the other side of innovation - aventri...© 2011 trimble and govindarajan presented by: –chris...
TRANSCRIPT
![Page 1: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/1.jpg)
© 2011 Trimble and Govindarajan
Presented by: – Chris Trimble – Professor, Tuck School of
Business at Dartmouth
The Other Side Of Innovation
© 2011: Trimble and Govindarajan
![Page 2: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/2.jpg)
© 2011 Trimble and Govindarajan
![Page 3: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/3.jpg)
© 2011 Trimble and Govindarajan 3
![Page 4: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/4.jpg)
© 2011 Trimble and Govindarajan 4
![Page 5: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/5.jpg)
© 2011 Trimble and Govindarajan 5
![Page 6: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/6.jpg)
© 2011 Trimble and Govindarajan 6
![Page 7: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/7.jpg)
© 2011 Trimble and Govindarajan 7
Innovation and ongoing operations are always and
inevitably in conflict.
![Page 8: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/8.jpg)
© 2011 Trimble and Govindarajan
![Page 9: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/9.jpg)
© 2011 Trimble and Govindarajan 9
What is innovation?
Sustaining Disruptive
Incremental Radical Reverse Strategic
Architectural Modular
Competence Enhancing Competence Destroying
![Page 10: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/10.jpg)
© 2011 Trimble and Govindarajan 10
Definition of Innovation:
Any project that is new to you and has an uncertain outcome.
![Page 11: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/11.jpg)
© 2011 Trimble and Govindarajan
Innovation Spectrum
Harder Easier
Model 2
Model 1
Model 3
![Page 12: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/12.jpg)
© 2011 Trimble and Govindarajan 12
Models for Innovation
1. Innovation = Ideas + Motivation
Encourage all employees to pursue innovation on their own initiative.
![Page 13: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/13.jpg)
© 2011 Trimble and Govindarajan
Innovation Spectrum
Model 1
Limitations of Individual Slack Time
Harder Easier
![Page 14: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/14.jpg)
© 2011 Trimble and Govindarajan 14
Models for Innovation
1. Innovation = Ideas + Motivation
2. Innovation = Ideas + Process Treat innovation like any other business process. Script it. Make it efficient. Make it routine.
![Page 15: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/15.jpg)
© 2011 Trimble and Govindarajan
Innovation Spectrum
Model 1
Limitations of Repeatable Innovation
Model 2
Limitations of Individual Slack Time
Harder Easier
We Need a Third Model!
![Page 16: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/16.jpg)
© 2011 Trimble and Govindarajan 16
“That’s the news from Lake Wobegon …
…where all of the women are strong…
…all of the men are good
looking…
… and all of the children are above average.”
![Page 17: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/17.jpg)
© 2011 Trimble and Govindarajan 17
The LAKE WOBEGON effect.
Cognitive psychologists call it “Illusory Superiority.”
![Page 18: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/18.jpg)
© 2011 Trimble and Govindarajan 18
Is there an ANTI LAKE WOBEGON
effect?
![Page 19: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/19.jpg)
© 2011 Trimble and Govindarajan 19
YES!
Ability to learn to juggle.
Ability to learn to ride a unicycle.
Ability to have mind-blowing sex.
![Page 20: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/20.jpg)
© 2011 Trimble and Govindarajan 20
![Page 21: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/21.jpg)
© 2011 Trimble and Govindarajan 21
YES!
Ability to learn to juggle.
Ability to learn to ride a unicycle.
Ability to have mind-blowing sex.
Your company’s ability to innovate.
![Page 22: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/22.jpg)
© 2011 Trimble and Govindarajan 22
![Page 23: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/23.jpg)
© 2011 Trimble and Govindarajan
Innovation Spectrum
Model 1
Limitations of Repeatable Innovation
Model 2
Limitations of Individual Slack Time
Harder Easier
We Need a Third Model!
