let the innovators innovate - how rethinking the engineering support model can revolutionize your...
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Let the innovators innovate
Jeff DeWitt
How rethinking the engineering support model can revolutionize your product platform
Companies fail to innovate because it requires individuals to think differently, and often in ways that are counter to organizational culture and norms. Innovation implies difference, and difference is scary.
/02
Are organizations willing to stick their necks out? Usually, no.
For leaders of global organizations, the writing is on the boardroom wall: companies in the post-2008 economy must re-engineer their workforce models to become the innovative organizations of the future.
Organizational leadership and culture must reflect this focus if they wish to attract and retain a
new (and soon to be dominant) generation of workers and to remain relevant in an increasingly
aggressive and competitive global market. Innovation is the top priority of CEOs worldwide,
because innovation means survival.
In this paper, we seek to identify the ways in which leaders of engineering firms can rethink their
workforce models in order to achieve sustainable product innovation, to drive aggressive top-line
growth and increase the bottom line.
IntroductIon /03
Bigger. Better. Faster.
the pursuit of sustainable product innovation
Stronger.
/04
01
Innovation has long fuelled the engines of productivity and growth for nations and for businesses.
Since the Industrial Revolution, machines, systems and infrastructure have helped to
define civilization, enabling its advancement and prosperity. Each step forward has
reinforced the population’s expectation that engineers will, in perpetuity, be able to
invent products and processes that preserve our quality of life and, more recently,
harness and sustain the resources required to power them.
It follows then that, in the post-2008 business world, innovation – the ‘successful
commercialization of invention’1 – is no longer a mere driver of corporate performance or
a competitive advantage. Now, innovation is critical to an organization’s survival.
Changing technology, consumer demand, blink-and-you’ll-miss-them product cycles,
shifting markets and the ramping up of global competition, along with the lasting
reverberations of the Great Recession, undermine the sustainability of any organization
aiming to achieve growth via cost cutting, re-engineering or expansion into
emerging markets.
BIgger. Better. Faster. stronger. /05
1 http://www.workforce.com/articles/the-new-recipe-for-workforce-innovation
Post-recession businesses must embrace innovation to survive. They need to become
proficient in the ongoing development of multiple innovations, and have the operational
capacity to do so.2 This is sustainable product innovation and it is the lifeblood of the
innovative organizations of the new economy.
BIgger. Better. Faster. stronger. /06
1. Electrification
2. Automobile
3. Airplane
4. Water supply and
distribution
5. Electronics
6. Radio and television
7. Agricultural
mechanization
8. Computers
9. Telephone
10. Air conditioning/
refrigeration
11. Interstate highways
12. Space flight
13. Internet
14. Imaging
15. Household appliances
16. Health technologies
17. Petrochemical technology
18. Laser and fiber optics
19. Nuclear technologies
20. High-performance
materials
1. Energy conservation
2. Resource protection
3. Food/water production
and distribution
4. Waste management
5. Education and learning
6. Medicine and
prolonging life
7. Security and
counter-terrorism
8. New technology
9. Genetics and cloning
10. Global communication
11. Traffic and population
logistics
12. Knowledge sharing
13. Integrated electronic
environment
14. Globalization
15. AI, interfaces and robotics
16. Weather prediction
and control
17. Sustainable development
18. Entertainment
19. Space exploration
20. ‘Virtualization’ and VR
21. Preservation of history
22. Preservation of species3
20th Century InnovatIons 21st Century InnovatIons
2 http://www.oecd.org/sti/inno/2368301.pdf3 http://www.engineeringchallenges.org/cms/7126/8275.aspx
/07
02organizational barriers to
Issues endemic to corporations frustrate innovation progress
innovation
If ‘innovation is the single most important ingredient in the modern economy’ (as The Economist put it), then engineers could be considered the chefs de cuisine.
And yet, those companies in the business of innovation – engineering and technology
firms – must contend with the same organizational barriers that frustrate progress in
non-STEM businesses:4
• Risk-aversiononthepartofmanagementandinvestors
• Low-trustorganizationalculturesthatrejectcollaborationandcreativity
• Unilateralcommunication
• Poorimplementation
• Lackofmeasurement(suchastimetomarket,marketshareandnumbersofattempts).
In many companies, the economic downturn has all but snuffed out management’s
encouragement of, and funding for, innovation. Widespread downsizing has increased
individual workloads, to the detriment of time spent coming up with new ideas and
innovative initiatives. And as a long-term pursuit that does not attract revenue, the
default position on innovation seems to be that it is a ‘nice to have’, not a critical driver
of growth and results.
organIzatIonal BarrIers to InnovatIon /08
4 Content brief interview transcript
Over
40% of respondents in a recent survey by Workforce said their organizations are ineffective at fosting innovation
This is despite the proliferation of CEOs and leaders worldwide touting innovation
as their firm’s top business priority, and creativity as the number one ‘leadership
competency’5 in today’s business climate. It is also in spite of the proof that companies
that innovate produce better results than those who don’t.6
organIzatIonal BarrIers to InnovatIon /09
• Afteracultureofinnovation
was instilled at Proctor &
Gamble, the company’s
value increased by more
than $100 billion and grew
its consumer brand portfolio
from 10-billion dollar entities
to 22.7
• In1974,3MscientistArtFry
came up with the Post-It Note
during his ‘15 per cent time’,
a program at 3M that allows
employees to use a portion of
their paid time to hatch their
own ideas.
