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Innovation Excellence
Elements to build the future of organizations
Kienbaum Management Consultants August 2016
2
New world
Old world Today
Businesses must combine continuous innovation and optimization in times of
agility and rapid transformationsS-Curve description of innovation
Adapted from F. Malik: Navigating into the Unknown, 2016
Dev
elo
pm
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of
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Time
Business Case for Innovation
Transformations & innovations today are increasingly rapid and more common and thus require proactive
models and sophisticated approaches to maintain or increase success rates.
» Companies with an innovation culture & strategy show on average an 22 % higher return of R&D (Booz & Company)
» Innovation attracts future talent: 66 % of Millennials state that innovation is a key ingredient for an employer choice (Deloitte study 2015)
» Creates Revenue Growth: Innovative companies show a CAGR that is 60 % higher than the overall S&P Global 1200 (S&P Global 2011)
» Besides operative data a strategic dimension needs to be developed to make decisions
» Innovation is of central strategic importance as transformations are abrupt and market changing
» If you see the operative necessity to innovate, it is too late to act effectively
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Sources and triggers of innovation
Data
Technology
Customer
Operational
» Operational: Innovation imperative driven through the internal, operational need to improve
» Data: Observations from within the organization find innovation opportunities that would
improve existing processes, systems, products, and interfaces
» Technology: Technological advances create innovation drivers through asset improvements
» Data: Data mining of external sources to identify market opportunity or competitive
challenges that may be applied to internal operations
» Technology: Technology change in supply chain require innovations from internal processes
» Customer: Innovations drawn from changing customer or market demands
Innovation Triggers Internal
External
Innovations can be necessitated from triggers both internally and from the
external operating environment
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Innovation Tools and Methodologies
Cooperation & Collaboration
Innovation Strategy
Promoter & Team Concepts
Innovation Performance Management
Innovation Training & Development
OperativeStrategic
A successful approach toward innovation excellence needs to be holistic,
integrated and flexible while connecting people with the organizationApproach overview
Source: Kienbaum
Peo
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Org
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n
Ch
ang
e &
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Man
agem
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Innovation Processes
Management Control &
Communication System
Innovation Leadership
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Moving towards a holistic and modern approach identifies and maximizes
innovations in your organizationKienbaum Model: Elements of an integrated and holistic innovation process (1/2)
1. Align your innovation strategy with corporate strategy and follow a strategic approach that leaves behind
hindrances, optimizes current processes, and focuses on creating new linear and non-linear innovations.
2. Maintain balanced innovation leadership for a consistently stable innovation journey, creating a culture of
discipline. Ensure team members are content with agile culture, a vital value-adding component.
3. Develop processes for the entire organization on how to streamline innovation from idea generation to
implementation. Utilize fluid agile components, a stage gate process, and a robust delivery process.
4. Facilitate a creative environment with innovation tools to best stimulate employee creativity and
innovative mindset, such as DfSS and Design Thinking that bring value to the entire organization.
5. Ensure integration and multi-level alignment of systems, track innovation and measure significant KPIs.
Define success of innovation an ensure adherence to processes and strategy.
Innovation
Strategy
Innovation
Processes
Innovation Tools & Methodologies
Innovation
Leadership
Management Control & Communication System
6
Moving towards a holistic and modern approach identifies and maximizes
innovations in your organizationKienbaum Model: Elements of an integrated and holistic innovation process (2/2)
6. Encourage extensive collaboration across cross functional departments, retaining all ideas, concepts,
and insights from employees and leveraging the collective expertise an a powerful asset.
7. Develop employee skills through innovation tools and training concepts. Ensure employees are
constantly obtaining training and continuously learning.
8. Evaluate team-based performance based on innovation and reinforce behaviors consistent with an
innovative culture where failures are accepted and lessons learned improve future endeavors.
9. Provide consistent and comprehensive training and development opportunities for employees across all
functions to foster a creative culture and innovative mindset.
10. Ensure the organization is ready to absorb innovation with Kienbaum’s Readiness Check. Assess current
state and develop actionable plan regarding innovation strategy, processes, and tools.
Innovation Training & Development
Innovation Performance Management
ChangeManagement
Cooperation &
Collaboration
Promoter & Team Concepts
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Divide old from new: Optimization of the current business needs
to be separated from new creationsInternal strategy and focus
Create the future
Manage the present
Forget the past
Potential Strategic Solution
Inte
rnal
Inn
ova
tio
n Identify products or processes that are not profitable or beneficial,
identify customers or activities that are dragging down the organization
Through strategic tools, selectively forget the past, letting go of values
& practices that fuel the current business but fail the new one
Learning precedes innovation: Innovate and invent the future
maintaining simplicity to counterbalance growing complexity, implement
design thinking principles
1
2
3
» Identify where and how to focus the innovation efforts and resources
» Build innovation capabilities and structures
» Align internal and external factors for a holistic and fundamental approach
Innovation Strategy
Inn
ova
tio
n F
ocu
s
Product Innovation
Process Innovation
Business Model
Innovation
Customer Operations Strategic
Based on the book “The Three-Box-Solution” by Vijay Govindarajan, 2016
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Great ideas alone are not enough – the organization as a whole
must be ready to absorb innovation for a robust processProcess from idea generation to implementation
» ....
