lee-anne mcalear program director centre for inn schulich executive education centre virox...

Lee-Anne McAlearProgram Director

Centre for innSchulich Executive Education Centre

Virox Technologies Future Forum

Sheridan College

PMCQInnovation in Turbulent Times

January 18, 2010

Lee-Anne McAlearProgram Director

Centre of Excellence in Innovation Management

York University

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“Never, ever, think outside the box”

Getting to know you!

Find a partnerA) starts a story “I was walking along the beach and I saw…”B) throws in an unrelated work like “turnip”A) well I picked up that turnip and IB) danced a polkaEtc

Reverse!

I want to put a ding in the universe.

Innovation is…Innovation is when you bring a new way of thinking to solve a problem, improve a service, enhance our way of life, or introduce a product or service for the benefit of markets

Marcus Wallenberg – Chairman of Skandinaviska Enskilda Banken and Chairman of Sweden’s pan-industry project “Innovation for Growth”

Innovation is…

We define innovation as any process or product which improves patient outcomes, reduces healthcare costs or improves our own efficiency.

Astra ZenecaNaseem S Amin M.D. Chief Scientific Officern

Innovation…

realized new and/or unexpected ideas that deliver value

Innovation…

realized new and or unexpected ideas that deliver value

Innovation is Important

All execs agree innovation is criticalOur Culture encourages innovationExecutives Understand Innovation Executives Model InnovationEffective at Innovation

Formal Process for Innovation

We know innovation is important…

Leger Marketing & Globe and Mail – 2007 Survey

The McKinsey Quarterly, 2009

Most Significant Source of Innovative Ideas

IBM 2007

22IBM, Innovation Survey 2007

Innovation happens when individuals

(and small teams)

apply innovative thinking

(in the right direction)

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Innovation happens when individuals

apply innovative thinking

Organizations can only support or inhibit

individuals (and small teams)

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Mark Pinkus

The Innovation ZoneCreating an Innovation ZoneSorting Your Ideas’ AmbitionsTaking Ideas from Concept to Reality

Innovation ZoneRBC – Centre of InnovationMicrosoft – Idea ExchangeIBM – Think PlacePartners in Healthcare (Boston) – RVLCisco – izoneING (Canada) – Chief Innovation

OfficerP&G – Connect & Develop

Efficiency through Innovation

Cost innovation: The power of context Entrepreneurship in Canadian healthcare: A

case study Instrumenting healthcare – optimizing clinical process

Bringing private-sector thinking to healthcareUsing simulation models to improve resource

utilization

RBC Innovation Zone

Innovation Framework

Tom Koulopoulus – The Innovation Zone

The McKinsey Quarterly, 2009

Marks and Spencer

Launched Plan A in January 2007, setting out 100 commitments to achieve in 5 years. We've now extended Plan A to 180 commitments to achieve by 2015, with the ultimate goal of becoming the world's most sustainable major retailer.

M&S Plan A Journey

The people who are doing the work are the moving force. My job is to create a space for them, to clear out the rest of the organization and keep it at bay.

Steve Jobs

9 Notions of Innovation…

9 Notions of Innovation

Ideas come from everywhere

Google expects everyone to innovate, even the finance team

Share everything you can

Every idea, every project, every deadline – it’s all accessible to everyone on the intranet

9 Notions of Innovation

Your brilliant, we’re hiring

Intelligence over experience

9 Notions of Innovation

A license to pursue dreams

Employees get a “free” day a week (20%)

Half of great ideas come out of ‘noodle’ time – like gmail

9 Notions of Innovation

Innovation, not instant perfection

Launch early and often in small tests before releasing new features widely

9 Notions of Innovation

Don’t politic, use data

It’s not personal, find the metrics that matter

Discourage the use of “I like” in meetings; push people to use metrics

9 Notions of Innovation

Creativity loves restraint

Give people a vision, rules about how to get there, and deadlines

9 Notions of Innovation

Worry about usage and users, not money

Provide something simple to use and easy to love. The money will follow.

9 Notions of Innovation

Don’t kill projects - morph them

There’s always a kernel of something good that can be salvaged

9 Notions of Innovation

Levels of Innovation Model

Source: CURRENT ORGANIZATION INC.

Levels of Innovation Model

Where is your organization on the continuum?

