How Do Leaders Promote Innovation:Creating Dramatic Change and

Results

Enter your subtitle or main author‘s name here

YOUR LOGOPage 2

Innovation Agenda

Defining Innovation

Public Sector Innovation-Examples and Lessons Learned

Private Sector Innovation-Examples and Lessons Learned

Building Blocks for Creating Innovation:• Talent Management • Governance • Financial Management Changes Required• Leveraging Technology to create Innovation• Process Transformation• Cultural Change: Creating Collaboration and Intrapreneurship

How do we implement these great ideas?

1

2

3

4

5

What we plan on covering today:

YOUR LOGOPage 3

Defining Innovation -Creating a Common Understanding for Our Discussion

What Innovation is Not… Common causes of failure within the innovation process in most organizations can be

distilled into five types: Poor goal definition, Poor alignment of actions to goals, Poor participation in teams, Poor monitoring of results, Poor communication and access to information (O'Sullivan, David (2002). "Framework for Managing Development in the Networked Organisations". Journal of Computers in Industry).

What Innovation Is…

Innovation is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society.

Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better. (Wikipedia)

YOUR LOGOPage 4

Public Sector Innovation-Examples and Lessons Learned The Self-Funding Model

The self-funded portal model essentially eliminates the financial risks governments would have to undertake by transferring the up-front capital investment to a private sector partner.

The public sector organization then charges transaction fees on a small number of services to fund the operation of the overall portal. These fees cover the cost of paying the private sector partner for the initial investment as well as ongoing maintenance, upgrades and development of new self-service solutions.

Example:Texas

In 2010, Texas gov’t securely processed 22 million digital transactions valued at more than $4 billion. Its portal offers more than 1,000 online services and provides e-government solutions to 178 state and local agencies. It was developed and managed at zero cost to Texas through the self-funded approach.

Lessons Learned:

• Embrace the public-private partnership• Have a plan and expect to mature over time• Understand the paradigm and look at your portal as a service delivery platform and not an information center

YOUR LOGOPage 5

Public Sector Innovation-Examples and Lessons Learned “Big Data” - Obama’s competitive advantage in winning

the U.S. PresidencyAfter the voters returned Obama to office for a second term, his campaign became celebrated for its use of technology—much of it developed by an unusual team of coders and engineers—that redefined how individuals could use the Web, social media, and smartphones to participate in the political process.

A mobile app allowed a canvasser to download and return walk sheets without ever entering a campaign office; a Web platform called Dashboard gamified volunteer activity by ranking the most active supporters; and “targeted sharing” protocols mined an Obama backer’s Facebook network in search of friends the campaign wanted to register, mobilize, or persuade.

But underneath all that were scores describing particular voters: a new political currency that predicted the behavior of individual humans. The campaign didn’t just know who you were; it knew exactly how it could turn you into the type of person it wanted you to be. (MIT Technology Review December 2012)

Lesson Learned: “My kingdom for a horse”, King Richard III“My presidency for Big Data”, Mitt Romney, 2012

Dan Wagner, the chief analytics officer for Obama 2012, led the campaign’s “Cave” of data scientists.

YOUR LOGOPage 6

Public Sector Innovation-Examples and Lessons Learned

Cory Booker, Mayor of Newark-Innovation via Leadership

In 2008, Newark had its lowest murder rate since 1959. March 2010 marked Newark’s first murder-free month in over 44 years. As of April 1, 2010, the murder rate in Newark was the second best since 1941, and crime rates for aggravated assaults, robberies, carjacking, and shootings were also down for the first quarter compared to 2009.

 In addition to his crime-lowering initiatives, Booker both doubled the amount of affordable housing under development and quadrupled the amount under pre-development, and reduced the city budget deficit from $180 million to $73 million.( Time Magazine July 2009)

Mark Zuckerberg DonationIn July 2010, Booker attended a dinner at a conference in Sun Valley, Idaho where he was seated with  Mark Zuckerberg. Zuckerberg, who had no known ties to Newark, announced in September 2010 that he was donating $100 million of his personal fortune to the Newark school system.

Lessons Learned: Leading by example creates an organizational culture that can create miracles with virtually no resources, using social consciousness as fuel.

Booker at the 2011 Time 100 Gala

YOUR LOGOPage 7

Top 10 Innovative Companies for 2013 (Fast Company)

1. Nike- For a pair of revolutionary ideas and a culture of true believers.

2. Amazon-Speeding up the delivery of change

3. Square-a simple idea--enable credit card transactions on mobile devices

4. Splunk-For Bringing Big Data to the masses

5. Fab-online boutiques of design-centric products for such niches as foodies and pet lovers.

6. Uber-fuses tech with cabs

7. Sproxil-busting manufacturers selling fraudulent ingestible goods.

8. Pinterest-social scrapbooking site was dubbed the fastest-growing web service in history.

9. Safaricom-In Kenya, where more than half of citizens live on less than a dollar a day, medical care can be a far-off luxury. But local telecom giant Safaricom has built a vital bridge between doctor and patient. It launched Daktari 1525 in late 2011, a 24/7 call-in service that, for a small fee, connects callers one-on-one with a doctor.

