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Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 1

Encourage Creativity

Innovation

Sylvain Matte, MBA

Founder & Senior Partner

CONACYT ConferenceNovember 11, 2010

Cuernavaca, Morelos, Mexico

to Foster


Agenda

• Need to Innovate!?

• Creativity,

Innovation

and Change!

• Types of Innovation!

• What is at stake?

Lessons learned!

• Leadership required!

• How to go about it?

• Universities &

Governments!

• Questions?


Need to innovate!?


Recognizing the need to innovate!

"The Japanese auto industry is not likely to carve out a big slice of the US market for

itself."

Business WeekAugust 2, 1968.


"This `telephone has too many shortcomings to be seriously considered

as a means of communication. The device is inherently of no value to us!"


Western UnionInternal memo, 1876.



"Get that toy out of my office"

An irate bankertelling Thomas Edison in early 1878,

to take his invention, the phonograph, someplace else.



"No flying machine will ever fly from New York to Paris!"

Orville WrightInventor, with his brother, of the 1st flying machine.



"I think there is a world market for about five computers!"

Thomas WatsonPresident, IBM, 1943.



"The concept is interesting and well-formed, but in order to earn better than a 'C,'

the idea must be feasible.!"

A Yale University management professor in response to Fred Smith's paper proposing reliable overnight delivery service

(Smith went on to found Federal Express Corp).



• We all have paradigms about what is possible

• Unfortunately, we seldom recognize their influence,though some manage to see beyond this type of block

• Some companies succeed, but many more fail for lack of innovative-thinking, or fear of change…

• … While others manage to thrive even under adverse conditions


Creativity VS. Innovation!


• It is about coming up with ideas

• Creative Thinking leads to ideas being produced

• Creativity and Creative Thinking are everyone’s business

• Creative Thinking is a personal, voluntary act as the result of a personal decision to contribute

• It is about implementing ideas

• Innovative Thinking allows ideas to be put to use

• Innovative Thinking is mostlymanagement’s business

• Innovation is an organizational call to action as a result of a managerial decision to change

Creativity VS. Innovation!


Other Perspectives

• Edward de Bono:• Innovation is putting into operations in your organization

something which is new to your organization; that idea may be used elsewhere, it may be copied, borrowed, stolen, bought, …

• A.G. Lafley, Chaiman & CEO, Procter and Gamble:• Innovation is anything focused on the customer, such as brand,

design, functionalities, usage, and so on … AND everything else internally that can be done to deliver better products

• Craig Wynett, Chief Creative Officer, Procter and Gamble:• He describes his role as “working on moving creativity from

voodoo & alchemy to a better understanding of the thinking & skills involved and how to better develop these”


Key Components of Creativity

Source: Teresa Amabile, How to Kill Creativity, Harvard Business Review, Vol. 76, No. 5, 1998, p. 77-87.

Creative-

thinking

Skills

How flexibly and

imaginatively

people approach

problem solving

& other ideation

situations

Expertise

Technical,

functional,

procedural

&

intellectual

knowledge

Motivation

…with intrinsic more effective

than extrinsic

Creativity


Key Components for Innovation

Factors of

Organizational

Innovation

Capacity

Leadership

Leading by example,quick decision-making & driven-to-action leaders

Direction

Inspiring Vision, Clear Mission, Shared Values,Coherent Strategic Goals

Creative &

Entrepreneurial

People

Driven & Encouraged towards Deliberate Creativity at Work

Collaborative

Structure

Decision Latitude, Positive Co-opetition, &Limited Organizational PoliticsEducation &

Knowledge

Creative Problem Solving,Tools & Techniques,

Facilitation, Training, Knowledge Management, …

Integrated

Strategy

Innovation Master Plan -from Idea to Action and Continuous Improvement

Supportive

Culture

Accountability, Trust, Risk-Taking, Commitment, Idea Time & Idea Support,

Effort Recognition, …

Enabling

SystemsCenters of Excellence, Idea Management, R&D,

Collaboration Environments, …


• The capacity … &the process thatbrings forthnew ideaswhich may leadto innovation

• The decisions &the actions thattransform ideasinto novelty inthe organization or for its clients

In summary

• The decisions & the actions that allow the organizationto adapt / changeall or part of itscomponents

• We’ll recognize both internal innovation & external innovation(i.e. market / customer focused innovation)


Creative

Leadership

Perceived

Organizational

Climate

Positively

influences

Creative potential

Deliberate use of

Facilitates &

Encourages

New Idea(s)

Innovation

Leaders &

Champions

Exchanges &

Improvements

INNOVATION Contributes

to improving

Business Results

Change


Types of Innovation


Types of Innovation

• We agree Innovation is needed, but what type?

