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MOOITheme4:
HRandOpenInnovation
Prof. HenryChesbrough, University of California, Berkeley &ESADE
Prof.WimVanhaverbeke, Hasselt University, ESADE & National
University ofSingapore
Dr. Nadine Roijakkers,HasseltUniversity
March 4, 2013 WewouldliketoacknowledgetheeffortsofSvenjaPaul
forprovidinginputtothispresentationon the basis of
her master thesis.
Big gap in the (academic)literature
•Verylittlehas beenwrittenin
theacademicliteratureconcerningHRpracticesan
dtheroleof HR professionals in Open Innovation
•Golightly(2012)statesthat“(…)thereisconsiderab
le potential for further researchinto thepeople
side of Open
Innovation,including(…)humanresourcepractices
(…)”
2
Theimportanceof HRpractices
•OpenInnovationis apeople-drivenbusiness:
–“(…)Fundamentally, Open Innovation
isaboutpeopledealing
withpeople(…)”(Harwood,2010)
•ItsthereforehighlyimportanttolearnhowHRpract
icesrelatedtobothinternalandexternaltalent
management can drive Open Innovation
success
3
Quotes
4
„You can create followers, but you can‘t create leaders“
- TomCoen, Founder and Managing Director at Induct
„Openness exists in many people but it is buried“
- Harry Berry, Founder ofBrightstarInnovations
„People can be trained to be more open“
-Luciennevan derWerff, VP HRM at DSM Innovation Center
„People should be a lot more proactive than average in order to make quick
changes“
- MarcHufkens, HRM and Deputy CEO at Ridley Bikes
TherelationbetweenHRandOIeffecti
veness
5
HR practices (Internal and
external talent
management)
Employees‘ attitudes and
behaviors
Organizational climate /
culture
Open innovation
effectiveness
Internaltalent management
•OI
skills,traits,androlesrelevantforselection, training
,andevaluationpurposes
•OtherHRpracticestostimulateOIbehavior
•Dynamicview on HR inrelationtoOI
6
OI skills,traits,androles
•HR needs
toselectandtrainindividualsforOIbasedonidentifi
ed skills(duChatenieret al, 2010)
•Individualsshouldhavetherightcapacities(Wagn
er &Piller, 2012),skills(Mortaraet
al,2009),andcapabilities(Golightly,2012)
•Training is essential, rather than merely
desirable, when preparing the company for
open innovation(Mortaraetal, 2009)
7
Softandhard skills
•Softskillsratherthanhard skillsunderlieOIsuccess
•OI performanceevaluationshouldfocus on these
soft
skills:Itsnotonlyimportantwhatpeoplegetdonebu
talsohow(Sloane,2012)
•Thereshouldbeabalancebetweenhardandsoft
skills(Thoen, 2011)
8
NecessaryOI skills
General (basedonThoen, 2011):
•Tprofile:Breadthand depth fusing
specialisation andgeneralisation
•Threeleggedstool:Thetechnical
mastery, the organizationalmastery,and
the businessmastery
9
ListingofspecificOI skills
•Entrepreneurship
•Internalandexternalnetworking
•Belief in
change,bringaboutchange,faciliatechange, question
status quo
•Toleranceofuncertaintyandrisktaking
•Needtolearn, opentolearn,andquicktolearn
•Optimism,passion,andenergy
•Abletograspthe big picture
•Teamplayer
10
Interactive poll 1
What are thethree most importantskills for
OpenInnovation?
•Entrepreneurship
•Internalandexternalnetworking
•Belief in change,bringaboutchange,faciliatechange, question
status quo
•Toleranceofuncertaintyandrisktaking
•Needtolearn, opentolearn,andquicktolearn
•Optimism,passion,andenergy
•Abletograspthe big picture
•Teamplayer
11
HRpractices
•Strategicchallengeexchangetostimulatechange,
creationof relations, exchange
ofideas,acquisitionofexternalknowledge,createin
terdisciplinaryknowledgein employees, etc.
