Sila ppt 1 4-2012

Module: SILA

www.aipmm.com

SIL

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Pro

ject

Id

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1.

Con

ceiv

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2.

Pla

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3.

Develo

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Qu

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5.

Lau

nch

Managed

Front

End

Innovation

Bu

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Case

Develo

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New

Product

Development

Certified Innovation LeaderSILA

.

Module: SILA

www.aipmm.com

RELATED READINGS

• Booz & Company. (2011). Why culture is key: The 2011 global innovation 1000. Available from http://www.booz.com/global/home/ what_we_think/innovation_1000_2011

• Beckhard, R. & Harris, R. T. (1987) Organizational Transitions: Managing Complex Change (2nd ed.). Reading, MA: Addison-Wesley (p. 98).

• Hofstede, G. & Hofstede, G. J. (2004). Cultures and organizations: Software of the mind. McGraw-Hill, New York.

• Kotler, P. (2011) Marketing Management. New York: Prentice Hall.

• Patterson, K., Grenny, J., Maxfield, D., McMillan, R., & Switzler, A. (2008). Influencer: The power to change anything. New York: McGraw-Hill.

• Senge, P. (1990). The fifth discipline: The art and practice of the learning organization. Random House.

Module: SILA

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AGENDA

• SILA– Overview– Inputs– Tasks– Deliverables– Tools

• Review

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SILA: STRATEGIC INNOVATION LEVERAGE AND ALIGNMENT

1. Strategic: comprehensive, purposeful, essential

2. Innovation: focused on product innovation to achieve objectives

3. Leverage: power to act effectively and wisely

4. Alignment: harmonizing organizational mission, culture, and resources

(AIPMM)

Module: SILA

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SILA: STRATEGIC INNOVATION LEVERAGE AND ALIGNMENT

• Concerned with how the pieces of the organization fit together

• How the pieces support each other• Are we staged for success?

Corporate Strategy

Mission

Vision

Values

Culture Objectives

Systems Thinking

NPD Strategy

NPD Process

Organizational Structure

Allocation of Funds

Organizational Capabilities …

(AIPMM)

Module: SILA

www.aipmm.com

WHY SILA?

• Only about half of the most innovative companies:– Have a corporate culture that supports their innovation

strategy– Have alignment between the innovation strategy and

the corporate strategy

• Nearly 20% do not have a well-defined innovation strategy

• “…companies with unsupportive cultures and poor strategic alignment significantly underperform their competitors” (Booz, 2011, p. 1)

(Booz, 2011)

Module: SILA

www.aipmm.com

KEY ELEMENTS OF AN INNOVATIVE COMPANY

• Focused innovation strategy• Winning business/corporate strategy• Deep customer insight• Great talent• Proper set of capabilities• Supportive culture

(Booz, 2011)

SILAAn expression of the

thread necessary between these elements

Module: SILA

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EXAMPLE: 3M

• “Companies whose strategic goals are clear, and whose cultures strongly support those goals, possess a huge advantage. Palensky [CTO] articulates his company’s innovation strategy clearly: ‘We call it customer-inspired innovation. Connect with the customer, find out their articulated and unarticulated needs, and then determine the capability at 3M that can be developed across the company that could solve that customer’s problem in a unique, proprietary, and sustainable way’” (Booz, 2011, p. 4).

(Booz, 2011)

Strategic goals + supportive culture

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INPUTS

• Mission, Vision & Values• Corporate Strategy• Innovation Strategy• Culture

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INPUT: MISSION, VISION, AND VALUES

Mission &

PurposeVision Values

(Latham, 1995)

•Today

•Identifies the customer(s)

•Identifies the critical systems or

core competencies

•States level of performance

•Tomorrow

•Inspirational

•Clear decision-making criteria

•Timeless

•What is honored

•What is avoided

•What is not tolerated

“I didn’t believe this ‘vision thing’ made any impact on organizational performance ..... My (research) data showed

just the opposite ---- I found that a clearly articulated vision, fully implemented across an organization, in fact

makes a profoundly positive difference” (Lipton, 1996. p. 83)

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INPUT: CORPORATE STRATEGY

• The plan that is driven by an organization’s mission, vision, and values.

