©2002 jwh consulting, inc. and innovation-triz inc. innovation-triz,inc. ®innovation-triz, 2003...

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail Why Innovation Champions Fail And What To Do About It And What To Do About It IIR Return on Innovation IIR Return on Innovation Conference Conference 12/4/03 12/4/03 Jack Hipple, Innovation-TRIZ Jack Hipple, Innovation-TRIZ Tampa, FL Tampa, FL [email protected] [email protected] www.innovation-triz.com www.innovation-triz.com

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Page 1: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

Why Innovation Champions Why Innovation Champions Fail And What To Do About ItFail And What To Do About It

IIR Return on Innovation IIR Return on Innovation ConferenceConference

12/4/0312/4/03Jack Hipple, Innovation-TRIZJack Hipple, Innovation-TRIZ

Tampa, FLTampa, FL

[email protected]@earthlink.net

www.innovation-triz.comwww.innovation-triz.com

Page 2: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

QUESTIONSQUESTIONS

ARE YOU AN INNOVATION ARE YOU AN INNOVATION CHAMPION?CHAMPION?

IN WHAT CONTEXT?IN WHAT CONTEXT?

HAVE YOU SURVIVED?HAVE YOU SURVIVED?

Page 3: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

I. WHY IS THIS TOPIC IMPORTANT?I. WHY IS THIS TOPIC IMPORTANT?

• Corporations are constantly looking for Corporations are constantly looking for inventions, acquisitions, collaborations, and inventions, acquisitions, collaborations, and processes which can allow them to grow at a processes which can allow them to grow at a rate faster than the GDP of the rate faster than the GDP of the country/world--and faster than their country/world--and faster than their competitors!competitors!

• Many unsuccessful attempts have been Many unsuccessful attempts have been made to sustain internal efforts to support made to sustain internal efforts to support these goals--nearly all have been terminated these goals--nearly all have been terminated (sometimes restarted years later!)(sometimes restarted years later!)

• These efforts have spent HUNDREDS of These efforts have spent HUNDREDS of millions of dollars!millions of dollars!

• Perception that there are untapped ideas Perception that there are untapped ideas within the organizationwithin the organization

• Even perceived “successes” have seen Even perceived “successes” have seen downsizings eventuallydownsizings eventually

Page 4: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

WHY IS THIS IMPORTANT?WHY IS THIS IMPORTANT?

• Previous leaders of these Previous leaders of these programs, for the most part, are programs, for the most part, are in successful consulting in successful consulting businesses or start-up businesses or start-up companies--major corporations companies--major corporations have lost them--probably foreverhave lost them--probably forever

• Their clients frequently include Their clients frequently include ex-employers!ex-employers!

• Learnings? It seems we are Learnings? It seems we are starting all over again!starting all over again!

Page 5: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

THE AMI STUDYTHE AMI STUDY

Page 6: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

ASSOCIATION FOR MANAGERS OF ASSOCIATION FOR MANAGERS OF INNOVATION (AMI)INNOVATION (AMI)

• An informal group of 50 innovators, An informal group of 50 innovators, most of whom have (had) most of whom have (had) responsibility for innovation responsibility for innovation programs within large companies, programs within large companies, government agencies, or non-profitsgovernment agencies, or non-profits

• Meets twice yearly with outside Meets twice yearly with outside stimulus speakers and sharing of stimulus speakers and sharing of experiencesexperiences

• Active since 1986 Active since 1986

• Sponsored by Stan Gryskiewiecz at Sponsored by Stan Gryskiewiecz at CCLCCL

Page 7: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

AN OBSERVATION WAS MADE…..AN OBSERVATION WAS MADE…..

