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Frank Dethier
Frank Dethier –
HOW TO INNOVATE?
ONE HOLISTIC FRAMEWORK
2
Strategy
Process
Organization
Resources
Culture
Frank Dethier –
HOW TO INNOVATE?
INNOVATION STRATEGY?
3
Innova-
tion
Strategy
1. What’s your goal?
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2. A) How much investment? From where?
B) When?
C) Who?
3. Define & select your opportunities
(strategic innovation area’s)
Frank Dethier –
New &
Existing
Markets
Trends
• Technology
• Need
• Business
• Legal
Innovation
challenges
Dev
Projects to obtain
understanding of
• Technology
• Customer Need
• Business
Internal &
External Ideas
INNOVATION PROCESS S
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Strategy
Idea
selection
Frank Dethier –
INNOVATION & DELIVERY PROCESS
5
Mark
etsTrends
challe
nges
Dev
Projects
Strate
gy
selec
tion
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• Experimentation
• Agile
• Linked to Strategy
• Execution
• Portfolio
• Funding based on
Gate approval
Frank Dethier –
HOW TO INNOVATE?
ORGANIZATION
6
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Explore Exploit
Ambidextrous Open Innovation
Frank Dethier –
HOW TO INNOVATE?
RESOURCES
7
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Right person,
Right job
Individuals Project Teams
Diversity
Leadership
Vision, listening
& advice
Frank Dethier
Session 6: Culture
Frank Dethier –
HOW TO INNOVATE?
COMPANY CULTURE
 Wikipedia: “Organizational culture is the collective
behavior of humans who are part of an organization
and the meanings that the people attach to their
actions. Culture includes the organization values,
visions, norms, working language, systems,
symbols, beliefs and habits.”
 Deal and Kennedy (1982) defined organizational
culture as the way things get done around here
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Frank Dethier –
HOW TO INNOVATE?
COMPANY CULTURE
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Which behavior is present in your company, not allowed to happen, but
nobody knows why?
The Monkey Experiment
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Frank Dethier –
HOW TO INNOVATE?
COMPANY CULTURE
 Some company mindsets (not invented here, our
quarterly results, ...) do not go along with an
Innovative culture
 Mindsets are stuck in companies/people while the
world around you changes
11
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Mistakes Insights+Innovation =
Sole focus of
most
companies
Frank Dethier –
HOW TO INNOVATE?
INNOVATIVE COMPANY CULTURE
Characteristics of Innovative Company Culture
 Encourages being open
 Allows interactions
 Ecourages ‘different’ people to collaborate
 Accept failures
 Manages Risks
 Learns
 Shares know-how and experiences with each other
 Explores new things
 Embraces entrepreneurship
 …
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Frank Dethier –
HOW TO INNOVATE?
INNOVATIVE COMPANY CULTURE
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Several possible levers to redefine company culture
Attitudes vs
Risks
Communication &
Know-how sharing
Working environment Metrics & KPIs
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Development
Programs
Frank Dethier –
HOW TO INNOVATE?
DEVELOPMENT PROGRAMS
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Common
Language
Practical Tools
Offer ongoing
coaching
Externally
oriented
mindset
Inquisitive
mindset
Integrative
mindset Opportunity
driven mindset
Frank Dethier –
HOW TO INNOVATE?
ATTITUDE TOWARDS RISKS
 Fail?!
 Key
 Not all ideas become successfull project
 ok to fail
 Ensure organization draws learnings 
mistakes are ok, hiding them not!
 Stop projects early and fast if you don’t
see value
15
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Frank Dethier –
HOW TO INNOVATE?
ATTITUDE TOWARDS RISKS
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Apple Messagepad - 1993
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Frank Dethier –
HOW TO INNOVATE?
ATTITUDE TOWARDS RISKS
Encourage Your Team to Take More Risks by being
explicit about what risk-taking really means:
 Define smart risk. Distinguish the areas where risk is
encouraged, and where it is not. For example, you want
minimal “execution risk” regarding customer
commitments, but more “discovery risk” in developing
new solutions to customer problems.