• A company's game plan for achieving its long term objectives in light of its industry position, opportunities, and resources

(Kotler, 2011)

Strategy = plan + objectives

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INPUT: CORPORATE STRATEGY PROCESS

1. Decide what your business is

2. Decide who your customers are and what you want to offer them

3. Decide how you will play the game

4. Identify strategic assets and capabilities

5. Create the right organizational environment

(Markides, 2000)

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INPUT: INNOVATION STRATEGY

• Need Seekers: actively engaging current and potential customers to shape products. They are the first to market. Example: Apple, 3M, GE

• Market Readers: incremental innovations based on closely monitoring customers and competitors. They are the fast followers. Example: Visteon Corporation

• Technology Drivers: breakthrough and incremental innovation based on their technological capabilities. They are R&D / engineering driven. Example: Google, HP

(Booz, 2011)

Source: Booz & Company

Module: SILA

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INPUT: INNOVATION STRATEGY GOALS

(Booz, 2011)

Source: Booz & Company. The 2011 Global Innovation 1000 Report

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INPUT: CULTURE – THE SECRET SAUCE

• Culture matters! Strategy succeeds when the culture supports it

• “Innovation should also be understood as developing an innovative culture within the company, which is what will enable it to produce … innovations.” – from “Winning at Innovation: A-to-F Model.” Trias De Bes, F. & Kotler, P. (2011, p. 3)

• +++need graphic of sauce bottle with ‘Culture’ coming out of it

(Booz, 2011)

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INPUT: CULTURE

• The shared beliefs, core values, assumptions, and expectations of people in the organization. – Reflects the organization’s values– Observable in customs, rites, ceremonies, stories,

heroes, patterns– Infers how work is accomplished– Expresses survivability: What we know to do to survive

(Hofstede & Hofstede, 2004)

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INPUT: SUPPORTIVE CULTURE ELEMENTS

(Booz, 2011)

Source: Booz & Company. The 2011 Global Innovation 1000 Report

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TASKS

1. Mission, Vision & Values: analyze implications and define/refine as necessary

2. Corporate Strategy & Goals: understand and define/refine as necessary

3. Innovation Strategy & Goals: define if it does not exist and analyze alignment

4. Culture: identify “how things are done” and analyze if supportive of innovation – reflects values

5. Alignment: conduct an alignment analysis between the above elements

6. Change Plan: create change plan to make improvements

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DELIVERABLES

• Mission, Vision & Values• Corporate Strategy & Goals• Innovation Strategy & Goals• Change Plan

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TOOLS

• Systems Thinking• Mission, Vision & Values Evaluation• Booz & Company Innovation Strategy Profiler• Beckhard Change Formula• Quinn’s Sustainable Change Model• Hofstede Culture

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TOOLS: SYSTEMS THINKING

• “A way of thinking about, and a language for describing and understanding, the forces and inter-relationships that shape the behavior of systems” (from Senge’s “The Fifth Discipline”)

• The ability to see the big picture• Recognize how isolated events impact the whole• How the puzzle pieces fit (or don’t)

(Senge, 1990)

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TOOLS: MISSION EVALUATION

Source: adapted from Campbell, A. (1997). Mission statements. Long Range Planning, 30(6), 931-932.

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TOOLS: VISION EVALUATION

Source: adapted from Campbell, A. (1997). Mission statements. Long Range Planning, 30(6), 931-932.

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TOOLS: VALUES EVALUATION

Source: adapted from Campbell, A. (1997). Mission statements. Long Range Planning, 30(6), 931-932.

Module: SILA

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TOOLS: INNOVATION STRATEGY PROFILER--ALIGNMENT

Need Seekers Market Readers Technology Drivers

Goal Advantaged products

Products customized to local markets and geographies

Developing low-cost products

Culture Openness to new ideas from customers, suppliers, competitors, and other industries

Collaboration across functions and geographies

Reverence and respect for technical talent and knowledge

(Booz, 2011)

Source: Booz & Company

Module: SILA

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TOOLS: INNOVATION STRATEGY PROFILER

• All three strategies (need seekers, market readers, technology drivers)– Goals

• Superior product performance• Superior product quality

– Culture• Strong identification with the customer and overall

orientation toward the customer experience• Passion for and pride in the products and services offered

(Booz, 2011)

Module: SILA

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Tools: Innovation Strategy Profiler

Available at time of writing at:

http://www.vcs-gsa.com/InnovationStrategyProfiler

Fast Follower First to Market

Technology First Market First

Limited R&D Big R&D

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TOOLS: BECKHARD CHANGE FORMULA

(Beckhard & Harris, 1987)

Source: Latham, J. (2011). Causal diagram of Beckhard’s Change formula. Retrieved at time of writing from http://drjohnlatham.com/Beckhard.html. Used with permission.

