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Culture of Innovation Jay Rao Professor
Culture 6 Building Blocks 4 © Jay Rao
Culture of Innovation 6 Building Blocks & 18 Factors 5 © Jay Rao & Joe Weintraub
Culture of Innovation 6 Building Blocks, 18 Factors & 54 Elements © Jay Rao & Joe Weintraub
Meritocracy Team >> Individual Safety Forgiveness than Permission Dedicated Team Facilitator Boss M/C Shop Constraints $, Time Needs – Safety, Checkout,… # of Prototypes Customer feedback Encourage wild ideas Build on wild ideas Do not criticize Stay focused Open Fun, Playful Flat Direct contact with customer Anthro research Voting Brainstorming Rapid Prototyping © Jay Rao
IDEOs Process: Opportunity Identification Development Capture
Learning Experimentation Accept failure Long term orientation A-Team Venture Capitalists Customer ideas Collective IBM expertise Big $1 B hits Businesses & not technologies Milestones for progress Spend time on emerging businesses I dont know & will learn Discover, Learn, Adjust Support and Coach Humor Celebrate Failure Security Small pilots Market experiments Proof of Concept Quick Kills Slow to Staff-up © Jay Rao
10 Lattice Enterprise 250 people/plant Minimal Bureaucracy Patient about success Sharing/Collaboration Employee Owned Leaders have followers Judged by peers and team Compensation = Contribution Real, Win, Worth Idea marketplace Experimentation Gift economy Support mentoring Break up to remain small Commitments, not assignments Act with utmost integrity Self motivated Initiative Recruit Followers Personal relationships Direct 1to1 communication Freewheeling small R&D task groups PTFE knowledge Free dabble time Support for experiments Make money, have fun Free spirits All are leaders High trust, Low fear © Jay Rao
Pathologically Obsessed High-Touch Collaboration Continuous Learning Speed Service is Sales Enabler Guilty until proven innocent CEO 600 customer calls/yr Everybody Makes Customer Calls Problem Solver, Responsibility, Ownership Preemptive Phone Home Tech. Customer interaction skills training Customer Councils & EMC World One level of service to all customers Collective Expertise to Solve Problems CEO 500 customer visits in 10 yrs Executives very tactical No heroes in the field Team players Embed yourself into customers lives Single level of service 8hr problem escalation to CEO Hiring & Training Processes TCE Executive Summit 80% of sales to repeat customers 99% customer retention rate Industry experts accolades Stealing market share Metrics, incentives aligned to CC © Jay Rao
Youngest Fleet Highly trained Crew Disciplined Leadership Management Expertise Told what to do No cliques Lots of rules Follow procedures Stringent Hiring Train, Train, Train Monitor & Feedback Mandatory retirement Top Down Rigid Paranoid Structured Best Customer Experience Young, Fresh, Youthful Worldly & Sophisticated Operational Excellence Awards Best of the Best #1 in the World High Profitability © Jay Rao
Responsibility, Accountability Meaningful Relationships Wellbeing, Trust Ownership, Inclusive Measured on Stability Measured on Innovations Mutual Fun end points – cost, learning Bonus for community service Engaged even after retirement Low turn-over Meaningful relationship Free Non-threatening Enjoying, Social Belonging, Caring Community, Homely Seniors assigned to Guideposts Community, Mutual Fun Adventure Capital Community service time Knowledge base (who?) Quiet Genius Hiring Welcome parties Social period Mutual Fun Software One Year Forcing Function 2-people rule Employee newsletter Upbeat Openness Optimistic Collaborative Participation How you think Volunteer Coaching © Jay Rao
14 Flat Org. Open door Mgt. by walking around Sharing Fair & Fearless Self Mgt. / Self Supervision High Productivity High Quality Profit Sharing Low Cost Producer High Equipment Utilization Constant Monitoring Feedback Modular work Lots of communication Self motivated Hard work Initiative ENTREPRENEURIAL Management Talent Home grown talent Technology expertise TRUST Belief in individuals Reward for performance Egalitarian Pride © Jay Rao
Fun, Weird Lifestyle High Energy Ownership No Door Build your own workspace Family – Coworkers socialize Customer Obsessed Employee Happiness Learning = Energize, Engage, Enable Trust you will make the right decision Purpose, Not Profit Long Term Focus Team Lots of opportunities to Learn Training Courses Customer Service = investment not expense Free Food Positive Emotional Connection Humility Honesty Communication No Scripts Flexibility not Efficiency Passionate & Determined Application Hiring – Technical +Cultural Fit Training – 4 Wks $2000 offer to Quit after training More with less Every one starts in the call center & warehouse Customer Service Platform Net Promoter Score 7% churn vs. 150% churn 50% Technical 50% Cultural Long Term Orientation Fortunes Best Places to Work © Jay Rao
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