 Use the right words. Terms like “experiment” or
“scouting mission,” as opposed to “successful vs.
unsuccessful project,” signal a more open attitude
toward risk.
 Establish clear phases for funding projects. Stop
providing blank checks and work in defined phases (with
approvals needed)
17
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Frank Dethier –
HOW TO INNOVATE?
COMMUNICATION & KNOW-HOW SHARING
If you stop/change direction of an initiative, which
organization stops to
 Study learning that drove that decision
 Celebrate opportunity to redirect resources in more
promising direction
18
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Frank Dethier –
HOW TO INNOVATE?
COMMUNICATION & KNOW-HOW SHARING
 Which organization praises people who fail for the
right reasons?
 Identify roadblocks early on before the company has
invested significant sums
 Have the guts to say that too much learning is needed
before value ambition level is met
19
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Frank Dethier –
HOW TO INNOVATE?
COMMUNICATION & KNOW-HOW SHARING
 Communicate!
 Home work, but for Innovation?
 Formally and informally
 Sharing of experiences and know-how
(incl failures)
 Online tools
 Face-2-face
20
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Frank Dethier –
HOW TO INNOVATE?
WORK ENVIRONMENT
 Work environment is also crucial
element
 Helps you thinking out-of-the box
 Dedicated spaces
 Both individually and even more important,
in groups
 Creative room!?
 Or at least out-of-the box sessions/spaces
21
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Frank Dethier –
HOW TO INNOVATE?
WORK ENVIRONMENT
 Dedicated Spaces allows team to be
 Inspired by imagery from the field
 Immersed in their post-it notes
 Able to track progress of Innovation project
 Better having 2 different office environments
(exploitation & exploration) than to ask team to switch
context in same environment
22
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Frank Dethier –
HOW TO INNOVATE?
WORK ENVIRONMENT
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Office space designed to collaborate
Frank Dethier –
HOW TO INNOVATE?
METRICS & KPIS
 How do you need to reward your best Innovators?
 Metrics & KPI’s determine your goal
(communicated or not)
 Several possible ways
 Input driven: %budget spent on new innovations, #ideas
generated, ...
 Output driven: customer satisfaction, revenues new
products/services, ...
 Culture: #employees recognized for innovative work,
%time leaders spent on Innovation, ...
24
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Frank Dethier –
HOW TO INNOVATE?
METRICS & KPIS
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Unique career
opportunities
Public
recognition
Financial (but
intrinsic still
better)
Opportunity to
learn
Frank Dethier –
HOW TO INNOVATE?
INNOVATIVE COMPANY CULTURE
Status Quo Culture Innovative Culture
Predictability Un-predictability
Seek stability Seek novelty
Focus on core competence Focus on edge competence
Reinforce organizational hierarchy Reinforce organizational networks
High success rate High failure rate
Avoid surprises Embrace surprises
Accept things as they are Ask tough questions
Extend the status quo Abandon the status quo
Senior managers have critical knowledge Everyone has critical knowledge
Look for certainty Embrace ambiguity
Protect the past Create the future
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Frank Dethier –
HOW TO INNOVATE?
CHANGE INNOVATIVE COMPANY CULTURE
 Creating an Innovative Company Culture is a
Change Management trajectory
 Change management is a systematic approach to
dealing with change both from the perspective of an
organization and the individual.
 Identify and involve your change agents
27
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Frank Dethier –
HOW TO INNOVATE?
CHANGE MANAGEMENT
28
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Frank Dethier –
DISRUPTIVE INNOVATION
EXPERIENCES FROM OTHERS
29
Biggest video rental company
Pay per video
Based on mailing DVDs
Netflix founder Reed Hastings asked himself, “Why can’t you sell movies like
Amazon sells books?” while fuming over the fees he had incurred from his late
return of Apollo 13 to Blockbuster
Hastings combined Amazon’s book-selling approach with gym membership fee
Model and streaming movie & movie suggesting technologies
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Frank Dethier –
DISRUPTIVE INNOVATION
EXPERIENCES FROM OTHERS
30
How can I make high-quality coffee drinks more enjoyable?
