2011.
• On shelf Q2 2011. SMART

60. Innovation Management Tools
ABC
Innovation Implementation
Plans
List your ideas
Evidence of Consumer
Risks & Obstructions
The Idea - Trade -
All ideas are equal before you start rating Organisational Need
To Manage
WHY DON‟T WE … / WHAT IF WE …
Select key criteria for evaluating Authorisations
the ideas Team Resources Resources
Creative
(People, Time)
Implementation Plan Exit Plan
Money
Weight the criteria – to reflect
importance
Milestones Communication Plan
Action Plan
Agree on what is the outcome after
rating

61. Innovation Management Tools
EZI
Stage-Gate Decisions
Gate 1 – Initial trigger: A typical stage gate model
An idea for an innovation crystallizes. This is the
„gleam in the eye‟ which starts the process off. Gate 5 - Launch ready:
Go-to-Market Plans Finalized
Decision: whether or not to explore this a bit If the go-ahead is given then the innovation
further. moves into implementation across the
organization.
Gate 2 – Charter
Decision: Go – No go
Early information on assumptions and capacity to
implement is confirmed.
Gate 4 – Capability:
Decision: whether there is a business case for Detailed design and market
taking this idea further – or not.
development
The innovation is definitely in the
Gate 3 – Feasibility Studies development programme and consuming
Before committed resources the technology and resources as it is progressed through a
innovation idea needs testing. project management system.
Conduct surveys to confirm insights and Information about technical and market
assumptions. feasibility is now analyzed.
Decision: commit resources to full scale Decision: whether or not to proceed with full
development – or not. scale production.

62. Designing and Using Innovation
Management Process
The Key Objectives
• Identify ideas with potential
• Align value creation to strategy
• Ensure design expectations are met
• Optimize routes to idea implementation
• Assure profitable and sustainable implementation
• Accurately identify replicable innovations with
multiplier effects

63. Designing and Using Innovation
Management Process
Guidelines For the Design
of Stages And Gates
I. Process Credibility
– Objective cross-functional project team develops the process
– Clear mandate to develop a process capable of driving better performance.
– Set benchmarks and KPIs for the innovation
– Critically assess the process strengths and weakness
– Avoid making internal compromises or succumbing to internal politics
II. Visible and Meaningful Leadership Support
– Explain why it is critical to the future of the company
– Senior executive sponsor to publicly support the initiative and project leaders
– Regular executive team updates to match present to organisational memory
– Senior execs to champion the impact of change throughout the organization

64. Designing and Using Innovation
Management Process
Guidelines For the Design
of Stages And Gates
III. Sufficient and Appropriate Resources
– Executives and team agree on and commit necessary resources
in people, skills, funds and time, Passionate people
IV.Defined Roles and Responsibilities
– Implementation Champions - Executive Sponsor and Process
Manager
– Innovators - Project Leaders and Team Members
– Gatekeepers - The decision makers
V. Strategic Implementation Approach
– Chose an approach that fits the organisational strategy
– The greater the change, the higher the risk of failure

65. Designing and Using Innovation
Management Process
Guidelines For the Design
of Stages And Gates
VI. Effective Communication for Buy-In
– Progress meetings with senior executives
– Answer the “so what?” and “why?” questions clearly and concisely
– Available and easily accessible documentation
– Listen to the feedback you receive
VII.Performance Tracking of specific innovations
– Concise, SMART metrics aligned with mandate
– Measure process effectiveness: projects enrolled in the Stage-Gate process;
adoption rates; gate meeting frequency and quality
– Measure innovation performance: time-to-profit; new product success rates
VIII.Sharing the effectiveness of the framework
– Avoid too many metrics and
– Avoid teams that are not aligned on key outcomes

66. Designing and Using Innovation
Management Process
Guidelines For the Design
of Stages And Gates
IX. Managing potential conflicts between the
framework and Organizational Culture
– Conduct risk and barrier analysis of key stakeholders
– Assess impact on processes that will be affected
– Assess how new process will work with old processes
– Enablers for the types of behavioural change required
– Who will be responsible for managing the change
– Know the differing views at all levels and functional areas
X. Effective Change Management
– Innovation involves change management
– Communicate widely the importance to continually aspire
– Reward people and behaviours that support the change
– Manage tradeoffs
– Don‟t underestimate the scale of the change; adjust plans as
needed

67. Designing and Using Innovation
Management Process
Mandatory Elements
• Cross-functional management (2X)
• Manage all procedures, from I2I, via the agreed process
• Ensure every innovation justification is aligned with strategy
• Agree a single point of responsibility for all innovation decisions
• Mandate a cross-functional oversight team for Risk Management

68. Putting Innovation Management
Processes Into Action
Project Planning Qu(s)
• What do we want to accomplish?
• What specifically are we delivering at the end of this effort?
• Who takes responsibility for what we are delivering once this effort is
over?
• What key deliverables must we accomplish to reach our
end goal?
• Who do we need to define, sequence and complete the tasks needed to
meet those key deliverables?
• How much time do we need to meet those key deliverables?
• How much money do we need to meet those key deliverables?
• What are the risks we can anticipate that might keep us from meeting
those key deliverables?
• How will we react to any risks if they occur?