• A large percentage of corporate A large percentage of corporate innovation managers had become innovation managers had become consultants or joined start-ups, after consultants or joined start-ups, after downsizings and early retirementsdownsizings and early retirements

• These were usually associated with These were usually associated with termination of the functiontermination of the function

• With further passage of time, the With further passage of time, the percentage rose more, with 15 percentage rose more, with 15 people (out of 30-40 active people (out of 30-40 active members) identifiedmembers) identified

• Note: trend has continuedNote: trend has continued

Page 8: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

AMI DECIDED TO…..AMI DECIDED TO…..

• Survey and study this phenomenonSurvey and study this phenomenon

•Jack Hipple, Innovation-TRIZJack Hipple, Innovation-TRIZ•David Hardy, Bank of MontrealDavid Hardy, Bank of Montreal•Steve Wilson, Eastman ChemicalSteve Wilson, Eastman Chemical•James Michalski, Eastman James Michalski, Eastman

ChemicalChemical• See if there were any learnings See if there were any learnings

that could be sharedthat could be shared

• Publish if possiblePublish if possible

Page 9: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

Survey QuestionsSurvey Questions

• MBTI, KAI profilesMBTI, KAI profiles

• Funding mechanismFunding mechanism

• Leadership/sponsorshipLeadership/sponsorship

• Ideation processIdeation process

• Tools usedTools used

• Personal insightsPersonal insights

Page 10: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

RESULTSRESULTS• Study completed in late 2000Study completed in late 2000

• Publication completePublication complete

• Chemical Innovation, 11/01Chemical Innovation, 11/01• Leaders in Action, 5/02Leaders in Action, 5/02• Condensed versions on various web sitesCondensed versions on various web sites

• Presentation at World Future Society (7/01), Presentation at World Future Society (7/01), CPSI meeting (6/02), ACA (7/02),Innovation CPSI meeting (6/02), ACA (7/02),Innovation Network (9/02), IIR (12/03)Network (9/02), IIR (12/03)

• Input to Harvard Business review article on Input to Harvard Business review article on innovationinnovation

• Results can be shared anonymouslyResults can be shared anonymously

• Findings significantFindings significant

• Additional data is supportive Additional data is supportive

Page 11: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

LEARNINGS FROM STUDYLEARNINGS FROM STUDY

• Significant differences Significant differences between “styles” of between “styles” of innovation champions and innovation champions and “norm” around them“norm” around them

• KAI™ and Myers Briggs Type KAI™ and Myers Briggs Type IndicatorIndicator™™ analyses can help analyses can help assessassess

• Personal learnings and Personal learnings and experiences--what would be experiences--what would be done differently?done differently?

KAI is a registered trademark of M.J. Kirton

Myers Briggs Type Indicator is a registered trademark of CPP, Inc.

Page 12: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

INSTRUMENTS FOR INSTRUMENTS FOR ASSESSMENTASSESSMENT

Page 13: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

MYERS-BRIGGS (MBTI™)MYERS-BRIGGS (MBTI™)

• A tool which measures our A tool which measures our “style” of social interaction “style” of social interaction and how we analyze and how we analyze external informationexternal information• Extraverted/introverted (E/I)Extraverted/introverted (E/I)• Sensing/intuition (S/N)Sensing/intuition (S/N)• Thinking/feeling (T/F)Thinking/feeling (T/F)• Perceiving/judging (P/J)Perceiving/judging (P/J)• 16 possible combinations 16 possible combinations

• Ex: ESTJ, INTPEx: ESTJ, INTP• Not equally likelyNot equally likely

MBTI is a registered trademark of CPP, Inc.

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

MBTI™MBTI™

• 90% of innovation champs 90% of innovation champs were “N’s”, 70% “NT’s”were “N’s”, 70% “NT’s”

• Less than 10% of the Less than 10% of the population are “NT’s”population are “NT’s”

• >80% of corporate senior >80% of corporate senior managers are “S’, typically managers are “S’, typically ESTJ’sESTJ’s

• This sets up major potential This sets up major potential conflictconflict

Page 15: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

IMPACT OF MBTI™ DELTASIMPACT OF MBTI™ DELTAS

• Change always seems Change always seems bigger to an “S” than an bigger to an “S” than an “N”“N”

• ““N’s” are more comfortable N’s” are more comfortable with change in generalwith change in general

• If desired change is not If desired change is not defined clearly, conflicts defined clearly, conflicts will resultwill result

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

EXAMPLES….EXAMPLES….

