stephan klaschka - changing employee mindset to boost collaboration and engagement for extreme...

Copyright © Stephan Klaschka Consulting, 2014

Changing employee mindset to boost collaboration and engagement for extreme business results

DISCLAIMER: All views and opinions expressed here are my own. In no way do I speak in behalf of any company or organization that ever employed me or that I worked for in any capacity.

Stephan Klaschka

former Director, Global Innovation Management and Strategy,Boehringer Ingelheim

Intrapreneurship Conference 2014Eindhoven, NL – December 12, 2014


• Where organizations struggle

• Disrupting within - Examples

• Does it work?

2

Overview


Boehringer Ingelheim• Founded 1888 in Ingelheim, Germany

• Family-owned global corporation

• Largest privately held Top 20 Pharma

• FORTUNE Global 500

• Focus on Human Pharmaceuticals, Biopharmaceuticals and Animal Health

• 47,000+ employees, 142 affiliates

• EUR 14+ ($17+B) billion net sales in 2013Boehringer Ingelheim Center, HQ in Germany

Research areas Examples of disease areas

Respiratory diseases Asthma, COPD

Cardio-Metabolic diseases Atherosclerosis, Type 2 Diabetes

Oncology Lung cancer, solid tumors

CNS diseases Alzheimer’s disease, chronic pain, Parkinson’s disease

Immunology Multiple sclerosis, psoriasis, rheumatoid arthritis


Mark Twain

“If you stand still, you will fall behind.”

“If you always do what you always did, you will always get what you always got.”

Albert Einstein

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Top 10

“R&D spend” “Innovative Companies”

No Pharma!Spend on R&D ≠ “Most Innovative”


10X or 10%

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10%


savings back office9

10%


Where to find small elephants?

growth front office10

10X


Source: www.innovisio.blogspot.com

Disruptive Innovation

10%

10X

Enable thinking outside the box

Transition disrupts organization

Manage resistance to change


“Organizational Immune System”

• Management shiftfrom discovery to delivery

• Rejects disruptive change

– Avoid risk

– Favor Predictability

– Protect Investments

– Long-term Strategy

– Seeks Control

– Sub-optimization

– Comfortable status-quo

– …

• Protects big elephants

• Limits growth and opportunity

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20

14

20

12

20

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Example: Internal Venturing or “Angel Investing”

$32k seed funding for proof-of concept project

X

Y

OPU 1 save $4.2M/p.a.

OPU 3

ROI 6x

Goal: “in-silico” modeling reduces API production in Development!

International Project

ROI 400x

OPU 1 save $180k/p.a.

OPU 1

OPU 2

ROI 131x

X

Co-development novel application w/ vendor

ROI 131x

ROI 131x

OPU 4

OPU 2Y

X

ROI (tbd)

OPU 4

OPU 3

OPU 4

OPU2

(conservative estimates of savings potential)Local OPU project

OPU 3

Z

Lessons:

• Aimed at 10X returned 100+X

• Non-threatening proof-of-concept (POC)

• “First investor” psychology opens funding

• Splitting cost validates business commitmentensures strategic alignment

• Career development for the intrapreneur

• Executive returned with more ideas

• Model adopted by other business functions


“School for Intrapreneurs” (SFI)

Approach

• Innovation skills can be learned – so we teach them

• Less a training, more a development experience

Goals

• Free the intrapreneurial spirit and direct the passion

• Build supportive ecosystem to shift corporate mindset

– Develop intrapreneurial skills systematically

– Encourage and enable employees to take charge

– Prepare executives to benefit from intrapreneurs

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SFI Overcomes Obstacles

Connects grass-root ideas with executive sponsors (vertical) Intrapreneurs self-identify, out-of-the-box thinkers

Strategic alignment for funding; avoid “corporate immune system”

Enables employees results, visibility, career opportunities

Cuts across functional and geographical silos (horizontal) Connect to innovate, collaborate, network globally

Higher quality ideas developed in diverse teams

Bridge the “Idea to Implementation” gap Generate and develop ideas to be prioritized, funded and implemented