10. Target-shrinking the big box, going local, leveraging mobile services to provide personal service

YOUR LOGOPage 8

Private Sector Innovation-Examples and Lessons Learned

The most successful companies encourage innovation in the workplace. For example, Google allows their staff to spend 30% of their time pursuing their own creative interests which has lead to innovative ideas such as Google Maps and Google Adsense, which have genuinely changed the way we live and made Google in phenomenon more than a search engine.

Lesson learned: giving time to employees to be creative can result in bottom-line benefits like new products or services.

YOUR LOGOPage 9

Private Sector Innovation-Examples and Lessons Learned

Innovation for funding a data-mining competition to reduce unnecessary hospital visits. It’s the Netflix Prize for health care.

Just as Netflix spurred the development of a more accurate predictor of movie preferences, Heritage is out to spark the creation of an algorithm that analyzes historical patient data and predicts how many days someone winds up in a hospital in a year.

Based on that information, health-care providers can work backwards, trying to prevent medical emergencies. The grand prize is $3 million for the winning team, but the benefit of reducing hospital stays could be in the billions.

Lesson Learned: These are capabilities that Canada ‘s Health Care System could dramatically benefit from

YOUR LOGOPage 10

Private Sector Innovation-Examples and Lessons Learned

For designing an online coaching platform to help vets graduate.

An online community and platform that coaches veterans through the process of preparing for college and the workforce,

Fidelis provides technological solutions (gamification, badges) to the tough problem of student retention for a demographic that struggles in the transition back to school and work. Fidelis will serve as virtual counselors for vets, from GED tests through their first jobs. They’re in discussions with Harvard University, Stanford University, and the Massachusetts Institute of Technology, among others.

Lesson Learned: Gaming, On-line Learning, and Social Media combined can retrain and re-educate supposedly “untrainable” citizens at a nominal cost.

YOUR LOGOPage 11

Building Blocks for Creating Innovation

How you hire, who you hire, how you motivate people , how do you create and propogate intellectual capital

Lead by Example, Create a Corporate Social Consciousness

Reward Collaboration and Entrepreneurial Behaviour

Recognize Results

Opportunities are endless to leverage technology to create innovative products, services, reduction in cost or cycle time improvements

Talent Management

Talent Management GovernanceGovernance Financial

Management

Financial Management TechnologyTechnology Process Transform-

ation

Process Transform-ation

Collaboration and Intrapreneurship

Collaboration and Intrapreneurship

Clearly defined goals, Actions in line with goals, organizational structure/business model supporting results, Results and the ability to measure them

Clearly Defined Perfomance Measurements, New paradigms for funding investment based on new business models, Flexibility with respect to compensating based on results

Obliterate non-value-add, redundant, and duplicative work

Look at speeding up “cycle” time from a customer perspective and cross-functional scope

YOUR LOGOPage 12

How do we implement these great ideas?

Eliminate manual processing unless it

represents unique intellectual capital.

Question everything….

Create clear-cut baselines and then

show measurable results

This is the most difficult and important piece of the puzzle. If you get it

right, you can create miracles.

Start with the end in mind. Strategy drives goals, structure, funding, behaviour, and results.

Without well-defined strategy and governance and all of the underlying building blocks in alignment, success is not possible.

Mobile Technology and Big Data are two of the most important innovations and yet they are under-utilized by private and public sector organizations.

Technology can reconfigure how, when, where, and even why you deliver your business.

Think Big, Start Small to create sustainable innovation…………..

YOUR LOGOPage 13

To improve Collaboration…..……we must:

•Share more•Ask more often•Make more information available•Search more often•Communicate more often•…..especially in groups

Findings and conclusions:

We do not know what we know……or even what we do not knowMany are still stuck in email and face to face meetingsLess that one third feel they have the right toolsProcesses are a bigger challenge than the toolsRemote and multi-location teams are here to stay

With improved Collaboration:

Better decisions and solutions, fasterHigher employee engagementHigher productivity and efficiencyLower costs and higher returns

The Case for Improved Collaboration -- Findings

YOUR LOGOPage 14

Path Toward Improved Innovation / Collaboration

Assessment of Current Status:

Processes

Strengths and Weaknesses

Available Tools and use thereof

Develop vision of desired state

Develop plan based on Pilot teams

Implementation

Measure, evaluate & adjust

YOUR LOGOPage 15

A Suggested Approach to Implementing Innovation in your Organization

Think Big….Start Small

1. Set-up an Innovation Office and appoint an Innovation Lead/Officer (depending on scope (line of business vs. enterprise).

2. Create a charter-strategy, objectives, scope, performance measures. Build a plan of implementation and make the Innovation Lead accountable for it.

3. Get some seed money approved-this will be used to do ground work/research which will feed subsequent business cases.

4. Pinpoint key opportunities and prepare supporting business cases to get funding.

5. Create an inter-disciplinary Advisory Steering Committee/Board comprised of Human Resources, Finance, Marketing, Sales, Customer Service/Channels, and IT.

6. Start educating people on what innovation means to your organization and tie it back into your business strategy. Hold lunch and learn sessions, brainstorming sessions, and formal training in innovation.

7. Start thinking about intrinsic/extrinsic reward systems that can be implemented quickly for innovative thinking and action.

8. Measure and track the benefits of innovative thinking/behaviour and determine a plan to propogate/replicate these successes in other areas.