• TheCampbell’sSoup
innovation of ready-to-eat
microwaveable soup opened
up a $500 million market,
by creating a product that
was relevant to a whole new
generation of consumers.8
InnovatIng the top lIne [or InnovatIon pays the bIlls]
5 http://www.innovationmanagement.se/2013/07/08/innovate-or-perish-its-the-new-business-reality-is-your-company-ready/6http://akgul.bilkent.edu.tr/inovasyon/EIU%20Cisco%20Innovation%206v%20070511.pdf7 http://www.businessinsider.com.au/difference-between-creativity-and-innovation-2013-48 http://www.workforce.com/articles/the-new-recipe-for-workforce-innovation
/10
engineers shape
the world03
Without innovative engineering, society will ultimately fail to thrive
Businesses across the spectrum need innovation to survive.
The weightier prospect, however, is that society relies on engineering innovation through
continual design, upgrade and maintenance of systems, components and processes that
address society’s needs.
Yet between the corporate world’s seemingly endemic lack of organizational capacity
to support innovation, and inherent flaws in many companies’ innovation processes,
even the most talented engineer’s ability to achieve sustainable product innovation
is challenged.
In many engineering and tech organizations – including, according to a former
employee, legendary bastion of innovation Google9 – once a product is green-lit,
engineers must continue to manage approvals as well as remain responsible for its
maintenance.
engIneers shape the World /11
9 http://www.fastcompany.com/3015877/fast-feed/why-google-axed-its-20-policy
Source:FollowingHAUSCHILDT(1997),pp.19ff
Invention Market Launch ExploitationIdea Discovery Research Development
Innovation Process
The stage in the development cycle where a product is deemed to be marketable is
the ideal point for the innovator to turn his/her attention to a new opportunity. For
an engineer to stay involved beyond that point could stall the company’s innovation
pipeline … and with it, its potential for growth and increased market share.
Doesyourorganization’sinnovationprocessallowyourengineerstofocusonwhat
theydobestandhelpthempursuenewideasattherighttime?Doesyourcompany’s
organizational structure support or stall innovation?
/12engIneers shape the World
/13
the path to
success04
Innovation is the top priority of ceos worldwide – but it must be more than lip service
Procter & Gamble has the Clay Street Project. 3M’s 15 percent program spawned the Post-It Note.
These are but two examples of formal innovation programs offered by corporate giants
that rely upon innovation for massive growth.
But for all the brilliant, disruptive innovations that these programs inspire, a business
leader’s genuine and visible commitment to innovation across the organization can seed
the culture of trust, creativity, collaboration and courage required to fill the product
pipeline for the long term.
According to www.InnovationManagement.se, an organization’s code for innovation is
embedded in its ‘3 Ps’: its people, processes and philosophies.10 Leaders of successful
companies encourage risk-taking as a learning exercise and embrace persistence. And
theyinstil–asanorganizationalmission–theideathatinnovationiseveryone’sjob,not
justthoseinresearchanddevelopment.
the path to success /14
10 http://www.innovationmanagement.se/2012/11/07/rd-spending-returns-to-pre-recession-levels-finds-booz-company-global-innovation-1000-study/
Yet even with the 3 Ps in check, and a balanced attitude to risk, persisting with an
organizational structure that does not support a business’s innovation strategy will not
see your business gaining ground in the fight against the globalized commoditization of
products and services.
Align your workforce model with your strategy for innovation, however, and your
engineers will be free to move your organization into the big league.
/15the path to success
/16
learning
to fly05
Failures are the building blocks of innovation
Counterintuitive though it may seem, embracing failure as a learning experience is critical to successful innovation.
Innovativecompaniestakeactioninthefaceoftheunknown,evaluateresults,adjust
their methods and try again, accepting failure as part of the innovation process. These
businesses encourage innovators to be open about learning curves, and to use failures as
springboards to success.
Failing brilliantly
• In the early 1990s, W. Leigh Thompson, chief scientific officer of pharmaceutical
company Eli Lilly initiated ‘failure parties’ to commemorate excellent scientific work
that nevertheless resulted in failure.
• At Facebook HQ there are signs around the office with snippets of inspiration such as
‘Doneisbetterthanperfect’and‘Whatwouldyoudoifyouweren’tafraid?’11
• When 3M engineers discovered that there was simply no market for the heat-
repelling cover to protect car finishes from welding sparks that they’d designed, they
celebrated having found something that was innovative and had its place.12
learnIng to Fly /17
Up to
90% of all innovations fail.
