Strategic Innovation Leadership John Scotland BA Grad Dip

Strategic Innovation Leadership John Scotland BA Grad Dip Ed Grad Dip HRD 1

Thomas Edison “I have not failed, I’ve just found 10, 000 ways that won’t work”. 2

Strategic Innovation Leadership n n n Fear, innovation and business success Innovation leadership attitudes and competence The blueprint for workplace innovation How to build and lead the best teams for innovation How to implement a proven creative problem solving process in your organisation 3

What are they? ? Creativity and Innovation 4

Sources of Competitive Advantage Over Time Knowledge and Ideas • Creativity & Innovation 2000 1990 1980 1970 1960 1940 1920 1900 • 5 th generation mgt • BPR • Learning org. • TQM • MBO • HR planning • Strategic planning • Managerial grid • Industrial relations • Time and motion • Group theory • Scientific mgt. 1850 • Systematic mgt. Capital Command control / Individual focus Fixed reward / hard systems Bureaucracy Approaches Coach and develop / Team Focus Flexible benefits / Soft values 5 Networked teams

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“New Concepts in Innovation” Business Council of Australia (2006) The prevailing view among Australian business leaders and Government agencies is an old one – that creativity is the domain of the artist or researcher. OLD INNOVATION NEW INNOVATION Australian business and public sector management is imbued with a sense of research and development but it lacks the skills, knowledge and confidence to work creatively and innovatively in the new business paradigm. 7

Innovation Leaders 2006/07* n n n n n Boeing (US) Virgin Atlantic (UK) Toyota (Japan) RBS (UK) Du Pont (US) Samsumg (S Korea) LEGO (Denmark) BP (UK) H&M (Sweden) Nokia (Finland) * Innovaro Ltd 2007 n n n n n Reckitt Benckiser (UK) Pepsi. Co (US) Tesco (UK) Apple (US) Aviva (UK) Google (US) Canon (Japan) Novartis (Switzerland) Microsoft (US) Adidas (Germany) # Note: No Australian Company 8

Innovation Leaders 2006/07 n n n Strategic Focus Insight Collaboration Process Organisation 9

Managers’ Perceptions of Innovation - An Exploratory Study (September 2003 – March 2004) 10

‘The Innovation Gap’ No = 25% Elaborated responses (30. 5%) Yes = 44. 5% Only 9. 3% reported having a formal innovation strategy and allocated budget in place 11

Summary AIC Research Findings ‘THE INNOVATION GAP’ Ø Concept of Innovation not always clearly understood. Ø Most organisations don’t know how to cross the bridge between concept and implementing performance-based innovation strategies. ØWhilst 44. 5% of organisations claimed their organisation to be innovative only three had a formal innovation strategy in place. ØOnly one organisation offered their employees creativity/innovation related education and training. 12

Supporting factors and barriers Supporting factors Barriers Leadership and support from top management Resistance to change Culture, climate and identity Org culture and climate Rewards and recognition Corporate structure Competition and deregulation, need and diversity Workloads and Lack of skills 13

FEAR 14

Desired Future Discrepancy Gap Need Innovation Champion Strategy on how to get there Current State • Lack of useful ideas • Lack of skills or support for creative and strategic breakthroughs • Perhaps, other challenges and problems 15

Business Creativity & Innovation Framework (BCIF) Product Press Innovation ® 4 Ps Process People 16

Innovation 4 Ps: A Whole System Innovation Product Process People s s re P 17

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Determinants of Organisational Creativity and Innovation (AIC) Organisational Climate Leadership Style Organisational Innovation Resources & Skills Organisational Culture Structure & Systems 19

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The First P of Innovation Refers to the context (ie: climate, culture and environment) Press is short for pressure - that is, the context within which people, process and product operate. The environment, both internal and external to the organisation, presses in on and out from the organisation. 21

