BREAKOUT SESSION 2 Innovation, The Business Imperative Ellen Raynor - - PowerPoint PPT Presentation

BREAKOUT SESSION 2

Sponsored by:

Innovation, The Business Imperative

Ellen Raynor

Innovation: A Business Im perative

Ellen Raynor Director, Talent Management McKesson Medical-Surgical ellen.raynor@mckesson.com (804) 264-3126

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Our focus in this session is to:

• Define innovation and why it is so important
• Describe key insights from a Harvard thought leader
• Identify cultural barriers and enhancers
• Explore several practical ideas to encourage innovation

Definitions and Importance An expert’s insights Cultural Barriers and Enhancers Practical Ideas and Best Practices

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Our focus in this session is to:

• Define innovation and why it is so important
• Describe key insights from a Harvard thought leader
• Identify cultural barriers and enhancers
• Explore several practical ideas to encourage innovation

Definitions and Importance An expert’s insights Cultural Barriers and Enhancers Practical Ideas and Best Practices

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Many definitions focus on value creation

Yale University IT Services

The process of implementing new ideas to create

value

for an organization

American Society for Quality

Successful conversion of new concepts and knowledge into new products, services or processes that deliver new customer

value

in the marketplace

businessdictionary.com

The process of translating an idea or invention into a good or service that creates

value,

• r for which customers will pay

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Another definition via Google

This is how some differentiate innovation from improvement

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How does innovation differ from creativity?

Convergent Thinking Divergent Thinking

Creat eativit ity

Innovation

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Creat eativit ity

Business Im portance

• Innovation is prevalent in

business literature

• Countless books, articles,

white papers, consulting firms and blogs provide a variety of views

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Creat eativit ity

Growth

Innovation

Innovation is viewed as a growth driver

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Creat eativit ity

Innovation as a growth driver

Start-Up Rapid Growth Maturity Decline Rebirth Death

Life Cycle of a Business

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Creat eativit ity

Innovation as a growth driver

Start-Up Rapid Growth Maturity Decline Rebirth Death

Life Cycle of a Business

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Creat eativit ity

Are your com petitors standing still?

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Creat eativit ity

A story about Gillette razors

• Procter & Gamble, which owns Gillette,

enjoyed a 70% market share in 2010

• By early 2018, it had dropped to only 50%

What happened?

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Creat eativit ity

A story about Gillette razors

• Procter & Gamble, which owns Gillette,

enjoyed a 70% market share in 2010

• By early 2018, it had dropped to only 50%

What happened?

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The bottom line

• Creates value for customers
• Is a key strategy for driving growth
• Spurs new growth in mature companies
• Builds competitive advantage
• Can disrupt the marketplace
• Is the “secret sauce” to business success

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Our focus in this session is to:

Define innovation and why is it so important

• Describe key insights from a Harvard thought leader
• Identify cultural barriers and enhancers
• Explore several practical ideas to encourage innovation

Definitions and Importance An expert’s insights Cultural Barriers and Enhancers Practical Ideas and Best Practices

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Thought leadership in two key areas

 Jobs to Be Done  The Innovator’s DNA

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Articles: Spring 20 0 7 and Septem ber 20 16

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What are “jobs to be done?”

• What your customer hopes to accomplish in a given circumstance
• When we buy a product or service, we “hire” it to do a job

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What are “jobs to be done?”

• What your customer hopes to accomplish in a given circumstance
• When we buy a product or service, we “hire” it to do a job

Example:

Condominium Developers

• Builders targeted empty nesters;

the condo units were priced right So why weren’t they selling?

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What are “jobs to be done?”