11 http://www.innovationexcellence.com/blog/2012/08/07/fear-of-failure-is-the-big-problem-not-failure-itself/12 http://www.fastcodesign.com/1663137/how-3m-gave-everyone-days-off-and-created-an-innovation-dynamo
However, failures that result due to a company’s persistent refusal to innovate, or
its reticence to adapt to changing business conditions, as has been the case for
Eastman Kodak, are a different story. Kodak repeatedly missed the opportunity to
prepare for the disruption that digital photography – a technology it actually invented –
would inevitably unleash on its film-and-paper photography model. The one-time global
successstorywasreducedtobankruptcyandtheobjectofaclassactionoverpoor
quality printer product.13
/18learnIng to Fly
13 http://www.forbes.com/sites/chunkamui/2012/01/18/how-kodak-failed/3/
/19
From increments to disruption, and everything
in between06
re-thinking the engineering support model
During tough economic conditions it is often the innovators and future-oriented roles that are dispensed with first.
Engineering has been seen as a skill-set that is ‘safe’ from downsizing, but the global
uncertainty of recent times has proved otherwise. This has had three specific impacts on
the role of engineers:
1. It has forced the remaining engineers inside organizations to wear multiple ‘hats’.
Often, highly skilled and experienced engineers are asked to complete a varied mix
of high- and low-value tasks across a broad spectrum of work.
2. It has delivered many specialist engineers into the contingent market where their
skillscanbeaccessedonajust-in-timebasis.
3. It has reduced the time engineers have to focus on innovation, research and testing,
and it has encouraged a more output-driven approach to engineering skill.
Too often, engineers that were previously tasked with experimenting, innovating, and
developing new products have been asked to refocus on repackaging existing designs
and delivering incremental rather than ‘step’ change. The risk with this approach is clearly
competitive. Leapfrogging a competitor focusing on incremental change is far easier
than those investing in those large, resource-intensive step changes.
From Increments to dIsruptIon, and everythIng In BetWeen /20
So, now that companies are beginning to re-invest in innovation in the engineering
sector, the impact of previous downsizing needs to be specifically addressed. A key issue
will be ensuring that senior and highly skilled engineers are placed back into the right
leadership roles (and are given a mandate to match) so that they can focus on spurring
innovation across all levels of their organizations.
While it is true that innovation within the product cycle can often be driven by
competitive forces outside an organization, we must not ignore the internal drivers too.
Booz & Company’s 2012 Global Innovation Study suggests that forces inside companies
arejustascriticaltoturningthetideoninnovation.Infact,theysaythat‘thebigleapsin
science and technology … come from curious scientists and technologists working in a
creative atmosphere with a rich exchange of ideas’.14 How organizations create this kind
of environment, and how much support they provide it, will determine the value they
obtain from their investment in engineering skill-sets.
Providing your top engineers with the optimal environment for creativity means freeing
them up to focus on what they do best – innovating. This will necessitate a rethink of
your business’s workforce, including the support services they have around them to
achieve what they are tasked with.
/21From Increments to dIsruptIon, and everythIng In BetWeen
14 http://www.innovationmanagement.se/wp-content/uploads/2012/11/BoozCo_The-2012-Global-Innovation-1000-Study.pdf
/22
Companies need to reward and recognize innovative thoughts and also accept and even embrace failures.
Tactical tasks always consume strategic time and that’s why the two must be separated.
Over many decades we have developed proven workforce management solutions
that deliver predictable results and minimize the unknown. Providing your engineering
workforces with reliable, high-quality support services means that you and your top
engineering talent can get on with what they do best: changing the world.
We are in the unique position of being able to provide organizations with access to
highly skilled, specialized talent that can provide expert support in the form of:
• CADsupport
• documentcontrol
• productvalidationandtesting
• reliabilitytesting
• sustainingengineering
• softwareengineering
• engineeringlabmanagementandsupport
• engineeringdocumentmanagement
• billofmaterialconstructionandmaintenance
• engineeringchangenoticecontrol.
/23
How can we help?Partner with Kelly today for a managed solution designed specifically for your engineering business.
eXit
About the Author
JeFF deWItt is the senior director of engineering solutions for global managed solutions at
Kellyocg. Jeff joined Kellyocg in 2009 and is responsible for the architecture of engineering
outsourced solutions. Jeff holds a bachelor¹s degree in electrical engineering from pennsylvania
state university and a master¹s degree in systems engineering from the university of virginia.
he has over 25 years of experience in product engineering, manufacturing automation
engineering, production operations, and quality management.
About KellyoCG
KellyOCG® is the Outsourcing and Consulting Group of workforce solutions provider Kelly Services, Inc. KellyOCG is a
global leader in innovative talent management solutions in the areas of Recruitment Process Outsourcing (RPO), Business
Process Outsourcing (BPO), Contingent Workforce Outsourcing (CWO), including Independent Contractor Solutions,
Human Resources Consulting, Career Transition and Executive Coaching, and Executive Search.
KellyOCG was named in the International Association of Outsourcing Professionals® 2013 Global
Outsourcing 100® list, an annual ranking of the world’s best outsourcing service providers and advisors.
KellyConnect is a pioneer in the set-up and maintenance of virtual workplaces. We have access to local talent via
440 Kelly-owned branches across the US. We combine this with the intellectual property of understanding how to
deliver plug-and-play technology solutions (if you don’t have your own).
Further information about KellyOCG may be found at kellyocg.com.
for more thought leadership go to talentproject.com
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