Creativity ≠ InnovationCreativity ≠ InnovationHow Organizations Can Really Make How Organizations Can Really Make

Innovation HappenInnovation Happen

Barbara KivowitzBarbara KivowitzSenior PartnerSenior Partner

im21im21: : innovation/measurement/21innovation/measurement/21stst century century

bkivowitz@post.harvard.edubkivowitz@post.harvard.edu

-15-10

-50

510

1520

2530

35

Bottom Middle Top

ROAMarket Share

Innovation

Performancein % Points

“The greater the amount of innovation, the greater the market

and financial performance” Soo, Devinney, Midgley & Deering (2002)

Innovation & FinancialPerformance

What have innovative companies done?What have innovative companies done? 3M3M – corporate goal of achieving 30% of sales from newer – corporate goal of achieving 30% of sales from newer

products. "3M 15% Rule" allows employees to spend 15% of their products. "3M 15% Rule" allows employees to spend 15% of their time on projects of their own choosingtime on projects of their own choosing

GoogleGoogle – holds 8 brainstorming sessions a year with 100 – holds 8 brainstorming sessions a year with 100 engineers. All engineers can dedicate 20% of their time to pet engineers. All engineers can dedicate 20% of their time to pet projectsprojects

ToyotaToyota – OObeya = big, open office. Brings together people – OObeya = big, open office. Brings together people from all parts of the company every month to discuss design, from all parts of the company every month to discuss design, costs, mistakes, bottlenecks. Has saved Toyota millions of costs, mistakes, bottlenecks. Has saved Toyota millions of dollarsdollars

P&GP&G - shifted from R&D as the innovation pipeline to C&D, - shifted from R&D as the innovation pipeline to C&D, "Connect and Develop.” P&G acquires 50% of its innovations "Connect and Develop.” P&G acquires 50% of its innovations outside the company, resulted in 3 successful new products in outside the company, resulted in 3 successful new products in the first 6 monthsthe first 6 months

WhirlpoolWhirlpool - group of employees serve as innovation consultants - group of employees serve as innovation consultants to assess best ideas and strategies to market. Employees submit to assess best ideas and strategies to market. Employees submit ideas via a corporate-wide virtual bulleting board. A third of ideas via a corporate-wide virtual bulleting board. A third of senior leader pay is tied to innovation. Whirlpool had record senior leader pay is tied to innovation. Whirlpool had record results in 2005results in 2005

GEGE – GE WorkOut – 60% of projects initiated in this creativity – GE WorkOut – 60% of projects initiated in this creativity program become successful productsprogram become successful products

Customers don’t buy Customers don’t buy innovationsinnovations

They buy They buy solutionssolutions to to problemsproblems

Remember the Segway

Defining Our TermsDefining Our Terms

CreativityCreativity InnovationInnovation

Creativity is thinking up new things.Innovation is doing new things.

CREATIVITYCREATIVITY Generation of new & unusual Generation of new & unusual

ideasideas Divergent thinkingDivergent thinking Quantity driven processQuantity driven process

4 Rules of Idea Generation4 Rules of Idea Generation

Withholding judgmentWithholding judgment FreewheelingFreewheeling Generating a quantity of ideasGenerating a quantity of ideas Hitchhiking Hitchhiking

Brainwriting: Quick & QuietBrainwriting: Quick & Quiet

ExerciseExercise

How many uses can you come up with for:

Barriers to Creative ThinkingBarriers to Creative Thinking

Functional fixednessFunctional fixedness Previous experiencePrevious experience Excessive faithExcessive faith Intolerance of ambiguityIntolerance of ambiguity ParadigmsParadigms EmotionEmotion

andand

AssumptionsAssumptions

Creativity is the ability to modify self-imposed constraints.

The Astronaut Pen The Astronaut Pen (urban legend #1)(urban legend #1)

During the space race in the 1960’s NASA During the space race in the 1960’s NASA was faced with a major problem. The was faced with a major problem. The astronauts needed a pen that would work in astronauts needed a pen that would work in zero gravity. NASA spent $1.5 million zero gravity. NASA spent $1.5 million developing the “Astronaut Pen.” It enjoyed developing the “Astronaut Pen.” It enjoyed minor commercial success back on Earth.minor commercial success back on Earth.

The Russians were faced with the same The Russians were faced with the same problem.problem.

They used a pencil.They used a pencil.

Let’s Do Some MathLet’s Do Some MathLet’s Do Some MathLet’s Do Some Math

10001000 404010001000 303010001000 202010001000 1010

Let’s Do Some MathLet’s Do Some MathLet’s Do Some MathLet’s Do Some Math10001000 404010001000 303010001000 202010001000 101041004100

A radio conversation with the US Chief of Naval A radio conversation with the US Chief of Naval OperationsOperations (urban legend #2)(urban legend #2)

NAVYNAVY: Please divert your course 15 degrees to the : Please divert your course 15 degrees to the North to avoid a collisionNorth to avoid a collision

CIVILIANCIVILIAN: Recommend you divert YOUR course 15 : Recommend you divert YOUR course 15 degrees to the south to avoid a collisiondegrees to the south to avoid a collision

NAVYNAVY: This is the captain of a US Navy ship. I say : This is the captain of a US Navy ship. I say again, divert YOUR courseagain, divert YOUR course

CIVILIANCIVILIAN: No, I say again, you divert YOUR course: No, I say again, you divert YOUR course

NAVYNAVY: THIS IS THE AIRCRAFT CARRIER ENTERPRISE. : THIS IS THE AIRCRAFT CARRIER ENTERPRISE. WE ARE A LARGE WARSHIP OF THE US NAVY. DIVERT WE ARE A LARGE WARSHIP OF THE US NAVY. DIVERT YOUR COURSE NOW!YOUR COURSE NOW!

