2. WHAT STOPS US INNOVATING?
• We don’t fully understand what innovation is
• We design our organizations to stifle innovation
• It means stopping what we are good at
It’s easy to come up with new ideas; the hard part is letting go of what worked for you
two years ago, but will soon be out of date. Roger von Oech
3. TODAY’S DISCUSSION
• Why is innovating difficult? - Andrew
• What are the barriers to innovation in Siemens (and what are the
enablers)? - Siemens
• How might we remove some of these barriers? – All
• What are the challenges to improving your innovation capability -
All
Innovation is serendipity, so you don't know what people will make. Tim
Berners-Lee
4. TODAY’S AGENDA
How the Innovation Quotient Can help better
Understand Innovation Barriers/Enablers?
Identifying and removing Critical Barriers?
Where does it start (and how much does it cost)?
It isn't the incompetent who destroy an organization. The incompetent never get in a
position to destroy it. It is those who achieved something and want to rest upon their
achievements who are forever clogging things up. F.M. Young
5. DR ANDREW MAXWELL
• Engineer/MBA/Large technology co’s, 4 startups
• U of T/U of W/ Temple University/York University
• CIC/Innovators Alliance/IRI/IRAP/VentureWell
• Heizer Award (PhD) Academy of Management
• Educator of the Year Lassonde (2018)
You have all the reason in the world to achieve your grandest dreams. Imagination plus
innovation equals realization. Denis Waitley
6. DEFINING INNOVATION
Any project that is:
•New to your organization (not just improvement)
•Has an uncertain outcome (involves risk)
•New products/services (and business models)
•Changing what you do (and how you make decisions)
Discovery consists of seeing what everybody has seen and thinking what nobody has
thought. Albert von Szent-Gyorgy
7. MEASURING INNOVATION
Common techniques for measuring innovation:
•Reputation
•Number of patents filed
•% revenue from new products/services
Measuring outcomes doesn’t help improve them
You can't manage what you can't measure Peter Drucker
8. CAN YOU DESIGN FOR INNOVATION?
DESIGN FOR
PERFORMANCE
• Efficiency
• Repeatability
• Predictability
DESIGN FOR
INNOVATION
• Speed
• Impact
• Uncertainty
If you always do what you always did, you will always get what you always
got. Albert Einstein
9. BALANCING INNOVATION &
PERFORMANCE
How do you?
•Keep your eye on the ball…..and on the game?
•Take risks..... mitigate risks?
•Make informed decision.....take action?
We use the Innovation Quotient to help assess innovation
barriers and enablers
Great energy only comes from a correspondingly great tension of
opposites. Carl Jung
10. OVERCOMING
INNOVATION INERTIA
1. There is a natural tendency for organizations to keep doing what
they’re doing and resist changes. In the absence of a force, they will
continue to do what they’ve always done.
2. Larger organizations require more force to change what they are
doing than smaller organizations.
3. For every force there is a reaction force that is equal in size, but
opposite in direction. When someone exerts a force on an
organization, he or she gets pushed back in the opposite direction
equally hard.
12. STRATEGY –
ROLE OF LEADERSHIP
Strategy
Culture
Processes
Resources
Relation-
ships
• New customers, products &
processes
• Experimentation, risk and
failure
• Establishes guidelines for
other factors
17. VOICE OF THE CUSTOMER
1. Using the framework offered, or other personal insights,
write down five things that seem to stifle innovation in
Siemens (five minutes)
2. Using the framework offered, or other personal insights,
write down five things that seem to enable innovation in
Siemens (five minutes)
3. Form small groups, share the insights and create a master
list (fifteen minutes)
If you look at history, innovation doesn't come just from giving people incentives; it
comes from creating environments where their ideas can connect. S. Johnson
18. VOICE OF THE CUSTOMER
1. Vote on the factors that you think have the biggest
impact on innovation barriers
2. Vote on the factors that you think have the biggest
impact on innovation enablers
3. Discuss the implications of these insights and what you
can do at Siemens
19. INCREASING YOUR
INNOVATION CAPABILITY
• Strategy: Embed innovation in corporate strategy
• Processes: Review current practices for innovation
• Resources: Allocate strategic resources
• Relationships: Build and develop innovative relationships
• Culture: Align values and behaviours around innovation
The reasonable man adapts himself to the world; the unreasonable one persists in trying
to adapt the world to himself. Therefore all progress depends on the unreasonable
man. George Bernard Shaw
20. Andrew Maxwell
Lassonde School of Engineering
www.bestlassonde.ca
bestmax@yorku.ca
BUILDING INNOVATION CAPABILITY
Learning and innovation go hand in hand. The arrogance of success is to think that what
you did yesterday will be sufficient for tomorrow. William Pollard
21. IMPROVING THE INNOVATION CULTURE A
BEHAVIOURAL APPROACH
Observed behaviours in innovative organization that:
• Improved collaboration
• Enhanced knowledge sharing
• Improved risk taking
• Enhanced communication
Identified the importance of trust behaviours, reinforcing the
importance of trust as the universal lubricant
Trust is the universal lubricant that enables innovation, it enables the innovation
