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Encouraging an Environment of
    Innovation: The Role of
       Frontline Leaders




 By-
 Smita Affinwalla
 Rahul Shah
 DDI


       1                           © Development Dimensions Int’l, Inc., MMXII All rights reserved.
               © Development Dimensions Int’l, Inc., MMXII. All rights reserved.
Today’s Presenters




       Smita Affinwalla                                          Rahul Shah
         Head, Consulting                                      Senior Consultant,
            DDI India                                             Leadership
                                                                Solutions Group
                                                                   DDI India



   2                © Development Dimensions Int’l, Inc., MMXII All rights reserved.
INNOVATION
Everywhere
Today’s Agenda
Today’s Agenda

 Innovation
 Why innovation is important today
 The right type of innovation for your
  organization
 Three must-have leader behaviors
          Trust me, I’m your leader
    By-
          Take a risk, I’ll help
    Smita Affinwalla
          Purposeful change
    Rahul Shah
    DDI


          4                       © Development Dimensions Int’l, Inc., MMXII All rights reserved.
              © Development Dimensions Int’l, Inc., MMXI. All rights reserved.
Classic Definitions –
                 Creativity is the production
                  of original ideas that are
                        made useful.

                Innovation is the successful
                 introduction of new useful
                           ideas.
                                                             T. Amabile, Harvard Business School


   5        © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Creativity Drives Innovation
  Creativity Drives Innovation

          “Creativity is the crucial „front-end‟
          of the innovation process; before
          innovation can happen, the creative
          ideas must be generated by individuals
          and teams so that they can be
          successfully implemented.”
                                                     Amabile, Burnside & Gryskiewicz, 1999, p. 1


    6         © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Innovation

    The process of
    bringing new
    solutions to the
    market that drive
    differentiation
    and measurable
    business value.


7          © Development Dimensions International, Inc., MMXII. All rights reserved.
Innovation: A Priority
                  Percentage of respondents who consider
                  innovation a top-three strategic priority




                          2010
                                                  2009                  2008               2007
BCG Report: Innovation 2010
  8                           © Development Dimensions International, Inc., MMXI. All rights reserved.
Top Innovative Countries




Source: GE's Annual Global Innovation Barometer
         9                    © Development Dimensions Int’l, Inc., MMXII All rights reserved.
The 10 Most Innovative Companies in India –
                2012




Fast Company Survey 2011
        10                 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
“Its not lowest cost per unit of output or service that India is known
for it should be known for the lowest cost per unit of innovation
because it is people plus our ability to innovate that is India's
strength and I want our companies and business to embody that”
                                                            -Anand Mahindra


“I can’t understand why people are frightened of new ideas….I am
frightened of Old ones”
                                                                              -John Cage

Constant reinvention is the central necessity at G.E. We’re are all
just a moment away from commodity hell.”
                                                        -CEO, G.E.
       11                    © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Three Types of Innovation

                     Product Innovation




        Process Innovation


                                      Business Model Innovation
   12            © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Polling question
Polling Question
                      •   Which definition best fits
                          your organization’s
                          objectives?
                            –    Process innovation?
                            –    Product innovation?
                            –    Business model innovation?




    13         © Development Dimensions Int’l, Inc., MMXII All rights reserved.
An Operational Vision
                             Develop specific,
                            measurable, achievable
                            ways to ensure everyone
                            in the organization knows
                            what is required to meet or
                            exceed organizational
                            expectations around
                            innovation.


14   © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Innovation
                                     Generating innovative solutions
 Competency                          in work situations; trying
                                     different and novel ways to
                                     deal with work problems and
                                     opportunities
                                     Key Actions
                                       Challenges paradigms
                                       Leverages diverse
                                       resources
                                       Thinks expansively
                                       Evaluates multiple
                                       solutions
                                       Ensures relevance
   15         © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Polling Question
Polling Question
                         •   My organization has a
                             unique and specific
                             definition/description of
                             innovation:
                               –    Yes
                               –    No
                               –    Kind of




    16         © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Is your organization ready for innovation?
True or False
   1.     Everyone in our organization (workgroup)
          understands how we define innovation
   2.     Our customers think of us as an innovative
          organization
   3.     Top management has a clear commitment
          to innovation




     17             © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Top 10 Innovation Challenges
•   Completely new products/processes
•   Knowledge transfer among employees
• Brand recognition
• Acquiring/developing the right talent
• Improving customer relationships
• Increasing market share through new products/services
• Improvement in original products/processes
• Establishing/promoting an innovation culture
• Improving customer relationships
• Visible commitment from top leaders