(DonkorandMonti, 2010)
•Leadstohighmotivationandretentionofstaff
•Examples:Google and P&G
swappingemployeesandnetwork of four Swiss
MNCs strategically exchanging stafffrequently
12
HRpractices
•‘Open choice of career paths and researcher
mobility‘ within thefirm(Petronietal, 2012)
•Ideallyall talents and future managersstart in
the R&D departmentand then move further, so
that R&D knowledge is integrated in all
departments(Petronietal,2012; Harryson,1997)
13
Adynamicapproach
•Differentskills areneededindifferentphasesof
the innovation process(Lindegaard,2010)
•It isveryrarefor one person to possess all the
ideal skills forOI;
differentpeoplemayneedtobeinvolvedin the
OIactivityatdifferent points in
time(Mortaraetal, 2009)
14
Externaltalent management
•From'talentownership' to 'talent attraction‟
•Talents need to bekept connectedeven when
notinternallyemployed
•‚Attractand manage external talent„ in addition to
‚finding the best internal talent„
•‚Buildand curate talent pools„
•Createvaluefortheexternaltalent pool in
orderforthemtowanttostayconnected
•Philipsexampleonspinoffs
15
People-drivenOI
•Individualsandtheirattitudesarethedrivingforcebehindthesuc
cessofOI (DuChatenieretal,2010;Lichtenthaleret al, 2011).
•Focusfirst on getting individualsto realize the potential
value of Open Innovation, so that they can then put in
place practices that realize its actual value (Golightly, 2012).
•Theability of an organization to increase theabsorptive
capacityof itsindividualshascome throughstronglyas acrucial
step in realisingOIvalue(Golightly, 2012).
•Withrespecttoabsorptivecapacity“peoplemay be in a certain
role today buthave the expertise we're looking forbecause
of previous experience.We often forget people are in their
second and third careers” (Byrum, 2012)
16
Theroleof the HRdepartment
•The HR profession will have to buildnew core competences in
network orchestration and managing talent- no matter where the
talent lives(Kelley,2012)
•The HR department needs toredefine its
role(Mattes,2011):EstablishaChief TalentOfficer;Engagein
buildinginternal and external innovationnetworks;Contributeto the
design of these networks (with respect to e.g.
culturalissues);Driveadoption of internal and external
innovationnetworks;SupportOI implementation by providingleadership
in culturechange;DriveOI intoall of the firm‘s
businessprocesses;ConsiderOI leadership
aspectswhenleader/topmanagement positions are to befilled;Bringin
OI aspectswhen corporate structures and processes
areredesigned;Reviewexisting training and coaching programsin
the light ofOI;Designnew training and coaching programsin the light
of OI concepts
17
Interactive poll 2
What are thethree most importantfocus points for the
HR department?