• Here are 2 ways to look at classifying innovation.

Source: Permanent Innovation, Langdon Morris, http://www.permanentinnovation.com/ Source: Blue Rock Innovation, http://www.bluerockinnovation.com/types-types.htm


Types of Innovation

• As per the Oslo Manual of the OECD (Organization for Economic Co-Operation and Development), there are 4 types of innovation:

• Product

• Process

• Marketing

• Organizational


Types of Innovation

Finance

Business

ModelNetworking

Process

Enabling

Process

Core

Process

Offering

Product

System

Product

PerformanceService

Delivery

Channel BrandCustomer

Experience

1. Business Model

How the enterprise makes money

2. NetworkingEnterprise’s structure/value

chain & partnering

3. Enabling Process

4. Core ProcessProprietary processes that add value

5. Product PerformanceBasic features, performance and functionality

Intel® Pentium® 4

6. Product SystemExtended system that surrounds an offering

7. ServiceHow you support your customers

8. ChannelHow you connect your

offerings to your customers

9. BrandHow you express your

offering’s benefits and

ideas to customers

10. Customer experienceHow you create an integrated

experience for customers

Assembled capabilities you

typically buy from others

• Monitor Group has proposed a slightly different model

Source: Monitor Group.

http://www.dell.com/content/default.aspx?c=us&l=en&s=gen

http://images.google.com/imgres?imgurl=http://www.composersforum.org/objects/Funders/Target_logo.gif&imgrefurl=http://www.composersforum.org/programs_detail.cfm?oid=1585&h=226&w=999&sz=26&hl=en&start=7&sig2=P2YsQZwr3jUq43XeGn87YQ&tbnid=N2-UVKrUVZlddM:&tbnh=34&tbnw=149&ei=TyjxR8XpKYf2iAGMy6CFAQ&prev=/images?q=target+logo&gbv=2&hl=en&sa=G

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http://images.google.com/imgres?imgurl=http://content.answers.com/main/content/wp/en/f/f7/GECAS_Logo.png&imgrefurl=http://www.answers.com/topic/ge-commercial-aviation-services&h=50&w=183&sz=4&hl=en&start=13&sig2=CnTGOBMsq3IMRNaTqPkd3w&um=1&tbnid=WQUu0QpuocXdfM:&tbnh=28&tbnw=102&ei=RizxR_G-HJiuiAHgwvyRAQ&prev=/images?q=GE+capital+logo&um=1&hl=en&rlz=1B3GGGL_enUS233US233&sa=G

http://www.lanecc.edu/ce/images/MOS.jpg

http://www.kingkalakauaplaza.com/NiketownLogo_.jpg

http://images.google.com/imgres?imgurl=http://www.logotales.com/images/virgin/VirginLogo.gif&imgrefurl=http://www.logotales.com/&h=161&w=170&sz=6&hl=en&start=6&sig2=h0dGG8ur8O7mpEFTYd4eKg&um=1&tbnid=qCSDVCWEGFAXpM:&tbnh=94&tbnw=99&ei=FzfxR4TvJ4HIiAG9nax2&prev=/images?q=virgin+logo&um=1&hl=en&sa=N

http://www.google.com/imgres?imgurl=http://wikicars.org/images/en/thumb/f/fd/Lexus_logo.png/170px-Lexus_logo.png&imgrefurl=http://wikicars.org/en/Lexus&h=72&w=99&sz=21&tbnid=TWDdaPgtIW8J:&tbnh=72&tbnw=99&prev=/images?q=lexus+logo&sa=X&oi=image_result&resnum=1&ct=image&cd=3


Types of Innovation

• Monitor Group has also studied where organizations spend most of their energies innovating…

Source: Doblin, a member of the Monitor Group,On Innovation Effectiveness, March 2005.