Idea Generation Market Launch
» Generate, identify, and
prioritize ideas
(incremental and
disruptive),
» Evaluate methods driving
innovation (internal,
operational, customer,
data)
» Implement and handover
innovation
» Full and integrated
product & market launch
» Post-implementation
review and continuous
improvement
Co-operational Concepts Innovation CultureInnovation StructureInnovation Strategy
Innovation Process
Creativity
Generating new ideas
Innovation
Implementing new ideas
Innovation Stage Gate Process
» Teams or individuals select top projects & transform the
idea using tool driven, stage gate process
» Self management promoting method that can be applied to
processes, systems & procedures
» Minimize planning in the early stages with a fluid Agile
team-based approach
» During each development stage implement solution
focused mindset of Design Thinking
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Innovation tools and methodologies provide a structured approach
innovation process and strategy deploymentInnovation toolbox & tool deployment
Innovation Toolbox Example of Innovation Tool Deployment
» Innovation Excellence utilizes numerous tools
and methodologies to ensure structured
ideation and implementation, such as:
• Design for Six Sigma (DFSS)
• Design Thinking
• Catalyst Workshop
• Big Data Innovation through CRISP-DM
» Training is vital for the innovation tools,
allowing for understanding of the process
» The innovation strategy dictates the
importance of specific factors, such as speed
of innovation or required investment
Innovation Tools & Methodologies
The tools are selected and deployed in a way best suited for the organization, strategy, and teams involved.
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Open innovation networks add tremendous value as they leverage
ideas & innovation assets from outside sourcesSharing, learning & connecting through an Open Innovation Network
Remarks
» Grow the organization's innovation community where
diversity is key, which is best achieved through leveraging
relationships from open innovation networks
» Avoid challenges of isolated internal teams that may be
too small to reach their full potential, limiting innovative
solutions
» Build the bridge between the organization's core innovation
team(s) and outside influencers and peers
» Select innovation partners that show consistent positive
collaborative innovation behaviors
» Create cross functional teams that pool collective
knowledge and expertise from different areas
Learning Institutes
• Universities• Research institutes• Other academic
institutions
Knowledge Transfer
• Technology labs• Consultants,
Engineers• Conferences
Market Forces
• Customers• Suppliers• Competitors• Shareholders
Government
• Patent Offices• Contract Labs• Research Grants
Innovation Company
Innovation Network
Cooperation & Collaboration
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Integration and multi-level alignment of fundamental systems
determine the success of open innovation practicesPersonnel and cultural influence are underlying factors for sustainable and value-added results
Remarks
» Define innovation in an actionable way, develop steps and
measure through a monitoring and reporting system
» Track ROI in the form of
• “speed of learning”
• “the existence and level of a failure culture”
• mood of teams and individuals
• other KPIs like innovation rate, number of patents, etc.
» Uncover innovation & growth opportunities in all areas of
the organization
» Ensure completeness of the innovation process and
implementation without disrupting the organizational structure
» Maintain a culture of continuous improvement of your
innovation system & efforts
Plan
Check
Act
DoHigh
High
Autonomy
Alig
nm
ent
Low
Micro-management
Conventional
Chaos
Agile
Management Control & Communication
System
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Empowered Single Innovation Unit
Once the right people are selected for the right teams, the
structure around them super charges their work processInnovation units and team concepts
Agile Teams and Promoter ConceptExample of a conceptual team approach
High
High
Autonomy
Alig
nm
ent
Low
Micro-management
Objectives are not clear but specific instructions are given
Conventional
The goal is givenbut so is the way to achieve it
Chaos
Neither the goals norany tasks are determined
Agile
The vision is clear and people contribute the way to get there
» Work quickly & autonomously, change on demand,
and provide quick iterations and review of work
» Act within a general structure with ability to change
and adapt as needed
» Any team member can work with any other on a
smaller sub project
Agile Innovation
Team
PowerPromoter
Relationship Promoter
Expert Promoter
ProcessPromoter
Gets resources & removes obstacles
Ensures team is aligned with other units
Acts as a knowledge expert on the topic
Makes sure processesare followed & team is on track
Promoter & Team Concepts
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Innovation performance evaluation and management play an
important role in reinforcing the culture of innovationInnovation performance management development
Value-based Team Evaluations
» Performance evaluation and management is based
around metrics that align with the innovation strategy
» These metrics should emphasize beliefs that influence
behaviors & activities that are consistent with the
innovation culture and values
» Failures are accepted, provided they offer learnings and
takeaways that improve future endeavors
» Team evaluations are more effective than individual
assessments
» Encourage engagement in innovation throughout the
organization
Innovation Culture Innovation Values
Innovation Metrics
Innovation Strategy
Innovation Units or Teams
Innovation Hierarchy
Innovation Performance Management
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Innovation training & development fosters a creative culture and
