HR Innovation: Mia Vanstraelen

© 2010 IBM Corporation

Ir. Mia VanstraelenVlerick HR dayJune 8 th 2011

based on IBM’s Oct 2010 CHRO Study ,

[email protected]

How does HR build in innovation into the company strategy ?

© 2010 IBM Corporation

Common wisdom on innovation in a nutshell …

� All growth driven strategies today require innovation; sustainability and CSR are now on the innovation agenda

� Type of Innovation:– Sustained innovation, or incremental innovation… along the lines of continuous innovation and

improvements

– Disruptive or spectacular innovation in products, services, business models

� Business leaders and their strategies must drive innovative projects; – Leadership is required to break out of the innovation trap

� Collaboration, collective intelligence is source of innovation, � IT is the tool, essential and pivotal; creative usage of IT creates new opportunities � Innovation is THE Source of longterm growth; innovation requires:

– Balance between creativity and discipline– An Innovation Style in each company– Innovation crosses the whole value chain – Innovation works in dimensions: individual level, on corporate level, or at eco-system-level

� The term OPEN innovation means open to ideas; it also means innovation involving clients and suppliers, all members of the eco- system, involves high uses of technology and IP, requires short learning curves and adaptability in systems and in people, creates structure out of chaos, looks for risk taking attitudes, is open to all types of partnerships, is collaborative in nature and cultural diverse in its core, uses proven methodologies as bootcamps and best practices;

– FYI: the term “open innovation” had 200 google entries in 2003, while 13M at start of 2011… a factor 60K in 9 years.

© 2010 IBM Corporation3

Agenda

CHRO Study “Working beyond borders” or working beyond the “tunnel ”

Three workforce opportunities require focus from HR in order to drive growth, and innovation:

– Cultivating creative leaders

– Mobilizing for speed and flexibility

– Capitalizing on collective intelligence

Making HR build in innovation into strategy


707 HR executive interviews

2010Working beyond Borders

Key Themes

� Cultivating creative leaders

� Mobilizing for speed and flexibility

� Capitalizing on collective intelligence

2008Adaptable Workforce


Key Themes

�Developing an adaptable workforce

�Closing the leadership gap

�Cracking the code for talent

�Driving growth through workforce analytics

2005The Capability Within


Key Themes

�The menace of maturity

�The quest for talent

�Retaining key people

�Measuring performance

The 2010 Global Chief Human Resource Officer (CHRO) Study builds on our insights and findings over the last five years


HR leaders focus on two important goals — the need to drive growthand maintain operational efficiency: the problem of innovation

Source: Q1 (Overall, what do you see as the primary business challenges affecting you organization today and in the next 3 years? Select THREE)

Today Three years

Improving operational efficiency44%

64%

Expanding into new markets/geographies31%

44%

Developing new product/service offerings35%

48%

“Our current stance is defensive to protect our profits under difficult economic circumstances; however, over the medium and long term, our agenda is geared toward global growth.”

Director of Operations, United Kingdom

Current and future areas of focus

RequiresInnovation


In the HR domain,three key capabilities enable organizations to work beyond borders and therefore outside their tunnels:

Cultivating creative leadersDeveloping the next generation to lead a more global, flexible and diverse workforce for business growth

Mobilizing for speed and flexibilityRapidly develop and deploy workforce skills and capabilities to match emerging opportunities

Capitalizing on collective intelligenceFostering collaboration and knowledge sharing to drive efficiency and foster innovation


1 Leadership: Less than one-third of companies say they are effective at building the next generation of leadership capabilities

Source: Q2 (How important is it for your organization to address the following workforce challenges in the next 3 years? Select THREE)Q3 (How effective is your organization in addressing the following workforce challenges today: Developing future leaders? Effective = 4 and 5)

Effectiveness at developing future leaders

69%Ineffective

31%Effective

Rel

ativ

e ef

fect

iven

ess

Relative future importance

Developingfuture leaders

1 2 3 4 5 6 7 8 9

9

8

7

6

5

4

3

2

1

“We have hired and trained people to work in silos. We need to identify future leaders who can operate in a globally integrated company, and train them to think and work globally.”

Patti Stumpp,SVP HR, Invacare Corporation

• Lack of modern leadership styles (cooperative, supportive, inspiring, lateral)

• Lack of knowledge on stimulating creativity & on reflecting companies historic paths & traditions

• Lack of ways to incorporate external perspectives (suppliers, customers)


Key issues for cultivating creative leaders

� Check the innovation style of leadership in your co mpany

� Support your leaders in the process of innovation a nd collaboration!

