The Banff Centre Leadership Development Innovation

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The Banff Centre Leadership DevelopmentInnovatio
n The New Strategic Capabilities

• Andre N. Mamprin

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PRESENTATION OVERVIEW
1. Making the Case for Innovation 2. The Anatomy
of Innovation Linking Knowledge to
Innovation 3. Dispelling the Myths of Innovation
Linking Creativity to Innovation
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PART 1 MAKING THE CASE FOR INNOVATION A WINDOW
INTO A RAPIDLY EMERGING WORLD
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Great spirits have always encountered violent
opposition from mediocre minds...

• Albert Einstein
• MINDSCAPE

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Exponential Replication of Knowledge
Hundreds of thousands of years to go from hand
held ax to ax with handle. c. 1000 Leif Ericson
sails to Greenland. c. 1300 Italy gets paper
(previously took 80 sheep to make a 200 page
parchment
manuscript)
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Exponential Replication of Knowledge
c. 1455 Johann Gutenberg invents an efficient
printing press and uses movable type to publish
Bibles. c. 1851 First printing, New York Times c.
1960 Rupert Murdoch founds first global media
empire
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Exponential Replication of Knowledge
c. 1980 first pc hits production c. 1990
development of the fax machine c. 1993 e.mail
the Internet c.1999 AOL Buys TimeWarner 200b c.
2000 Knowledge Mapping, Genetic Engineering,
Artificial Intelligence, Cloning, Bio
engineering, Nano-Technology, Cybernetics
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The Accelerating Pace of Change
INNOVATION
BIO ENGINEERING/ GENETICS
CONTINUOUS LEARNING
INTERNET
COMPUTERS
SEXUAL REVOLUTION
MAN ON THE MOON
TELEVISION
INDUSTRIAL REVOLUTION
1980
1990
2000 P6B
1900 P1.6B
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PATTERNS OF TECHNOLOGICAL CHANGE
1. Moores Law Processor Speed is Doubling Every
18 Months 2. Bandwidth is Doubling Every 9
Months 3. Computer Storage is Doubling Every 12
Months 4. Information on the WWW is doubling
Every 14 Months
Source Wired Magazine 1999
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Sub Marine Analogue Telephone Trunkline Map c.1985
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Diagram of the first 2 nodes on the ARPANET
(Advanced Research Projects Agency of the U.S.
Department of Defense) c. 1969
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Internet Traffic c.1998
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3 Dimensional virtual spaces are being used to
map information for easy exploration navigation
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vBNS Network Connecting Universities
Laboratories in the U.S.A.
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Large Scale Collection Analysis of Internet
Traffic Path Data
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News Mapping
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3d Modeling of Cyberspace
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INFORMATION MAPPING A Multi - Level Category
Map of the Information Space of Over 100,000
Related Web Pages on 1 Single Topic Listed by
Yahoo
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I-net Trace Route Mapping
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Global Satellite Network c.2000
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Genome Mapping
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Bio Technology - Genetic Engineering
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Interplanetary Exploration
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Nano Technologies
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Robotics Artificial Intelligence
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Space Exploration
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Quantum Physics
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Quantum Computing
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Collective Consciousness
Global knowledge networks a collective human
mind that thinks faster faster accelerating the
Pace of change
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HOW WILL THESE ADVANCES IN KNOWLEDGE TECHNOLOGY
AFFECT THE TBC?HOW WILL THEY IMPACT YOU?
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The (Meta) Imperative to Innovate
Exponential economicchange
Exponential technical change
Disparity of Wealth information
INNOVATION DRIVERS
Scarcity Conflict
Rapid Population Growth
Globalcompetition
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The (Macro) Imperative to Innovate
Canadas Declining Comparative Research
Innovation Capacity
Canadians are Comparatively Risk Averse
Visionary Leadership
INNOVATION DRIVERS
Demographic Generational Issues
Canadas National Debt
Canadas Declining Productivity
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The (Micro) Imperative to Innovate
LDs Value Offering Within the Changing
Marketplace
TBCs Capacity to Support Innovation
Our Personal Capabilities
INNOVATION DRIVERS
Challenging the Status - Quo
Applying Our Same Behaviors Forward
Our Personal Psychological Mindspace
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Individuals Skills Needed for Innovation
An individuals capacity to be innovative is
defined by three factors 1. The right
combination of job specific skills 2. The
know-how to leverage these skills 3.They must be
situated within an environment that is
conducive to developing, sharing testing new
ideas, being creative and thinking outside the
box. In essence, and environment that provides
flexibility and freedom to apply new ways of
thinking and doing things. It is the individual
who ultimately drives innovation in an
organization.
Source Conference Board of Canada3d Annual
Report on Innovation
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Individuals Skills Needed for Innovation