Types of Innovation

• … and studied as well the actual added-value of the innovations that resulted from such efforts

Source: Doblin, a member of the Monitor Group,On Innovation Effectiveness, March 2005.

Whoa!

Pareto revisited

Less than 10% of projectsproduce

More than 90% of value…


Types of Innovation

Degree of

management

oversight for

solution

finding and

approval

+

–

Degree of

employee

latitude for

solution

finding and

implementation

+

––

+

• This approach was developed for a large energy-sector client, based on the “intensity of impact on operations”(thus derived from Monitor Group’s model and adapted for 9 types of innovation)

Source: Coefficient Management inc.

• Innovation is then measured for:• Operation processes• Construction methods• Cost control processes

• Staff functions (HR, Finance, …)• Delivery (Client experience, Client relations)• Partnerships & Networking

Disruptive

Innovation

Progressive

Innovation

Continuous

Improvement

Fine-tuning

Adjustments


Types of Innovation

• What’s key:• Innovation is not just for products (or services)

• Innovation comes in a variety of sizes (big, small and in-between)

• Different areas of focus for innovation have very different impacts on the organization

• Different focus requires involving different people

• Innovation does not “just happen” –it requires conscious efforts and lots of energy

• So you need to know what you want to focus onand involve the right people at the right time

• AND

• Not all innovation efforts are successful

Source: Monitor Group.

Finance

Business

ModelNetworking

Process

Enabling

Process

Core

Process

Offering

Product

System

Product

PerformanceService

Delivery


Experience

1. Business Model



chain & partnering

3. Enabling Process



Intel® Pentium® 4







ideas to customers





Finance

Business

ModelNetworking

Process

Enabling

Process

Core

Process

Offering

Product

System

Product

PerformanceService

Delivery


Experience

1. Business Model



chain & partnering

3. Enabling Process



Intel® Pentium® 4







ideas to customers





Pareto revisited:Less than 2% of projects produceMore than 90% of value…

Pareto revisited:Less than 2% of projects produceMore than 90% of value…


Types of Innovation

• Not all innovations are successful!

• And one more recent, and more serious


What’s at stake? – Lessons Learned!

• On Creativity … We are all creative, but• not all equally comfortable (or willing) to do so at work

• not all equally capable (or willing) to use our creativity in a professional/business setting

• not all equally apt (or able) at being creative on demand

• the ego of some people gets in the way (or their title, their position, …)

• we all can learn to better focus our creativity and apply it deliberately when it counts the most

• we all have “droughts” idea-wise from time to time

• some need help in order to “think out-of-the-box”

• not all equally on all fronts, so we need to surround ourselves with creative people even if we think we’re great at it


The Ups and Downs of Creativity!



• On Creativity at Work• Incubation is a key moment

• Excessive time pressure hinders creative thinking

• Management often expects almost “instant creativity” with brilliant results

• Management must provide time, space, & means for employees to re-energize/recharge now & then



• On Creative People – Hiring them is easy…• well relatively so if you can relate to truly creative people

• creating a climate to encourage them to be creative at work is not

• integrating them with the rest of the organization is not

• focusing their creativity (without de-motivating them) is more challenging

• dealing with all the ideas they will send your way is not

• keeping them motivated in more traditional if not bureaucratic contexts is not

• keeping them is not



• On Innovation• Do not focus only on big Wow innovations

• Listen to customers to drive external innovation,but understand the paradigms behind their thinking

• Go out there, often, to see how others in different businesses and industries are doing it

• Innovation must be more than about making money

• Trust, recognition, and passion are critical to innovation, just as much as they are for creativity

• Innovation, just like creativity, can benefit from a strong process

• Innovation starts, rots, or stops, at the top of the organization

• Innovation is not about what you want it to be or put in place,it’s about what you get out of the way for it to happen



"If I had asked my customers what they wanted…they would have said ´faster horses`!”

Henry Ford



• In Summary• We’re all creative, so are probably all of your employees

• Creativity comes relatively easily, Innovation does not

• Getting ideas is easy, Implementing them is hard work

• “Being” innovative is easy … “Doing” innovation is not

• In short…

• Most of the blocks & issues appear at Innovationand at Managing the change that this brings

• Thinking creatively is everyone’s responsibility… but

Deciding to innovate and making it happen is not…

• … It’s Yours!


