Module: SILA www.aipmm.com R ELATED R EADINGS Booz &
Company. (2011). Why culture is key: The 2011 global innovation
1000. Retrieved from http://www.booz.com/global/home/
what_we_think/innovation_1000_2011 Beckhard, R. & Harris, R. T.
(1987). Organizational transitions: Managing complex change (2nd
ed.). Reading, MA: Addison-Wesley (p. 98). Hofstede, G. &
Hofstede, G. J. (2004). Cultures and organizations: Software of the
mind. New York, NY: McGraw-Hill. Kotler, P. (2011). Marketing
management. New York, NY: Prentice Hall. Patterson, K., Grenny, J.,
Maxfield, D., McMillan, R., & Switzler, A. (2008). Influencer:
The power to change anything. New York, NY: McGraw-Hill. Senge, P.
(1990). The fifth discipline: The art and practice of the learning
organization. Random House.
Slide 3
Module: SILA www.aipmm.com SILA: S TRATEGIC I NNOVATION L
EVERAGE AND A LIGNMENT 1.Strategic: Comprehensive, purposeful,
essential 2.Innovation: Focused on product innovation to achieve
objectives 3.Leverage: Power to act effectively and wisely
4.Alignment: Harmonizing organizational mission, culture, and
resources (AIPMM)
Slide 4
Module: SILA www.aipmm.com SILA: S TRATEGIC I NNOVATION L
EVERAGE AND A LIGNMENT Concerned with how the pieces of the
organization fit together How the pieces support each other Are we
staged for success? Corporate Strategy Mission Vision Values
Culture Objectives Systems Thinking NPD Strategy NPD Process
Organizational Structure Allocation of Funds Organizational
Capabilities (AIPMM)
Slide 5
Module: SILA www.aipmm.com W HY SILA? Only about half of the
most innovative companies have: A corporate culture that supports
their innovation strategy Alignment between the innovation strategy
and the corporate strategy Nearly 20% do not have a well-defined
innovation strategy companies with unsupportive cultures and poor
strategic alignment significantly underperform their competitors.
(Booz, 2011, p. 1) (Booz, 2011)
Slide 6
Module: SILA www.aipmm.com K EY E LEMENTS OF AN I NNOVATIVE C
OMPANY Focused innovation strategy Winning business / corporate
strategy Deep customer insight Great talent Proper set of
capabilities Supportive culture (Booz, 2011) SILA An expression of
the thread necessary between these elements
Slide 7
Module: SILA www.aipmm.com E XAMPLE : 3 M Companies whose
strategic goals are clear, and whose cultures strongly support
those goals, possess a huge advantage. Palensky [CTO] articulates
his companys innovation strategy clearly: We call it
customer-inspired innovation. Connect with the customer, find out
their articulated and unarticulated needs, and then determine the
capability at 3M that can be developed across the company that
could solve that customers problem in a unique, proprietary, and
sustainable way. (Booz, 2011, p. 4) (Booz, 2011) Strategic Goals +
Supportive Culture
Slide 8
Module: SILA www.aipmm.com I NPUTS (AIPMM) Mission, Vision,
Values Innovation Strategy Corporate Strategy Culture SILA
Slide 9
Module: SILA www.aipmm.com I NPUT : M ISSION, V ISION, AND V
ALUES Mission & Purpose VisionValues (Latham, 1995) Today
Identifies customer(s) Identifies critical systems or core
competencies States level of performance Tomorrow Inspirational
Clear decision-making criteria Timeless What is honored What is
avoided What is not tolerated I didnt believe this vision thing
made any impact on organizational performance..... My (research)
data showed just the opposite ---- I found that a clearly
articulated vision, fully implemented across an organization, in
fact makes a profoundly positive difference. (Lipton, 1996. p.