![Page 24: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/24.jpg)
© 2011 Trimble and Govindarajan 24
![Page 25: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/25.jpg)
© 2011 Trimble and Govindarajan 25
Creativity Execution
Individual Achievement
Organizational Excellence
Towards a Better Innovation Story
![Page 26: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/26.jpg)
© 2011 Trimble and Govindarajan 26
Business Organizations Are Designed to be Performance Engines
Performance Engine
Ongoing Operations
• Today’s Customers • Today’s Competitors • Efficiency • Accountability • On-Spec • On-Budget • On-Time • Profitable
![Page 27: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/27.jpg)
© 2011 Trimble and Govindarajan 27
Fundamental Incompatibilities
Predictability Repeatability Method of the Performance Engine
Uncertain Non-Routine Realities of Innovation
![Page 28: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/28.jpg)
© 2011 Trimble and Govindarajan 28
Does this mean…
“BREAK ALL OF THE RULES!”
Should be the
Innovator’s Mantra?
![Page 29: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/29.jpg)
© 2011 Trimble and Govindarajan 29
“Break all of the rules” does not work
1. Innovators need the Performance Engine.
2. Sounds like “Break the Performance Engine”
3. Sounds like “No Rules”
![Page 30: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/30.jpg)
© 2011 Trimble and Govindarajan 30
Strive for Mutual Respect
Innovation Leaders, Remember: Conflict with the Performance Engine is normal. Performance Engine Leaders, Remember: No Performance Engine lasts forever.
![Page 31: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/31.jpg)
© 2011 Trimble and Govindarajan 31
Fundamental Incompatibilities
Predictability Repeatability Objectives of Ongoing Operations
Uncertain Non-Routine Realities of Innovation
Planning Organizing Can Lead to Challenges in
![Page 32: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/32.jpg)
© 2011 Trimble and Govindarajan 32
Committing to
An Innovative
Idea
Making
Innovation
Happen
Innovation
Innovation: The Missing Link
Organizing
and
Planning
Execution
Strategy
Ongoing Operations
Organizing
and
Planning
![Page 33: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/33.jpg)
© 2011 Trimble and Govindarajan 33
The Third Model
1. Innovation = Ideas + Motivation
2. Innovation = Ideas + Process
3. Innovation = Ideas + Leaders + Team + Plan
![Page 34: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/34.jpg)
© 2011 Trimble and Govindarajan
Models 1 and 2 Put Innovation Inside of the Performance Engine
Performance Engine
(Innovation Inside)
![Page 35: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/35.jpg)
© 2011 Trimble and Govindarajan
Model 3 is Different.
It always involves creating a Dedicated Team.
![Page 36: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/36.jpg)
© 2011 Trimble and Govindarajan 36
Build the Team
PARTNER-SHIP
Dedicated Team
Shared Staff
![Page 37: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/37.jpg)
© 2011 Trimble and Govindarajan 37
Management Structure
Partnership Dedicated Team
Shared Staff
Project Leader
Functional Heads
General Manager
Senior Leader
Performance Engine
All Other Performance
Engine Staff
![Page 38: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/38.jpg)
© 2011 Trimble and Govindarajan
![Page 39: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/39.jpg)
© 2011 Trimble and Govindarajan
![Page 40: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/40.jpg)
© 2011 Trimble and Govindarajan 40
Newspaper vs. Website
Continuous news Daily news cycle vs.
Free Premium price vs.
Software expertise Journalism expertise vs.
Precise targeting Broad-based brand building
vs.
Multimedia Content Text and Pictures vs.
![Page 41: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/41.jpg)
© 2011 Trimble and Govindarajan 41
CEO looks to outside search firm to fill a very senior position
![Page 42: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/42.jpg)
© 2011 Trimble and Govindarajan 42
Early NYTD Structure
![Page 43: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/43.jpg)
© 2011 Trimble and Govindarajan 43
Budget increases from $10M to $35M by 1998
Scorecard
Don’t lose too much
Don’t damage brand
Don’t cause trouble
![Page 44: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/44.jpg)
© 2011 Trimble and Govindarajan
![Page 45: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/45.jpg)
© 2011 Trimble and Govindarajan 45
Build the Team
PARTNER-SHIP
Dedicated Team
Shared Staff
![Page 46: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/46.jpg)
© 2011 Trimble and Govindarajan 46
A Common Error
Shared Staff
LPE PARTNER-SHIP
![Page 47: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/47.jpg)
© 2011 Trimble and Govindarajan 47
CEO chooses to reconstitute NYTD as a
“separate” business unit
![Page 48: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/48.jpg)
© 2011 Trimble and Govindarajan 48
Restructured NYTD
![Page 49: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/49.jpg)
© 2011 Trimble and Govindarajan 49
Additional Changes:
New Compensation Plan New Senior Support Staff
New Titles and Job Descriptions Redesigned Prod. Dev. Process
New Location New Culture
New IT Infrastructure
![Page 50: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/50.jpg)
© 2011 Trimble and Govindarajan 50
Rapid expansion of features. Well beyond “newspaper.com.”