Leadership required!


Setting a culture and climate conducive to creative thinking!

Creative Leadership


Creative Climate

• Challenge & Involvement

• Trust & Openness

• Freedom

• Dynamism

• Idea Support

• Humor & Playfulness

• Idea Time

• Conflict

• Debate & Dialogue

• Risk Taking

Source: Göran Ekvall, 1996.


Recognize Your Own Paradigms!

"The problem is never how to get new, innovative thoughts

into your mind, but how to get old ones out!"

Dee Ward HOCK The Art of Chaordic Leadership, a retired banker who worked with Peter Senge.


Be Open to Suggestions!


Strive for Quantity

"Nothing is more dangerous

than an idea when it is

the only one you have!"

Émile ChartierFrench philosopher, 1868-1951.


Now look what you’ve done!

Really acknowledge efforts!


Support Creative People / Ideas

“This really is an innovative approach, but I’m afraid

we can’t consider it. It’s never been done before!”


Encourage Out-of-the-box Thinking!And get the most out of everyone’s contribution!


Making timely, sometime bold decisionsto move creative ideas into action!

Innovation Leadership


Innovation Leadership

• Vision

• Curiosity

• Openness

• Courage

• Optimism

• Integrity

• Perseverance / Belief

• Humility


Innovation Conducive Climate

• Risk Taking

• Decision Making

• Management Support

• Collaboration / Teamwork

• Necessary means to succeed

• Proper & timely recognition

• Learning Organization


"It is easier to tame a wild idea

than to give lifeto a dead one!"

Management Support for Ideas

Dr. Sidney J. PARNESCreativity expert, researcher & teacher, collaborator of Alex Osborn.


Perseverance / Belief!

"If I had thought about it, I wouldn't have done the experiment.

The literature was full of examples that said you can't do this!"

Spencer Silveron the work that led to the unique adhesives for 3M’s Post-it®.

a story of unshakable belief from home


Overcoming concerns and resistance, and developing the capacity to change

to facilitate adaptation & appropriation!

Change Leadership


How to go about it?

Alignment is Key!

How to increase innovation

in your organization


How to go about it? – The left brain way!

• Encourage creativity… & Facilitate Innovation Decisions

• Develop a clear, realistic and Shared Innovation Vision

• Elaborate an Integrated Innovation Master Plan

• Align Organizational Efforts and Systems


How to go about it? – The left brain way!

• Beyond the previous, more formal elements…• Define Creativity, Innovation, Change, …

• Develop a process and then train your people

• Start working on the climate early, and don’t stop

• Provide the time, the means, the tools & the support needed

• Start Slowly, on simple stuff and Do not accelerate too quickly

• Understand where you are, where you were & how far you’ve come… using an Innovation Maturity Model if needed

• Be proactive with Organizational Change Management (a MUST)

• Set realistic targets for each organizational unit & make them work

• Know the why, when, where, what and how to innovate

• Find the right balance, for your organization

• Measure and Communicate

• Learn from each initiative

The “CMMI®” from SEI – Carnegie Mellon is the most widely known and usedCapability Maturity Model and it can easily be applied to Innovation Processes;For more information: http://www.sei.cmu.edu/cmmi/tools/index.cfm.

Think for a Change LLC. is another source to consider, and this organization has adapted CMMI concepts into its own Innovation Maturity Model.For more information: http://www.thinkforachange.com/IM2Model.htm.

PRIME Process Management Group has also developed its own model.For more information: http://www.primepmg.com/bpmm.html.

http://www.sei.cmu.edu/cmmi/tools/index.cfm

http://www.thinkforachange.com/IM2Model.htm

http://www.primepmg.com/bpmm.html


How to Encourage Creativity

• Simple things to do in organizational settings• Train people on the creative problem solving process, as well as

tools & techniques… starting from top management down• Equip a few rooms for creativity and idea generation sessions• Hire people who are “different”, who think “out-of-the-box”,

and who thrive on challenging status quo and set patterns• Encourage the use of deliberate creativity at every meeting• Create a fun atmosphere at work and between all levels• Read a lot (you can’t learn less, anyway), about everything but

the field in which you work, and make the creative connections• Change your “Yes, but …” for “Thank you, and how might we…”

and to “What if…”, “What else…”, and “Why not…”• Praise… often, in a timely manner and in creative ways• Adopt, encourage & applaud attitudes & behaviors which show

that “there are no dumb questions” and that “a childlike outlook on things” can bring valuable insights and creativity