1.Establish a Chief Talent Officer
2.Engage in building internal and external innovation networks
3.Contribute to the design of these networks (with respect to e.g. cultural issues)
4.Drive adoption of internal and external innovation networks
5.Support OI implementation by providing leadership in culture change
6.Drive OI into all of the firm„s business processes
7.Consider OI leadership aspects when leader / top management positions are to be filled
8.Bring in OI aspects when corporate structures and processes are redesigned
9.Review existing training and coaching programs in the light of OI
10.Design new training and coaching programs in the light of OI concepts
18
References
•Golightly, J. (2012): Realising the value of OpenInnovation
•Blog entry (2011a): innovation-3, Mattes, F.: HR departments take the driver„s seat in
Open Innovation
•Blog entry (2011b): innovation-3, Mattes, F.: Report from the German flagship conference
on Open Innovation
•White paper (2012): innocentive, Kelley, B.: Harnessing the global talent pool to
accelerate innovation
•Harwood, R. (2010): Motivation in Open Innovation, University of Cambridge(audio
interview)
•Du Chatenier, E. (2010): Identification of competencies for professionals in OI
teams, R&D Management, 30,3
•Sloane, P. (2012): A guide to Open Innovation andcrowdsourcing
•Interview Chris Thoen (2011): Chris Thoen on Open Innovation partII
•Lindegaard, S. (2010): The openinnovationrevolution
•Lindegaard S. (2011): Making OpenInnovationwork
19
References
•Donkor, C. and Monti, F. (2010): Strategischer Talentaustausch als Erfolgsfaktor für
Innovationen
•Mack, J. (2008): Google, P&G swapping employees, Direct Marketing News
•Byron, E. (2008): A new odd couple: Google, P&G swap workers to spur innovation, The
Wall Street Journal
•Wupperman, A. (2011): Kann man ‚Talente tauschen„? – Open Innovation im Bereich
Human Resources,Presseanzeiger
•Petroni, G. et al (2012): Open Innovation and new issues in R&D organization and
personnel management,
•The Int. Journal of Human Resources Management, 23, 1, 147-173
•Palensky, F. (2011): 3M‟s Open Innovation, strategy+business (Interview)
•Harryson, S. (1997): How Canon and Sony drive product innovation through networking
and application- focused R&D, Journal of Product Innovation, 14,288-295
•Bingham A; - Spradlin D. (2011): The open innovationmarketplace
20
References
•Interview with Byrum, J. (Global Head of Soybean Seeds and Traits R&D, Syngenta)
(May 2012). From: Syngenta Thoughtseeders, IdeaConnection. Retrieved from;
http://www.ideaconnection.com/interviews/00304-Syngenta-Thoughtseeders.html
•White paper (2012): innocentive, Kelley, B.: Harnessing the global talent pool to
accelerate innovation
•Lichtenthaler, U.; Hoegl, M.; Muethel, M. (2011). Is your company ready for open
innovation? In: MIT Sloan Management Review, Vol. 53, no.1.
21
For More Information on Online Learning and Innovation
Programs
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Lars Percy Andersson
InnovationManagement.se
Office Box 168
221 00 Lund
Skane, Sweden
Phone : +46 709 65 31 71
Email : info@innovationmanagement.se
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Human Resource Innovation Management

  • 1. MOOITheme4: HRandOpenInnovation Prof. HenryChesbrough, University of California, Berkeley &ESADE Prof.WimVanhaverbeke, Hasselt University, ESADE & National University ofSingapore Dr. Nadine Roijakkers,HasseltUniversity March 4, 2013 WewouldliketoacknowledgetheeffortsofSvenjaPaul forprovidinginputtothispresentationon the basis of her master thesis.
  • 2. Big gap in the (academic)literature •Verylittlehas beenwrittenin theacademicliteratureconcerningHRpracticesan dtheroleof HR professionals in Open Innovation •Golightly(2012)statesthat“(…)thereisconsiderab le potential for further researchinto thepeople side of Open Innovation,including(…)humanresourcepractices (…)” 2
  • 3. Theimportanceof HRpractices •OpenInnovationis apeople-drivenbusiness: –“(…)Fundamentally, Open Innovation isaboutpeopledealing withpeople(…)”(Harwood,2010) •ItsthereforehighlyimportanttolearnhowHRpract icesrelatedtobothinternalandexternaltalent management can drive Open Innovation success 3