Inspiration by observing Italians from all walks of life enjoying
Espresso at their local watering holes
Roasting & packing business -> Howard Schultz was
sent to Italy as employee to scout equipment
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Frank Dethier –
HOW TO INNOVATE?
BOOK
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Frank Dethier –
HOW TO INNOVATE?
FUTURE INSPIRATION?
 3 basic rules
1. Reserve time
2. Get out of the door/office/mindset/….
3. Do something with it (if you feel it's relevant)
 Additionally: experiment (outside work) sometimes
with something new
32
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Frank Dethier –
HOW TO INNOVATE?
ONE HOLISTIC FRAMEWORK
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Strategy
Process
Organization
Resources
Culture
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Frank Dethier –
FRANK DETHIER
 My professional passions
 Help people and companies change to Innovation & Growth
 Guide young companies/start-ups to sustainable growth
 Act as Change Agent in Company Board
 Can you help me? Of course
 Contacts & Opportunities
 Recommendations
 ...
34
Frank Dethier –
YOUR NEW ROLE
INNOVATION MANAGER
 Building innovation capabilities
 Developing the competencies and capacities to innovate
 Creating breakthrough strategies
 Developing new business models
 Finding opportunities for innovation and new growth
 Catalytic thinking
 Knowing the emerging, leading and best practice of innovation
 Recognizing innovation lifecycle management
 Accelerating and bringing change
 Enhancing the quality of inventive intellectual thinking
 Strengthening the collaborating effect
 Building innovation resources
 Leading clearly for innovation
 Long-term innovation
 See more at: http://www.innovationexcellence.com/blog/2012/01/27/chief-
innovation-officer-checklist/
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How to Innovate Holistically

  • 2. Frank Dethier – HOW TO INNOVATE? ONE HOLISTIC FRAMEWORK 2 Strategy Process Organization Resources Culture
  • 3. Frank Dethier – HOW TO INNOVATE? INNOVATION STRATEGY? 3 Innova- tion Strategy 1. What’s your goal? S P O R C 2. A) How much investment? From where? B) When? C) Who? 3. Define & select your opportunities (strategic innovation area’s)
  • 4. Frank Dethier – New & Existing Markets Trends • Technology • Need • Business • Legal Innovation challenges Dev Projects to obtain understanding of • Technology • Customer Need • Business Internal & External Ideas INNOVATION PROCESS S P O R C 4 Strategy Idea selection
  • 5. Frank Dethier – INNOVATION & DELIVERY PROCESS 5 Mark etsTrends challe nges Dev Projects Strate gy selec tion S P O R C • Experimentation • Agile • Linked to Strategy • Execution • Portfolio • Funding based on Gate approval
  • 6. Frank Dethier – HOW TO INNOVATE? ORGANIZATION 6 S P O R C Explore Exploit Ambidextrous Open Innovation
  • 7. Frank Dethier – HOW TO INNOVATE? RESOURCES 7 S P O R C Right person, Right job Individuals Project Teams Diversity Leadership Vision, listening & advice
  • 9. Frank Dethier – HOW TO INNOVATE? COMPANY CULTURE  Wikipedia: “Organizational culture is the collective behavior of humans who are part of an organization and the meanings that the people attach to their actions. Culture includes the organization values, visions, norms, working language, systems, symbols, beliefs and habits.”  Deal and Kennedy (1982) defined organizational culture as the way things get done around here 9 S P O R C
  • 10. Frank Dethier – HOW TO INNOVATE? COMPANY CULTURE 10 Which behavior is present in your company, not allowed to happen, but nobody knows why? The Monkey Experiment S P O R C
