Presentation on theme: "im21: innovation/measurement/21st century"— Presentation transcript:
1 im21: innovation/measurement/21st century Creativity ≠ Innovation How Organizations Can Really Make Innovation HappenBarbara KivowitzSenior Partnerim21: innovation/measurement/21st century
2 Innovation & Financial PerformancePerformancein % PointsInnovation“The greater the amount of innovation, the greater the marketand financial performance” Soo, Devinney, Midgley & Deering (2002)
3 What have innovative companies done? 3M – corporate goal of achieving 30% of sales from newer products. "3M 15% Rule" allows employees to spend 15% of their time on projects of their own choosingGoogle – holds 8 brainstorming sessions a year with 100 engineers. All engineers can dedicate 20% of their time to pet projectsToyota – OObeya = big, open office. Brings together people from all parts of the company every month to discuss design, costs, mistakes, bottlenecks. Has saved Toyota millions of dollarsP&G - shifted from R&D as the innovation pipeline to C&D, "Connect and Develop.” P&G acquires 50% of its innovations outside the company, resulted in 3 successful new products in the first 6 monthsWhirlpool - group of employees serve as innovation consultants to assess best ideas and strategies to market. Employees submit ideas via a corporate-wide virtual bulleting board. A third of senior leader pay is tied to innovation. Whirlpool had record results in 2005GE – GE WorkOut – 60% of projects initiated in this creativity program become successful products
4 Customers don’t buy innovations They buy solutions to problemsRemember the Segway
5 Defining Our Terms Creativity Innovation Creativity is thinking up new things.Innovation is doing new things.
6 CREATIVITYGeneration of new & unusual ideasDivergent thinkingQuantity driven process
7 4 Rules of Idea Generation Withholding judgmentFreewheelingGenerating a quantity of ideasHitchhiking
10 Barriers to Creative Thinking Creativity is the ability to modify self-imposed constraints.Functional fixednessPrevious experienceExcessive faithIntolerance of ambiguityParadigmsEmotionandAssumptions
11 The Astronaut Pen (urban legend #1) During the space race in the 1960’s NASA was faced with a major problem. The astronauts needed a pen that would work in zero gravity. NASA spent $1.5 million developing the “Astronaut Pen.” It enjoyed minor commercial success back on Earth.The Russians were faced with the same problem.They used a pencil.
15 A radio conversation with the US Chief of Naval Operations (urban legend #2) NAVY: Please divert your course 15 degrees to the North to avoid a collisionCIVILIAN: Recommend you divert YOUR course 15 degrees to the south to avoid a collisionNAVY: This is the captain of a US Navy ship. I say again, divert YOUR courseCIVILIAN: No, I say again, you divert YOUR courseNAVY: THIS IS THE AIRCRAFT CARRIER ENTERPRISE. WE ARE A LARGE WARSHIP OF THE US NAVY. DIVERT YOUR COURSE NOW!CIVILIAN: This is a lighthouse. Your call.
16 Exercise:How do you spell your nameHow else could you spell it?
18 The process of turning ideas into money INNOVATION:The process of turning ideas into moneyImplementation of great ideasConvergent thinkingQuality driven processImplementation of great ideasConvergent thinkingQuality driven process
21 Can you help TiVo? Problems: TV networks & advertisers hate TiVo’s ad skipping functionalityTiVo loses advertising revenueCustomers miss ads that could actually be useful
22 “Of all the core functions of most companies, innovation has the most competitive value —and is managed with the least discipline.” Booz Allen Hamilton
23 Creative Problem Solving Process DataReframeComplete Solution SetIdea ClustersProject PlanRisk AnalysisCLARIFYIDEATEDEVELOPIMPLEMENTPinpoint theproblem to solveCome upwith newideasRefine ideasinto strongsolutionsPut the planinto actionStakeholder PlanMess
24 THE MESS: How can we make our space look better?
25 Clarify What data do we need in order to fully understand our problem? Tool:5W’s & an HWhoWhatWhereWhenWhyHowHow might we reframe our original problem statement to make it more solvable, profitable, or innovative?
26 REFRAME: How can we make our space look better? How can we create a “green” space?In what ways might we construct our space to promote productivity?In what ways might we construct our space to promote creativity?How can we foster knowledge sharing through the use of open space design?How can we eliminate the need for space?
27 Ideate Go for quantity & explore a wide range of ideas Tools:BrainwritingSALEConverge and chose the ideas that have the greatest potential
28 DevelopStrengthen the ideas from multiple angles – customer experience, features, marketing, sales, etc.Tool:PPCO –PlusesPotentialsConcernsOvercomes
29 Implement: Project Types Paint byNumbersknow WHATto doknow HOW to do itYesNoQuestFogMovieEddie Obeng, All Change: Project Manager's Secret Handbook
30 CPS Fundamental Concepts AssumptionsEveryone is creative in some wayCreative skills can be learnedThinkingDivergent: Expansive - creating optionsConvergent: Analytic - making choicesComponentsExploring the challengeGenerating ideasPlanning for actionEssentialsAn open-minded environmentDiversityObjectivesNew ideas and useful, profitable solutionsA different way of thinking about problems and challengesRolesProblem OwnerFacilitator
31 Remember: When doing creative problem solving -- Notice interesting problemsDefer judgmentQuestion assumptionsSeek diversityLook at ideas affirmatively