• What your customer hopes to accomplish in a given circumstance
• When we buy a product or service, we “hire” it to do a job

Example:

Condominium Developers

• Builders targeted empty nesters;

the condo units were priced right

• Customers didn’t need a large

dining room, but…

• They did need to figure out what to

do with their dining room tables

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The developer’s solution

• Made the unit’s guest

bedroom slightly smaller, to allow for a normal-sized dining room table

• Provided two years of

storage and a sorting room within the development where new owners could take their time making decisions about what to keep and what to discard

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Outcom e

Once the builder understood the “job do be done” by the condo for empty nesters and he made these changes, sales increased rapidly

They were not just competing against other condo units; they were competing against the option of NOT MOVING AT ALL

• The “job to be done” was not enabling the purchase of a condo…
• Instead, it was helping empty nesters to move on with their lives

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How “Jobs to be done” leads to innovation

Jobs To Be Done Old Solution New Solution Ingest medicine Pills and shots Skin patches Make many products for mass market Many crafts persons Production line Execute rote legal functions Lawyers legalzoom.com Detect enemy at night Flares Night vision Keep windows clean Clean with squeegee Self-cleaning glass Clean teeth Manual brushing Automated with sound waves Search for information Library Internet

Understanding your customer’s job to be done

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Self-assessm ent questions

• Given: Innovation can be more predictable and profitable if you start

by identifying the jobs that customers are struggling to get done. Without this lens, you’re doomed to hit-or-miss innovation. How does your organization currently identify what “jobs to be done” your customers really need? How confident are you that your products and/or service offerings truly match the customer’s “jobs to be done?” How well do your overall innovation efforts align with jobs to be done? Or are you throwing spaghetti against the wall?

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An innovation process m odel

Find struggling moments Hear what customers don’t say Frame the jobs to be done Design for progress

Source: FranklinCovey “Find Out WHY”

Curiosity Empathy Results

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An innovation thought leader

 Jobs to Be Done  The Innovator’s DNA

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Decem ber 20 0 9 article in HBR

• A 6-year study to uncover the origins of creative

business strategies in innovative companies

• Goal: To put entrepreneurs under the microscope

to understand when and how they came up with the ideas on which their businesses are built

• Also: To understand how they are different from
• ther executives and entrepreneurs

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The Innovator’s DNA: Five Discovery Skills

Challenging the status quo Taking risks

Courage to Innovate

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The Innovator’s DNA: Five Discovery Skills

Courage to Innovate

Questioning Observing Networking Experimenting

Behavioral Skills

• Asking why not? What if…?

If w e cut the size or w eight of the w idget in half, how w ould that change the value proposition it

• ffers?
• Imagining opposites
• Playing devil’s advocate
• Embracing constraints

If w e w ere legally prohibited from selling to our current custom ers, how w ould w e m ake m oney next year?

Challenging the status quo Taking risks

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The Innovator’s DNA: Five Discovery Skills

Courage to Innovate

Questioning Observing Networking Experimenting

Behavioral Skills

• Scrutinizing the behavior of

potential customers

• Carefully, intentionally and

consistently looking out for small details to gain insights about new ways of doing things

• Example: Intuit founder Scott

Cook observing his wife’s frustration trying to manage their finances

Challenging the status quo Taking risks

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The Innovator’s DNA: Five Discovery Skills

Courage to Innovate

Questioning Observing Networking Experimenting

Behavioral Skills

• Devoting time and energy to

finding and testing ideas through a network of diverse individuals

• Meeting people with different

ideas and perspectives to extend one’s own knowledge

• Attending idea conferences

Challenging the status quo Taking risks

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The Innovator’s DNA: Five Discovery Skills

Courage to Innovate

Questioning Observing Networking Experimenting

Behavioral Skills

• Trying out new ideas by creating

prototypes and launching pilots

• Constructing interactive

experiences to provoke unorthodox responses to see what insights emerge

• Includes engagement in new

surroundings: Starbucks founder Howard Shultz roaming Italy visiting coffee bars

Challenging the status quo Taking risks

Associating

Cognitive Skill Innovative Idea

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The final skill: Associating (connecting things)