83)
Slide 10
Module: SILA www.aipmm.com I NPUT : C ORPORATE S TRATEGY The
plan that is driven by an organizations mission, vision, and
values. A company's game plan for achieving its long term
objectives in light of its industry position, opportunities, and
resources (Kotler, 2011) Strategy = Plan + Objectives
Slide 11
Module: SILA www.aipmm.com I NPUT : C ORPORATE S TRATEGY P
ROCESS 1.Decide what your business is 2.Decide who your customers
are and what you want to offer them 3.Decide how you will play the
game 4.Identify strategic assets and capabilities 5.Create the
right organizational environment (Markides, 2000)
Slide 12
Module: SILA www.aipmm.com I NPUT : I NNOVATION S TRATEGY Need
Seekers: Actively engaging current and potential customers to shape
products. They are the first to market. Examples: Apple, 3M, GE
Market Readers: Incremental innovations based on closely monitoring
customers and competitors. They are the fast followers. Example:
Visteon Corporation Technology Drivers: Breakthrough and
incremental innovation based on their technological capabilities.
They are R&D / engineering driven. Examples: Google, HP (Booz,
2011) Source: Booz & Company
Slide 13
Module: SILA www.aipmm.com I NPUT : I NNOVATION S TRATEGY G
OALS (Booz, 2011) Source: Booz & Company. The 2011 Global
Innovation 1000 Report
Slide 14
Module: SILA www.aipmm.com SILA: S TRATEGIC I NNOVATION L
EVERAGE AND A LIGNMENT 1.Strategic: Comprehensive, purposeful,
essential 2.Innovation: Focused on product innovation to achieve
objectives 3.Leverage: Power to act effectively and wisely
4.Alignment: Harmonizing organizational mission, culture, and
resources (AIPMM)
Slide 15
Module: SILA www.aipmm.com I NPUT : C ULTURE T HE S ECRET S
AUCE Culture matters! Strategy succeeds when the culture supports
it. Innovation should also be understood as developing an
innovative culture within the company, which is what will enable it
to produce innovations. from Winning at Innovation: A-to-F Model.
Trias De Bes, F. & Kotler, P. (2011, p. 3) (Booz, 2011)
Slide 16
Module: SILA www.aipmm.com I NPUT : C ULTURE The shared
beliefs, core values, assumptions, and expectations of people in
the organization Reflects the organizations values Observable in
customs, rites, ceremonies, stories, heroes, patterns Infers how
work is accomplished Expresses survivability: What we know to do to
survive (Hofstede & Hofstede, 2004)
Slide 17
Module: SILA www.aipmm.com I NPUT : S UPPORTIVE C ULTURE E
LEMENTS (Booz, 2011) Source: Booz & Company. The 2011 Global
Innovation 1000 Report
Slide 18
Module: SILA www.aipmm.com T ASKS 1.Mission, Vision &
Values: Analyze implications and define/refine as necessary
2.Corporate Strategy & Goals: Understand and define/refine as
necessary 3.Innovation Strategy & Goals: Define if it does not
exist and analyze alignment 4.Culture: Identify how things are done
and analyze if supportive of innovation; reflects values
5.Alignment: Conduct an alignment analysis between the above
elements 6.Change Plan: Create change plan to make improvements
(AIPMM)
Slide 19
Module: SILA www.aipmm.com D ELIVERABLES Mission, Vision &
Values Corporate Strategy & Goals Innovation Strategy &
Goals Change Plan (AIPMM)
Slide 20
Module: SILA www.aipmm.com T OOLS Systems Thinking Mission,
Vision & Values Evaluation Booz & Company Innovation
Strategy Profiler Beckhard Change Formula Quinns Sustainable Change
Model Hofstede Culture (AIPMM)
Slide 21
Module: SILA www.aipmm.com T OOLS : S YSTEMS T HINKING A way of
thinking about, and a language for describing and understanding,
the forces and inter-relationships that shape the behavior systems
(from Senges The Fifth Discipline) Ability to see the big picture
Recognize how isolated events impact the whole How the puzzle
pieces fit (or dont fit) together (Senge, 1990)
Slide 22
Module: SILA www.aipmm.com T OOLS : M ISSION E VALUATION
Source: adapted from Campbell, A. (1997). Mission statements. Long
Range Planning, 30(6), 931-932. (Campbell, 1997)
Slide 23
Module: SILA www.aipmm.com T OOLS : V ISION E VALUATION Source:
adapted from Campbell, A. (1997). Mission statements. Long Range
Planning, 30(6), 931-932. (Campbell, 1997)
