Innovation in big, ugly MNCs
Post on 11-Aug-2014
5 SIGNS THAT THESE ARE THE INTRAPRENEURS YOU’RE LOOKING FOR! ERIC TACHIBANA@ ASIAN FINANCIAL SERVICES CONGRESS 2 QUESTIONS HOW CAN A SMALL COG IN A BIG MACHINE HAVE IMPACT? HOW CAN A LEADER CREATE A BIG MACHINE THAT AFFORDS OPPORTUNITY? 5 SUGGESTIONS / CLARIFY YOUR SCALE1 CLARIFY YOUR SCALE1 MOST FIRMS TREAT INCREMENTAL & DISRUPTIVE INNOVATION THE SAME Clarify YOUR SCALE 1 WHEN IN FACT, THEY’RE TOTALLY DIFFERENT Clarify YOUR SCALE 1 WHO YOU HIRE WHAT YOU PAY HOW YOU STRUCTURE THE ORG HOW YOU MEASURE YOUR RISK APPETITE YOUR PROCESSES YOUR POLICIES YOUR TIME FRAME Clarify YOUR SCALE 1 IF YOU MANAGE INCREMENTALLY IN A DISRUPTIVE MOMENT, Clarify YOUR SCALE 1 STEP ONE: CLARIFY WHAT YOU ARE REALLY AFTER SO THAT YOU MANAGE AGAINST THE Widen YOUR SCOPE 2 Widen YOUR SCOPE 2 In the real world, product innovation represents the minority Widen YOUR SCOPE 2 Yet because it is seen as sexy, it is what 99% of us fixate on Widen YOUR SCOPE 2 When there are soooooo many better, blue-ocean, profitability-impacting innovation opportunities Widen YOUR SCOPE 2 Process Brand Supply chain Manufacturing Legal Financial Human resource Policy Culture Structuring Acquisitive Widen your scope 2 IF ALL YOU SEE IS PRODUCT, YOU’RE PROBABLY MISSING THE BIG PICTURE Widen your scope 2 STEP TWO: PUT EVERYTHING IN PLAY Use all YOUR TOOLS 3 Use all your tools 3 CORPORATE R&D LABS ARE GOOD, BUT DEFINITELY NOT THE END ALL Use all your tools 3 CONSIDER DIVERSIFYING YOUR BUDGET TO DEVELOP OTHER WAYS TO Use all your tools 3 MISTAKES UNEXPECTED CROSS- TEAM SYNERGY ACQUISITIONS EXTERNAL ENGAGEMENT INTERNAL ACCELERATORS SPIN-OUTS Use all your tools 3 STEP THREE: USE EVERYTHING, EVERYONE, EVERYWHERE Get dirty4 Get dirty4 INNOVATION HAPPENS IN THE WAY WE DO THE LITTLE THINGS DAY TO DAY, NOT IN THE BIG STRATEGY AND VISION ARE CRITICAL Get dirty4 BUT SUCCESS LIES IN DAY-TO-DAY CULTURE AND VALUES Get dirty4 STEP FOUR: SETTING DIRECTION IS FINE, BUT IT’S MORE IMPORTANT TO GET Get dirty4 Be Integrated, holistic & iterative 5 Be Integrated, holistic & iterative 5 SPEAKING OF GETTING DIRTY, LEAN WORKS AS WELL FOR BIG FIRMS AS IT DOES FOR Be Integrated, holistic & iterative 5 JUST….BE LEAN ALREADY Be Integrated, holistic & iterative 5 AND STOP WITH THE BIG IDEATION PROGRAMS THAT LEAD NOWHERE OTHER Be Integrated, holistic & iterative 5 BE HOLISTIC Be Integrated, holistic & iterative 5 MAKE SURE YOU COVER YOUR LANDSCAPE & LIFE- CYCLE Be Integrated, holistic & iterative 5 STRATEGY INFRASTRUCTURE CULTURE RESOURCING INCULCATEIDEATEINCUBATEINNOVATE Have a plan for each quadrant Operating models in the wild: A QUICK CASE STUDY VISION Be recognized by clients & staff as a innovation leader in our market space WHERE WE WANT TO GO HOW WE GET THERE OUR COMPASS Leverage both incremental and disruptive innovation to drive client delight, excite our brand, develop new revenue streams, slash the cost base, and inspire and engage employees APAC Innovation Program Strategic Intent (2018) 37 We define Innovation as the commercialization of ideas. Our Innovation may be small and incremental or large and game changing. Innovation is often unsuccessful, and failure must be encouraged too. While it may be shepherded by a small group of designated evangelists, innovation must be owned by everyone at all levels or it will not become part of the firm’s DNA. KEY OBJECTIVES • Reboot operating model to facilitate & govern process • Make a real, visible commitment – marketing messages & budget / resource allocation • Develop and launch controlled Ideation program • Back 3-5 internal ventures • Develop open innovation program, focusing on FinTech start-ups VALUES Engagement, Commercial, Disciplined Ensure a fertile landscape for innovation STRATEGY INFRASTRUCTURE CULTURE RESOURCING GOALS Define and communicate a clear vision of why innovation matters, where we aspire to be because of innovation, and what success means tangibly. Agree on, indoctrinate, and live out the values that drive innovation. Agree on, rollout, and monitor a practical tactical mission and plan