Thinking The Capacity to Generate Ideas
Thinking
Managing
Managing The processes and planning
skills needed to sustain projects and the
Enterprise
Doing
Doing The disposition to play a role in
creating value by taking products and services to
market
Source Conference Board of Canada3d Annual
Report on Innovation
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PART 2 THE ANATOMY OF INNOVATION
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What is Innovation?
Innovation is the conversion of an idea into a
new product or service which adds value at an
appropriate time - Steve Brodie
Creativity is thinking up new things
Innovation is doing new things - Theodore Levitt
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The creation, evolution, integration
application of new ideas into marketable
goods services.
Creating Commercial Value from Knowledge
A3
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Why is Innovation Important?
Corporate Innovation
Ratio of Cumulative Stock Returns for Groupings
of Visionary and Comparison Companies to General
Market, 1926-1990
Source Built To Last, Collins and Porras
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PriceWaterhouseCoopers Global Survey on
Innovation (2002)
Bottom 20
Top 20
Significant Difference
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PWC research shows that top innovators
consistently generate more than 75 of their
revenue from products and services that did not
exist 5 years ago
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The 10 Characteristics of Top Innovators
1. A High Degree of Trust Within the
Organization 2. An Active Flow of Ideas 3. Fewer
Levels Between Executives and Customers 4.
Explicit Idea Management Process People Adhere
to 5. Recruit Challenging Managers (High
Accountability) 6. Managers who Effectively
Delegate 7. Managers who Involve Others in
Developing Ideas to Action 8. Routinely Envision
the Future Based on Strong Market Knowledge 9.A
Nimble Organizational Culture 10. Balanced View
of Risk Taking Behaviors
Source PriceWaterhouseCoopers Global Research
Report on Innovation, 2001
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3 Underlying Capabilities
The top 20 (Innovative Organizations) turn their
ideas into action via a well defined IDEA
MANAGEMENT process which A) Seek and gather
ideas knowledge widely from stakeholders B)
Allow ideas knowledge captured from the
environment to be shared, stored in a user
friendly form, and made freely accessible C)
Actively encourage diversity of viewpoints,
talent expertise D) Delay premature evaluation
of new ideas by giving managers discretion
to pursue (They have a higher tolerance for
failure)
Source PriceWaterhouseCoopers Global Research
Report on Innovation, 2001
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3 Underlying Capabilities
The top 20 (Innovative
Organizations) bring their Idea Management
process to life by CREATING A CLIMATE which
encourages the ideas to flow freely through the
business by A) Develop promote people who
share a common set of values B) Using carefully
designed recognition reward systems that
encourage Innovation C) Training managers to
create support climates conducive to Innovation
Source PriceWaterhouseCoopers Global Research
Report on Innovation, 2001
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3 Underlying Capabilities
An effective BALANCE BETWEEN LEADERS FOLLOWERS
is crucial to sustaining an innovative working
environment. For the highest performers this
means A) Defining which decisions can be taken
unilaterally and which must be based on
consensus so that the social contract between
leaders followers is made explicit B)
Rewarding people who Take the Lead (Sponsoring
protecting Mavericks) C) HR Processes the
recognize leaders are separate from managers and
selectively promote role models
Source PriceWaterhouseCoopers Global Research
Report on Innovation, 2001
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MEAN TURNOVER OF PRODUCTS BY SECTOR
TEXTILES CLOTHING
ENGINEERING
20
PROFFESSIONAL SERVICES
ELECRTONICS COMPUTING
AUTOMAOTIVE
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TOURISIM
FINANCIAL SERVICES
AEROSPACE
FINANCIAL SERVICES
BUILDING PRODUCTS
PULP PAPER
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PHARMACETICALS
EDUCATION TRAINING
HOTELS
Source PriceWaterhouseCoopers Global Research
Report on Innovation, 2001
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3Ms 15 percent To provide employees time to
develop new ideas, 3M allows every employee to
devote 15 percent of their time to pet projects.
This time also allows employees to visit
alternative departments and for the trading of
ideas.
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The Massachusetts Institute of Technology found
that eight out of ten ideas that have led to
breakthrough products or services originate
from routine discussions during coffee breaks or
a chance encounter between colleagues.
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Walt Disney introduceddisplayed thinking
Storyboards with post-it note questions and
queries attached positioned around the office
Comments, answers and criticisms invited from
employees Anonymous post-it note format allows
employees to challenge ideas without fear of
retribution
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Coca-Cola annually celebrates the failure of New
Coke TMthis demonstrates that it is acceptable
to fail and reinforces the lessons learned from
the failure of this project
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TheOz Thinking Network formed in the mid-1980s,
trains Du Pont employees in creative -
thinking and then encourages these individuals to
gain creative impetus through volunteering for
community and educational activities.
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LINKING KNOWLEDGE TO INNOVATION
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Stages of Understanding Organizational
Intelligence