• ““We need to do different We need to do different things in this company…”things in this company…”

•Does this mean get into an Does this mean get into an entirely new business, make entirely new business, make an acquisition?an acquisition?

•Does this mean we need to Does this mean we need to process existing orders more process existing orders more efficiently?efficiently?

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

A A COMPANYCOMPANY CAN HAVE A CULTURE…. CAN HAVE A CULTURE….

• SJ---Likes stage gates, SJ---Likes stage gates, continuous improvement teamscontinuous improvement teams

• NJ---Likes targeted NJ---Likes targeted breakthroughsbreakthroughs

• SP---Continuous improvement, SP---Continuous improvement, bottoms upbottoms up

• NP---Internal venturing, NP---Internal venturing, sustaining ideassustaining ideas

Page 18: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

THE KAI™ INSTRUMENTTHE KAI™ INSTRUMENT

KAI is a registered trademark of M.J. Kirton

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

WHAT KAI™ MEASURESWHAT KAI™ MEASURES

• MBTIMBTI™™ measures how measures how people relate to each otherpeople relate to each other

• KAIKAI™™ measures how people measures how people relate to problems--their relate to problems--their problem solving styleproblem solving style

• Instrument sub-scales Instrument sub-scales measure originality, measure originality, rule/group conformity, and rule/group conformity, and efficiencyefficiency

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

THE INSTRUMENTTHE INSTRUMENT• A 32 question assessment with A 32 question assessment with

a range of responsesa range of responses• Range of score, 32-160 Range of score, 32-160 (32 questions X (1-5) response(32 questions X (1-5) response• 15-20 minutes to complete15-20 minutes to complete• Highly validated across many Highly validated across many

areas and cultures globallyareas and cultures globally• Dr. Michael Kirton, Occupational Dr. Michael Kirton, Occupational

Research Centre, Hatfield Research Centre, Hatfield Polytechnic Institute, EnglandPolytechnic Institute, England

• Indiana State University, Terre Indiana State University, Terre Haute, INHaute, IN

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

KAI™ DIFFERENCESKAI™ DIFFERENCES

• Managerial “norm” is 95Managerial “norm” is 95

• Total norm around 90Total norm around 90

• AverageAverage of innovation champs of innovation champs was 135was 135

• Friction visible with Friction visible with differentials of 10-15 (at any differentials of 10-15 (at any point)point)

• Warfare visible with Warfare visible with differentials of 30+differentials of 30+

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

KAI™ DISTRIBUTIONKAI™ DISTRIBUTION

00.5

11.5

22.5

33.5

44.5

5

95 +/- 5 105 +/-5

115 +/-5

125 +/-5

135 +/-5

145 +/-5

155 +/-5

Number

NORM

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

IMPACT OF KAI™ IMPACT OF KAI™ DELTAS…..DELTAS…..

• Replacing vs. improvingReplacing vs. improving

• Reaction to internal vs. Reaction to internal vs. external threatsexternal threats

