Strategic Innovation Leadership

BA Grad Dip Ed Grad Dip HRD

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John Scotland

Thomas Edison

I have not failed, Ive just found 10,000 ways that wont work.
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Strategic Innovation Leadership

Fear, innovation and business success Innovation leadership attitudes and competence The blueprint for workplace innovation How to build and lead the best teams for innovation How to implement a proven creative problem solving process in your organisation
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What are they??

Creativity and Innovation

Sources of Competitive Advantage Over Time

Knowledge and Ideas

2000 1990 1980 1970 1960 1940 1920 1900

Capital

Creativity & Innovation

5th generation mgt BPR Learning org. TQM MBO HR planning Strategic planning Managerial grid Industrial relations Time and motion Group theory Scientific mgt.

1850 Systematic mgt.

Approaches
Coach and develop / Team Focus 5 Flexible benefits / Soft values Networked teams

Command and control / Individual focus Fixed reward / hard systems Bureaucracy

Innovation and Financial Performance

1 1 1 1 1 1 1 1 1 1 Financial 1 Performance 1 1 in % Points 1 (using Bottom 11 % -1 as benchmark) -1 1 -1 1

ROA Market Share

Bottom 1% 1

Middle 1% 1

Top 1% 1

Innovation

(Soo, C. et al. 1 1 ). 11
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New Concepts in Innovation Business Council of Australia (2006)

The prevailing view among Australian business leaders and Government agencies is an old one that creativity is the domain of the artist or researcher.

OLD INNOVATION INNOVATION

NEW

Australian business and public sector management is imbued with a sense of research and development but it lacks the 7 skills, knowledge and confidence to work creatively and

Innovation Leaders 2006/07*

Boeing (US) Virgin Atlantic (UK) Toyota (Japan) RBS (UK) Du Pont (US) Samsumg (S Korea) LEGO (Denmark) BP (UK) H&M (Sweden) Nokia (Finland)

Reckitt Benckiser (UK) PepsiCo (US) Tesco (UK) Apple (US) Aviva (UK) Google (US) Canon (Japan) Novartis (Switzerland) Microsoft (US) Adidas (Germany)

* Innovaro Ltd 2007

# Note: No Australian Company

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Innovation Leaders 2006/07

Strategic Focus Insight Collaboration Process Organisation

Managers Perceptions of Innovation - An Exploratory Study

(September 2003 March 2004)

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The Innovation Gap

No = 25% Elaborated responses (30.5%)

Yes = 44.5%
Only 9.3% reported having a formal innovation strategy and allocated budget in place

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Summary AIC Research Findings THE INNOVATION GAP Concept of Innovation not always clearly understood. Most organisations dont know how to cross the bridge between concept and implementing performance-based innovation strategies. Whilst 44.5% of organisations claimed their organisation to be innovative only three had a formal innovation strategy in place. Only one organisation offered their employees creativity/innovation related education and training.

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Supporting factors and barriers

Supporting factors
Leadership and support from top management Culture, climate and identity Rewards and recognition

Barriers
Resistance to change Org culture and climate Corporate structure Workloads and Lack of skills

Competition and deregulation, need and diversity

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F EAR
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Desired Future Discrepancy Gap Need

Innovation Champion

Strategy on how to get there

Current State
Lack of useful ideas Lack of skills or support for creative and strategic breakthroughs Perhaps, other challenges and problems
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Business Creativity & Innovation Framework (BCIF)

Product
Innovation Innovation 4Ps 4Ps

Press

Process

People
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Innovation 4Ps: A Whole System Innovation

Product People

Process

s es Pr

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Determinants of Organisational Creativity and Innovation (AIC)

Organisational Climate Leadership Style Organisational Innovation Resources & Skills Organisational Culture Structure & Systems

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Innovation 1 Ps
Product

Press

INNOVATION INNOVATION

Process

The First P of Innovation

Refers to the context (ie: climate, culture and environment)

People

Press
Press is short for pressure - that is, the context within which people, process and product operate. The environment, both internal and external to the organisation, presses in on and out from the organisation.
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Climate Survey - Impact of the Work Environment (KEYS) Innovation within the organisation depends upon: Organizational Motivation the basic orientation of the organization toward innovation Resources everything the organization has available to aid in the area targeted for innovation Management Practices supporting freedom and autonomy in the conduct of work; challenging interesting work; Expertise knowledge, talent and skill Creativity Skills having a flexible problem-solving approach,. Intrinsic Motivation the desire to solve the problem or accomplish a task