Slide 24
Module: SILA www.aipmm.com T OOLS : V ALUES E VALUATION Source:
adapted from Campbell, A. (1997). Mission statements. Long Range
Planning, 30(6), 931-932. (Campbell, 1997)
Slide 25
Module: SILA www.aipmm.com T OOLS : I NNOVATION S TRATEGY P
ROFILER -- A LIGNMENT Need SeekersMarket ReadersTechnology Drivers
GoalAdvantaged productsProducts customized to local markets and
geographies Developing low-cost products CultureOpenness to new
ideas from customers, suppliers, competitors, and other industries
Collaboration across functions and geographies Reverence and
respect for technical talent and knowledge (Booz, 2011) Source:
Booz & Company
Slide 26
Module: SILA www.aipmm.com T OOLS : I NNOVATION S TRATEGY P
ROFILER All three strategies (need seekers, market readers,
technology drivers) Goals Superior product performance Superior
product quality Culture Strong identification with the customer and
overall orientation toward the customer experience Passion for and
pride in the products and services offered (Booz, 2011)
Slide 27
Module: SILA www.aipmm.com Tools: Innovation Strategy Profiler
Fast Follower First to Market Technology First Market First Limited
R&D Big R&D Available at time of writing at:
http://www.vcs-gsa.com/InnovationStrategyProfiler
Slide 28
Module: SILA www.aipmm.com T OOLS : B ECKHARD C HANGE F ORMULA
(Beckhard & Harris, 1987) Source: Latham, J. (2011). Causal
diagram of Beckhards Change formula. Retrieved at time of writing
from http://drjohnlatham.com/Beckhard.html. Used with
permission.
Slide 29
Module: SILA www.aipmm.com T OOLS : Q UINN S S USTAINABLE C
HANGE M ODEL Systems This component is the easiest to change. While
systems may be complex, organizations have the technology and
knowledge to redesign and change the systems to improve
performance. Unfortunately, experience suggests that performance
improvement is often not sustainable because of cultural resistance
and individuals who push back on the new ways of doing things.
Culture Norms, traditions, and values are a powerful force in
organizations. If the new design is not compatible with these norms
and values, the chance of successful implementation is reduced.
When organizations say that the people have to change the way they
work together, people often think that others will have to change,
but not them. Consequently, the third component - the "I" of change
- is necessary. Individuals Individuals are the essence of any
sustainable change. Sustainable change requires that the
individuals change and grow, which is often the hardest part of the
change process. At the core of this change is a typical learning
process where the "gray matter gets grayer" and the "grooves get
deeper." This process is often unpleasant, but it is necessary, and
it all starts at the top. If the leadership team is not learning
and experiencing personal change, lasting organizational change is
unlikely. What of Change We of Change I of Change The easy part How
the System should change More challenging Culture change Unexpected
or unwanted Individual change (Quinn, 1996)
Slide 30
Module: SILA www.aipmm.com T OOLS : C ULTURE PER H OFSTEDE
Symbols: Words, gestures, pictures, objects of meaning by those who
share the culture. Examples: Jargon, dress, status symbols Heroes:
Persons who possess characteristics that are prized by the culture
and serve as models. Example: Customer service rep who works all
night to correct a problem Rituals: Collective activities
considered as an essential ( but probably not meaningful to
reaching the desired ends). Example: How meetings are organized and
conducted Values: Broad-based tendencies of preference this is the
core of a culture. Examples: Evil versus good, emotional versus
rational, revenue at any cost Practices: The visible aspects of
culture what an outside observer can see, but their meaning is only
understood by insiders. (Hofstede & Hofstede, 2005, p. 7)
Values Rituals Heroes Symbols Practices
Slide 31
Module: SILA www.aipmm.com A CTIVITY Y OUR I NNOVATION S
TRATEGY Need Seekers: Actively engaging current and potential
customers to shape products. They are the first to market.
