More Squares® © 2013 Building Performance by Nurturing Innovation Excellence Srikanth Srinivas Innovation Catalyst Sri @MoreSquares.com www.MoreSquares.com
NASSCOM Engineering Summit 2013: Building Performance by Nurturing Innovation Excellence - Srikanth Srinivas, Innovation Catalyst
May 12, 2015
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More Squares® © 2013
Building Performance by Nurturing Innovation Excellence
Srikanth SrinivasInnovation Catalyst
www.MoreSquares.com
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Innovation Excellence Principles
1. Wide Angle Innovation
2. From Idea to Opportunity
3. From Opportunity to Projects
4. Idea to Impact Process
5. Innovation Lens in Budgeting cycle
6. Flight Response!
7. Reward Systems
8. Organizational Memory
9. Innovation Mindset
10.The Future is Now!
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1. Wide Angle Innovation1
Customer
Customer Value
Value Delivery
Company Value
Current Space
Adjacent Space
New Space
1
Grocery
GMROIMore Squares® © 2013
Customer
Customer Value
Value Delivery
Company Value
Current Space
Adjacent Space
New Space
1
GMROI
Any one variable has potential for
Disruption
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2. From Idea to Opportunity2
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Idea Space
Do No Harm1 Synergize
Customer Value Company Value
Opportunity1Vijay Govindarajan, and Chris Trimble,“The Other Side of Innovation: Solving the execution challenge”
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3. From Opportunity to Projects3
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Project Portfolio3
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Current SpaceDifferentiation
Source: Vijay Govindarajan and Srikanth Srinivas, HBR, Apr 18,2013, "Finding your place in the competitive jungle"
3
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4. Idea to Impact Process4
Manufacturing SalesManufacturingR&D
Idea
Opportunity
Project
Pilot
Scale
Impact
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5. Innovation Lens in Budgeting cycleMeasures - Example - 3M
Inputs
•R&D as percentage of revenue >= 7%
•15% Rule
Progress
•Revenue > $200 Million - Business Unit
•Revenue > $1 Billion - Division
Outputs
•% of Revenue derived from products introduced in the last 5 years > 30%
•Gross Margin >= 50%
•ROA >= 25%
5
Source: Vijay Govindarajan and Srikanth Srinivas, HBR, Aug 6,2013, "The Innovation Mindset in Action: 3M Corporation"
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5. Innovation Lens in Budgeting cycleActions, Projects, Resource Allocation
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Source: Vijay Govindarajan and Srikanth Srinivas, HBR, Apr 18,2013, "Finding your place in the competitive jungle"
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6. Flight Response!
Source: Vijay Govindarajan and Srikanth Srinivas, Economic Times, Aug 16,2013, "Flight trajectory: Guidelines for piloting your company through stormy skies"
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7. Reward Systems
Source: Vijay Govindarajan and Srikanth Srinivas, HBR, Feb 21,2013, "When your incentive system backfires"
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Reward the right behavior
• Taking Passengers (Bringing non-consumers into the fold) Vs reaching destination (handing over “Project” to Product Development)
• When “Fit” poor, OK to Drop. Not a Failure• Emphasize Ends. OK to change Means
(not getting wedded to a technology for example)
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Encouraging right behaviors
• Seed fund• Business Unit / Division expectations• Awards
• Dual career ladders• Job Rotation
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8. Organizational Memory8
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8. Organizational memory
• Obsolete policies and practices• Outdated assumptions and mindsets• Underperforming products and services• Out of synch customers• Outdated / obsolete assets• Biases embedded in planning processes,
performance evaluation systems, and organizational structures
Source: Vijay Govindarajan and Srikanth Srinivas, HBR, Mar 11,2013, "When organizational memory stands in the way"
8
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9. Innovation Mindset
Source: Vijay Govindarajan and Srikanth Srinivas, HBR, Sep 19,2013, "The right innovation mindset can take you from idea to impact"
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Innovation Mindset (Vs Autopilot Mindset trap)
Think Different (Vs Benchmark competition) Idea (Vs. Hopeless / Helpless Traps) Opportunity (Vs. Creativity Trap) AND Thinking (Vs. OR / Neither Traps)
Act Different Resourcefulness (Vs. Stuck / Whining Traps)
Achieve Extraordinary Success Outcomes (Vs. Activity / Fatigue Traps)
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10. The Future is Now!1
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1Source: Vijay Govindarajan, Research Notes
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10. The Future is Now!
• Consistent investment in innovation – through good times and bad
• Innovation as a core competence• R&D / Innovation distinction
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Thanks!
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