  • 11. Frank Dethier – HOW TO INNOVATE? COMPANY CULTURE  Some company mindsets (not invented here, our quarterly results, ...) do not go along with an Innovative culture  Mindsets are stuck in companies/people while the world around you changes 11 S P O R C Mistakes Insights+Innovation = Sole focus of most companies
  • 12. Frank Dethier – HOW TO INNOVATE? INNOVATIVE COMPANY CULTURE Characteristics of Innovative Company Culture  Encourages being open  Allows interactions  Ecourages ‘different’ people to collaborate  Accept failures  Manages Risks  Learns  Shares know-how and experiences with each other  Explores new things  Embraces entrepreneurship  … 12 S P O R C
  • 13. Frank Dethier – HOW TO INNOVATE? INNOVATIVE COMPANY CULTURE 13 Several possible levers to redefine company culture Attitudes vs Risks Communication & Know-how sharing Working environment Metrics & KPIs S P O R C Development Programs
  • 14. Frank Dethier – HOW TO INNOVATE? DEVELOPMENT PROGRAMS 14 S P O R C Common Language Practical Tools Offer ongoing coaching Externally oriented mindset Inquisitive mindset Integrative mindset Opportunity driven mindset
  • 15. Frank Dethier – HOW TO INNOVATE? ATTITUDE TOWARDS RISKS  Fail?!  Key  Not all ideas become successfull project  ok to fail  Ensure organization draws learnings  mistakes are ok, hiding them not!  Stop projects early and fast if you don’t see value 15 S P O R C
  • 16. Frank Dethier – HOW TO INNOVATE? ATTITUDE TOWARDS RISKS 16 Apple Messagepad - 1993 S P O R C
  • 17. Frank Dethier – HOW TO INNOVATE? ATTITUDE TOWARDS RISKS Encourage Your Team to Take More Risks by being explicit about what risk-taking really means:  Define smart risk. Distinguish the areas where risk is encouraged, and where it is not. For example, you want minimal “execution risk” regarding customer commitments, but more “discovery risk” in developing new solutions to customer problems.  Use the right words. Terms like “experiment” or “scouting mission,” as opposed to “successful vs. unsuccessful project,” signal a more open attitude toward risk.  Establish clear phases for funding projects. Stop providing blank checks and work in defined phases (with approvals needed) 17 S P O R C
  • 18. Frank Dethier – HOW TO INNOVATE? COMMUNICATION & KNOW-HOW SHARING If you stop/change direction of an initiative, which organization stops to  Study learning that drove that decision  Celebrate opportunity to redirect resources in more promising direction 18 S P O R C
  • 19. Frank Dethier – HOW TO INNOVATE? COMMUNICATION & KNOW-HOW SHARING  Which organization praises people who fail for the right reasons?  Identify roadblocks early on before the company has invested significant sums  Have the guts to say that too much learning is needed before value ambition level is met 19 S P O R C
  • 20. Frank Dethier – HOW TO INNOVATE? COMMUNICATION & KNOW-HOW SHARING  Communicate!  Home work, but for Innovation?  Formally and informally  Sharing of experiences and know-how (incl failures)  Online tools  Face-2-face 20 S P O R C
  • 21. Frank Dethier – HOW TO INNOVATE? WORK ENVIRONMENT  Work environment is also crucial element  Helps you thinking out-of-the box  Dedicated spaces  Both individually and even more important, in groups  Creative room!?  Or at least out-of-the box sessions/spaces 21 S P O R C
  • 22. Frank Dethier – HOW TO INNOVATE? WORK ENVIRONMENT  Dedicated Spaces allows team to be  Inspired by imagery from the field  Immersed in their post-it notes  Able to track progress of Innovation project  Better having 2 different office environments (exploitation & exploration) than to ask team to switch context in same environment 22 S P O R C
  • 23. Frank Dethier – HOW TO INNOVATE? WORK ENVIRONMENT 23 S P O R C Office space designed to collaborate