• Be creative in the type, format & activities of company events, and in how you recruit, recognize and compensate people


How to Foster Innovation

• Simple things to do in organizational settings• Open your processes to improvements, and leave it in the hands

of those who know them best, your employees(one company in Montreal went from 100 employee ideas implemented per year, to 5200)

• Make those who whine and complain accountable to improve what they think needs improvement, and give them the means to do so

• Go for quick wins; use creativity on simple company problemsnot plagued with organizational politics or with commercial risks

• Always question what you do, how you do it and why you do it… Challenge long-held beliefs and what is “too” comfortable

• Don't accept the first solution right away

• Encourage & facilitate interactionsSteve Jobs Says “Interaction = Innovation”: People have to meet and talk to one another face to face. They have to say, “What are you working on?” – and then listen. They cannot huddle in their cubicles alone and be creative, and even less produce good innovative work.

• Broaden the decision scope and latitude of your managers, and applaud their courage to decide, to try something, to innovate,even if the outcomes require adjustments or stepping back


How to push even further!

• Get out for creative excursions

• Look for inspiration outside of your field

• Observe how things are getting done in totally different industries and adapt their concepts to your reality

• Focus on the creative process, not on how it should be integrated into your business processes

• Facilitate the emergence of Creative Spaces

• Become tolerant to failures and accept mistakes; creative ideas and innovation projects are not always successful

Look into the creative economy!


“Never, ever, think outside the box!”

Know when and where to innovate


Measure and Communicate

• Indicators must be put in place early on

• Proper measurement will help • Identify successes and areas for improvement

• Document and share progress made and successes

• Mobilize and encourage with simple and relevant dashboards

• Determine where, how, and how much to invest further

• Avoid untimely or inappropriate reactions and cutting

• Encourage contagious, “I can do that too” attitudes

• Facilitate continuous, two-way communications

• Objectives / targets selected must be SMART

• Communication / feedback must be STAR quality

• Separate Creativity, Innovation, and Change Indicators,then correlate


Creativity• …• …• …• …• …• …• …• …• …• …• …• …

Innovation• …• …• …• …• …• …• …• …• …• …• …• …

Change• …• …• …• …• …• …• …• …• …• …• …• …


Indicators• Training• Mastery • Climate• Application • Integration• Involvement • Commitment• Fluency• Flexibility• Originality• Means to push further• Others

• Define indicators for each dimension, measure constantly,analyze trends, correlate where relevant & adjust approach

• Below are examples of usual indicator categories


CREATIVITY• Training

• # of programs dev./offered• Attendance by levels / units

• Mastery • Capacity to use• Comfort when using

• Climate• # of judgments per session• % of employees refusing to

attend and/or to repeat

• Application • Qty & Frequency of use at

main organization levels

• Integration• Number of org. units using

all or parts of process

• Involvement • % of employees involved in

main organization levels

• Commitment• Trend in $ and/or time spent

on training, sessions, …• Trend in frequency of use

for problem solving

INNOVATION• Training


• Mastery • Latitude to decide• Willingness to decide

• Climate• % of ideas turned down• % of decisions overturned

by an upper-level manager

• Application • Qty & Frequency of ideas

approved as innovations

• Integration• Number of org. units who

approve ideas as innovation

• Involvement • % of decision makers who

approve ideas as innovation

• Commitment• Trend in $ and/or time spent

on employee innovations• Trend in # of ideas reviewed

and implemented

CHANGE• Training


• Mastery • Capacity to use approach• Comfort with change mgmt

• Climate• # of concerns expressed• % of employees resisting in

some form or another

• Application • Qty & Frequency of change

mgmt process items used

• Integration• Number of org. units who

proactively manage change

• Involvement • % of managers & employees

who participate in change

• Commitment• Trend in # of employees

who participate / contribute• % of mgmt time spent on

communicating / coaching



CREATIVITY• Fluency

• # of ideas generated

• Flexibility• Diversity of ideas produced

• Originality• # of unique ideas

• Means to push further• Trained facilitators• Adequate rooms• Proper supplies• Collaboration networks• Outside help when needed