� Foster multiple leadership styles, creativity and “ out-of-the-tunnel”-thinking among your leadership team!

� Radically rethinking leadership development to emph asis business growth through innovation!


2 Mobilizing: While companies are looking to become more flexible, they are still challenged in building and allocating talent

Source: Q2 (How important is it for your organization to address the following workforce challenges in the next 3 years? Select THREE)Q3 (How effective is your organization in addressing the following workforce challenges today: Rapidly developing needed workforce skills and capabilities? Efficiently allocating

the workforce across the organization?) (Effective = 4 or 5)

Effectiveness ratings

Efficiently allocating the workforce

across the organization

Rapidly developing workforce skills and

capabilities

36%

64%

31%

69%

Effective Ineffective

Rel

ativ

e ef

fect

iven

ess


1 2 3 4 5 6 7 8 9

9

8

7

6

5

4

3

2

1

Efficiently allocating the workforce across the organization

Rapidly developing workforce skills and capabilities

• Lack of unified workforce strategy over different units• Lack of focused allocation models• Lack of appropriate learning platforms & opportunities


Key issues for mobilizing for speed and flexibility

� Break down the organizational silos and tunnels that prevent the best use of your talent!

� Use alternative work structures provide greater opportunity for efficient and more innovative deployment!

� Reduce time to competence in your most critical jobs


22%Effective

11

“We don’t share intellectual assets fully, even though we have the IT infrastructure to do so.”HR Executive, Industrial Sector,

Japan

3 Collective intelligence: Organizations struggle to connect their workforces

Source: Q2 (How important is it for your organization to address the following workforce challenges in the next 3 years? Select THREE)Q3 (How effective is your organization in addressing the following workforce challenges today: Fostering collaboration and social networking? Effective = 4 or 5)

Effectiveness at fostering collaboration and knowle dge sharing

78%Ineffective

Rel

ativ

e E

ffect

iven

ess


1 2 3 4 5 6 7 8 9

9

8

7

6

5

4

3

2

1Fostering collaboration and knowledge sharing


Key issues for capitalizing on collective intelligence

� Get multiple generations of employees to actively engage in collaboration to overcome tunnels!

� Encourage formation and use of cross-organization communities around strategic business topics!

� Develop ways to explore, reward and integrate diverse and unconventional points of view!

� Use novel techniques to tap into the insights and ideas of employees around the world!


Becoming borderless and more innovative…


Key challenges for HR supporting company strategies & leaving the tunnel

� Use strategic influence not only for strategy execution but for strategy building while using this knowledge to enable a culture of innovation

� Lessons learned from the CHRO-Study to make HR itself a driver for innovation over the value chain of the enterprise:

� At the top: Develop knowledge & capabilities of your strategic leaders

� In the company: guarantee efficient learning and talent allocation to develop company’s intelligence

� In between: Connect collective company intelligence with top management levels to enable a culture of collaboration and creativity


For more information

For more information about this study, please visit the study web page:

www.ibm.com/chrostudy2010

Or contact one of the IBM leaders listed below:

� Asia Pacific and Latin America: Denis Brousseau, [email protected]

� Japan: Kazuya Ohike, [email protected]

� North America: Maria-paz Barrientos, [email protected]

� Northern Europe: Hans-Henrik Jorgensen, [email protected]

� Southern Europe: Martina Pareschi, [email protected]

� IBM Institute for Business Value: Eric Lesser, [email protected]


Imperatives for building innovation into the company strategy will require HR to focus on:

Improve operational efficiency

Expand into new markets/geographies

Cultivating creative leaders

Mobilizing for speed and flexibility

Capitalizing on collective intelligence

Be comfortable with distributed and virtual leadership approaches; create leaders who leverage informal power

Develop online marketplaces to efficiently match global talent supply with demand

Improve productivity through best practices sharing and reducing duplicative efforts

Accelerate the development of truly borderless leaders ; be creative in combining global and local talent

Adapt a global approach to sourcing talent;eliminate policy and process barriers to cross-border movement

Improve cross-functional effectiveness by providing an online platform for virtual team collaboration

Develop new product/service offerings

Design leadership development programs to generate innovative emerging business opportunities

Leverage flexible work structures to rapidly align / connect talent with critical jobs in new business areas

Establish a culture of creativity and innovation where new product ideas get visibility and executive support

Detailled insights ….

HR Innovation: Mia Vanstraelen

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