that will help us deliver our vision. ACTIVITIES • Define Strategic Intent (Vision, Mission, Values) aligned to platform and business goals • Define & execute Comms Plan • Align operational tactical plans to strategy • Measure / monitor strategy execution GOALS Ensure that the environment is as conducive to innovation as possible. ACTIVITIES • Budget and resourcing allocation • Innovation Labs • Ideation & Collaboration Tools • Incentives & other policies • Physical environment GOALS Create a culture that encourages innovative behavior. ACTIVITIES • Identify and coach out derailing behaviors • Formally celebrate / communicate success & failures • Propagate stories / legends GOALS Ensure that we have enough intrapreneurs with the right diversity of capabilities and in the right organizational roles (seniority & coverage) to instigate and drive change and remove staff who would derail the program. Also, ensure that we have the right partner set and sensing processes to drive innovation from the outside. ACTIVITIES • Organizational Design, role definition, & diversity strategy • Sourcing • Screening • Induction • Training • Mobility • Pruning Support the whole innovation lifecycle 39 INCULCATE IDEATE INCUBATE INNOVATE GOALS Use Culture, Staffing, Comms, Environment, & Infrastructure to drive day-to- day innovative thinking and behavior by empowering employees. They can do it. They have authority to do it. They have the space and time to do it. They have the tools and training to do it. They have the organizational tolerance of failure to do it. ACTIVITIES • Innovation Culture stewardship • Coordinate with staffing & leadership dev • Innovation & collaboration tools identification & deployment • Reporting & other communications • Intrapreneurial coaching & mentorship support GOALS Ensure a fluid, rapid flow of ideas from inside and outside, from top to bottom, and across the organization’s business lines and functions. Make it easy for anyone to find out to whom new ideas should go. Provide an infrastructure that allows the organization to ponder, capture, share, filter & qualify good ideas and to save ideas that are good, but not ready to incubate. ACTIVITIES • Manage ideation & collaboration tools & programs (and archive) • Problem statement definition & qualification • Drive External Innovation (competitors, customers, universities, wild cards, etc) program, linkages, and agreements GOALS Create space, budget, and project management support to convert good ideas into practical prototypes and pilots. Track, measure, and monitor projects and spend to ensure efficient and effective deliverables. ACTIVITIES • Manage R&D Labs • Manage skunk works projects & internal ventures • Lobby for and manage venture budget • Execute stage-gate and governance processes to qualify and monitor venture projects GOALS Transform the right set of prototypes into commercial change. Launch new products to market or implement organizational change on a wide scale. ACTIVITIES • Facilitate front-to-back business sponsorship from ideation stage through commercialization) • Oversee productionization / commercialization and change management • Internal sales and marketing • Track business benefits How we do it – business transformation plan (sample) 40 STRATEGY INFRASTRUCTURE CULTURE RESOURCING INCULCATEIDEATEINCUBATEINNOVATE INITIATIVES Project A Q4 LL Project B Q4 LL Project C Q4 AR INITIATIVES Project J DONE ET INITIATIVES Project S Q4 ET Project T Q4 ET INITIATIVES Project N DONE ET Project O Q4 ET INITIATIVES Project H DONE ET Project I Q4 ET INITIATIVES Project D DONE SP INITIATIVES Project E DONE SP INITIATIVES Project K DONE SP Project L DONE ET Project M Q4 ET INITIATIVES Project P DONE PS INITIATIVES Project G DONE KY INITIATIVES Project F Q4 ET INITIATIVES Project Q DONE PS INITIATIVES Project W DONE ET INITIATIVES Project U DONE ET INITIATIVES Project R Q4 ET INITIATIVES Project V Q4 PS Clarify your scale Widen your scope Use all your tools Get dirty Be integrative, holistic, iterative Any Questions? 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