EvolutionaryIncrementalAdaptiveReproductive

RevolutionarySubstantialInnovativeDisruptive

Innovation Continuum

INI

Innovation could be different than you think

Ten Types of Innovation

Cash Lehman: Innovation Pathfinder

Innovation Strategies

4 S Innovation Process

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Framing the challenge

Broad Exploration

Rigorous Assessment

Execution

Coming up with the best ideas requires combining and balancing

2 skills:

DIVERGENT THINKINGCONVERGENT THINKING

CreativeGenerative

Non-judgmentalExpansiveConceptual

Create lots of ideas

AnalyticalSelective

JudgmentalFocusingCritical

Select the best ideas

• Understand the landscape of your challenge, boundaries, blue sky

• Ask the right questions

• Target your focus

• Frame your Challenge Statement

Framing the challenge

Asking the right questions…

• New and challenging ideas• Significant growth and differentiation

Formvs.

Function

Keeping beer cold is essentialIce is not

Banking is essential but banks

are not

Price is not

Value

Broad Exploration

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Creativity

Brainstorming

Exponential Thinking

What happens as we age?

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Source: Escape From The Maze, James Higgens (ISBN: 1-883629-02-0)

What happens as we age?

Source: Escape From the Maze, James Higgens (ISBN: 1-883629-02-0)

Age of those studied5 Years 8 Years adults

Percentage withcreative potential

98% 32% 2%

Number of laughs aday

113 laughs 83 laughs 11 laughs

Number of ?s askedper day

65 ?s 41 ?s 6 ?s

Creative Thinking…BrainstormingTriz Six Thinking HatsLateral Thinking Techniques

Reversing AssumptionsVisual TriggersOther systems Provocation

Pit Stop

Other Systems Thinking

Southwest Stock Price

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How might we find better ways to merchandise watermelons so that we can maximize the retail space in stores?

Reversing Assumptions

Rigorous Assessmentand Selection

Revisit framing – select best ideas based on fixed criteria

Methods: Use selection criteria, online, idea management systems

Small tests, rapid piloting

Suggestion Boxes

Intranet Suggestion Box:

http://suggestionbox.suggestionbox.com/

Idea Management SystemsA system to capture ideas (real or virtual

“suggestion box”) and process themHelps organizations maximize the benefits

from the creativity, expertise and knowledge of employees, customers, suppliers and other trusted third parties

Contains features to focus idea generation towards business objectives, and to capture, develop, build, share and evaluate ideas

Requires a lot of support to do it right

Imagnet Imagnet

Sample Evaluation Form

Now comes the fun!

Creating the action plan

Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has.

The ups and downs of innovation

Innovation: The Process, the Practice104

We need help

I have an idea

Sounds great

It works!

The customerlikes it!

Not proprietary

Yes it is!

Field trial worked

Costs too much

Failure infield trials

Differentsizes??

No resources

Boss hatesthe project

Market estimatewrong!

we have an order!

We’ll make it!

They like it!

Costs are better!

Need documentation

Failures reported

Installation problem

Documentationdone

And approvalsAnd inventory

And ordersECSTASY

DESPAIR

Source: R.J. Saldich

We have sizes!

Fixed

It Works!

Not always!

New costslook good!

No,heloves it!

Deliveriesare late

4 S Innovation Process

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Framing the challenge

Broad Exploration

Rigorous Assessment

Execution

Kotter’s 8 Step Change Model

Kotter & Innovation – What does it take? 1. Increase urgency Innovation audit, case for change, link to

deliverables

2. Build the guiding team C Suite Buy in, iCouncil, named innovation leads leaders at all levels have innovation objectives

3. Get the vision right Innovation portfolio, ,define scope, define boundaries, clear direction, leadership team alignment

4. Communicate for buy-in Many modalities eg town halls, performance management, idea management systems

5. Empower Action On managers scorecards, training (e-modules & beginner, intermediate, advanced), brainstorming & selection, support execution

6. Create short term wins Showcase quick wins, celebrate successes, project highlights,

7. Don’t let up Speakers, monthly events, team meetings, meeting room redesign

8. Make change stick Goals, metrics, year end Innovation surveys, rewards & recognition, 4-year commitment, communication

Structure for Innovation

Senior Leadership supportFull-time championPart of everyone’s jobFacilitators, project managers or specialistsPart-time champion(s)Innovation TeamsOutsourceInnovation Office/Group

And it takes a practice, the art…

Sir Ken Robinson

Thank You!Lee-Anne McAlearProgram Director

SchulichCentre of Excellence in

Innovation Managementlmcalear@schulich.yorku.ca

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