• Appreciation for detailAppreciation for detail

• ““Right” vs. riskRight” vs. risk

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

OTHER TOOLSOTHER TOOLS

• Alternative tools for Alternative tools for evaluationevaluation

•BCPIBCPI™™•16 Types16 Types™™•Gatehouse Alliance Gatehouse Alliance

Discovery/InsightsDiscovery/Insights™™

BCPI is a registered trademark of Gerard Puccio

16 Types is a registered trademark of True Type Testing

Insights is a registered trademark of Andrew Lothian, Insights

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

ACCEPTANCE OF PERSON ACCEPTANCE OF PERSON AND THEIR IDEASAND THEIR IDEAS

IGNORE SABOTAGE

HELPSUPPORT

ENCOURAGE

NOVELTY OF IDEA

ATTITUDE

TOWARD

PERSON

LOW HIGH

DISLIKE

LIKE

Source: Charlie Prather

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

ACCEPTANCE OF IDEAACCEPTANCE OF IDEA

Source: National Center for Mfg Sciences Study

EQUIVOCALITY

DISTANCE

MOTIVATION

COMMUNICATIONLOW HIGH

LOWHIGH

BLACK HOLE

GRAND SLAM

DEAD IN THE

WATER

LONG SHOT

Page 27: ©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. ®Innovation-TRIZ, 2003 Why Innovation Champions Fail And What To Do About It IIR

©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

WHAT’S BEEN TRIED?WHAT’S BEEN TRIED?

• A specially funded “enterprise”, usually under the A specially funded “enterprise”, usually under the umbrella of the R&D organizationumbrella of the R&D organization

• Funding usually (but not always) outside the control Funding usually (but not always) outside the control of existing business units and sometimes of existing business units and sometimes at the at the expenseexpense of these existing businesses of these existing businesses

• Sometimes combined with other corporate initiatives Sometimes combined with other corporate initiatives in acquisitions or venture capital effortsin acquisitions or venture capital efforts

• Sometimes minimally funded for support staff Sometimes minimally funded for support staff only--”can’t fund and can’t say no”---primary only--”can’t fund and can’t say no”---primary responsibility was encouragement, moral support, responsibility was encouragement, moral support, and guidanceand guidance

• Programs sometimes focused around a unique Programs sometimes focused around a unique physical facilityphysical facility

• Leadership of program frequently in the hands of Leadership of program frequently in the hands of one key senior leaderone key senior leader

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

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®Innovation-TRIZ, 2003

WHAT WORKEDWHAT WORKED

• Ideas Ideas were were stimulated and new stimulated and new businesses were startedbusinesses were started

• R&D personnel were allowed to R&D personnel were allowed to explore outside their normal focus explore outside their normal focus areaarea

• Special meetings, demonstrations, Special meetings, demonstrations, exercises highlighted the exercises highlighted the importance of the activity and importance of the activity and demonstrated supportdemonstrated support

• New tools and techniques were New tools and techniques were introduced introduced

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

WHAT DIDN’T WORKWHAT DIDN’T WORK

• Ideas, in general, were not integrated with complete Ideas, in general, were not integrated with complete corporate business structure and environmentcorporate business structure and environment

• New business $ not at the rate desiredNew business $ not at the rate desired

• Ignorance of the amount of effort and investment Ignorance of the amount of effort and investment required to change the corporate climate and/or required to change the corporate climate and/or businessbusiness

• Business/commercial involvement after the fact Business/commercial involvement after the fact caused priority conflicts and resentmentcaused priority conflicts and resentment

• Virtually no involvement of the sales/marketing Virtually no involvement of the sales/marketing organizationorganization

• Time horizons and impact poorly estimatedTime horizons and impact poorly estimated

• Narrow and individual sponsorshipNarrow and individual sponsorship

• ““get the bandit on board the train”----Charlie Pratherget the bandit on board the train”----Charlie Prather• Lack of skill trainingLack of skill training

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

CONSEQUENCESCONSEQUENCES

• Subtle forms of sabotageSubtle forms of sabotage

• Corruption of funding processCorruption of funding process

• Lack of staying power during economic Lack of staying power during economic downturnsdownturns

• Program “died” with the loss of Program “died” with the loss of sponsorsponsor

• Maybe this wasn’t such a good idea Maybe this wasn’t such a good idea after allafter all

• Uneven skill and tool training produced Uneven skill and tool training produced uneven results across an organizationuneven results across an organization

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

®Innovation-TRIZ, 2003

CONCEPTS PROVED VALIDCONCEPTS PROVED VALID

• People within an organization People within an organization DO have new and unique ideasDO have new and unique ideas