Rapid revenue growth, well
beyond expectations.
![Page 51: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/51.jpg)
© 2011 Trimble and Govindarajan 51
Restructured NYTD
![Page 52: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/52.jpg)
© 2011 Trimble and Govindarajan 52
Despite beyond-expectations top-line growth, lost $60M in 2000.
![Page 53: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/53.jpg)
© 2011 Trimble and Govindarajan 53
Company considers reintegration of NYTD
![Page 54: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/54.jpg)
© 2011 Trimble and Govindarajan 54
CEO names sr. exec task forces focused on improving relationships
between the two units.
![Page 55: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/55.jpg)
© 2011 Trimble and Govindarajan 55
New York Times Digital’s Evolution
Cautious Growth
Rapid Growth
Profitable Growth
Integrated Organization
Separate Organization
Carefully Managed Partnership
1995 1997 1999 2001 2003
![Page 56: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/56.jpg)
© 2011 Trimble and Govindarajan
![Page 57: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/57.jpg)
© 2011 Trimble and Govindarajan 57
The Third Model
1. Innovation = Ideas + Motivation
2. Innovation = Ideas + Process
3. Innovation = Ideas + Leaders + Team + Plan
![Page 58: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/58.jpg)
© 2011 Trimble and Govindarajan
Innovation is experimentation
![Page 59: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/59.jpg)
© 2011 Trimble and Govindarajan
Running an experiment is easy.
Running a disciplined experiment is hard.
![Page 60: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/60.jpg)
© 2011 Trimble and Govindarajan
The Payoff:
If you run a disciplined experiment, you learn as
quickly as possible.
![Page 61: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/61.jpg)
© 2011 Trimble and Govindarajan
Learning is a process of making predictions
and then improving them.
![Page 62: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/62.jpg)
© 2011 Trimble and Govindarajan 62
Accura
cy o
f
Pre
dic
tions
Years
Learning
Wild Guesses
Informed Estimates
Reliable Forecasts
Learning is Making Better Predictions
![Page 63: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/63.jpg)
© 2011 Trimble and Govindarajan
Better Predictions
lead to
Better Decisions
which in turn lead to
Better Results
![Page 64: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/64.jpg)
© 2011 Trimble and Govindarajan 64
Disciplined Experimentation
State a Hypothesis and Plan the Experiment
Predict Outcomes; Document Supporting Logic and Assumptions
Execute Experiment, Measure Results,
Document Observations
Compare Predictions and Outcomes; Assess Lessons Learned
![Page 65: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/65.jpg)
© 2011 Trimble and Govindarajan 65
A Special Kind of Plan
1. Each experiment needs a custom plan.
2. Discuss results in a separate forum.
3. Meet frequently.
4. Focus on what you don’t know.
5. Try to spend a little, learn a lot.
![Page 66: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/66.jpg)
© 2011 Trimble and Govindarajan
The Biggest Challenge:
How do you evaluate an innovation leader?
![Page 67: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/67.jpg)
© 2011 Trimble and Govindarajan 67
Three Forms of Accountability
1. Results Did you hit your targets?
2. Actions Did you do what we agreed that you would do?
3. Learning Did you run a disciplined experiment?
![Page 68: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/68.jpg)
© 2011 Trimble and Govindarajan
![Page 69: The Other Side Of Innovation - Aventri...© 2011 Trimble and Govindarajan Presented by: –Chris Trimble –Professor, Tuck School of Business at Dartmouth The Other Side Of Innovation](https://reader034.vdocuments.us/reader034/viewer/2022043004/5f856cde76ac105dc66cbeb0/html5/thumbnails/69.jpg)
© 2011 Trimble and Govindarajan
Presented by: – Chris Trimble – Professor, Tuck School of
Business at Dartmouth
The Other Side Of Innovation
© 2011: Trimble and Govindarajan