Post on 18-Jul-2015
transcript
BEING INNOVATIVE
Andrew Maxwell Ph.D.
Feb 11th, 2015
• Reputation for innovation1
• % new products in last 5 years2
• Number of patents3
How Do You Measure Innovation?
Output measures don’t guide performance improvement
Improvements in performance require changes in the way people behave and make decisions, including:
• Changing current procedures
• Developing new organizational structures
• Abandoning existing customers and suppliers, and working with new ones
• Modifying incentives, compensation and recruitment
• Changing the company culture (and attitude to risk)
What is the barrier to innovation?
Innovation killers
1. The accepted wisdom of annual budgets –opportunities don’t arrive according to a plan
2. The need to clearly specify anticipated outcomes –innovation is really about incomplete contracts
3. Quality improvement process applied to everything –innovation is about doing different things
4. Lean systems with no slack –innovation require experimentation (and failure)
5. Clearly defined roles and responsibilities –innovation happens with cross functional teams
This is not what you learn in Business School5
Maxwell’s laws of innovation inertia
1. There is a natural tendency for organizations to keep doing what they’re doing and resist changes. In the absence of a force, they will continue to do what they’ve always done.
2. Larger organizations require more force to change what they are doing than smaller organizations.
3. For every force there is a reaction force that is equal in size, but opposite in direction. When someone exerts a force on an organization, he or she gets pushed back in the opposite direction equally hard.
6
Senior management molded by their environment and experience: where speed/risk taking viewed as negatives
Corporate approach to risk management: formal processes, established relationships and contractual controls
Unintentionally increases risk of being disrupted: by slowing down decision making, discouraging risk taking, inhibitingnew partnerships and stifling innovative opportunities
Companies previous success inhibits their likelihood of adopting innovative ideas
Performance systems are designed for incremental short term not disruptive long term performance
Changing organizational design to innovate is challenging when
Innovation requires:
• Collaboration across functions
• Working with new partners
• Two way, open, knowledge exchange
• Speed of decision making
• Willingness to accept failure
Innovation is like pornography …
I know it when I see it …. Justice Potter Stewart
“..willingness to be vulnerable to actions of another party, without direct means of controlling their behaviors”
reduces concerns about misappropriation or misuse arising from knowledge exchange
Accelerates knowledge sharing, enabling rapididentification of relevant opportunities
reduces transaction and verification costs associated with knowledge exchange
Speeds relationships by facilitating incomplete contracts with multiple partners
facilitate higher rates of knowledge absorption, increasing likelihood of use / resource deployment
The relationship lubricant – Trust:
Is a context dependent staged process over time
Trust evolves due to individual behaviors influenced by:
Individual personality; previous relationship experience
Corporate culture, processes and organizational design
Initial relationship trust based on proxy(i.e. background)
Manifestations of dyadic trust behaviors influence trust level:
One party displays trust behavior, reciprocated by other
Each behavioral manifestation audited by other party
Specific trust behaviors build, damage or violate trust
Achievement of specific trust levels allow relationship to be entered, extended and developed over time…
Certain controls enable trust development: while others make it more difficult for trust to develop
Becoming an intuitive trust auditor:
Behavioral manifestations that build trust
Dimensions
Tru
stw
ort
hy Consistency Displays of behavior that confirm previous promises
Benevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Dimensions
Tru
stw
ort
hy Consistency Displays of behavior that confirm previous promises
Benevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Cap
abili
ty Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Dimensions
Tru
stw
ort
hy Consistency Displays of behavior that confirm previous promises
Benevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Cap
abili
ty Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Tru
stin
g Disclosure Shows vulnerability by sharing confidential information
Reliance Willingness to be vulnerable through task delegation
Receptiveness Demonstrates ‘coachability’ and willingness to change
Dimensions
Tru
stw
ort
hy Consistency Displays of behavior that confirm previous promises
Benevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Cap
abili
ty Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Tru
stin
g Disclosure Shows vulnerability by sharing confidential information
Reliance Willingness to be vulnerable through task delegation
Receptiveness Demonstrates ‘coachability’ and willingness to change
Co
mm
un
icat
ion
Accuracy Provides truthful and timely information
Explanation Explains details & consequence of information provided
Openness Open to new ideas or new ways of doing things
Manifestations
Build Trust Damage Trust Violate TrustTr
ust
wo
rth
y ConsistencyDisplays of behavior that confirm previous promises
Shows inconsistencies between words and actions
Fails to keep promises and agreements
BenevolenceExhibit concern about well-being of others
Shows self-interest ahead of others’ well being
Takes advantage of others when they are vulnerable
AlignmentActions confirms shared values and/or objectives
Exhibits behaviors sometimes inconsistent with declared values
Demonstrates lack of shared values and willingness to compromise
Cap
abili
ty
Competence Displays relevant technical and/or business ability
Shows lack of context specific ability
Misrepresents ability by claiming to have non-existent competence
ExperienceEvidence of relevant work and/or training experience
Relies on inappropriate experience to make decision Misrepresents experience
JudgmentConfirms ability to make accurate and informed decisions
Relies inappropriately on third parties or erroneous information
Judges others without giving them the opportunity to explain
Tru
stin
g
DisclosureShows vulnerability by sharing confidential information
Shares confidential information without thinking of consequences
Shares confidential information likely to cause damage
RelianceShows willingness to be vulnerable through delegation
Reluctant to delegate, or introduces controls on subordinates’ performances
Is unwilling to rely on representation by others, or dismisses participation
ReceptivenessDemonstrates ‘coachability’ and willingness to change
Postpones implementation of new ideas or deflecting
Refutes feedback or blames others
Co
mm
un
icat
ion
AccuracyProvides truthful and timely information
Unintentionally misrepresents or delays information transmission
Deliberately misrepresents or conceals critical information
ExplanationExplains details and consequence of information provided
Ignores request for explanations Dismisses request for explanations
OpennessOpen to new ideas or new ways of doing things
Does not listen or ignores new ideas
Shuts down or undermines new ideas
Behavioral Trust Dimensions
Shakespeare
To trust or not to trust that is the question
Whether it is nobler in the mind to innovate
and develop relationships that bring fortune
Or rather to introduce contracts and controls
that by opposing limit them
Becoming
Innovative
One Behavior
at a time
Why is innovation like porn
• Porn stimulates innovation: it brought us streaming video, credit-card verification, Web referral rings and Flash technology
• The internet is 95 percent porn and spam”― Margaret Atwood
• Its fun and involves
Quotes
• M. A. Rosanoff: "Mr. Edison, please tell me what laboratory rules you want me to observe."Edison: "There ain't no rules around here. We're trying to accomplish something!” — Thomas Edison
• "It's easy to come up with new ideas; the hard part is letting go of what worked for you two years ago, but will soon be out of date.” — Roger von Oech
• "Creativity is not the finding of a thing, but the making something out of it after it is found.” — James Russell Lowell
• "There is no use trying,” said Alice. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.” — Lewis Carroll