• There ARE new business There ARE new business opportunities which will not be opportunities which will not be discovered by normal business discovered by normal business visions and processesvisions and processes

• Independent funding Independent funding mechanisms, no matter what mechanisms, no matter what kind, can stimulate different kind, can stimulate different activitiesactivities

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

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®Innovation-TRIZ, 2003

CONCEPTS PROVED CONCEPTS PROVED INVALIDINVALID

• A single location A single location (“creativity centers”), (“creativity centers”), by by itself,itself, within an within an organization, can facilitate organization, can facilitate broad organizational broad organizational innovationinnovation

• The R&D function can do it The R&D function can do it alone, or in spite of other alone, or in spite of other functionsfunctions

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

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®Innovation-TRIZ, 2003

RECENT BUSINESS TRENDSRECENT BUSINESS TRENDS

• Customer driven vs. technology driven Customer driven vs. technology driven ---the balance has shifted significantly---the balance has shifted significantly

• Core competencies being used to Core competencies being used to identify focus areas and frequently identify focus areas and frequently used as shadow organization structuresused as shadow organization structures

• Alliances and strategic partnerships Alliances and strategic partnerships that are not necessarily permanentthat are not necessarily permanent

• New problem solving toolsNew problem solving tools

• scientific vs. psychologicalscientific vs. psychological• ““Business” teams and organizations vs. Business” teams and organizations vs.

functional leadership of activitiesfunctional leadership of activities

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

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®Innovation-TRIZ, 2003

RECENT PERSONNEL TRENDSRECENT PERSONNEL TRENDS

• Dramatic decline in loyalty, Dramatic decline in loyalty, downsizingsdownsizings

• Increased specializationIncreased specialization

• ““Temporary” assignments and Temporary” assignments and more rapid turnovermore rapid turnover

ImpactImpact

Capturing and broadening of Capturing and broadening of intellectual property (not just intellectual property (not just patents, but “know how”) much patents, but “know how”) much more important AND difficultmore important AND difficult

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

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®Innovation-TRIZ, 2003

Advancement

Time

Desired

Actual

TECHNOLOGY ADVANCEMENT VS. TIME

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

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®Innovation-TRIZ, 2003

WHAT ELSE HAS WHAT ELSE HAS CHANGED?CHANGED?

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

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COST OF INFORMATION

TIME

GENERATING

DISSEMINATING

Source: Jim Palmer, P&G

A DRAMATIC CHANGE….A DRAMATIC CHANGE….

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©2002 JWH Consulting, Inc. and Innovation-TRIZ Inc.

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®Innovation-TRIZ, 2003

COST OF INFORMATION…..COST OF INFORMATION…..

• GenerationGeneration

• Must be right in the first placeMust be right in the first place• Must be focused on the right problemMust be focused on the right problem• Problem definition more critical than Problem definition more critical than

everever• Must be protected and provide valueMust be protected and provide value

• DisseminationDissemination

• RetrievalRetrieval• AccessAccess

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LONG TERM BUSINESS TRENDS (NOT CYCLES)LONG TERM BUSINESS TRENDS (NOT CYCLES)

Emergent ActionEmergent Action Rational Action Rational Action Constrained Constrained actionaction

CRISISCHOICE

Conservation

Confusion

Strategic Management

Charismatic LeadershipCreative Network

Entrepreneurial action Source: Crisis and Renewal,

David Hurst, Harvard Business School Press, 1995

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REGARDLESS OF WHERE REGARDLESS OF WHERE YOU ARE IN THE CYCLE….YOU ARE IN THE CYCLE….

Innovation is ALWAYS Innovation is ALWAYS NEEDED!NEEDED!

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HOW SHOULD WE DO IT HOW SHOULD WE DO IT RIGHT--IN AN RIGHT--IN AN

ORGANIZATIONAL SENSE?ORGANIZATIONAL SENSE?

