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Innovation and leadership

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Innovation and leadership

  1. 1. By leadership and fostering an environment of innovation and creativity Changing our Perception of Market Boundaries Michael Stanga, PhD
  2. 2.  Move Fast Take Risk Learn AdaptMove Fast Take Risk Learn Adapt • Buy-in • Risk • Focus  Creating an Innovation DrivenCreating an Innovation Driven EnvironmentEnvironment • LeadershipLeadership • Team BuildingTeam Building • InnovationInnovation • YouYou Overview
  3. 3. Move Fast, Take Risk, Learn and Adapt Taking a large organization and streamline its decision making process The worst idea is the one that goes unsaid - author unknown
  4. 4. Risk  Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure or nothing. -- Helen Keller  To win without risk is to triumph without glory. -- Pierre Corneille  Only those who risk going too far can possibly find out how far they can go. -- T.S. Eliot
  5. 5. Corporate Buy-in  If a company is not organized for innovative thinking then getting agreement to move on a New types of project will be impossible to very difficult and time consuming. There will be many nay sayers: • Does not fit out business strategy • Is too different from we are doing today, we are not setup to do this effectively • This is too risky • Not aligned • Etc etc etc
  6. 6. People Buy-in  Share the vision with enthusiasm  Be honest regarding the probability of success  Let them know what is in it for them  Give them time to absorb, depends on personality  Bring them into the planning and implementation so that they can have some ownership  Make it clear on what their contribution will be and how important it is to the success of the project  Let them know that constructive feedback is welcomed and essential for success
  7. 7. Getting Support - Traditionally  Define how the opportunity fits within current corporate capability • Fits within companies core competency • Internal people expertise capability • Manufacturing capability  Synergistic with strategy • Fits with current long term business strategy • Aligned with industry strategy  SWOT assessment  Financials May not have all of these SWOT will not look traditional Example:Financials may focus on taking out non-essential costs If it is truly different the strategic fit– will need to be redefined For New Opportunities
  8. 8. Growth Mindset – keep reminding yourself and everyone else  The enemy of great is good. They stop growing, learning, risking, and changing. They use their track record or prior successes as evidence that they've arrived. This mentality shifts their business from a growth to a maintenance mindset.  Neither you nor your business ever "arrives“, a sustainable company model never get to the place where there's nothing more to be done, change is the only constant.  A person with a "goal mindset" has very tangible, numerical goals to achieve over a specific period of time. Nothing is wrong with clearly defined goals, but there's a better way of thinking called a "growth mindset." A growth mindset recognizes goals on the journey, but only as part of a process-- not as the end results.
  9. 9. Focus and you can move fast  Differentiate ourselves from the competition to make them irrelevant • Identify “what needs to be eliminated and reduced” based on how we are competing today and transform this into “what needs to be raised and created” based on what our customers really need and value. • The focus area of this project is “Reconstructing Market Boundaries …” • If board supports the concept, a leader will be assigned and the team will be chartered with implementation via a Pilot project. Essential to have approval committee with the right attitude and understanding Layout the framework for the team at a high level – need to keep from being too directive Make it clear that support will be given if project proposal makes the cut
  10. 10. Organizational Structure – it’s the people  Organizational structure can help an organization but it does not make an organization great; great leadership does. • Henry Ford knew this. He said “You can take my buildings, burn my factories but give me my people and I will bring my business right back” • A great organization may have a poor organizational structure with a great leader; but a great organizational structure with poor leadership will at most be a good organization A city decided that they needed to built a light house. Once they finished building it they decided that they needed someone to run it so they hired a lighthouse keeper. Since they were Paying a salary they hired an accountant with the accountant they hired an treasurer and an administer. Later, due to budget constraints they had to fire someone. They fired the lighthouse keeper. Don’t lose site of what you need to accomplishDon’t lose site of what you need to accomplish
  11. 11. Creating the environment Moving from traditional to non- traditional
  12. 12. Innovative Culture Innovative Companies Build Innovation Cultures, Says The Boston Consulting Group Boston Consulting Group (BCG)  According to survey respondents, the top two obstacles are slow development times and lack of internal coordination. Innovative companies build innovation cultures. "You have to be willing to get down into the organization and align the nervous system of the company," says BCG senior vice president James Andrew, who heads the innovation practice at BCG.