Courage to Innovate

Questioning Observing Networking Experimenting

Behavioral Skills

Challenging the status quo Taking risks

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The bottom line

• Innovative entrepreneurs who are also CEOs

spend 50% more time on discovery activities than those with no track record for innovation

• The discovery skills can be learned through

practice so they become automatic

• The most important skill to practice is

questioning – will turbocharge the others

• Associating (connecting things) is a mental

muscle that grows stronger by using the

• ther discovery skills

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Our focus in this session is to:

Define innovation and why is it so important Describe key insights from a Harvard thought leader

• Identify cultural barriers and enhancers
• Explore several practical ideas to encourage innovation

Definitions and Importance An Expert’s Insights Cultural Barriers and Enhancers Practical Ideas and Best Practices

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What is organizational culture?

• Taken-for-granted values
• Underlying assumptions and expectations
• Collective memories
• Sense of identity and prevailing ideology
• “How things are done around here”
• Unwritten and often unspoken guidelines for how to get along

in the organization

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Nine Rules to Stifle Innovation

Be suspicious of any new idea from below Remind everyone of why it won’t work Keep people really busy; pile on work Encourage cut-throat competition Stress predictability and guarantees Confine plans to trusted advisors Punish failure and humiliate publicly Blame problems on the incompetents Never forget that you know everything

1 2 3 4 5 6 7 8 9

Source: HBR article by Rosabeth Moss Kanter

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Im portant questions

• Does your organization value innovation? If so, how is that backed up?
• Is there a mechanism to channel innovative ideas?
• Is seed money budgeted for and provided to pilot ideas?
• Are there incentives to innovate (financial or other)?
• What happens when an idea or pilot fails? Is it a career-ender?
• Are imaginative, inquisitive, creative people considered eccentric?
• How diverse is your organization? How collaborative?
• Are ideas and innovations rewarded and celebrated?
• Does the organization make time for people to create or ideate?

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Our focus in this session is to:

Definitions and Importance An expert’s insights Cultural Barriers and Enhancers Practical Ideas and Best Practices

Define innovation and why is it so important Describe key insights from a Harvard thought leader Identify cultural barriers and enhancers

• Explore several practical ideas to encourage innovation

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Practical ideas

• 1. Look seriously at your culture and values
• 2. Focus on your customers and the jobs to be done

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Practical ideas

• 1. Look seriously at your culture and values
• 2. Focus on your customers and the jobs to be done
• 3. Consider “innovation catalysts”

Mechanisms in place to grow and reward their innovators

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Practical ideas

• 1. Look seriously at your culture and values
• 2. Focus on your customers and the jobs to be done
• 3. Consider “innovation champions”
• 4. Foster collaboration (collaboration >>>>> innovation)

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Practical ideas

• 1. Look seriously at your culture and values
• 2. Focus on your customers and the jobs to be done
• 3. Consider “innovation champions”
• 4. Foster collaboration (collaboration >>>>> innovation)
• 5. Consider a CIO or VP/Director of Innovation

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Role of the Chief Innovation Officer

• Supporting best practices
• Developing skills
• Supporting business units in new product

and service initiatives

• Identifying new market spaces
• Helping people generate ideas
• Directing seed funding
• Designing shelter for promising projects

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Practical ideas

• 1. Look seriously at your culture and values
• 2. Focus on your customers and the jobs to be done
• 3. Consider “innovation champions”
• 4. Foster collaboration (collaboration >>>>> innovation)
• 5. Consider a CIO or VP/Director of Innovation
• 6. Teach leaders how to host innovation tournaments

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What is an innovation tournam ent?

• A structured process to utilize a group’s expertise and creativity

to solve problems or capitalize on opportunities

In addition to it’s primary purpose, an Innovation Tournament is also a terrific team building activity!