CIVILIANCIVILIAN: This is a lighthouse. Your call. : This is a lighthouse. Your call.

Exercise: Exercise:

How do you spell your nameHow do you spell your name How else could you spell it?How else could you spell it?

SALESALE

•SSolutionolution•AAfterfter•LLastast•EExamplexample

INNOVATION:INNOVATION: The process of The process of

turning ideas turning ideas into moneyinto money

•Implementation of great ideas•Convergent thinking•Quality driven process

•Implementation of great ideas•Convergent thinking•Quality driven process

The ProcessThe ProcessTime

Number of Ideas

Creativity

Innovation

The ProcessThe ProcessTime

Number of Ideas

Creativity

Innovation

Problems:Problems:

• TV networks & TV networks & advertisers hate TiVo’s advertisers hate TiVo’s ad skipping ad skipping functionalityfunctionality

• TiVo loses advertising TiVo loses advertising revenuerevenue

• Customers miss ads Customers miss ads that could actually be that could actually be usefuluseful

Can you help TiVo?

““Of all the core functions of Of all the core functions of most companies, innovation most companies, innovation has the most competitive has the most competitive value —and is managed with value —and is managed with the least discipline.”the least discipline.”

Booz Allen HamiltonBooz Allen Hamilton

Data

Reframe

Complete Solution Set

Idea Clusters

Project Plan

Risk Analysis

CLARIFY IDEATE DEVELOP IMPLEMENTPinpoint the problem to

solve

Come upwith new

ideas

Refine ideas into strongsolutions

Put the plan into action

Sta

kehold

er

Pla

nCreative Problem Solving ProcessCreative Problem Solving Process

Mess

THE MESS: THE MESS:

How can we make our space look better?How can we make our space look better?

ClarifyClarify What data do we need in order to fully What data do we need in order to fully

understand our problem?understand our problem? Tool:Tool:

• 5W’s & an H5W’s & an H WhoWho WhatWhat WhereWhere WhenWhen WhyWhy HowHow

How might we reframe our original How might we reframe our original problem statement to make it more problem statement to make it more solvable, profitable, or innovative?solvable, profitable, or innovative?

REFRAME: How can we make our REFRAME: How can we make our space look better?space look better?

How can we create a “green” space?How can we create a “green” space?

In what ways might we construct our In what ways might we construct our space to promote productivity?space to promote productivity?

In what ways might we construct our In what ways might we construct our space to promote creativity?space to promote creativity?

How can we foster knowledge sharing How can we foster knowledge sharing through the use of open space design?through the use of open space design?

How can we eliminate the need for space?How can we eliminate the need for space?

IdeateIdeate

Go for quantity & explore a wide Go for quantity & explore a wide range of ideasrange of ideas• Tools:Tools:

BrainwritingBrainwriting SALESALE

Converge and chose the ideas that Converge and chose the ideas that have the greatest potentialhave the greatest potential

DevelopDevelop

Strengthen the ideas from multiple Strengthen the ideas from multiple angles – customer experience, angles – customer experience, features, marketing, sales, etc.features, marketing, sales, etc.

Tool:Tool:• PPCO –PPCO –

PlusesPluses PotentialsPotentials ConcernsConcerns OvercomesOvercomes

know WHATto do

know HOW to do it

Yes

No

No Yes

FogFog MovieMovie

QuestQuest Paint by Paint by NumbersNumbers

Implement: Project TypesImplement: Project Types

Eddie Obeng, All Change: Project Manager's Secret Handbook

CPS Fundamental ConceptsCPS Fundamental ConceptsAssumptionsAssumptions Everyone is creative in some wayEveryone is creative in some way

Creative skills can be learnedCreative skills can be learned

ThinkingThinking Divergent: Expansive - creating optionsDivergent: Expansive - creating options

Convergent: Analytic - making choicesConvergent: Analytic - making choices

ComponentsComponents Exploring the challengeExploring the challenge

Generating ideasGenerating ideas

Planning for actionPlanning for action

EssentialsEssentials An open-minded environmentAn open-minded environment

DiversityDiversity

ObjectivesObjectives New ideas and useful, profitable solutionsNew ideas and useful, profitable solutions

A different way of thinking about problems A different way of thinking about problems and challengesand challenges

RolesRoles Problem OwnerProblem Owner

FacilitatorFacilitator

Remember: When doing creative problem solving --

Notice interesting problems Defer judgment Question assumptions Seek diversity Look at ideas affirmatively