builds a competitive advantage that drives growthInnovation Training & Development
The Power of Innovation Culture Development
» Empower employees and teams to be creative, building on
skills and creating an open & innovative mindset
» Set up agile training networks targeting staff across all
functions and facilitate regular brainstorming sessions
» Facilitate external trainings to enhance employee skills when
new knowledge cannot be developed internally
» Develop employees to be trainers as well as trainees with
proven, effective and powerful tools & techniques
» Create opportunities to maximize interaction in a team
environment
Source of Innovations and Ideas
Innovation Training & Development
Traditional top-down approach
Organization wide approach
Instill innovation training culture
Develop employees as trainers
Agile Innovation Training & Development
Support top-down ideas
Encourage innovative thought leaders
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Select leaders for a stable innovation journey that facilitate an
agile & continuously innovating cultureLeading Innovation Principles
Based on the book “The Three-Box-Solution” by Vijay Govindarajan, 2016
Balanced Innovation Leadership BehaviorCreate a stable innovation journey
» Develop discipline of selectively forgetting the past that
will refrain from creating the future
» Challenge all issues and discover opportunities; taking
risks is important and often underestimated
» Optimize current processes while simultaneously
developing new innovative processes
» Measure and decide on team happiness and learning
speed to better build an agile culture
» Balance and manage all leadership components for a
continuous and stable journey
Balance your culture and assess your leaders, including yourself.
Innovation Leadership
Avoid Traps of
the Past
Be Alert to
Weak Signals
Experiment &
Learn
Build the
Future
Every Day
Practice
Planned
Opportunism
Exert proactive
control over
unpredictable
situations
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» Innovation strategies are only rudimentarily developed
» Management incentives not set up to reward innovation
» Focus on past success rather than future challenges
» Unwilling to learn from past failures
» No brainstorming or creative thinking process
» Organization not ready for change
Innovation managements requires constant transformational and
change efforts in order to be sustainable and effective Internal & External change drivers for Innovation
Change Management
» Revenues and costs
» Employees
» Increasing complexity
» Risk Management
» Market demands & customer
» Customer competitive advantage
Internal change drivers
External change drivers
» Increasing competition
» Customer Demands
» Globalization
» Technology
» Policy & legislative initiatives
» Market environment & complexity
Obstacles to Innovation
ContinuousImprovement
Sustainability
Implementation
Usage
Understanding
Compliance
Installation
Awareness
Behavioral Change
Cultural Change
Procedural Change
Change Process Steps
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Determine the starting point with the Innovation Readiness Check
and determine the roadmap with CatalystInnovation Readiness Check & Catalyst Workshop
» Use the collective intelligence of the organization to determine
the future to be state with a one day Catalyst workshop
» Identify the biggest obstacles to innovation within the
organization via “Liquid Democracy”
The Readiness Check will determine the current and future states of innovation within your organization. When
appropriate level has been reached, a Catalyst workshop guides you to the desired state.
» Check the current state of the organization on innovation
strategy, processes, systems, tools, leadership and people
» Identify shortcomings within innovation organization and
assess level of development
Flexible,
adaptable,
integrated
solution
Liquid Democracy
Quick Solutions
Collective Intelligence
Implementation 1st Step
Innovation Readiness Check Catalyst Workshop
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Value addition comes from different aspects arising from the combination of
Kienbaum's experience and the organization’s specific expertiseValue-added for organizations
Extensive industry experience from Kienbaum and your organization, combined with our Innovation
excellence experience leads to a best practice approach.1
As an experienced partner for strategic re-orientations of organizations, Kienbaum is able to
positively challenge the current innovation organization and shift to an improved, adaptable one.
The holistic approach, which also considers the HR aspects, e.g. by taking into account the performance
management and leadership of the innovation organization, supports a successful implementation.
Implementing innovation excellence means a major change to the organization, which will be supported by
Kienbaum, with a deep understanding of change processes in organizations.
The flexible, implementation oriented approach of Kienbaum helps organizations to focus on the right
things within the management system.
A deep understanding of the specifics of the business makes sure that the concept generated is
accepted by the management and the relevant people within the organization.2
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Eric M. LavellePrincipal Phone: +1 843 804 0020Fax: +1 213 805 5337Mobile: +1 843 804 [email protected]
Dr. Andreas NordheiderConsultantPhone: +49 211 96 59186Fax: +49 211 965 9335Mobile: +49 173 920 [email protected]
Rialda IsovicConsultantPhone: +1 404 643 0230Fax: +1 213 805 5337Mobile: +1 404 643 [email protected]
Kienbaum Consultants Inc.Contact information for US Kienbaum Consultants
Contacts
Kienbaum Consultants Inc.2300 Lakeview Parkway, Suite 700 Alpharetta, GA 30009 USA
Address
www.kienbaum.com