69. Putting Innovation Management
Processes Into Action
Approval Meeting
Preparation Qu(s)
• What are we tracking to know we are ;
• on schedule?
• on budget?
• making progress on completing our key deliverables?
• How will we identify risks and/or issues?
• What will be our responses to the previously identified risks and/or issues?
• Who else needs to know the answers to these questions and what is
their preferred communication channel?
• Do we have the appropriate amount of
• resources (human, budget, etc) necessary to execute the estimated work effort?
• leadership commitment and oversight to ensure a quality project delivery?
• Does our effort have any dependencies or conflicts with any other
efforts currently being conducted within the organization?
• Have we identified any other “part-time” or transient resources required
for project delivery?

70. Putting Innovation Management
Processes Into Action
Gatekeepers Project Status Qu(s)
• Are we
• on schedule?
• on budget?
• making progress on completing our key deliverables?
• confident the key deliverables meet our strategic requirements?
• Are there any risks and/or issues that have come up since the last time we met?
• What is our response to the risks and/or issues?
• Do we still have enough time, money and resources to complete our key
deliverables?
• Are there any changes required to ensure we have enough time, money and
resources to complete our key deliverables?
• Is there any opportunity to speed up the schedule, reduce cost, free-up resources or
deliver additional tasks without negative impact?
• Are the right people being informed of our progress and status?

71. Putting Innovation Management
Processes Into Action
Project Closure Qu(s)
• Did we achieve …
• what we promised at the beginning of the project?
• successfully the key deliverables promised at the beginning of the project?
• Did we deliver our effort
• on time (within acceptable variance)?
• on budget (within acceptable variance)?
• Were the deliverables of acceptable quality?
• Were there any significant risks and/or issues that caused us to stray outside
the acceptable boundaries set for the effort?
• Were the right people communicated with regarding the completion of the effort
and the results?
• Have the resources (human, remaining budget, space, etc.) been released for
other use?
• What are the lessons learned from this effort that may benefit future innovation
efforts?

72. Embedding Innovation Culture In The
Organisation
Developing and Living the Right
Culture and Behaviours
Measuring Success
Managing Failure

73. Developing and Living the Right Culture and
Behaviours
Living The Innovation
Culture:
• Every voice heard must be heard
“The • Senior management sponsorship
system”
• Inspire/promote idea champions
must be • Freedom to experiment - with
balanced responsibility
by
• Make room for failure
“the • Reward sensible risk-taking
person”

74. Measuring Success
Leadership Metrics
• stimulate the innovation dynamics
• motivate risks-taking to receive rewards
• develop a culture of entrepreneurial leadership
•
balance incremental vs. discontinuous innovation
• align organizational processes, metrics to growth
• create an environment conducive to new business
creation

75. Measuring Success
Organizational Metrics
• Objectively identify and define
Optimization Focused opportunities
(Stable Environment)
• Meet current customer • Rapid development and/or
commercialization of innovation
needs
• Exploit what you know • Maximization of profit/targets from
“mature” market/objectives
Innovation Focused • Revamp internal processes to drive
(Dynamic Environment) innovation (Structure/Systems)
• Anticipate future needs
• Increase revenues, profits and growth
• Explore what you don‟t rates from specific innovations
know
• Create and own the “highest standard”

76. Measuring Success
Innovation Metrics
• Acceptance of and Demand for
the innovation
• Segment, Market & Revenue
Based on Shares
the goals • Incremental innovation
opportunities
set for the • Ability to support growth of new
innovation opportunities
• etc, etc

77. Managing Failure
Unacceptable
Failures
• Lack of Foresight, end-user insight, or the organizational support and
processes
• Not effectively understanding the existing context
• Not aligning innovation to strategy
• Cultural inertia that hinders the ability to play two games at once
• managing the existing business while investing in and driving the new
• Not focusing on or investing in the right resources or infrastructure
• Not effectively creating the right environment
• Lack of commitment to implementation
• Loosing sight of the original values, principles and objectives: the WHY
of INNOVATION

78. Managing Failure
Positive Examples: Drug Failed … Successfully
The Stories of Eli Lily Marketed for
Strattera in Attention
• “People learn by failing.”
depression deficit
• even if the risks are well
studies
calculated
Evista as birth Osteoporosis
• Encourages scientists to look for control
new uses for drugs that don‟t work
Alimta in trials Mesothelioma
out
• Lesson learnt at „failure parties‟ Cymbalta at lower Depression
to understand good work that dose
results in failure MEPM for prosaris Cancer
• The Results … Gemzar as antiviral Cancer
agent
• In 2003, Eli Lily had 6 patents with 2
more expected before end 2004 PPAR in asthma Cardiovascula
trials r disease
• Average is 2/year for the big Gherlin in frailty Obesity
players blocker study