  • 24. Frank Dethier – HOW TO INNOVATE? METRICS & KPIS  How do you need to reward your best Innovators?  Metrics & KPI’s determine your goal (communicated or not)  Several possible ways  Input driven: %budget spent on new innovations, #ideas generated, ...  Output driven: customer satisfaction, revenues new products/services, ...  Culture: #employees recognized for innovative work, %time leaders spent on Innovation, ... 24 S P O R C
  • 25. Frank Dethier – HOW TO INNOVATE? METRICS & KPIS 25 S P O R C Unique career opportunities Public recognition Financial (but intrinsic still better) Opportunity to learn
  • 26. Frank Dethier – HOW TO INNOVATE? INNOVATIVE COMPANY CULTURE Status Quo Culture Innovative Culture Predictability Un-predictability Seek stability Seek novelty Focus on core competence Focus on edge competence Reinforce organizational hierarchy Reinforce organizational networks High success rate High failure rate Avoid surprises Embrace surprises Accept things as they are Ask tough questions Extend the status quo Abandon the status quo Senior managers have critical knowledge Everyone has critical knowledge Look for certainty Embrace ambiguity Protect the past Create the future 26 S P O R C
  • 27. Frank Dethier – HOW TO INNOVATE? CHANGE INNOVATIVE COMPANY CULTURE  Creating an Innovative Company Culture is a Change Management trajectory  Change management is a systematic approach to dealing with change both from the perspective of an organization and the individual.  Identify and involve your change agents 27 S P O R C
  • 28. Frank Dethier – HOW TO INNOVATE? CHANGE MANAGEMENT 28 S P O R C
  • 29. Frank Dethier – DISRUPTIVE INNOVATION EXPERIENCES FROM OTHERS 29 Biggest video rental company Pay per video Based on mailing DVDs Netflix founder Reed Hastings asked himself, “Why can’t you sell movies like Amazon sells books?” while fuming over the fees he had incurred from his late return of Apollo 13 to Blockbuster Hastings combined Amazon’s book-selling approach with gym membership fee Model and streaming movie & movie suggesting technologies S P O R C
  • 30. Frank Dethier – DISRUPTIVE INNOVATION EXPERIENCES FROM OTHERS 30 How can I make high-quality coffee drinks more enjoyable? Inspiration by observing Italians from all walks of life enjoying Espresso at their local watering holes Roasting & packing business -> Howard Schultz was sent to Italy as employee to scout equipment S P O R C
  • 31. Frank Dethier – HOW TO INNOVATE? BOOK 31 S P O R C
  • 32. Frank Dethier – HOW TO INNOVATE? FUTURE INSPIRATION?  3 basic rules 1. Reserve time 2. Get out of the door/office/mindset/…. 3. Do something with it (if you feel it's relevant)  Additionally: experiment (outside work) sometimes with something new 32 S P O R C
  • 33. Frank Dethier – HOW TO INNOVATE? ONE HOLISTIC FRAMEWORK 33 Strategy Process Organization Resources Culture S P O R C
  • 34. Frank Dethier – FRANK DETHIER  My professional passions  Help people and companies change to Innovation & Growth  Guide young companies/start-ups to sustainable growth  Act as Change Agent in Company Board  Can you help me? Of course  Contacts & Opportunities  Recommendations  ... 34
  • 35. Frank Dethier – YOUR NEW ROLE INNOVATION MANAGER  Building innovation capabilities  Developing the competencies and capacities to innovate  Creating breakthrough strategies  Developing new business models  Finding opportunities for innovation and new growth  Catalytic thinking  Knowing the emerging, leading and best practice of innovation  Recognizing innovation lifecycle management  Accelerating and bringing change  Enhancing the quality of inventive intellectual thinking  Strengthening the collaborating effect  Building innovation resources  Leading clearly for innovation  Long-term innovation  See more at: http://www.innovationexcellence.com/blog/2012/01/27/chief- innovation-officer-checklist/ 35 S P O R C