(Innovation) requires, foresight, creates
meaning, judgement, action
Insight
Human, tacit, transfer
requires learning, experience Context
Knowledge
Context Threshold
Information
Codifiable, explicit
Easily transferable
Data
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Linking Knowledge to Innovation
Organizationallearning
Organizationalunlearning
Clients, Communities,Networks
Organizationalinnovation
Organizationalsharing of knowledge
Organizationalcreation of knowledge
TURNING KNOWLEDGE INTO ACTION
Source Steven Denning - The World Bank
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LEADING CONTINUOUS INNOVATION
From Charles Handy
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Organizing for Different Value Propositions
1st Productas the Asset
2nd Projectas the Asset
3rd Enterpriseas the Asset
4th Customeras the Asset
5th Knowledgeas the Asset
CoreStrategy

• Functionin Isolation

• Link toBusiness

• Technology/BusinessIntegration

• IntegrationWith CustomerRD

• CollaborativeInnovationSystem

ChangeFactors

• UnpredictableSerendipity

• Inter-dependence

• SystematicManagement

• AcceleratedDiscontinuousGlobal Change

• KaleidoscopicDynamics

Performance

• Function asOverhead

• Cost-Sharing

• BalancingRisk/Reward

• ProductivityParadox

• IntellectualCapacity/Impact

Structure

• HierarchicalFunctionally-Driven

• Matrix

• DistributedCoordination

• Multi-DimensionalCommunities ofPractice

• SymbioticNetworks

People

• We/TheyCompetition

• ProactiveCooperation

• StructuredCollaboration

• Focus onValues andCapability

• Self-ManagingKnowledgeWorkers

Process

• MinimalCommunication

• Project-to-Project Basis

• PurposefulRD/Portfolio

• Feedback Loopsand informationpersistence

• Cross-BoundaryLearning andKnowledge Flow

Technology

• Embryonic

• Data-Based

• Information-Based

• IT as aCompetitiveWeapon

• IntelligentKnowledgeProcessors

Customer Retention
Customer Satisfaction
Customer Success
From Debra Amidon ENTOVATION International
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Emerging Wave of 5th Generation Organizations
Knowledge as the Asset
Customer as the Asset
Enterprise as the Asset
Project as the Asset
Product as the Asset
From Charles Handy Debra Amidon
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10 DIMENSIONS
OF INNOVATION LEADERSHIP ASSESSMENT
VALUES
1. HOW WELL DO WE LIVE OUR VALUES?
INNOVATION
VALUES
10. DO WE APPLY OUR
2. DO WE FOSTER A CLIMATE OF OPENESS?