Module: SILA

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TOOLS: QUINN’S SUSTAINABLE CHANGE MODEL

• Systems – This component is the easiest to change. While systems may be complex, organizations have the technology and knowledge to redesign and change the systems to improve performance. Unfortunately, experience suggests that performance improvement is often not sustainable because of cultural resistance and individuals who push back on the new ways of doing things.

• Culture – Norms, traditions, and values are a powerful force in organizations. If the new design is not compatible with these norms and values, the chance of successful implementation is reduced. When organizations say that the people have to change the way they work together, people often think that others will have to change, but not them. Consequently, the third component - the "I" of change - is necessary.

• Individuals – Individuals are the essence of any sustainable change. Sustainable change requires that the individuals change and grow, which is often the hardest part of the change process. At the core of this change is a typical learning process where the "gray matter gets grayer" and the "grooves get deeper." This process is often unpleasant, but it is necessary, and it all starts at the top. If the leadership team is not learning and experiencing personal change, lasting organizational change is unlikely.

“What” of

Change

“We” of

Change“I” of Change

The easy part –

How the system should change

More challenging –

Culture change

Unexpected or unwanted –

Individual change

(Quinn, 1996)

Module: SILA

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TOOLS: CULTURE PER HOFSTEDE

Symbols: words, gestures, pictures, objects of meaning by those who

share the culture. E.g., jargon, dress, status symbols.

Heroes: persons who possess characteristics that are prized by the

culture and serve as models. E.g., customer service rep who works all

night to correct a problem.

Rituals: collective activities considered as an essential ( but probably

not meaningful to reaching the desired ends). E.g., how meetings are

organized and conducted.

Values: broad-based tendencies of preference – this is the core of a

culture. E.g., evil versus good, emotional versus rational, revenue at

any cost.

Practices: the visible aspects of culture – what an outside observer

can see, but their meaning is only understood by insiders.

(Hofstede & Hofstede, 2005, p. 7)

Values

Rituals

Heroes

Symbols

Pra

ctic

es

Module: SILA

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+++SYSTEMS THINKING: GOAL SETTING – INCLUDE IN HANDOUTS

• Six Steps1. Vision2. Goals3. Objectives4. Tasks5. Timelines6. Follow-up

Module: SILA

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ACTIVITY – YOUR INNOVATION STRATEGY

• Need Seekers: actively engaging current and potential customers to shape products. They are the first to market. Example: Apple, 3M, GE

• Market Readers: incremental innovations based on closely monitoring customers and competitors. They are the fast followers. Example: Visteon Corporation

• Technology Drivers: breakthrough and incremental innovation based on their technological capabilities. They are R&D / engineering driven. Example: Google, HP

Module: SILA

www.aipmm.com

REVIEW: WHY SILA?

• Only about half of the most innovative companies:– Have a corporate culture that supports their innovation

strategy– Have alignment between the innovation strategy and

the corporate strategy

• Nearly 20% do not have a well-defined innovation strategy

• “…companies with unsupportive cultures and poor strategic alignment significantly underperform their competitors” (Booz, 2011, p. 1)

(Booz, 2011)

Module: SILA

www.aipmm.com

REVIEW: KEY ELEMENTS OF AN INNOVATIVE COMPANY

• Focused innovation strategy• Winning business/corporate strategy• Deep customer insight• Great talent• Proper set of capabilities• Supportive culture

(Booz, 2011)

SILAAn expression of the thread necessary

between these elements

Module: SILA

www.aipmm.com

REVIEW : CORPORATE STRATEGY PROCESS

1. Decide what your business is

2. Decide who your customers are and what you want to offer them

3. Decide how you will play the game

4. Identify strategic assets and capabilities

5. Create the right organizational environment

(Markides, 2000)

Module: SILA

www.aipmm.com

Review: Innovation Strategy Profiler

Need Seekers Market Readers Technology Drivers

Goal Advantaged products

Products customized to local markets and geographies

Developing low-cost products

Culture Openness to new ideas from customers, suppliers, competitors, and other industries

Collaboration across functions and geographies

Reverence and respect for technical talent and knowledge

(Booz, 2011)

Source: Booz & Company

Module: SILA

www.aipmm.com

SIL

A

Pro

ject

Id

en

tifica

tion

1.

Con

ceiv

e

2.

Pla

n

3.

Develo

p

4.

Qu

alif

y

5.

Lau

nch

Managed

Front

End

Innovation

Bu

sin

ess

Case

Develo

pm

en

t

New

Product

Development

Up Next…Project Identification