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““Money isn’t Money isn’t everything…..but it’s everything…..but it’s right up there with right up there with

oxygen”oxygen”

Rita Davenport, Rita Davenport, EntrepreneurEntrepreneur

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FUNCTIONAL INTEGRATIONFUNCTIONAL INTEGRATION

• AllAll innovation efforts and innovation efforts and initiatives must include or have a initiatives must include or have a mechanism to trigger inclusion of mechanism to trigger inclusion of the commercial and manufacturing the commercial and manufacturing base of the organizationbase of the organization

• Who is going to buy?Who is going to buy?• How are we going to make?How are we going to make?• Do we have the required Do we have the required

competencies?competencies?• Should we license and/or find a Should we license and/or find a

partner?partner?

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IDENTIFICATION AND ASSESSMENTIDENTIFICATION AND ASSESSMENT

• These skills are not usually present in These skills are not usually present in one individual--must be paired up one individual--must be paired up earlyearly

• Can be a great mechanism to involve Can be a great mechanism to involve commercial organizationcommercial organization

• Simple skills can be taught and Simple skills can be taught and learned by everyonelearned by everyone

• What happens if this actually works What happens if this actually works as planned?as planned?

• The new monomer exampleThe new monomer example• The B-2 bomberThe B-2 bomber

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““Six months in the lab will Six months in the lab will save at least an hour in save at least an hour in

the library”the library”

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LONG TERM TREND ASSESSMENTSLONG TERM TREND ASSESSMENTS

• What is affecting your What is affecting your customer? Their customer?customer? Their customer?

• What could put both of you What could put both of you out of business?out of business?

• What are the impacts of What are the impacts of broad new trends?broad new trends?

• Lines of evolution from TRIZ Lines of evolution from TRIZ methodologymethodology

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USEFUL TECHNIQUESUSEFUL TECHNIQUES

• Simulate emergencies, surprisesSimulate emergencies, surprises

• Deliberate articulated strategiesDeliberate articulated strategies

• Expansion of core competenciesExpansion of core competencies

• Separate thinking from criticism Separate thinking from criticism (Six Hats™ process)(Six Hats™ process)

• Corporate crusadesCorporate crusades

• Meetings and visiting with totally Meetings and visiting with totally unrelated people and technologiesunrelated people and technologies

™™APTT and Edward DeBono organizationAPTT and Edward DeBono organization

™Six Hats is a registered trademark of Edward DeBono and APTT

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Peter Drucker, Peter Drucker, 19821982

““Innovative companies do not start out with a Innovative companies do not start out with a research budget. They end with one. They start research budget. They end with one. They start out by determining how much innovation is out by determining how much innovation is needed for the business to stay even. They needed for the business to stay even. They assume that all existing products, services, and assume that all existing products, services, and markets are becoming obsolete--and pretty fast markets are becoming obsolete--and pretty fast at that. They try to assess the probable speed at that. They try to assess the probable speed of decay of whatever exists, and then determine of decay of whatever exists, and then determine the “gap” which innovation has to fill for the the “gap” which innovation has to fill for the company not to go downhill. They know that company not to go downhill. They know that their program must include promises several their program must include promises several times the “innovation gap”, for more than a times the “innovation gap”, for more than a third of such promises--if that many-- ever third of such promises--if that many-- ever becomes reality. And then they know how much becomes reality. And then they know how much of an innovation effort--and how large the of an innovation effort--and how large the innovative budget--they need as the very innovative budget--they need as the very minimum”minimum”

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Hamel and PrahaladHamel and Prahalad