Examples: Apple, 3M, GE Market Readers: Incremental innovations
based on closely monitoring customers and competitors. They are the
fast followers. Example: Visteon Corporation Technology Drivers:
Breakthrough and incremental innovation based on their
technological capabilities. They are R&D / engineering driven.
Example: Google, HP
Slide 32
Module: SILA www.aipmm.com A CTIVITY : S TRATEGY P ROFILE
Individually complete the Innovation Strategy Profile at:
http://www.vcs-gsa.com/InnovationStrategyProfiler Compile results
Discuss differences
Slide 33
Module: SILA www.aipmm.com A CTIVITY : M ISSION /V ISION /V
ALUES A LIGNMENT Using the Mission/Vision/Values Evaluation tools,
assess your organizations mission, vision, and value statements
Divide into three groups and each assess one area
Slide 34
Module: SILA www.aipmm.com R EVIEW : W HY SILA? Only about half
of the most innovative companies have: A corporate culture that
supports their innovation strategy Alignment between the innovation
strategy and the corporate strategy Nearly 20% do not have a
well-defined innovation strategy companies with unsupportive
cultures and poor strategic alignment significantly underperform
their competitors (Booz, 2011, p. 1) (Booz, 2011)
Slide 35
Module: SILA www.aipmm.com R EVIEW : K EY E LEMENTS OF AN I
NNOVATIVE C OMPANY Focused innovation strategy Winning
business/corporate strategy Deep customer insight Great talent
Proper set of capabilities Supportive culture (Booz, 2011) SILA An
expression of the thread necessary between these elements
Slide 36
Module: SILA www.aipmm.com R EVIEW : C ORPORATE S TRATEGY P
ROCESS 1.Decide what your business is 2.Decide who your customers
are and what you want to offer them 3.Decide how you will play the
game 4.Identify strategic assets and capabilities 5.Create the
right organizational environment (Markides, 2000)
Slide 37
Module: SILA www.aipmm.com Review: Innovation Strategy Profiler
Need SeekersMarket ReadersTechnology Drivers GoalAdvantaged
productsProducts customized to local markets and geographies
Developing low-cost products CultureOpenness to new ideas from
customers, suppliers, competitors, and other industries
Collaboration across functions and geographies Reverence and
respect for technical talent and knowledge (Booz, 2011) Source:
Booz & Company
Slide 38
Module: SILA www.aipmm.com T EST Y OUR K NOWLEDGE When we focus
on SILA, we make sure that the organization is "aligned" from an
innovation focus through? a)A comprehensive, purposeful, essential
effort b)Harmonizing organizational mission, culture, and resources
c)The power to act effectively and wisely d)An emphasis on product
innovation to achieve objectives
Slide 39
Module: SILA www.aipmm.com T EST Y OUR K NOWLEDGE Innovation
strategy directs how the organization will "play the game" or
compete in the market place. There are many well-known innovation
strategies. Booz and Company list three innovation strategy types:
Need Seekers, Market Readers, and Technology Drivers. Market
Readers can be described as? a)Focusing on incremental innovations
based on closely monitoring customers and competitors. They are
similar to the strategy type known as fast followers. b)Using
breakthrough and incremental innovators based on their
technological capabilities. They are R&D/engineering driven.
c)Actively engaged with current and potential customers to shape
new products. They are the first to market. d)Only being interested
in innovation if they are in jeopardy of loosing current customers
and market share. They are reactionary.
Slide 40
Module: SILA www.aipmm.com T EST Y OUR K NOWLEDGE SILA helps
ensure the organization is ready to innovate. Only about half of
the most innovative companies have a)A viable mission statement
b)Required skills and capabilities associated with change. c)A
corporate culture that supports their innovation strategy
d)Production and launch plans.
Slide 41
Module: SILA www.aipmm.com T EST Y OUR K NOWLEDGE Steps in
developing / reviewing corporate strategy include: a)Decide what
your business is b)Decide who your customers are and what you want
to offer them c)Decide how you will play the game d)All answers
listed
Slide 42
Module: SILA www.aipmm.com Up NextProject Identification