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Blueprint for Innovation

Culture Climate Analysis (KEYS) Business Creativity and Innovation Index (BICI) Strategic Approach to Innovation in your Organisation
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Components of Individual Creativity

Creativity Skills

Expertise

Intrinsic Motivation
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Organisation Creativity

Building Trusting Relationships

Creating Increasing the Future Energy & Effectiveness Initiative Innovation & Under Pressure Unique Potential

Success

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Innovation within the Organization

Resources

Management Practices

Organizational Motivation
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Innovation within the organization depends upon:

Organizational Motivation the basic orientation of the organization toward innovation; shared vision; providing rewards and recognition; lack of internal politics, and lack of overemphasis on the status quo. Resources everything the organization has available to aid in the area targeted for innovation, including time, funding, information and materials. Management Practices allowing freedom and autonomy in the practice of work; providing challenge; specifying clear strategic goals and forming work teams comprised of individuals with diverse skills and perspectives.
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Impact of the Work Environment

Work Environment
Resources

Management Practices

Innovation

Organizational Motivation

Expertise

Creativity Skills

Individual/Team Creativity

C
Task Motivation

Creativity

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Impact of the Work Environment on Performance

What you CAN do: Talent What you WILL do: Motivation HOW you will do it depends upon your intrinsic motivation

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Innovation 1 Ps
Product

The Second P of Innovation

Process

Press

INNOVATION INNOVATION

People

Process

What are the mechanisms and processes that lead to innovative products, services, processes or procedures?
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4-Power Innovation
Clarify
Pinpoint the problem to solve

Ideate
Come up with new ideas

Develop
Refine ideas into strong solutions

Implement
Put the plan into action

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Diverging and Converging

Diverging thinking Converging thinking

Generating lots of options and ideas, making lists.

Judging, assessing options, focusing, making decisions.

Green light = speed

Red light = brakes on!

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These are two mutually exclusive mental activities

Innovation 1 Ps
Product

The Third P of Innovation

Process

Press

INNOVATION INNOVATION

People

Addresses the issues related to PEOPLE, such as individual differences and teamwork

People
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FourSight Preferences

Clarifier
Diagnostic Thinking

Developer Ideator
Visionary Thinking Evaluative Thinking

Implementer
Tactical Thinking
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On average, it takes about 3,000 raw ideas to lead to a commercially successful product or process
11 11 11 11 11 11 11 11 11 11 11 1 1
Initial Experiments Projects ideas New product
Stevens & Burley, 1997
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Ideas

Team Profile
1 1 1 1 1 -1 -1 -1 -1
Clarifier Ideator Developer Implementer

Peak Preference Low Preference

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Innovation 1 Ps
Product

The Fourth P of Innovation

Process

Press

INNOVATION INNOVATION

People

Product

What makes products, services, practices or procedures innovative?

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Characteristics of an INNOVATIVE Characteristics of an INNOVATIVE Product or Service Product or Service

NOVELTY
Does it solve the problem or help manage the challenge? Is it useful and practical? Does it work? Does it provide value? Is it cost-effective Originality (Is it new or different?)

Is it understandable? Is it well presented? Is it attractive and credible? Will people buy it? Can it be commercialized?

ELABORATION & SYNTHESIS

RESOLUTION
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Ideas Management

Ideas need to be: Generated Captured and Retrievable Evaluated Developed Implemented Rewarded Measured
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Innovation Leadership: Attitudes

Deliberate climate creation and cultural influence Innovation vision Encourage challenge & risk taking Collaboration Resources for innovation Celebration
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Innovation Leadership: Innovation Competence

Model and coach for innovation and creativity Develop innovation teams and leaders Generate breakthrough ideas Capitalise on intrapeneurship Customer Service Insight into drivers and opportunities
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Innovation Leadership: Metrics, systems and prcatices

Measure innovation costs & benefits Incorporate innovation in performance management Establish supportive systems Use innovation to increase profit Seek to accelerate breakthrough thinking
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Thankyou

Strategic Innovation Leadership

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