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Between Innovation and Business Strategy Creating Partnership Jeremy Jay V. Lim, CSS-BB, PMP Six Sigma Program Manager
31

Aligning Innovation to Business

Aug 19, 2014

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This is a presentation made in the latest Six Sigma conference. It was meant to share tips on how to align innovation initiatives to the business objectives and business strategies.
The full book version will follow soon.

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Page 1: Aligning Innovation to Business

Between Innovation and Business Strategy

Creating Partnership

Jeremy Jay V. Lim, CSS-BB, PMP

Six Sigma Program Manager

Page 2: Aligning Innovation to Business

This is a presentation about the sharing of tips on how to establish the

connection between the innovation that we do and our business

strategies.

This presentation also reminds us to do the right innovation that

matters to the business.

First, let's try to examine if we are facing situations where we ask

ourselves these questions on the following slides.

Page 3: Aligning Innovation to Business

We do Six Sigma but

where are our Cost

Saves?

Page 4: Aligning Innovation to Business

Why is my Six Sigma

project not being

supported?

Page 5: Aligning Innovation to Business

Why are our projects not

solving the real problem?

Page 6: Aligning Innovation to Business

These problems arise coming from the great disconnect between

innovation and the company's business strategies.

Even at present, not one company is spared from this problem and

there's still a continuous effort to align the two even for companies

with high maturity levels.

Now, if we will talk about the ways to solve this kind of problem, we

will be looking at 2 perspectives and talk about the next steps from

within these 2 contexts as shown in the next slide - Project

Management Process and Fitness to the Company's Innovation

Culture

Page 7: Aligning Innovation to Business

Now, let's tackle the 1st context - the lack of structured

Project Mangement Process.

TBM Consulting has reported survey results that paints a

picture of an existing disconnect between projects

undertaken by Project Managers versus business objevtives

as shown in the next slides.

Page 8: Aligning Innovation to Business

The Disconnect coming from lack of structured Project Management (PM) Process

Page 9: Aligning Innovation to Business

TBM Consulting, www.tbmcg.com, 2012

PM's Dilemma

Project managers understood the link of

their project to the company objectives.

Of the Project managers understood how

their projects were prioritized and chosen

1 out of 4 Only

50% Only

Page 10: Aligning Innovation to Business

PM's Dilemma TBM Consulting, www.tbmcg.com, 2012

Every project points toward its own objective

Page 11: Aligning Innovation to Business

TBM Consulting, www.tbmcg.com, 2012

Maintaining a line-of-sight connection between

projects and objectives is critical

PM's Dream

Page 12: Aligning Innovation to Business

Tips on the Project Management

PM Process

Page 13: Aligning Innovation to Business

Tip No. 1 Set strategically aligned project themes

if your company does not have a structured project planning process, a good starting point is to select projects based

on your core priority objectives.

You may decide to do projects focusing on Operating Cost Reduction, Inventory Reduction, Service TAT Reduction,

Customer Satisfaction, Increase Revenue , etc.

Page 14: Aligning Innovation to Business

Project Themes based on Business Objectives

Balanced Scorecard

Business Strategies

You can also use Six Sigma to help you

get to close or achieve your targets

instead of using old standard ways.

Below shows the process of identifying Six Sigma or innovation projects based on the company

Balance Scorecard or Performance Measurement System.

Page 15: Aligning Innovation to Business

Tip No. 2 Go through the Business Case Analysis

GO? No GO? OR

By going through the Business Case analysis, we are compelled to look into the impact, risks

and the alignment to business objectives of a project in mind before deciding to push through.

Page 16: Aligning Innovation to Business

Tip No. 3 Partner up with a Finance Analyst

To validate project saves, impact and strategic alignment to business objectives

Page 17: Aligning Innovation to Business

Tip No. 4

Establish structured Project Management Process from Project Identification to Project Closure

Without a standard structured project

management process, the tendency is for the

innovation project leaders to jump right into

execution and experience immature project

closure.

Having that process would ensure everyone uses

the right approach from identifying, executing

and closure of projects.

Page 18: Aligning Innovation to Business

Tip No. 4

Mesh together Project Management Practices with

the Six Sigma Program Governance

Six Sigma Project's success can be further nhanced by applying some of Project Management processes and best practices in the knowledge

areas such as Project risk management, Scope management, Stakeholder management, etc.