        18           © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Top TopInnovation Challenges
    10 10 Innovation Challenges
•   Acquiring/developing the right talent                                                31.0%
•   Improving customer relationships                                                     28.4%
•   Visible commitment from top leaders                                                  24.3%
•   Brand recognition                                                                    23.3%
•   Establishing/promoting an innovative culture                                         22.0%
•   Increasing market share through new                                                  20.0%
     products/services
•   Knowledge transfer among employees                                                   16.9%
•   Improvement in original products/processes                                           15.5%
•   Completely new products/processes                                                    14.2%
•   Strategic mergers and acquisitions                                                   13.9%

                                                                         CEO Challenges, Conference Board, 2007

          19                © Development Dimensions Int’l, Inc., MMXII All rights reserved.
1.   Driving & managing change
  Top Five        2.   Identifying/developing future talent
   Future         3.   Fostering creativity & innovation
Critical Skills   4.   Coaching & developing others
                  5.   Executing organizational strategy
1.   Driving & managing change
  Top Five        2.   Identifying/developing future talent
   Future         3.   Fostering creativity & innovation
Critical Skills   4.   Coaching & developing others
                  5.   Executing organizational strategy
A Leader’s Role in Innovation




22         © Development Dimensions Int’l, Inc., MMXII All rights reserved.
The Leader‟s Role in
   Innovation
Leader’s Role in Innovation
 Innovation Challenges                                  Driving Innovation
          Failure to Understand                                                   Question
                                         Inspire Curiosity
              Stakeholders                                                       Assumptions

                                         Challenge Current
             Lackluster Ideas                                                 Think Differently
                                           Perspectives


          Aversion to Risk Taking        Create Freedom                           Experiment


             Poor Execution                 Drive Discipline                   Get Things Done




                                                   Leader                       Team Members



     23                       © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Leaders Way– WAY
   THE LEADER‟S

•   They use context to mobilise and catalyse organizational action
•   They set a clear level of ambition for the innovation effort with
    appropriate permissions
•   They commission cross-functional teams
•   They challenge orthodoxies the industry or the company
•   They refuse to think innovation is an accident or the result of a
    stroke of insight




         24             © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Leadership Skills for Creating a Culture of
Innovation
  •    Maintain a high trust environment
  •    Encourage acceptable risk-taking
  •    Support on-going change




      25          © Development Dimensions Int’l, Inc., MMXII All rights reserved.
1. Three Key Leadership Skills




          Maintain a High-Trust Environment
     26           © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Trust Breakers




    27           © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Poll
Which Trust Breaker is the biggest barrier to
innovation in your organization?

       Breaks promises

       Serves own interests

       Acts inconsistently

       Avoids issues

       Makes assumptions

       Doubts others

         28              © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Trust Builders

   •   Fosters open                              •   Treats everyone
       communication                                 with respect and
                                                     fairness


   •   Is reliable and                           •   Shows confidence
       consistent                                    in others



   29             © Development Dimensions Int’l, Inc., MMXII All rights reserved.
2. Three Key Leadership Skills

     Encourage Acceptable Risk Taking




    30         © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Is your organization ready for innovation?
What % of your front line leaders…
         1.    Know how to encourage and reward
               innovative behavior
         2.    Encourage suggestions for improvement
         3.    Provide proactive coaching and feedback
               regularly




         31                    © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Polling question
    •   When presented with a good innovation
        idea, our leaders:
         –   Thank the person, take ownership, and do
             something later.
         –   Provide positive feedback, coaching, and
             encourage ownership.
         –   Something in between the above, but I’m not
             exactly sure what.



    32                © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Polling question
    •   When presented with a bad innovation idea,
        our leaders:
         –   Thank the person, dismiss the idea, and do
             nothing.
         –   Don’t waste time, dismiss it right away.
         –   Provide positive feedback and seek ways to
             improve the idea.




    33                © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Handling Good Ideas
•   Provide specific and
    sincere positive feedback
•   Seek ideas for application
    or implementation
•   Provide support without
    removing responsibility (to
    encourage ownership)



       34           © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Specific
                                                       Timely
                                                         Balanced




35   © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Handling Bad Ideas
   •   Express appreciation for the idea (i.e.,
       recognize effort)
   •   Ask questions to explore potential problems
       (i.e., seek alternative actions)
   •   Offer suggestions to build on, or improve,
       the idea




    36             © Development Dimensions Int’l, Inc., MMXII All rights reserved.
3. Three Key Leadership Skills

                 On-Going Change




    37         © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Phases of Change:
    •   Disorientation
    •   Reorientation
    •   Integration




   Disorientation                Reorientation                                           Integration

    38                © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Leaders’ Approach to Change
   •   View change as an opportunity
   •   Gather and share information
   •   Accept that people approach change
       differently