KNOWLEDGE FORWARD
TO

?
NEW INNOVATIONS
KNOWLEDGE SHARING
3. DO WE FOSTER KNOWLEDGE SHARING?
INNOVATION
9. DO WE CREATE VALUE FROM
OUR KNOWLEDGE NETWORKS?
KNOWLEDGE SHARING
4. IS THERE A FORMAL PROCESS TO
PROCESS PRACTICE
TRANSFER KNOWLEDGE AT CFM?
8. DO WE ENCOURAGE NEW WAYS
TO IMPROVE OUR SYSTEMS PROCESSES?
PROCESSES PRACTICE
CAPACITY BUILDING
7. DO OUR CURRENT SYSTEMMS PROCESSES
5. DOES LEARNING SUPPORT DEVELOPMENT
BRING US CLOSER TO OUR CUSTOMERS?
OF YOUR COMPETENCIES?
CAPACITY BUILDING
6. ARE WE GOOD AT PROVIDING CONTEXT?
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PART 3 DISPELLING THE MYTHS OF INNOVATION
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THE 3 COMPONENTS OF INNOVATION
PRODUCT
CONTEXT
PEOPLE
PROCESS
Source Rhodes Isaksen 1961, 87
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PEOPLE-THE SOURCE OF INNOVATION
MYTHS
Emotions do not belong at work A few sparks will
do We need people whose faces fit We just need
good people in charge
PEOPLE
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PEOPLE-THE SOURCE OF INNOVATION
FACTS
SUCCESSFUL INNOVATORS
Consider trust critical to success Harness
diversity across viewpoints in generating ideas
making decisions Recruit people who challenge
status quo Establish balanced relationships
between leaders followers at all levels
PEOPLE
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PROCESS - THE METHOD FOR INNOVATION
PRODUCT
MYTHS
Innovation is haphazard We know what our
customers want Market knowledge is best held by
specialists We dont need a process to capture
ideas
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PROCESS - THE METHOD FOR INNOVATION
FACTS
PRODUCT
SUCCESSFUL INNOVATORS
Deliberately balance process and outcome focus to
take advantage of opportunities others
miss Research customers initiatives rather than
guess Have market facts and insights clearly
understood at all levels Have established
mechanisms to generate and harness ideas
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PRODUCT-THE OUTCOME OF INNOVATION
MYTHS
Innovation belongs in marketing or RD -they know
our market technologies best Innovations are
often strange impractical Necessity is the
mother of invention You cant measure innovation
PROCESS
Source Rhodes Isaksen 1961, 87
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PRODUCT-THE OUTCOME OF INNOVATION
FACTS - SUCCESSFUL INNOVATORS
Dont limit the possibilities, but make informed
choices about where to innovate by imagining a
different world Know how to combine novelty with
usefulness anywhere in the business Focus on the
future anticipate Value innovation enough to
find measures to assist in continuous
improvement
PROCESS
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CREATING THE CULTURE FOR INNOVATION
CHANGING THE WAY WE WORK - (THE NEW WORK)
Collaboration
RISK TOLERANCE FOR MISTAKES
INNOVATION
TRUST
Time Trust Competence Territory
DIRECT CORRELATION
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LINKING CREATIVITY AND INNOVATION
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LINKING CREATIVITY AND INNOVATION
Creativity is thinking up new things
Innovation is doing new things - Theodore Levitt
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At an individual level - creativity declines with
age. A study of 1600 children (the Office of
Economic Opportunity) found that children at
age 4 -5 - 98 demonstrated creativity. at age
10 - 30 demonstrated creativityat age 15 - 12
demonstrated creativitywhile adults at age 31
only 2 demonstrated creativity (of 7000 tested)

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Summary

• Like any form of organization, innovation is not
  an absolute but chaotic, complex and highly
  dynamic. Innovation is but only one (emerging)
  tool for improving the quality of our human
  condition.

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Thank You