These are things not taught in a Six Sigma class because its strength is in problem solving and not much on project management side.

Page 19: Aligning Innovation to Business

Next ,there are times that even with good project governance,

good people in place, good projects to work on

Still, they don't fly and the only reason we can think of is because

the introduced innovation program does not fit the company's

innovation culture.

Let's examine how fitness of innovation to the organizational

culture comes into play.

Page 20: Aligning Innovation to Business

The Disconnect coming from the lack of fit of the

to the organization's Innovation Culture

Page 21: Aligning Innovation to Business

Innovation Culture is influenced

by the Innovation Strategy

FAST PACE

INCREMENTAL

MANAGED PACE

INNOVATIVE

SLOWER PACE

DISRUPTIVE

Increase Market Share

Introduce New Products

Disruptive Innovation

“Alchemy of Business Growth”, Mehrdad Baghai, et. Al, 1999, NY, Orion

Pro

fit

Time (years)

Horizon 1 Strategy

Horizon 2 Strategy

Horizon 3 Strategy

Business growth strategy drives your Innovation strategy.

Innovation strategy hones the innovation culture.

Page 22: Aligning Innovation to Business

What things do

we look out for in

a company’s

innovation

culture?

Page 23: Aligning Innovation to Business

Culture of Urgency

Do you have a culture where innovation has

to be done fast and that project Champion

and Sponsors are more comfortable with

mini-projects that lasts around 3 months

rather than going for end-to-end type of

projects which, say, finishes in 12 months?

If that is the case, you may want to have

more mini-projects in your project list or

portfolio with big projects broken down into

small Lean initiatives.

It is also worthwhile to adapt Agile SCRUM

for IT-enabled projects.

Page 24: Aligning Innovation to Business

Culture of Risk Taking

Are people in your organization or company

comfortable with radical changes?

Is your project champion comfortable pushing

forward projects where there are uncertainties

in terms of acceptability and success?

If the answer to both is NO, then it is suggested

that you pursue more incremental

improvement projects with a sure-fire change

management program to ensure that concerned

people are informed, aware and would accept

the introduced changes.

Page 25: Aligning Innovation to Business

Culture of Doing Less Paper works

Action-oriented Document savvy vs. Do you have a culture where people are more inclined to deliver results on time rather

than document before proceeding to execution of the innovation?

If that is the case, it is suggested to adapt an innovation method that requires less paper

works or documentation so that more time can be spent on actually working on the

project. You may also consider simplifying your project documentation if some are

really necessary.

Page 26: Aligning Innovation to Business

To manage Innovation Culture play with the

Organization's Strengths

Tip No. 4

Folks, it’s harder to create a new culture than just strengthening the culture in place already.

Page 27: Aligning Innovation to Business

Innovation and Business Strategy

Creating Partnership Between

Balanced Scorecard

Business

Strategies

Innovation

Projects

Six Sigma & CPI

PM Process

Alignment to Objectives

Innovation Culture

Strategic Fit

In this presentation, we discussed ways on how to align innovation and business strategy. We

focused on 2 contexts – Structured PM Process and Fitness to the Innovation Culture.

Page 28: Aligning Innovation to Business

Between Innovation and Business Strategy

Creating Partnership

is very important!!

Page 29: Aligning Innovation to Business
Page 30: Aligning Innovation to Business

Watch out for the book version

of this presentation

COMING SOON!!

In this book, you’ll know more about: Business Model Creation

Balance Scorecard

Innovation Techniques

Aligning Innovation to Business Strategies

Page 31: Aligning Innovation to Business

About Me

Jeremy Jay V. Lim CSS-BB, PMP, MSEM, BPM

Email: [email protected]

Twitter: smartgeek1375

Facebook Page:

Sigma Process Excellence

Currently a Six Sigma Program Manager

Black Belt for over 10 years

Currently preparing for Master Black Belt

certification and

certification for highest title as ASQ-Manager of

Quality and Organizational Excellence

Has worked in Manufacturing, BPO & Fin’l Svcs

Has done TPM, Six Sigma, RAD, BPM, BPR and PMO

Guest speaker in Six Sigma conferences

Authored BPM whitepapers

Part-time professor of Quality and Proj. Mgt.

Passionate about Value-driven Change

and Innovation