HRL2015 - Peter Virsík & Gabriela Koleková - Holistic innovation – a game - changer for leadership

Holistic innovation – a game-changer for leadership - Peter-Marcus Virsík & Gabriela Koleková 111.06.2015
Holistic innovation –
a game-changer for leadership

Innovation is
not an option…
1.

The pressure on innovation leadership is increasing
Ø retention of top 500 US companies within S&P’s 500 index [# years]
61
18 15
1958 2015 2025
Firms may
disappear in 15
years if they don’t
innovate

Do you remember these companies?

And what about these companies?

40.4%
24.5%
35.9%
15.6%
10.0%
7.1%
13.7%
52.8%
1971 2010
Innovation is not only a matter of business sector…
Netherlands - Religious affiliation [members in % of total population]
By 2018 the NL will
close down…
• 1,000-1,200 churches
• 150 out of 170 existing
monasteries
Roman-Catholic
Protestant
Other religions
Unaffiliated with
any religion

The “recipe for
innovation”
has changed
2.

Innovation leaders are the darling of stock markets
Market capitalization / Net Sales June 2015 [P/S ratio]
15.8
12.9
8.7
5.5
3.4
1.6 1.1 0.8 0.6
Alibaba Facebook Tesla Google Apple Amazon Siemens adidas Daimler
(Mercedes)

What is driving innovation today?

Holistic
innovation
is about us!
3.

People
Innovation-
centric
LEADERSHIP
Organizational
set-up

“Keep the engine
running”
Top-down driven
innovation process
Based on R&DAvoiding risk
Focused on NPD
Rigid budgeting

Flexible budgeting
(“Pilot fund”)
Encourage
employees to
experiment
Broad innovation
approach
Innovation from
everyone
(trickle-up innovation)
Innovation-centric
leadership
(Why not?)
Open source
(internal + external)

People
Innovation-
centric
LEADERSHIP
Organizational
set-up

Highly structured
hierarchical set-up
Responsibility upwards
Small entrepreneurial units
(‘Tent’ organization)
Peer based responsibility
(lateral approach)
Push driven concept
(assignment)
Demand driven concept
(commitment)

People
Innovation-
centric
LEADERSHIP
Organizational
set-up

Hiring mainly for
“knowledge and skills”
Employees as
“cost drivers”
Employees follow the
obvious practice
Hiring also for
“obsession to invent”
Employees as
“out-of-box thinkers”
Employees act as entrepreneurs
(eager to challenge status quo)

Highly specialized skill set
Uniform employee profile
X-functional generalist mindset
Quest for diversity

People
Innovation-
centric
LEADERSHIP
HR
Organizational
set-up

Can a subsidiary
drive “holistic
innovation”?
4.

adidas Run Base Prague

STRATEGIC CHALLENGE
• Create differentation in Running in Prague
• Focus on young urban runner
• No inhouse solution with edge available 26

PARTNER OF PRAGUE
MARATHON
FROM THE BEGINNING IN 1995

OPEN SOURCE - CARLO CAPALBO

EMPOWERMENT OF LOCAL TEAM
SHARED RISK
APPROACH
JOINT VENTURE WITH CARLO CAPALBO

ADIDAS RUN BASE PRAGUE
Conference rooms Sport Lounge adidas running shop
RunCzech Elite Racing team Water bar & showers Running Community

BOOST your Career

BOOST YOUR CAREER
The Challenge
• - To hire the BEST interns
• - QUICKLY and EFFICIENTLY

BOOST YOUR CAREER
Innovation:
• - Organized in our SHOWROOMS
• - Testimonials from REAL people
• - Real case study with our EMPLOYEES
3311.06.2015

• Line Managers could OBSERVE and
PRE-SELECT their future interns
• High IMPACT and SPEED for affordable
cost
• The concept is now considered to be
used in GERMANY
BOOST YOUR CAREER

How to challenge
ourselves?
5.

Which areas of innovation do we
need to focus on locally?
Where can we take own initiative?

How can we position our subsidiary as a
“pilot incubator” to HQ?
How can we mobilize project
funding outside of our department /
subsidiary?

Can we share resources with other
subsidiaries?
How can we leverage our teams
with external resources / business
partners?

If it’s not strictly forbidden,
LET’S GO FOR IT!
Do we really need formal approval
from HQ for everything?

Let’s be bold to
CREATE THE NEW!

HRL2015 - Peter Virsík & Gabriela Koleková - Holistic innovation – a game - changer for leadership

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HRL2015 - Peter Virsík & Gabriela Koleková - Holistic innovation – a game - changer for leadership