Achieving Balance in Innovation Stephen Uban, PE, NPDP, ISCP PDMA Research Foundation 8/14/2015Performance Excellence Network - Duluth1

Is Innovation Important? APQC Webinar July 23 rd /14/2015Performance Excellence Network - Duluth2

Self Assessment of Innovation Process APQC Webinar July 23 rd /14/2015Performance Excellence Network - Duluth3

Level of Satisfaction APQC Webinar July 23 rd /14/2015Performance Excellence Network - Duluth4

PDMA Research Foundation Product Development and Management Association (PDMA) is an association made up of New Product Development professionals through out the world. The PDMA Research Foundation is a 501 c3 whose mission is to provide actionable knowledge in the NPD discipline through academic level research. CPAS Research – Since 1985 – looked at best practices in NPD. Last survey had over 580 questions with input from over 500 companies in 19 countries. Compare the practices of the Best performing companies with the Rest of the companies. 8/14/2015Performance Excellence Network - Duluth5

Why Focus on New Product Development Process? Best Rest 53% Increase 8/14/2015Performance Excellence Network - Duluth6

Why Focus on NPD Process? The Best The Rest % Successes82.5%53.8% % Successes-Profits78.2%49% % Sales from NP’s47.1%25% % Profits from NP’s47.3%24.7% # Ideas for 1 Success /14/2015Performance Excellence Network - Duluth7

Improvement Balancing Act Innovate or Iterate Speed Up or Slow Down Learning or Doing High Risk or Low Risk Great Ideas or Customer Needs Rigorous Structured Process or Whatever Feels Right Today. 8/14/2015Performance Excellence Network - Duluth8

Starts with Culture and Strategy 8/14/2015Performance Excellence Network - Duluth9

Innovation Culture: Values *p <.05, The Best vs. The Rest 8/14/2015Performance Excellence Network - Duluth10

Star Tribune July 22, /14/2015Performance Excellence Network - Duluth11

Miles and Snow Strategy Type 8/14/2015Performance Excellence Network - Duluth12

Innovate Or Iterate *p=0.049, the Best vs. the Rest 8/14/2015Performance Excellence Network - Duluth13

Radical Innovation More Innovative Incremental Innovation Speed up or Slow down 8/14/2015Performance Excellence Network - Duluth14

# weeks Radical More Innovative IncrementalRadical More Innovative Incremental Product Line Planning Project Strategy Development Idea/Concept Generation Idea Screening Business Analysis Design & Development Test and Validation Manufacturing Development Commercialization How? 8/14/2015Performance Excellence Network - Duluth15

The Best also Spend More Time per Project... 8/14/2015Performance Excellence Network - Duluth16

... but on Fewer Projects Expenditures 8/14/2015Performance Excellence Network - Duluth17

Mortality Curve 8/14/2015Performance Excellence Network - Duluth18

Ideas verses Needs The Best track technology trends more The Best have balanced control between Market Driven and Technology driven projects The Best balance the two 8/14/2015Performance Excellence Network - Duluth19

Overlapping GatesConditional DecisionsSkip Stages X Process Flexibility 8/14/2015Performance Excellence Network - Duluth20

Balance all this… but how? Innovate and Iterate Speed Up some Slow Down others More time Learning less time Doing High Risk and Low Risk Mix Balance Technology Push with Market Pull Flexible Structured NPD Process 8/14/2015Performance Excellence Network - Duluth21

PDMA and TIM Foundation Almost 2 years ago PDMA adopted the Innovation Management Standard from TIM Foundation Built a Maturity Model for Innovation Management Created a Certification Process 8/14/2015Performance Excellence Network - Duluth22

Quite an Extensive Standard 8/14/2015Performance Excellence Network - Duluth23

PIM Maturity Model Self Assessment Level 2 Implementing Level 3 Capable Level 4 Effective Level 5 Excellence Culture Leadership Processes People & Resources Monitoring Improvement 8/14/2015Performance Excellence Network - Duluth24

PIM Maturity Model Self Assessment Sample Culture Does your organization have an environment that fosters innovation? Is innovation recognized as an important activity? Leadership Does senior management understand, support and participate in innovation activities? Are measurable innovation goals set by management and communicated to all management? Processes Doe the organization have all its processes defined, developed and implemented in order to innovate? Do processes include, the beginning, middle and end of the innovation cycle and do they include all six elements of the matrix? People & Resources Are there enough resources to perform innovation activities? Are individuals and teams recognized for their participation in innovation activities? Monitoring Does the organization measure and systematically monitor innovation capability and capacity? Are your measures in enough detail to generate insights? Improvement Does the organization analyze performance and conduct improvements in the innovation process? Does the organization frequently change its innovation process based on performance? 8/14/2015Performance Excellence Network - Duluth25

Thank You! The Product Development and Management Association 8/14/2015Performance Excellence Network - Duluth26