• Others• Distribution of topics (% of

ideation sessions per business area, type of org. problem, …)

• % of ideas developed VS. # of ideas generated

• Avg. time to solve problems• Creativity maturity• % of mgmt time on ideation• # of ideas per employee• # of ideas per session hour• % of ideas from the outside

INNOVATION• Fluency

• # of ideas approved

• Flexibility• Diversity of innovations

• Originality• # of unique innovations

• Means to push further• Simplified approval process

(shorter decision delays)• Idea Management System• Collaboration networks• Knowledge management

• Others• Distribution of ideas (% of

ideas submitted, rejected, in development, implemented)

• Rate of success / survival• # of prototypes needed• Avg. time to market• Innovation maturity• % of mgmt time on innovation• # of innovations per employee• # of innovations per $ spent• % of project $ on innovation

CHANGE• Fluency

• # of new approaches

• Flexibility• Diversity of approaches

• Originality• # of unique approaches

• Means to push further• Outspoken mgmt support• Senior mgmt involvement• Credible/Capable agents• Issue Management System• Ideas/Successes sharing

• Others• Concern mgmt (Qty and % of

concerns logged, addressed, in resolution, resolved, …)

• Adoption/appropriation rate• # of iterations needed• Avg. time to implementation• Change mgmt maturity• % of mgmt time on change• # of sol. from/per employee• # of sol. from change agents• % of project $ on chg mgmt