    39           © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Is your Organization ready for innovation?
Would you say “Yes?”
              Our organization has an easy to use process or
               system to capture and share innovation ideas
              Creativity and innovation are evaluated as part
               of the individual’s performance through a
               performance management system.
              Our organization has a measurement system in
               place to measure progress of implementing
               innovative ideas
              Our organization uses regularly scheduled staff
               meetings to discuss innovation
              Our organization allows sufficient time to
               develop new ideas


         40                    © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Climate Control:
         Is Your Organization Ready?
 We want
   to be                                                                            We are
innovative                                                                        Innovative

                             Neutral




    41         © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Polling question
    •   What is the biggest barrier to innovation in
        your organization?
         –   Don’t have the right people for the type of
             innovation.
         –   People not allocated to innovation.
         –   Have the right people, but leaders protect
             innovation.
         –   Have the right people, but culture inhibits
             progress.


    42                 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Inhibiting Innovation….




    43        © Development Dimensions Int’l, Inc., MMXII All rights reserved.
Thank you!
     For any clarification write to us
       rahul.shah@ddiworld.com


      Please fill in the feedback survey
         Link on your chat window




44        © Development Dimensions Int’l, Inc., MMXII All rights reserved.

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NHRDN Virtual Learning Session on Encouraging an environment of innovation