  • 4. Quotes 4 „You can create followers, but you can‘t create leaders“ - TomCoen, Founder and Managing Director at Induct „Openness exists in many people but it is buried“ - Harry Berry, Founder ofBrightstarInnovations „People can be trained to be more open“ -Luciennevan derWerff, VP HRM at DSM Innovation Center „People should be a lot more proactive than average in order to make quick changes“ - MarcHufkens, HRM and Deputy CEO at Ridley Bikes
  • 5. TherelationbetweenHRandOIeffecti veness 5 HR practices (Internal and external talent management) Employees‘ attitudes and behaviors Organizational climate / culture Open innovation effectiveness
  • 7. OI skills,traits,androles •HR needs toselectandtrainindividualsforOIbasedonidentifi ed skills(duChatenieret al, 2010) •Individualsshouldhavetherightcapacities(Wagn er &Piller, 2012),skills(Mortaraet al,2009),andcapabilities(Golightly,2012) •Training is essential, rather than merely desirable, when preparing the company for open innovation(Mortaraetal, 2009) 7
  • 8. Softandhard skills •Softskillsratherthanhard skillsunderlieOIsuccess •OI performanceevaluationshouldfocus on these soft skills:Itsnotonlyimportantwhatpeoplegetdonebu talsohow(Sloane,2012) •Thereshouldbeabalancebetweenhardandsoft skills(Thoen, 2011) 8
  • 9. NecessaryOI skills General (basedonThoen, 2011): •Tprofile:Breadthand depth fusing specialisation andgeneralisation •Threeleggedstool:Thetechnical mastery, the organizationalmastery,and the businessmastery 9
  • 10. ListingofspecificOI skills •Entrepreneurship •Internalandexternalnetworking •Belief in change,bringaboutchange,faciliatechange, question status quo •Toleranceofuncertaintyandrisktaking •Needtolearn, opentolearn,andquicktolearn •Optimism,passion,andenergy •Abletograspthe big picture •Teamplayer 10
  • 11. Interactive poll 1 What are thethree most importantskills for OpenInnovation? •Entrepreneurship •Internalandexternalnetworking •Belief in change,bringaboutchange,faciliatechange, question status quo •Toleranceofuncertaintyandrisktaking •Needtolearn, opentolearn,andquicktolearn •Optimism,passion,andenergy •Abletograspthe big picture •Teamplayer 11
  • 12. HRpractices •Strategicchallengeexchangetostimulatechange, creationof relations, exchange ofideas,acquisitionofexternalknowledge,createin terdisciplinaryknowledgein employees, etc. (DonkorandMonti, 2010) •Leadstohighmotivationandretentionofstaff •Examples:Google and P&G swappingemployeesandnetwork of four Swiss MNCs strategically exchanging stafffrequently 12
  • 13. HRpractices •‘Open choice of career paths and researcher mobility‘ within thefirm(Petronietal, 2012) •Ideallyall talents and future managersstart in the R&D departmentand then move further, so that R&D knowledge is integrated in all departments(Petronietal,2012; Harryson,1997) 13
  • 14. Adynamicapproach •Differentskills areneededindifferentphasesof the innovation process(Lindegaard,2010) •It isveryrarefor one person to possess all the ideal skills forOI; differentpeoplemayneedtobeinvolvedin the OIactivityatdifferent points in time(Mortaraetal, 2009) 14
  • 15. Externaltalent management •From'talentownership' to 'talent attraction‟ •Talents need to bekept connectedeven when notinternallyemployed •‚Attractand manage external talent„ in addition to ‚finding the best internal talent„ •‚Buildand curate talent pools„ •Createvaluefortheexternaltalent pool in orderforthemtowanttostayconnected •Philipsexampleonspinoffs 15
  • 16. People-drivenOI •Individualsandtheirattitudesarethedrivingforcebehindthesuc cessofOI (DuChatenieretal,2010;Lichtenthaleret al, 2011). •Focusfirst on getting individualsto realize the potential value of Open Innovation, so that they can then put in place practices that realize its actual value (Golightly, 2012). •Theability of an organization to increase theabsorptive capacityof itsindividualshascome throughstronglyas acrucial step in realisingOIvalue(Golightly, 2012). •Withrespecttoabsorptivecapacity“peoplemay be in a certain role today buthave the expertise we're looking forbecause of previous experience.We often forget people are in their second and third careers” (Byrum, 2012) 16