• Use a simple dashboard / scorecard to track progress

No current issue

Keep monitoring GMinor issues

Stay proactiveYMajor issues

Immediate actionR Improving Stable Deteriorating

Business Unit: _______________________________

B.U. Manager: _______________________________

Creativity Lead: _____________________________

Innovation Lead: _____________________________

Creativity & Innovation Dashboard / Scorecard

Last Monthly 3-Month

Indicator Month Average Trend

Ideation stats

- Ideas generated ______ ________ _______

- Ideas selected ______ ________ _______

- Ideas developed ______ ________ _______

Mgmt time (in %) _____ _______ ______

$ spent on means _____ _______ ______

Employees trained _____ _______ ______

Employees involved _____ _______ ______

Last Monthly 3-Month

Indicator Month Average Trend

Innov-action stats

- Ideas submitted ______ ________ _______

- Ideas deployed ______ ________ _______

- Ideas integrated ______ ________ _______

Mgmt time (in %) _____ _______ ______

$ spent on action _____ _______ ______

Managers trained _____ _______ ______

Bus. Units involved _____ _______ ______

Management Involvement

15% 85%

50%

30% 70%

% of Managers Involvedin Approving Innovations

Innov-action Distribution To-Date

# of Ideas Integrated by Innovation Type

0,0

2,0

4,0

6,0

8,0

10,0

12,0

3-Month Trend 0,8 1,7 4,5 12,0

Monthly Avg. 0,5 1,5 3,0 9,0

Last Month 1,0 2,0 4,0 11,0

Disruptive

Innovation

Progressive

Innovation

Continuous

Improvement

Fine-Tuning

Adjustment


15% 85%

50%

30% 70%



15% 85%

50%

30% 70%

15% 85%

50%

30% 70%

15%15% 85%85%

50%50%

30%30% 70%70%




0,0

2,0

4,0

6,0

8,0

10,0

12,0

3-Month Trend 0,8 1,7 4,5 12,0

Monthly Avg. 0,5 1,5 3,0 9,0

Last Month 1,0 2,0 4,0 11,0

Disruptive

Innovation

Progressive

Innovation

Continuous

Improvement

Fine-Tuning

Adjustment



0,0

2,0

4,0

6,0

8,0

10,0

12,0

3-Month Trend 0,8 1,7 4,5 12,0

Monthly Avg. 0,5 1,5 3,0 9,0

Last Month 1,0 2,0 4,0 11,0

Disruptive

Innovation

Progressive

Innovation

Continuous

Improvement

Fine-Tuning

Adjustment

Employee Involvement

15% 85%

50%

30% 70%

% of Employees Involvedin Ideation Sessions

Idea Distribution To-Date

# of Ideas Developed by Innovation Type

0,0

5,0

10,0

15,0

20,0

25,0

30,0

3-Month Trend 1,7 4,0 16,5 27,0

Monthly Avg. 1,5 3,2 16,0 26,0

Last Month 2,0 5,0 14,0 24,0

Disruptive

Innovation

Progressive

Innovation

Continuous

Improvement

Fine-Tuning

Adjustment


15% 85%

50%

30% 70%



15% 85%

50%

30% 70%

15% 85%

50%

30% 70%

15%15% 85%85%

50%50%

30%30% 70%70%




0,0

5,0

10,0

15,0

20,0

25,0

30,0

3-Month Trend 1,7 4,0 16,5 27,0

Monthly Avg. 1,5 3,2 16,0 26,0

Last Month 2,0 5,0 14,0 24,0

Disruptive

Innovation

Progressive

Innovation

Continuous

Improvement

Fine-Tuning

Adjustment



0,0

5,0

10,0

15,0

20,0

25,0

30,0

3-Month Trend 1,7 4,0 16,5 27,0

Monthly Avg. 1,5 3,2 16,0 26,0

Last Month 2,0 5,0 14,0 24,0

Disruptive

Innovation

Progressive

Innovation

Continuous

Improvement

Fine-Tuning

Adjustment

215 190 225

75 65 70

45 47 50

R

Y

R


Look into the Creative Economy


The Creative Economy

• A sample of publications, studies and even recent events on the subject over the last 10 years or so



• Creative Industries:• are the cycles of creation, production and distribution of goods &

services that use creativity & intellectual capital as primary inputs

• constitute a set of knowledge-based activities, focused on but not limited to arts, potentially generating revenues from trade and intellectual property rights

• comprise tangible products and intangible intellectual or artistic services with creative content, economic value and market objectives

• are at the cross-road among the artisan, services and industrial sectors

• constitute a new dynamic sector in world trade.

Source: United Nations Conference on Trade and Development (UNCTAD). Creative Economy Report 2008. The Challenge of Assessing the Creative Economy Towards Informed Policy-making.



Source: United Nations Conference on Trade and Development (UNCTAD). Creative Economy Report 2008. The Challenge of Assessing the Creative Economy Towards Informed Policy-making.


Innovation Myths

• Business Week’s 2005 article took time to list and bust the most frequently overheard innovation myths

Source: Business Week, August 1, 2005 / Special Report – Get Creative, http://www.businessweek.com/magazine/content/05_31/b3945401.htm, visited on October 24, 2010.

http://www.businessweek.com/magazine/content/05_31/b3945401.htm


Innovation Benefits

• Business Week’s 2005 also focused on the rewards of innovation for companies… The data goes back 10 years and was based on the “experience” economy but the underlying principles still hold true today

Source: Business Week, August 1, 2005 / Special Report – Get Creative, http://www.businessweek.com/magazine/content/05_31/b3945401.htm, visited on October 24, 2010.

http://www.businessweek.com/magazine/content/05_31/b3945401.htm


Innovation Strongholds

• Open Innovation

• Contextual Innovation

• Interaction-based Innovation

• Break-with-the-past Innovation


Openness to other styles and to change

“We expect our young executives to produce

creative, innovative ideas without ever upsetting our time-honored customs!"


Patience and Focus!

"You cannot make a plant grow by pulling on its leaves!"


Universities & Governments!

Providing Partsof the Innovation Puzzle!



• Creative People

• Innovation process

• Strong Leadership

• Inspiring Direction

• Integrated Strategy

• Collaborative Structure

• Market/Client Awareness

• Supportive Culture

• Enabling Systems

• Change Capacity

• What organizations need?• Knowledge

• Education

• New Technology

• Best Practices

• New Markets

• Some Policies

• Some Funding

• Potential Partners

• Quick time-to-market

• Intellectual Property (Protection)

• … they need your help!



• What organizations need… is synergy!

