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IDENTIFYING THE HIDDEN OBSTACLES
THAT SUFFOCATE MEANINGFUL
INNOVATION
American Corner – Novi Sad
Karl R. LaPan
President & CEO – The NIIC
January 2019
www.theniic.org
INNOVATION –
CHANGE IN A DIMENSION
OF PERFORMANCE
-PETER DRUCKER
PRODUCT, PROCESS, BRAND, CHANNEL, CUSTOMER
EXPERIENCE, BUSINESS MODEL
INNOVATION UNPLUGGED
2
MEANINGFUL INNOVATION*–
BETTER, FASTER, CHEAPER,
SIMPLER, SMARTER
*ENHANCES LIFE, IMPROVES OUTCOMES, CREATES VALUE,
TRANSFORMS SOCIETY, AND CHANGES BEHAVIORS
(UNDERSTANDING PEOPLE AND THEIR EXPERIENCES)
SOCIETAL DEMANDS TODAY FOR INNOVATION…CONTEXT
3
INNOVATION + COMMERCIALIZATION =
ENTREPRENEURSHIP
IN THE U.S.
IDEA =1%; EXECUTION = 99%
97% OF PATENTS NEVER MAKE ANY MONEY
95% OF ALL PATENTS NEVER COMMERCIALIZE
2.1 MILLION ACTIVE US PATENTS
INNOVATION IS MORE THAN IDEAS
4
5
• Creative problem-solving
• Human—centered
• Empathy>Ideation>Experimentation
SEPARATE THESE INNOVATION TASKS…
IDEA GENERATION
FROM
IDEA EVALUATION
-EASY TO COME UP WITH IDEAS..
-HARDER TO CREATE AN IDEA FUNNEL AND FILTER FOR
GO/NO GO ON IDEAS
-NEED BURNING PLATFORM FOR CHANGE
-DEFINING EVALUATION CRITERIA IMPROVES IDEA FLOW
INNOVATION TIP
6
The leadership acts that stifle innovation
Think about hidden obstacles from the leadership perspective
of how innovation is suffocated…
Organizational & Leadership Blind Spots
q Mindset – The leader’s role in setting the tone at the top
q Culture – The organization’s DNA…the way they do things around
here.
q Structure – How an organization relies on a particular model/approach
(and its maturity) to drive for/against innovation.
7
HARVARD HBR ARTICLE – KANTER (JAN 2003)
The leadership acts that stifle innovation…
Be suspicious of any new idea from below
• Promote Innovation Jams
8
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Mindset
The leadership acts that stifle innovation…
Remind everyone of that bad past
experience. Didn’t work last time, will not
work this time.
• Celebrate failures
9
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Culture
The leadership acts that stifle innovation…
Keep people really busy.
• 3M’s 15%
10
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Structure
The leadership acts that stifle innovation…
In the name of excellence,
encourage cut-throat competition.
• Fund collaborative projects
11
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Culture
The leadership acts that stifle innovation…
Efficiency, reliability predictability above
all. Metrics drive behavior. No reward for
risk-taking.
• Form an innovation fund (outside normal budgeting
process)
12
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Structure
The leadership acts that stifle innovation…
Confine discussion of strategies and
plans to a small circle of trusted advisors.
• Formalize an innovation venture’s group and locate them outside
the organization
13
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Mindset
The leadership acts that stifle innovation…
Act as though punishing failure motivates
success.
• Dedicate resources to building innovation expertise
14
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Culture
The leadership acts that stifle innovation…
Blame problems on lack of bench strength
in organization.
• Recruit and select innovation champions
15
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Structure
The leadership acts that stifle innovation…
Above all, never forget that we got to the
top because we already know everything
there is to know about this business.
• Unlearn, relearn, bring outsiders in to provoke thinking
16
HARVARD HBR ARTICLE – KANTER (JAN 2003)
Hidden Obstacle: Mindset
• Experimentation
• Flexibility
• Not everything will
work (establish risk
tolerance)
• Look ahead
• Celebrate successes
and failures
• Encourage new ideas
• Human-centric
• Nurture right
environment
• Pay attention to
physical setting
• Open to learning
• Bold action
17
CULTURE MATTERS IN INNOVATION – PEOPLE,
STRUCTURE, PROCESS, AND LEADERSHIP
18
FINAL THOUGHT – WHY INNOVATION MATTERS
Photo by Sharon Pittaway on Unsplash
In the 1920s, the average life of
a US corporation was 67 years,
today it is 15 years.