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Innovation tournam ent: Overview of key steps

• 1. Define the problem or opportunity – why is it important?
• 2. Brainstorm ideas (can be individually or in pairs)
• 3. Select, define and post a “best” idea; assign numbers
• 4. Pitch each idea for one minute, being strict with a timer
• 5. Bundle same or very similar ideas together
• 6. Provide each participant with five stickers; participants then vote for

their preferred ideas

• 7. Tally votes; the 2-3 ideas with the most votes advance for scoping,

development and implementation

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Define the problem or opportunity

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Brainstorm ideas (individually or in pairs)

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Select, define and post one “best” idea Format:

• Headline
• Description
• Benefit

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Label each idea with a num ber

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Each pair does a 1-m inute “pitch” of their idea

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Overall group listens to each 1-m inute pitch

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Bundle sim ilar ideas before voting

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Participants get five stickers each to vote

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Highest rated ideas advance for developm ent

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Sum m ary: Innovation tournam ent

• 1. Define the problem or opportunity – why is it important?
• 2. Brainstorm ideas (can be individually or in pairs)
• 3. Select, define and post a “best” idea; assign numbers
• 4. Pitch each idea for one minute, being strict with a timer
• 5. Bundle same or very similar ideas together
• 6. Provide each participant with five stickers; participants then vote for

their preferred ideas

• 7. Tally votes; the 2-3 ideas with the most votes advance for scoping,

development and implementation

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Practical ideas

• 1. Look seriously at your culture and values
• 2. Focus on your customers and the jobs to be done
• 3. Consider “innovation champions”
• 4. Foster collaboration (collaboration >>>>> innovation)
• 5. Consider a CIO or VP/Director of Innovation
• 6. Teach leaders how to host innovation tournaments
• 7. Make time for creativity; build it into meetings

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Innovation activity: Stereotype

• Objectives

To help generate as many creative ideas as possible To help you appreciate the value of activities like this

• Participants

Groups of 3-5 each

• Overall Idea

To get a new perspective, think as if you were someone else

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Innovation activity: Stereotype

Pick a profession. Write down everything you think you know about the profession you’ve selected. Consider what solutions that profession would think of and use those solutions to generate fresh ideas. Record your ideas on sticky notes for future evaluation.

• Group 1: What can MMS do to better

manage its accounts receivable?

• Group 2: What are some good ideas

for passing along a price increase to

• ur price-sensitive customers?
• Group 3: How can our distribution

centers reduce undesired turnover of their material handlers?

• Group 4: How can we foster better

movement of talent between functions and segments?

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Business challenge: Reduce m anufacturing errors

Carpenters

Pound nails on the tip to prevent splitting wood “Measure twice and cut once” The quality of the sanding determines the quality of the final finish It’s easier to saw wood with the grain than against it Always use the right tool for the job First brainstorm this…

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Business challenge: Reduce m anufacturing errors

Carpenters

Pound nails on the tip to prevent splitting wood “Measure twice and cut once” The quality of the sanding determines the quality of the final finish It’s easier to saw wood with the grain than against it Always use the right tool for the job First brainstorm this…

Ideas

Blunt the impact of errors through a program that hammers a quality theme Require EE’s to check their output twice Provide employees with additional training in quality control activities Conduct regular meetings to assure EE’s are aligned with goals and philosophy Upgrade to the latest technology Then brainstorm actual ideas

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Practical ideas

• 1. Look seriously at your culture and values
• 2. Focus on your customers and the jobs to be done
• 3. Consider “innovation champions”
• 4. Foster collaboration (collaboration >>>>> innovation)
• 5. Consider a CIO or VP/Director of Innovation
• 6. Teach leaders how to host innovation tournaments
• 7. Make time for creativity; build it into meetings

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Our focus in this session is to:

• Define innovation and why it is so important
• Describe key insights from a Harvard thought leader
• Identify cultural barriers and enhancers
• Explore several practical ideas to encourage innovation

Definitions and Importance An expert’s insights Cultural Barriers and Enhancers Practical Ideas and Best Practices

Innovation: A Business Im perative

Ellen Raynor Director, Talent Management McKesson Medical-Surgical ellen.raynor@mckesson.com (804) 264-3126