Provide internal venture funding if needed

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SFI a 3-Stage Program

Doorway•Awareness & Interest• 2 hours self-guided online

• ‘Story telling’ format

• Sharing experiences

Pathway• Incubate & Accelerate

• 3-5hrs/week, in teams, 12 weeks

• Videos, guides, online group work

• Pitch to experts & executives

• "Green belt“ certificate

Journey

• Building an Intraprise• ~2-3 hrs/wk over 6 months

• Coaching, Networking

• Performance Plan

• Mentor PATHWAY cohort

• “Black belt“ certificate

Intrapreneursself-identify

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~5% intrapreneurial

~2% implementers

Mentoring


Not “one-size-fits-all”

“School for Intrapreneurs”

Sustainability• Recruitment• ROI Success stories• Recognition & Awards• Adopted by global Leadership Development Programs• “Disruptive Innovations” event series, external perspectives• Social Intrapreneuring with Ashoka

Key Success Criteria: Alignment• Intrapreneurial Passion• Company Strategy• Company Culture

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Lessons:• Zero-barrier entry for participants = everyone can sign up

• “Levels the playing field” for employees effectively

• Safe space valued by employees to experiment

• Gives disruptive, more risky “growth” ideas a chance

• 2nd chance for previous rejections (rebrand, refine)

• “Intrapreneurial experience” over class-room learning

• Talent self-identifies based on merits (bottom-up)

• Alumni network become hard-core change agent “force”

• Built in mentoring creates a virtuous cycle (alumni, recruits)

• Executive pitches validate strategic alignment

• Changed company culture incl. leadership thinking

• Extends beyond company borders

http://mybi/nvp_war/goto/bisschoolforintrapreneurshonors4outstandinginnovationprojects?id=29423

http://techchange.org/online-courses/social-intrapreneurship-for-innovation-in-health-and-wellness/


How do we know it works?

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Image: www.rephrase.co.uk


Image: possibilmente.org

Business Alignment and ROI

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Project Sponsorship

• Transitioned all projects pitched to executives

• 54% of projects sponsored

Image: motivationalmemo.com

Image: possibilmente.org

“Blues-MT” broke even in 2-3 monthsROI 2.6x in 1st year (write-off) $1.2M p.a. in following years

“Big Picture” break-even in 5-6 months

Online service with 55k hits/weekSaves $10++ million/year, reduces regulatory risk of $650+ million

Each completed project pays SFI for

years: 1:10 ROI = 10X

Project Return-of-Investment (ROI)


How do we know it works?

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Image : cedarcliffdental.com


Behavior Change

Enrollment

• Next class waiting

• More diverse participants Countries: 9 11 +29%

OPUs: 10 17 +70%

Bus. Funct.: 9 17 +89%

Org. Network Analysis (ONA)

• Sponsored team characteristics

– Reached out more to new communication partners

– More team members.

• Non-sponsored teams

– Inward focus, reduced communication

• No indication for bias re. sponsorship based on

– Gender

– Country of employment

– Closeness to sponsors

– Brokerage (=intermediate)

– Communication with unique individuals

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Image: business.time.com

Image : fmsasg.com

Lessons:

• Established a metrics for employee behavior change

• Identified statistical significant team success criteria

• Validated absence of bias for sponsorship

• ONA adopted globally for organizational engagement

• Changes the organizational culture includestalent management, organizational development– ongoing…


Image: http://techchange.org/online-courses/social-intrapreneurship-for-innovation-in-health-and-wellness/


Image: innovationmanagement.se

Shifting Mindset Beyond…

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Konzept für Führungskräfte zur Implementierung einer Innovationsstrategie

by Philipp Gellert and Martin Müller,Business Innovation and Change Management,

University of Applied Science in Munich, Germany, 2014

Employee innovation mindset

Resources

Long-term

http://stephanklaschka.com/?attachment_id=241


Awards

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Bottom-line?

“It is not how many ideas you have. It’s how many you make happen.”

- Advertisement of Accenture

“Not one-size-fits-all!”

“Culture eats strategy for breakfast!” - Peter Drucker

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Contact

Stephan Klaschka Consulting

email: [email protected]

phone: +1-917-595-0951

web: www.StephanKlaschka.com

blog: www.OrgChanger.com

Twitter: @OrgChangerSkype: StephanKlaschka

LinkedIn: www.linkedin.com/in/stephanklaschka/

mailto:[email protected]?subject=SKC Inquiry

http://www.stephanklaschka.com/

http://www.orgchanger.com/

http://www.linkedin.com/in/stephanklaschka/

http://www.linkedin.com/in/stephanklaschka/