Things that get in the way of relevance and staying power:
• Fear
• Own Past Success
• Mindset
• Lack of urgency

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Identifying the Hidden Obstacles that Suffocate Meaningful Innovation

  • 1. IDENTIFYING THE HIDDEN OBSTACLES THAT SUFFOCATE MEANINGFUL INNOVATION American Corner – Novi Sad Karl R. LaPan President & CEO – The NIIC January 2019 www.theniic.org
  • 2. INNOVATION – CHANGE IN A DIMENSION OF PERFORMANCE -PETER DRUCKER PRODUCT, PROCESS, BRAND, CHANNEL, CUSTOMER EXPERIENCE, BUSINESS MODEL INNOVATION UNPLUGGED 2
  • 3. MEANINGFUL INNOVATION*– BETTER, FASTER, CHEAPER, SIMPLER, SMARTER *ENHANCES LIFE, IMPROVES OUTCOMES, CREATES VALUE, TRANSFORMS SOCIETY, AND CHANGES BEHAVIORS (UNDERSTANDING PEOPLE AND THEIR EXPERIENCES) SOCIETAL DEMANDS TODAY FOR INNOVATION…CONTEXT 3
  • 4. INNOVATION + COMMERCIALIZATION = ENTREPRENEURSHIP IN THE U.S. IDEA =1%; EXECUTION = 99% 97% OF PATENTS NEVER MAKE ANY MONEY 95% OF ALL PATENTS NEVER COMMERCIALIZE 2.1 MILLION ACTIVE US PATENTS INNOVATION IS MORE THAN IDEAS 4
  • 5. 5 • Creative problem-solving • Human—centered • Empathy>Ideation>Experimentation
  • 6. SEPARATE THESE INNOVATION TASKS… IDEA GENERATION FROM IDEA EVALUATION -EASY TO COME UP WITH IDEAS.. -HARDER TO CREATE AN IDEA FUNNEL AND FILTER FOR GO/NO GO ON IDEAS -NEED BURNING PLATFORM FOR CHANGE -DEFINING EVALUATION CRITERIA IMPROVES IDEA FLOW INNOVATION TIP 6
  • 7. The leadership acts that stifle innovation Think about hidden obstacles from the leadership perspective of how innovation is suffocated… Organizational & Leadership Blind Spots q Mindset – The leader’s role in setting the tone at the top q Culture – The organization’s DNA…the way they do things around here. q Structure – How an organization relies on a particular model/approach (and its maturity) to drive for/against innovation. 7 HARVARD HBR ARTICLE – KANTER (JAN 2003)
  • 8. The leadership acts that stifle innovation… Be suspicious of any new idea from below • Promote Innovation Jams 8 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Mindset
  • 9. The leadership acts that stifle innovation… Remind everyone of that bad past experience. Didn’t work last time, will not work this time. • Celebrate failures 9 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Culture
  • 10. The leadership acts that stifle innovation… Keep people really busy. • 3M’s 15% 10 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Structure
  • 11. The leadership acts that stifle innovation… In the name of excellence, encourage cut-throat competition. • Fund collaborative projects 11 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Culture
  • 12. The leadership acts that stifle innovation… Efficiency, reliability predictability above all. Metrics drive behavior. No reward for risk-taking. • Form an innovation fund (outside normal budgeting process) 12 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Structure
  • 13. The leadership acts that stifle innovation… Confine discussion of strategies and plans to a small circle of trusted advisors. • Formalize an innovation venture’s group and locate them outside the organization 13 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Mindset
  • 14. The leadership acts that stifle innovation… Act as though punishing failure motivates success. • Dedicate resources to building innovation expertise 14 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Culture
  • 15. The leadership acts that stifle innovation… Blame problems on lack of bench strength in organization. • Recruit and select innovation champions 15 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Structure
  • 16. The leadership acts that stifle innovation… Above all, never forget that we got to the top because we already know everything there is to know about this business. • Unlearn, relearn, bring outsiders in to provoke thinking 16 HARVARD HBR ARTICLE – KANTER (JAN 2003) Hidden Obstacle: Mindset
  • 17. • Experimentation • Flexibility • Not everything will work (establish risk tolerance) • Look ahead • Celebrate successes and failures • Encourage new ideas • Human-centric • Nurture right environment • Pay attention to physical setting • Open to learning • Bold action 17 CULTURE MATTERS IN INNOVATION – PEOPLE, STRUCTURE, PROCESS, AND LEADERSHIP
  • 18. 18 FINAL THOUGHT – WHY INNOVATION MATTERS Photo by Sharon Pittaway on Unsplash In the 1920s, the average life of a US corporation was 67 years, today it is 15 years. Things that get in the way of relevance and staying power: • Fear • Own Past Success • Mindset • Lack of urgency