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Leading Innovation &
  Value Creation

      Andrew L. Urich, J.D.
          Puterbaugh Professor of
           Ethics & Legal Studies
         Spears School of Business
         Oklahoma State University
            aurich@okstate.edu
          www.andrewurich.com
“It is not the strongest of the
species that survive, nor the
most intelligent, but the one
most responsive to change.”

          Charles Darwin
Innovation
   Eliminate impediments to innovation
   Collaboration
   Implementation
   Value Creation
Eliminate impediments to
innovation
1.   Understanding the Urgent Need for
     Innovation
2.   Lack of engagement
3.   Apply “Real” Capitalist ideas within the
     organization
4.   Overcoming fear and resistance to change
5.   Facing reality
Organizational Restraints to Innovation
Bureaucracy & the Status Quo
   Risk taker to Risk avoidance
   Cash poor to Cash comfortable
   Contribution to Playing favorites
   Opportunities to Problems
   Create value to Doing your job
   Marketing & sales to Finance & bean-counting
   Momentum to Inertia
   Working to Meetings
   END
GM: Smart People Trying
Hard
   My first car: ’66 Cadillac Coupe de Ville
   I’ve rooted for GM ever since, but I never bought
    another one of their cars
GM History
   1950’s - Half of all cars in the US
GM History
   Things turned South with the Vega
Why is it So Hard to Face
Reality?
Why is it So Hard to
Face Reality?
“What we see depends mainly
   on what we look for.”

       Sir John Lubbock
          (1834 – 1913)
        English Archeologist
“When things change, the truth
 is what we need to change.”

         Spencer Johnson
     Author, Who Moved My Cheese
Focus on What Matters
Focus on What Matters
Focus on What Matters
Focus on What Matters
There is value creation in what you
    don’t do
   Southwest Airlines: The King of “No!”
               No food
               No choice of planes
               No assigned seats
               No extra baggage
               No first class
               No shared reservation system
               No expensive equipment



   Failure to say “no” leads to disaster
1999
“The most versatile vehicle on earth”
“Lifestyle support vehicle”
1999
“The most versatile vehicle on earth”
“Lifestyle support vehicle”
Why Don’t They Give Us an
Owner’s Manual For Our Brain?

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Innovation GM Case Study

  • 1. Leading Innovation & Value Creation Andrew L. Urich, J.D. Puterbaugh Professor of Ethics & Legal Studies Spears School of Business Oklahoma State University aurich@okstate.edu www.andrewurich.com
  • 2. “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” Charles Darwin
  • 3. Innovation  Eliminate impediments to innovation  Collaboration  Implementation  Value Creation
  • 4. Eliminate impediments to innovation 1. Understanding the Urgent Need for Innovation 2. Lack of engagement 3. Apply “Real” Capitalist ideas within the organization 4. Overcoming fear and resistance to change 5. Facing reality
  • 5. Organizational Restraints to Innovation Bureaucracy & the Status Quo  Risk taker to Risk avoidance  Cash poor to Cash comfortable  Contribution to Playing favorites  Opportunities to Problems  Create value to Doing your job  Marketing & sales to Finance & bean-counting  Momentum to Inertia  Working to Meetings  END
  • 6. GM: Smart People Trying Hard  My first car: ’66 Cadillac Coupe de Ville  I’ve rooted for GM ever since, but I never bought another one of their cars
  • 7. GM History  1950’s - Half of all cars in the US
  • 8. GM History  Things turned South with the Vega
  • 9. Why is it So Hard to Face Reality?
  • 10. Why is it So Hard to Face Reality?
  • 11. “What we see depends mainly on what we look for.” Sir John Lubbock (1834 – 1913) English Archeologist
  • 12. “When things change, the truth is what we need to change.” Spencer Johnson Author, Who Moved My Cheese
  • 13. Focus on What Matters
  • 14. Focus on What Matters
  • 15. Focus on What Matters
  • 16. Focus on What Matters
  • 17. There is value creation in what you don’t do  Southwest Airlines: The King of “No!”  No food  No choice of planes  No assigned seats  No extra baggage  No first class  No shared reservation system  No expensive equipment  Failure to say “no” leads to disaster
  • 18. 1999 “The most versatile vehicle on earth” “Lifestyle support vehicle”
  • 19. 1999 “The most versatile vehicle on earth” “Lifestyle support vehicle”
  • 20. Why Don’t They Give Us an Owner’s Manual For Our Brain?