““Slimming down the workforce and cutting back on Slimming down the workforce and cutting back on investment are less intellectually demanding for investment are less intellectually demanding for top management than discovering ways to grow top management than discovering ways to grow output on a static or only slowing growing output on a static or only slowing growing resource base. Cutting the buck is easier than resource base. Cutting the buck is easier than expanding the band; thus organizations prefer expanding the band; thus organizations prefer the former over the latter. Managers and the former over the latter. Managers and operational improvement consultants must ask operational improvement consultants must ask themselves just how much of the efficiency themselves just how much of the efficiency problem they’re working on. If their view of problem they’re working on. If their view of “efficiency” encompasses only the denominator, “efficiency” encompasses only the denominator, if they don’t have a view of resource leverage if they don’t have a view of resource leverage that addresses the numerator, they have no that addresses the numerator, they have no better than half a chance of achieving and better than half a chance of achieving and sustaining world class efficiency”sustaining world class efficiency”

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Hamel and Prahalad (2)Hamel and Prahalad (2)

““Few companies seem to have asked Few companies seem to have asked themselves what is the opportunity cost themselves what is the opportunity cost of the hundreds of millions--or even of the hundreds of millions--or even billions-- of dollars that have been written billions-- of dollars that have been written off for re-engineering and restructuring. off for re-engineering and restructuring. What if all that “redundant” brain power What if all that “redundant” brain power had been applied to creating tomorrow’s had been applied to creating tomorrow’s markets? Far from being a tribute to markets? Far from being a tribute to senior management’s steely resolve or senior management’s steely resolve or far-sightedness, a large restructuring and far-sightedness, a large restructuring and re-engineering charge is simply the re-engineering charge is simply the penalty that a company must pay for not penalty that a company must pay for not having anticipated the future”having anticipated the future”

……Competing for the FutureCompeting for the Future

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Desi DeSimone, ex CEO, Desi DeSimone, ex CEO, 3M3M

““Why did you get into a Why did you get into a position that you had to position that you had to lay off a bunch of people? lay off a bunch of people? How come you’re so smart How come you’re so smart now that you’ve laid off a now that you’ve laid off a bunch of people?”bunch of people?”

Fortune, 1985Fortune, 1985

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HOW DO YOU KNOW IF IT’S GOING WELL?HOW DO YOU KNOW IF IT’S GOING WELL?

• You are getting unsolicited You are getting unsolicited business plansbusiness plans

• People are making People are making suggestion as to what suggestion as to what might replace your might replace your existing businessexisting business

• Ideas from strange places Ideas from strange places and meetingsand meetings

• Hiring changesHiring changes

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PERSONAL CHALLENGES PERSONAL CHALLENGES FOR INNOVATION FOR INNOVATION CHAMPIONSCHAMPIONS• Recognize that your social style is most likely to be Recognize that your social style is most likely to be

““N” (intuitive) vs. the “S” (sensing”) whichN” (intuitive) vs. the “S” (sensing”) which

characterizes over 80% of corporate managementcharacterizes over 80% of corporate management

• You will be very comfortable with vague, broadly You will be very comfortable with vague, broadly

shaped exciting opportunities without necessarily shaped exciting opportunities without necessarily

being specific about sales and profit dollars and timing being specific about sales and profit dollars and timing

• Those who are funding your effort, as excited as they mayThose who are funding your effort, as excited as they may

be about new stuff, will quickly want to know who is be about new stuff, will quickly want to know who is

going to buy the new stuff, when they will start buying, going to buy the new stuff, when they will start buying,

what it will compete with, how much the plant will cost,what it will compete with, how much the plant will cost,

and when it can start producingand when it can start producing

• As you progress in this role, follow one of the well As you progress in this role, follow one of the well

established quality rules and know what your customer established quality rules and know what your customer wants---wants---

and frame your “gut feels” into hard data. If you need and frame your “gut feels” into hard data. If you need helphelp

to do this, get it!to do this, get it!