  • 1. Encouraging an Environment of Innovation: The Role of Frontline Leaders By- Smita Affinwalla Rahul Shah DDI 1 © Development Dimensions Int’l, Inc., MMXII All rights reserved. © Development Dimensions Int’l, Inc., MMXII. All rights reserved.
  • 2. Today’s Presenters Smita Affinwalla Rahul Shah Head, Consulting Senior Consultant, DDI India Leadership Solutions Group DDI India 2 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 4. Today’s Agenda Today’s Agenda  Innovation  Why innovation is important today  The right type of innovation for your organization  Three must-have leader behaviors  Trust me, I’m your leader By-  Take a risk, I’ll help Smita Affinwalla  Purposeful change Rahul Shah DDI 4 © Development Dimensions Int’l, Inc., MMXII All rights reserved. © Development Dimensions Int’l, Inc., MMXI. All rights reserved.
  • 5. Classic Definitions – Creativity is the production of original ideas that are made useful. Innovation is the successful introduction of new useful ideas. T. Amabile, Harvard Business School 5 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 6. Creativity Drives Innovation Creativity Drives Innovation “Creativity is the crucial „front-end‟ of the innovation process; before innovation can happen, the creative ideas must be generated by individuals and teams so that they can be successfully implemented.” Amabile, Burnside & Gryskiewicz, 1999, p. 1 6 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 7. Innovation The process of bringing new solutions to the market that drive differentiation and measurable business value. 7 © Development Dimensions International, Inc., MMXII. All rights reserved.
  • 8. Innovation: A Priority Percentage of respondents who consider innovation a top-three strategic priority 2010 2009 2008 2007 BCG Report: Innovation 2010 8 © Development Dimensions International, Inc., MMXI. All rights reserved.
  • 9. Top Innovative Countries Source: GE's Annual Global Innovation Barometer 9 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 10. The 10 Most Innovative Companies in India – 2012 Fast Company Survey 2011 10 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 11. “Its not lowest cost per unit of output or service that India is known for it should be known for the lowest cost per unit of innovation because it is people plus our ability to innovate that is India's strength and I want our companies and business to embody that” -Anand Mahindra “I can’t understand why people are frightened of new ideas….I am frightened of Old ones” -John Cage Constant reinvention is the central necessity at G.E. We’re are all just a moment away from commodity hell.” -CEO, G.E. 11 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 12. Three Types of Innovation Product Innovation Process Innovation Business Model Innovation 12 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 13. Polling question Polling Question • Which definition best fits your organization’s objectives? – Process innovation? – Product innovation? – Business model innovation? 13 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 14. An Operational Vision Develop specific, measurable, achievable ways to ensure everyone in the organization knows what is required to meet or exceed organizational expectations around innovation. 14 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 15. Innovation Generating innovative solutions Competency in work situations; trying different and novel ways to deal with work problems and opportunities Key Actions Challenges paradigms Leverages diverse resources Thinks expansively Evaluates multiple solutions Ensures relevance 15 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 16. Polling Question Polling Question • My organization has a unique and specific definition/description of innovation: – Yes – No – Kind of 16 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 17. Is your organization ready for innovation? True or False 1. Everyone in our organization (workgroup) understands how we define innovation 2. Our customers think of us as an innovative organization 3. Top management has a clear commitment to innovation 17 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 18. Top 10 Innovation Challenges • Completely new products/processes • Knowledge transfer among employees • Brand recognition • Acquiring/developing the right talent • Improving customer relationships • Increasing market share through new products/services • Improvement in original products/processes • Establishing/promoting an innovation culture • Improving customer relationships • Visible commitment from top leaders 18 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 19. Top TopInnovation Challenges 10 10 Innovation Challenges • Acquiring/developing the right talent 31.0% • Improving customer relationships 28.4% • Visible commitment from top leaders 24.3% • Brand recognition 23.3% • Establishing/promoting an innovative culture 22.0% • Increasing market share through new 20.0% products/services • Knowledge transfer among employees 16.9% • Improvement in original products/processes 15.5% • Completely new products/processes 14.2% • Strategic mergers and acquisitions 13.9% CEO Challenges, Conference Board, 2007 19 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 20. 1. Driving & managing change Top Five 2. Identifying/developing future talent Future 3. Fostering creativity & innovation Critical Skills 4. Coaching & developing others 5. Executing organizational strategy
  • 21. 1. Driving & managing change Top Five 2. Identifying/developing future talent Future 3. Fostering creativity & innovation Critical Skills 4. Coaching & developing others 5. Executing organizational strategy
  • 22. A Leader’s Role in Innovation 22 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 23. The Leader‟s Role in Innovation Leader’s Role in Innovation Innovation Challenges Driving Innovation Failure to Understand Question Inspire Curiosity Stakeholders Assumptions Challenge Current Lackluster Ideas Think Differently Perspectives Aversion to Risk Taking Create Freedom Experiment Poor Execution Drive Discipline Get Things Done Leader Team Members 23 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 24. Leaders Way– WAY THE LEADER‟S • They use context to mobilise and catalyse organizational action • They set a clear level of ambition for the innovation effort with appropriate permissions • They commission cross-functional teams • They challenge orthodoxies the industry or the company • They refuse to think innovation is an accident or the result of a stroke of insight 24 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 25. Leadership Skills for Creating a Culture of Innovation • Maintain a high trust environment • Encourage acceptable risk-taking • Support on-going change 25 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 26. 1. Three Key Leadership Skills Maintain a High-Trust Environment 26 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 27. Trust Breakers 27 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 28. Poll Which Trust Breaker is the biggest barrier to innovation in your organization? Breaks promises Serves own interests Acts inconsistently Avoids issues Makes assumptions Doubts others 28 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 29. Trust Builders • Fosters open • Treats everyone communication with respect and fairness • Is reliable and • Shows confidence consistent in others 29 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 30. 2. Three Key Leadership Skills Encourage Acceptable Risk Taking 30 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 31. Is your organization ready for innovation? What % of your front line leaders… 1. Know how to encourage and reward innovative behavior 2. Encourage suggestions for improvement 3. Provide proactive coaching and feedback regularly 31 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 32. Polling question • When presented with a good innovation idea, our leaders: – Thank the person, take ownership, and do something later. – Provide positive feedback, coaching, and encourage ownership. – Something in between the above, but I’m not exactly sure what. 32 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 33. Polling question • When presented with a bad innovation idea, our leaders: – Thank the person, dismiss the idea, and do nothing. – Don’t waste time, dismiss it right away. – Provide positive feedback and seek ways to improve the idea. 33 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 34. Handling Good Ideas • Provide specific and sincere positive feedback • Seek ideas for application or implementation • Provide support without removing responsibility (to encourage ownership) 34 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 35. Specific Timely Balanced 35 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 36. Handling Bad Ideas • Express appreciation for the idea (i.e., recognize effort) • Ask questions to explore potential problems (i.e., seek alternative actions) • Offer suggestions to build on, or improve, the idea 36 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 37. 3. Three Key Leadership Skills On-Going Change 37 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 38. Phases of Change: • Disorientation • Reorientation • Integration Disorientation Reorientation Integration 38 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 39. Leaders’ Approach to Change • View change as an opportunity • Gather and share information • Accept that people approach change differently 39 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 40. Is your Organization ready for innovation? Would you say “Yes?”  Our organization has an easy to use process or system to capture and share innovation ideas  Creativity and innovation are evaluated as part of the individual’s performance through a performance management system.  Our organization has a measurement system in place to measure progress of implementing innovative ideas  Our organization uses regularly scheduled staff meetings to discuss innovation  Our organization allows sufficient time to develop new ideas 40 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 41. Climate Control: Is Your Organization Ready? We want to be We are innovative Innovative Neutral 41 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 42. Polling question • What is the biggest barrier to innovation in your organization? – Don’t have the right people for the type of innovation. – People not allocated to innovation. – Have the right people, but leaders protect innovation. – Have the right people, but culture inhibits progress. 42 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 43. Inhibiting Innovation…. 43 © Development Dimensions Int’l, Inc., MMXII All rights reserved.
  • 44. Thank you! For any clarification write to us rahul.shah@ddiworld.com Please fill in the feedback survey Link on your chat window 44 © Development Dimensions Int’l, Inc., MMXII All rights reserved.