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Climate Survey - Impact of the Work Environment (KEYS) Innovation within the organisation depends upon: • Organizational Motivation – the basic orientation of the organization toward innovation • Resources – everything the organization has available to aid in the area targeted for innovation • Management Practices – supporting freedom and autonomy in the conduct of work; challenging interesting work; • Expertise – knowledge, talent and skill • Creativity Skills – having a flexible problem-solving approach, . • Intrinsic Motivation – the desire to solve the problem or accomplish a task 23

Blueprint for Innovation n Culture Climate Analysis (KEYS) Business Creativity and Innovation Index (BICI) Strategic Approach to Innovation in your Organisation 24

Components of Individual Creativity Expertise C Creativity Skills Intrinsic Motivation 25

Organisation Creativity Building Trusting Relationships Success Increasing Energy & Effectiveness Initiative Under Pressure Creating the Future Innovation & Unique Potential 26

Innovation within the Organization Resources I Management Practices Organizational Motivation 27

Innovation within the organization depends upon: n n n Organizational Motivation – the basic orientation of the organization toward innovation; shared vision; providing rewards and recognition; lack of internal politics, and lack of overemphasis on the status quo. Resources – everything the organization has available to aid in the area targeted for innovation, including time, funding, information and materials. Management Practices – allowing freedom and autonomy in the practice of work; providing challenge; specifying clear strategic goals and forming work teams comprised of individuals with diverse skills and perspectives. 28

Impact of the Work Environment Resources I Management Practices Innovation Organizational Motivation Creativity Skills Expertise Individual/Team Creativity C Creativity Task Motivation 29

Impact of the Work Environment on Performance n What you CAN do: Talent n What you WILL do: Motivation n HOW you will do it depends upon your intrinsic motivation 30

The Second P of Innovation Process What are the mechanisms and processes that lead to innovative products, services, processes or procedures? 31

4 -Power Innovation Clarify Ideate Develop Pinpoint the problem to solve Come up with new ideas Refine ideas into strong solutions Implement Put the plan into action 32

Diverging and Converging Diverging thinking Generating lots of options and ideas, making lists. Green light = speed Converging thinking Judging, assessing options, focusing, making decisions. Red light = brakes on! These are two mutually exclusive mental activities 33

The Third P of Innovation Addresses the issues related to PEOPLE, such as individual differences and teamwork People 34

Four. Sight Preferences Clarifier Diagnostic Thinking Developer Ideator Visionary Thinking Evaluative Thinking Implementer Tactical Thinking 35

On average, it takes about 3, 000 raw ideas to lead to a commercially successful product or process Initial Experiments ideas New product 36 Stevens & Burley, 1997

Team Profile 37

The Fourth P of Innovation Product What makes products, services, practices or procedures innovative? 38

Characteristics of an INNOVATIVE Product or Service NOVELTY • Does it solve the problem or help manage the challenge? • • Is it useful and practical? • • Does it work? • • Does it provide value? • • Is it cost-effective • ELABORATION & SYNTHESIS Originality (Is it new or different? ) Is it understandable? Is it well presented? Is it attractive and credible? Will people ‘buy it’? Can it be commercialized? RESOLUTION 39

Ideas Management n Ideas need to be: v Generated v Captured and Retrievable v Evaluated v Developed v Implemented v Rewarded v Measured 40

Innovation Leadership: Attitudes n n n Deliberate climate creation and cultural influence Innovation vision Encourage challenge & risk taking Collaboration Resources for innovation Celebration 41

Innovation Leadership: Innovation Competence n n n Model and coach for innovation and creativity Develop innovation teams and leaders Generate breakthrough ideas Capitalise on intrapeneurship Customer Service Insight into drivers and opportunities 42

Innovation Leadership: Metrics, systems and prcatices n n n Measure innovation costs & benefits Incorporate innovation in performance management Establish supportive systems Use innovation to increase profit Seek to accelerate breakthrough thinking 43

Thankyou Strategic Innovation Leadership 44