UniversitiesGovernments

Innovation-Focused

Companies

• This means• Training, Knowledge, In-the-Field Action and Participation, … from Universities

• Support and Simpler/Leaner/Faster/Value-Added Involvement from Governments



• … but what companies really face almost everywhere!• Multiple levels of Governments

• National

• Provincial/State

• Regional (within State)

• Local (municipal)

• Too many stakeholders• Politicians (and political parties or alliances)

• Ministries (from National and Provincial/State governments)

• Para-public companies or entities (also from National and Provincial/State governments, with overlaps for oversight and on many regulations)

• Other Government agencies (also from various levels and with overlaps)

• …

• Various other players who chime in (or would want to)• Employee unions• Professional orders & associations• Consumer protection agencies• Industry interest groups • And so on



1. Innovate themselves! Lead by example!

2. Make Innovation a “real” priority, beyond politics

3. Remember that …

• “Innovation is about what you get out of the way”

• It will take a while for benefits to materialize,and multiple investments might be required

• It’s not about “more” government,it’s about “smarter” government

4. Minimize bureaucracy, undue delays, and other hurdles… adopt a No Nonsense approach

5. Simplify and align national, regional & local policies / regulations and really facilitate the emergence & growth of creative industries

6. Think beyond $ in R&D, # of companies created, patents & such

• How can Governments help?



1. Innovate themselves! Lead by example! Walk the talk!

2. Collaborate more, Compete less!

3. Remember that …

• “Innovation is about doing, not just talking or writing about”

• Focus less on theoretical research, more on in-the-field action and development of applicable tools; articles will follow…

• It’s not about “more” research,it’s about “smart” sharing of knowledge

4. Move from Study and Publish to Learn while Contributing … to“How could we help your company innovate more/better…”

5. Facilitate access to and exchange of knowledge, take a leadership role in facilitating creativity/innovation focused networking

6. Align research initiatives and think long-term

• How can Universities help?



• Creative People• Innovation process• Strong Leadership• Inspiring Direction• Integrated Strategy• Collaborative Structure• Market/Client Awareness• Supportive Culture• Enabling Systems• Change Capacity

• Some forms of support to be considered!These are mostly the responsibility of each organization’s management.

Still, Universities can do research, publish, document best practices, organize conferences and serve as network connectors for communities of practice & other forms of trend and knowledge sharing …

… and develop action-learning based Leadership Development Programs around key, related competencies and skills, such as HR, Leadership, Strategy, Change Management, KM, Marketing/VOC, and so on.


• Competitive & Distinctive Innovation Requires Creativity• Employees will chose to leverage their creative potential

at work with the proper organizational climate & support• Climate is key - and there are ways to assess it if needed• Styles matter - and they can also be assessed if relevant• Culture must align - so manage organizational change

• You must nourish & applaud employee creative potential• Innovative ideas will not/cannot be implemented without

the managerial decision-making of courageous leaders• Climate is key - so innovation related decisions must be facilitated• Styles matter - and managers must adapt… or get out of the way• Culture must align - so applaud courage and tolerate mistakes

• All of these imply, and require, true lead-by-example (walk-the-talk) leadership at all managerial levels(as real innovation requires major paradigm shifts & change)

Conclusions / Final Food-for-Thought


• Innovative ideas that emerge are fragile and unpolished• Real creative thinking (“brainstorming”) sessions produce raw ideas• Raw ideas need time for refinement, strengthening, and polishing• Such fine-tuning is the critical success factor for true innovation

• Innovation requires minimal long-term outlook on things• Not all the ideas produced can be used or implemented short-term…• … but things change faster than we think, so keep these ideas safe• … and revisit them now & then as they might become more realistic

• Your innovation potential for success is directly related to • team diversity & complementarities, and appreciation of differences• the time, means, tools, support and encouragement provided• how you deal with innovations that are not so successful• how you leverage ideas that can’t be used right now • your organization’s capacity to manage change




• Innovation is not just about cost-related factors (new products/markets, brand image, increases sales, lower costs, …)

but mostly about people and ensuing cultural change… • … so employees must be involved throughout, not just at ideation• … with various forms of ongoing employee involvement• … and culturally-adapted communication & listening programs• … and various (creative) forms of recognition, on efforts and results• … and proper alignment of the compensation, bonus & reward systems

• Stay focused…• Set targets for each area or type of innovation• Innovate even in downturns … if not even more so• Commit to action, time frames, deadlines, and measures• Keep at it, even if the first few attempts are not so successful• See each less-than-expected result as a learning opportunity

• And go out there to see what companies in other sectors are doing, especially the creative economy industries


¡Muchas Gracias!

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