engine to engage with the performance engine. Andrew Maxwell
22. INTRODUCING THE BEHAVIOURAL
TRUST FRAMEWORK (BTF)
• Moving trust from a sentiment to a behaviour
• Link specific behaviours to building, damaging or violating trust
• Helps individuals decide who to trust, and how to trust:
enabling the development of trust based relationships
• Helps build higher levels of relationship trust:
overcomes relationship risk, encourages collaboration
We identified four categories of trust behaviour:
capabilitytrusting, and communicationstrustworthy,
23. RELATIONSHIP TRUST is a ƒ(trust level)
Trust level is =
∫(Trust building - trust damaging) behaviours – ƒ(controls)
subject to the absence of trust violating behaviours
MEASURING INNOVATION CULTURE AS
A FUNCTION OF TRUST
Learning to collaborate is part of equipping yourself for effectiveness, problem solving, innovation
and life-long learning in an ever-changing networked economy. Don Tapscott
24. Trusting:
• Disclosing: Shows vulnerability by sharing confidential information
• Reliance: Willingness to be vulnerable through reliance on others
• Receptive: Demonstrates ‘coachability’ and willingness to change
BEHAVIOURAL TRUST FRAMEWORK
Trustworthiness:
• Consistent: Displays of behavior that confirm previous promises
• Benevolent: Exhibits concern about well-being of others
• Alignment: Actions confirm shared values and/or objectives
There is no innovation and creativity without failure. Period. Brene Brown
25. Capability:
• Competent: Displays relevant technical and/or business ability
• Experienced: Demonstrates relevant work/training experience
• Judgment: Shows ability to make accurate / objective decisions
Communication:
• Accurate: Provides truthful and timely information
• Explanation: Explains details & consequence of information provided
• Openness: Open to new ideas or new ways of doing things
25
BEHAVIOURAL TRUST FRAMEWORK
Vision without action is merely a dream. Action without vision just passes the
time. Vision with action can change the world! Joel Arthur Barker
28. • To explore team dynamics in organizations looking to increase
innovation capacity
• To identify challenges to building partnerships with new
innovation partners
• To facilitate innovation coaching and team building discussions
Evidence BTF users can identify short term actions to reduce
controls, to repair damaged trust and increase trust
APPLYING THE BEHAVIOURAL
TRUST FRAMEWORK
29. ORGANIZATIONAL AMBIDEXTERITY
PERFORMANCE (EXPLOITATION) ENGINE
• Follow rules, drive out variance/slack
• Focus on existing customer needs
• Manage/refine existing competencies
• Optimize organization for existing rules
• Make money now
INNOVATION (EXPLORATION) ENGINE
• Break rules, promote variance /slack
• Serve new customers with new needs
• Develop and lead new competencies
• Develop new organization + new rules
• Make money later
Editor's Notes
"It isn't the incompetent who destroy an organization. The incompetent never get in a position to destroy it. It is those who achieved something and want to rest upon their achievements who are forever clogging things up. — F. M. Young
But your organization is designed for improvement, not innovation, and an improvement culture stifles innovation
What works in one context may not work in another
A Man in a Balloon
A man in a hot air balloon realized he was lost. He reduced altitude and spotted a man below. He descended a bit more and shouted,
"Excuse me, can you help me? I promised a friend I would meet him an hour ago, but I don't know where I am."
The man below replied, "You are in a hot air balloon hovering approximately 30 feet above the ground. You are between 40 and 41 degrees north latitude and between 59 and 60 degrees west longitude."
"You must be an engineer," said the balloonist.
"I am," replied the man, "How did you know?"
"Well," answered the balloonist, "everything you told me is technically correct, but I have no idea what to make of your information, and the fact is I am still lost. Frankly, you've not been much help so far."
The man below responded, "You must be a manager."
"I am," replied the balloonist, "but how did you know."
"Well," said the man, "you don't know where you are or where you are going. You have risen to where you are due to a large quantity of hot air. You made a promise that you have no idea how to keep, and you expect me to solve your problem. The fact is, you are in exactly the same position you were in before we met, but now, somehow, it's my fault."
Ability to rely on others
Ability to rely on others
Collaboration is an essential ingredient for innovation
Trust is a necessary pre-condition for effective collaboration
In the absence of Trust, we develop proxies for Trust:
Any mechanism which seeks to control behaviour is a proxy for trust (examples: employment contracts, performance reviews, annual budgeting processes, rigid organizational structures and reporting relationships, over-applied lean methodology, outcome-based objective setting)
The higher the Trust Level, the lower the need for controls
The higher the Trust Level, the greater the level of collaboration, which results in a higher level of innovation
Speak to behaviours in each dimension – can build, damage or violate trust
Speak to behaviours in each dimension – can build, damage or violate trust