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the other side of innovationSOLVING THE EXECUTION CHALLENGE,[object Object],Summary By,[object Object],Peter Modigliani,[object Object],Vijay Govindarajan,[object Object],Chris Trimble,[object Object]
Genius is 1% inspiration and 99% perspiration,[object Object],2,[object Object],Thomas Edison,[object Object]
idea,[object Object],leader,[object Object],team,[object Object],+  plan,[object Object],innovation,[object Object],3,[object Object],Innovation Model,[object Object]
Ongoing Operations,[object Object],Repeatable and Predictable,[object Object],Innovation,[object Object],Nonroutine and Uncertain,[object Object],4,[object Object],Address Fundamental Incompatibilities,[object Object],Innovation Leaders Must Think Differently About Organizing and Planning,[object Object]
Beyond the idea,[object Object],5,[object Object],Real Innovation Challenge,[object Object],Long journey fromimagination to impact,[object Object]
Powerful,[object Object],Capable,[object Object],Productive,[object Object],Efficient,[object Object],Growth Potential,[object Object],Impossible to innovateon its own,[object Object],6,[object Object],Performance Engine,[object Object],Ongoing Operations,[object Object]
Rebels Fighting the Bureaucracy,[object Object],7,[object Object],Innovation Leaders,[object Object]
8,[object Object],Each Innovation Initiative Requires ,[object Object],A team with a custom organizational model,[object Object],A plan revised by a rigorous learning process,[object Object]
Company,[object Object],Performance Engine,[object Object],9,[object Object],The Innovation Team,[object Object],Partnership,[object Object],Dedicated Team,[object Object],Shared Staff,[object Object]
10,[object Object],Performance Engine Limitations,[object Object],Skills of the Individuals,[object Object],Work Relationship Between Them,[object Object]
Identify skills needed,[object Object],Hire the best people,[object Object],Match the organizational model to the team,[object Object],11,[object Object],Principles for Dedicated Team,[object Object]
Having a bias for insiders,[object Object],Adopting existing formal roles & responsibilities,[object Object],Reinforcing performance engine power centers,[object Object],Assessing performance from established metrics,[object Object],Failing to create a distinct culture,[object Object],Using existing processes,[object Object],Succumbing to the tyranny of conformance,[object Object],12,[object Object],7 Common Mistakes,[object Object],1.,[object Object],2.,[object Object],3.,[object Object],4.,[object Object],5.,[object Object],6.,[object Object],7.,[object Object]
Pride,[object Object],Familiarity,[object Object],Comfort,[object Object],Expedience,[object Object],Compensation norms,[object Object],A desire to give attractive opportunities to your own employees,[object Object],13,[object Object],Trap 1: Having a Bias for Insiders,[object Object]
Skills Deficit Risk – Investors flock to start ups,[object Object],Organizational Memory Risk – Little Performance Engine,[object Object],Outsiders – Add New Perspectives, Challenge Org Memory,[object Object],14,[object Object],Trap 1: Having a Bias for Insiders,[object Object]
Use new and unfamiliar titles,[object Object],Write new job descriptions,[object Object],Create a separate physical space for the Team,[object Object],15,[object Object],Trap 2: Adopting Existing Roles and Responsibilities,[object Object]
Avoid replicating power centers for new team,[object Object],Achieve a power shift through:,[object Object],Team hierarchy,[object Object],Clear decision rights,[object Object],Leadership choices,[object Object],16,[object Object],Trap 3: Reinforcing Performance Engine Power Centers,[object Object]
Performance Engine metrics are rarely equally meaningful to Dedicated Team,[object Object],Identify performance metrics that matter most for your specific innovation initiative,[object Object],17,[object Object],Trap 4: Assessing Performance From Established Metrics ,[object Object]
Common assumptions and company stories,[object Object],Examine the company’s culture,[object Object],Consciously adopt some elements of the culture,[object Object],Avoid claiming a uniquely innovative culture which may offend the Performance Engine,[object Object],18,[object Object],Trap 5: Failing to Create a Distinct Culture ,[object Object]
If identical processes truly worked, the initiative would be part of Performance Engine,[object Object],19,[object Object],Trap 6: Using Existing Processes,[object Object]
HR, Finance, and IT drive standardization,[object Object],Insist on being an exception to these standards,[object Object],20,[object Object],Trap 7: Succumbing to the Tyranny of Conformance,[object Object]
Create a team distinct from the Performance Engine,[object Object],Treat the Performance Engine like a strategic partner,[object Object],21,[object Object],Take a Positive Approach,[object Object]
22,[object Object],You Will Face 3 Challenges,[object Object],Competition for Scare Resources,[object Object],Divided Attention of Shared Staff,[object Object],Disharmony in the Partnership,[object Object]
Allocate resources through one plan,[object Object],Fund Shared Staff resources,[object Object],Discuss contingency plans in advance,[object Object],23,[object Object],1. Competition for Scare Resources,[object Object]
Internal transfer payments,[object Object],Special targets,[object Object],Added bonuses,[object Object],24,[object Object],2. Divided Attentions of Shared Staff,[object Object]
25,[object Object],3. Disharmony in the Partnership,[object Object],Clear responsibilities,[object Object],Common values,[object Object],Insider collaboration,[object Object],Co-locate members,[object Object],External collaboration,[object Object]