  • 17. Theroleof the HRdepartment •The HR profession will have to buildnew core competences in network orchestration and managing talent- no matter where the talent lives(Kelley,2012) •The HR department needs toredefine its role(Mattes,2011):EstablishaChief TalentOfficer;Engagein buildinginternal and external innovationnetworks;Contributeto the design of these networks (with respect to e.g. culturalissues);Driveadoption of internal and external innovationnetworks;SupportOI implementation by providingleadership in culturechange;DriveOI intoall of the firm‘s businessprocesses;ConsiderOI leadership aspectswhenleader/topmanagement positions are to befilled;Bringin OI aspectswhen corporate structures and processes areredesigned;Reviewexisting training and coaching programsin the light ofOI;Designnew training and coaching programsin the light of OI concepts 17
  • 18. Interactive poll 2 What are thethree most importantfocus points for the HR department? 1.Establish a Chief Talent Officer 2.Engage in building internal and external innovation networks 3.Contribute to the design of these networks (with respect to e.g. cultural issues) 4.Drive adoption of internal and external innovation networks 5.Support OI implementation by providing leadership in culture change 6.Drive OI into all of the firm„s business processes 7.Consider OI leadership aspects when leader / top management positions are to be filled 8.Bring in OI aspects when corporate structures and processes are redesigned 9.Review existing training and coaching programs in the light of OI 10.Design new training and coaching programs in the light of OI concepts 18
  • 19. References •Golightly, J. (2012): Realising the value of OpenInnovation •Blog entry (2011a): innovation-3, Mattes, F.: HR departments take the driver„s seat in Open Innovation •Blog entry (2011b): innovation-3, Mattes, F.: Report from the German flagship conference on Open Innovation •White paper (2012): innocentive, Kelley, B.: Harnessing the global talent pool to accelerate innovation •Harwood, R. (2010): Motivation in Open Innovation, University of Cambridge(audio interview) •Du Chatenier, E. (2010): Identification of competencies for professionals in OI teams, R&D Management, 30,3 •Sloane, P. (2012): A guide to Open Innovation andcrowdsourcing •Interview Chris Thoen (2011): Chris Thoen on Open Innovation partII •Lindegaard, S. (2010): The openinnovationrevolution •Lindegaard S. (2011): Making OpenInnovationwork 19
  • 20. References •Donkor, C. and Monti, F. (2010): Strategischer Talentaustausch als Erfolgsfaktor für Innovationen •Mack, J. (2008): Google, P&G swapping employees, Direct Marketing News •Byron, E. (2008): A new odd couple: Google, P&G swap workers to spur innovation, The Wall Street Journal •Wupperman, A. (2011): Kann man ‚Talente tauschen„? – Open Innovation im Bereich Human Resources,Presseanzeiger •Petroni, G. et al (2012): Open Innovation and new issues in R&D organization and personnel management, •The Int. Journal of Human Resources Management, 23, 1, 147-173 •Palensky, F. (2011): 3M‟s Open Innovation, strategy+business (Interview) •Harryson, S. (1997): How Canon and Sony drive product innovation through networking and application- focused R&D, Journal of Product Innovation, 14,288-295 •Bingham A; - Spradlin D. (2011): The open innovationmarketplace 20
  • 21. References •Interview with Byrum, J. (Global Head of Soybean Seeds and Traits R&D, Syngenta) (May 2012). From: Syngenta Thoughtseeders, IdeaConnection. Retrieved from; http://www.ideaconnection.com/interviews/00304-Syngenta-Thoughtseeders.html •White paper (2012): innocentive, Kelley, B.: Harnessing the global talent pool to accelerate innovation •Lichtenthaler, U.; Hoegl, M.; Muethel, M. (2011). Is your company ready for open innovation? In: MIT Sloan Management Review, Vol. 53, no.1. 21
  • 22. For More Information on Online Learning and Innovation Programs Contact Us at : Innovationmanagement.se Lars Percy Andersson InnovationManagement.se Office Box 168 221 00 Lund Skane, Sweden Phone : +46 709 65 31 71 Email : info@innovationmanagement.se Url : http://www.innovationmanagement.se