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More challenges……More challenges……• Recognize that your “problem solving” style is likely to Recognize that your “problem solving” style is likely to

be much more unstructured and not obvious to those be much more unstructured and not obvious to those around you, especially those in corporate around you, especially those in corporate management. This is your problem to deal with, not management. This is your problem to deal with, not theirs theirs

• They are the ones who will have to commit large sums They are the ones who will have to commit large sums of money at risk and it is important for you to of money at risk and it is important for you to recognize this. Our experience in this area is that a recognize this. Our experience in this area is that a gap of 15-20 in a KAI score is sufficient to cause gap of 15-20 in a KAI score is sufficient to cause dissension in problem solving and communicationdissension in problem solving and communication

• The study of the failed corporate innovation programs The study of the failed corporate innovation programs showed that it is likely that the difference between showed that it is likely that the difference between your KAI profile and that of corporate management your KAI profile and that of corporate management around you is closer to 35-45 points, setting up a around you is closer to 35-45 points, setting up a potentially significant communication gap in the area potentially significant communication gap in the area of technical opportunity definition and the perceived of technical opportunity definition and the perceived need for hard data and analysis, group focus, etc. need for hard data and analysis, group focus, etc. Again, this is your problem to deal with Again, this is your problem to deal with

• Clearly explain how your data and information Clearly explain how your data and information supports your ideas and conclusions, focus your supports your ideas and conclusions, focus your meeting and communication processes. Again, if you meeting and communication processes. Again, if you need help to do this, find an adaptive KAI person and need help to do this, find an adaptive KAI person and gain their insights. Study what these differences imply gain their insights. Study what these differences imply and use these differences pro-activelyand use these differences pro-actively

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More challenges…More challenges…

• Be flexible in evaluating possibilities and Be flexible in evaluating possibilities and options and help those around you do options and help those around you do this as well. this as well.

• As opposed to the last generation of As opposed to the last generation of innovation efforts, the large scale of innovation efforts, the large scale of most significant new business most significant new business opportunities and the focus of most large opportunities and the focus of most large organizations on their “core organizations on their “core competencies” argue for flexible competencies” argue for flexible commercial strategies including in-commercial strategies including in-licensing, out-licensing, joint ventures, licensing, out-licensing, joint ventures, temporary collaboration, and global temporary collaboration, and global manufacturing options.manufacturing options.

• Help those around you see all the Help those around you see all the possibilities out there, before large possibilities out there, before large amounts of money are committed.amounts of money are committed.

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And still more…And still more…• Use both inside-out and outside-in Use both inside-out and outside-in

thinking and help those around you see thinking and help those around you see the value in both. Though the days of the value in both. Though the days of “here’s what I have or can make, now go “here’s what I have or can make, now go sell it” are long gone, it is important to sell it” are long gone, it is important to have external driving forces and current have external driving forces and current customer input balanced by considering customer input balanced by considering what opportunities exist to expand the what opportunities exist to expand the commercial impact of existing core commercial impact of existing core competencies as well as talking with competencies as well as talking with potential customers who might replace potential customers who might replace your current customersyour current customers

• There may need to be some tact and There may need to be some tact and diplomacy needed here, but it is diplomacy needed here, but it is imperative that these externally imperative that these externally generated imperatives do not come generated imperatives do not come solely from short term product solely from short term product improvement needs.improvement needs.

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GOOD LUCK!GOOD LUCK!

Q and AQ and A

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YOUR ACTION PLAN FOR ORGANIZATIONAL

INNOVATION

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

What is the objective of the organizational innovation program? State clearly in relation to the current organizational or business objective.

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

What is the current climate inside the organization?

How do you know? How was it measured?

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

What is the objective of the organizational innovation program? State clearly in relation to the current organizational or business objective.

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

What is the current climate inside the organization?

How do you know? How was it measured?

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

What is the potential gap between the objective of the organizational transformation and the current organizational climate?

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

Who is going to lead this transformation?

What is their “style”?

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

What is the “style” of the managers to whom this activity will report?

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

How large is the gap between (4) and (5)?

How do you plan to close this gap of behavior and understanding?

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

How deep is the senior management support for this activity?

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

How will success be measured?

By whom?

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QUESTIONS TO ANSWERQUESTIONS TO ANSWER

What is the time frame for implementation and impact?

Who decided?

How realistic is it?