Formalize the experiment,[object Object],Break down the hypothesis,[object Object],Seek the truth,[object Object],26,[object Object],Run a Disciplined Experiment,[object Object]
Wild,[object Object],Guesses,[object Object],27,[object Object],Predictions Improve With Learning,[object Object],Informed,[object Object],Estimates,[object Object],Reliable,[object Object],Forecasts,[object Object],Prediction,[object Object],Time,[object Object],Learning,[object Object],Executives Demanding Results Over Learning Drive Failure,[object Object]
28,[object Object],Formalizing an Experiment,[object Object],Plan the experiment(or revise the plan),[object Object],Compare predictions and outcomes, assess lessons learned,[object Object],Predict outcomes,document supportinglogic and assumptions,[object Object],Execute experiment,record measurements,,[object Object],document observations,[object Object],Learning Must Be a Rigorous Scientific Method – Not Intuition,[object Object]
Invest heavily in planning,[object Object],Create the plan and scorecard from scratch,[object Object],Discuss data and assumptions,[object Object],Document a clear hypothesis of record,[object Object],Find ways to spend a little, learn a lot,[object Object],Create a separate forum for discussing results,[object Object],Frequently reassess the plan,[object Object],Analyze trends,[object Object],Allow formal revisions to predictions,[object Object],Evaluate innovation leaders subjectively,[object Object],29,[object Object],10 Planning Principles for Innovation,[object Object],I,[object Object],II,[object Object],III,[object Object],IV,[object Object],V,[object Object],VI,[object Object],VII,[object Object],VIII,[object Object],IX,[object Object],X,[object Object]
Spreadsheets,[object Object],Cause and Effect,[object Object],30,[object Object],Conversational Models,[object Object],Subsequent outcome,[object Object],C,[object Object],Additional,[object Object],dependency,[object Object],Outcome,[object Object],Sales,[object Object],B,[object Object],D,[object Object],Action,[object Object],Trial Use,[object Object],Product,[object Object],quality,[object Object],A,[object Object],Advertising,[object Object],spending,[object Object],Focus On Conversations, Not Spreadsheets with Complexity,[object Object]
31,[object Object],Hypothesis Creation Technique,[object Object],     Divide the budget for innovation into 5 or fewer categories.,[object Object],  Sketch a sequence of outcomes and subsequent outcomes.,[object Object],   Choose specific, unambiguous, measurable outcomes.,[object Object],  Identify additional factors that each outcome depends on.,[object Object],1,[object Object],2,[object Object],3,[object Object],4,[object Object], Look for overlaps in category cause-and-effect chains.,[object Object],    Show how critical ,[object Object],non-spending decisions can impact outcomes,[object Object],  Keep it simple – One page diagrams.,[object Object],5,[object Object],6,[object Object],7,[object Object]
32,[object Object],Resolve Critical Unknowns First,[object Object],Most critical unknowns,[object Object],Severe,[object Object],What are the consequences if we are wrong?,[object Object],Moderate,[object Object],Least,[object Object],critical,[object Object],unknowns,[object Object],Minor,[object Object],Certain,[object Object],Educated Guess,[object Object],Wild Guess,[object Object],How certain are we?,[object Object]
Get off to a good start,[object Object],Monitor interactions with Performance Engine,[object Object],Stay engaged in a rigorous learning process,[object Object],Shape the Endgame,[object Object],33,[object Object],Supervise an Innovation Initiative,[object Object]
Powerful,[object Object],Broadly Experienced,[object Object],Able to Serve Long-Term Company Interests,[object Object],34,[object Object],Choose the Right Supervising Executive,[object Object]
Strategic objective,[object Object],Form – New product/service launches,[object Object],Core functions of Dedicated Teams required,[object Object],Length of time,[object Object],Scope of expense,[object Object],Areas of uncertainty,[object Object],35,[object Object],Oversee a Family of Related Initiatives,[object Object]
Innovation is all about ideas,[object Object],The great leader never fails,[object Object],Leaders are only fighting the system,[object Object],Everyone can be an innovator,[object Object],Innovation happens organically,[object Object],Can be inside an establish organization,[object Object],Requires wholesale organizational change,[object Object],Innovation can only happen in Skunk Works,[object Object],Innovation is unmanageable chaos,[object Object],Only start-ups can innovate,[object Object],36,[object Object],10 Common Innovation Myths,[object Object]
Ideas are only the beginning,[object Object],Nothing simple about execution,[object Object],Primary leader virtue is humility,[object Object],Ideation is everyone’s job,[object Object],Initiatives require formal resource commitment,[object Object],Innovation is incompatible with ongoing operations,[object Object],Innovation requires only targeted change,[object Object],Innovation must be engaged with ongoing operations,[object Object],Innovation must be closely and carefully managed,[object Object],Many of the world’s biggest problems can be solved only by large, established corporations,[object Object],37,[object Object],10 Innovation Truths,[object Object]
38,[object Object],Shape a More Innovative Company,[object Object]
39,[object Object]

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The Other Side of Innovation

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