  13. 13. Fostering an environmentenvironment of innovation Essential elements  Leadership  Teamwork  Individual  Rewards (Recognition)  Enable (Tools)  Learning (Education, Training, Experience)  Culture  Corporate buy-in (internal support)  Accountability  Excitement E.L.E.C.T.R.I.C.A.L. (starts with Excitement!!) What a great place to be: You are in a position to take your current leadership ability enhance these skills and support the development of a sustainable winning business model.
  14. 14. Leadership The beginning of creating an environment of innovation Leadership should be born out of the understanding of the needs of those who would be affected by it. - Marian Anderson
  15. 15. If you want one year of prosperity, cultivate grains. If you want ten years of prosperity, cultivate trees. If you want one hundred years of prosperity, CULTIVATE PEOPLE - Chinese proverb
  16. 16. Years Dates Dynasties 500 2100 – 1600 BC Xia 500 1600 – 1100 BC Shang 330 1100 – 771 BC Western Zhou 550 770 – 221 BC Eastern Zhou 14 221 – 207 BC Qin (1st emperor) 426 206 BC – AD 220 Han – Western and Eastern 60 AD 220 – 280 Three Kingdoms 155 AD 265 – 420 Jin – Western and Eastern 161 AD 420 – 581 Northern and Southern 37 AD 581 – 618 Sui 289 AD 618 – 907 Tang 53 AD 907 – 960 Five Dynasties 319 AD 960 – 1279 Sung – Northern and Southern 209 AD 916 – 1125 Liao 119 AD 1115 – 1234 Jin 90 AD 1279 – 1368 Yuan(Mongolian) 276 AD 1368 – 1644 Ming 267 AD 1644 – 1911 Qing (Manchurian) 37 AD 1912 – 1949 Republic of China Today AD 1949 – to date People’s Republic of China Chinese Leadership Qin (Qin Shi Huang) – first EmperorQin (Qin Shi Huang) – first Emperor •United China •Redesigned the Political Organization and Structure •Unification of Currency, Weights and Measures •Standardization of the writing system •Construction of the Great Wall Downfall – ruthless and heinous deeds. Moral values and education were strongly emphasized after his rule which led to stability.
  17. 17. Learning from history  Each new dynasty would only survive for at most a few hundred years (Sheu, 2003) • Corrupted officials • Inefficient public administration • Increased tax burden on the multitude These can be translated into leadership traits
  18. 18. Chinese Leadership  Paternal style of leadership is particularly dominant in Chinese enterprises* • Leads to downplay of self and emphasis on relationships (Sheh, 2003) • Seniority and good conduct rather than performance play and important role in promotion (Sheh, 1993) • In larger Chinese enterprises the use of objective performance criteria is more common • For smaller companies nepotism (leadership of family members) is highly practiced * Chinese Leadership - Moving from Classic to Contemporary – Sheh, 2003
  19. 19. Universal Principle of Leadership A true leader does not make decisions to benefit oneself or a select group but of the greater good – this style of leadership is sustainable and productive
  20. 20. “Leadership is the art of accomplishing more than the science of management says is possible.” Colin Powell The only real training for leadership is leadership - Anthony Jay
  21. 21. American Leadership Development - Military West Point's leader development program has four defining characteristics: 1. Challenge: People don't learn while operating inside their comfort zones. At every stage of their development, they must face challenges that will stretch them. 2. Assessment: The individual's efforts in confronting those challenges must be measured in some way. 3. Coaching: Every member of West Point's staff and faculty— most of them experienced military leaders—is charged with helping cadets become good Army officers. 4. Room to fail: An individual who is constantly confronted with new and difficult challenges is going to fail at some point. The leader's job is to ensure that such a failure isn't catastrophic, and that the cadet learns from the experience.
  22. 22. Leadership and Management  Leading and Management are not the same • Leading is influencing people to follow • Management focuses on maintaining systems and processes  Managers can maintain a direction but they cannot change it. • To move people in a new direction you need influence  IQ does not equate to leadership • Many brilliant scientists can think very high but their leadership is so low it does not register
  23. 23. Leadership - Theories  Some personality traits may lead people naturally into leadership roles. This is the Trait Theory.  A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an ordinary person. This is the Great Events Theory.  People can choose to become leaders. People can learn leadership skills. This is the Transformational Leadership Theory. It is the most widely accepted theory today and the premise on which this guide is based.
  24. 24. Leadership  Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience. • Chinese saying: ‘True leaders are molded by their unique situations’  A leader is a navigator who provides direction. Once the direction has been fixed, all efforts should be channeled toward it.  A leader should be leading from the front , not pushing from the back. Be a good example.  To lead is to guide, influence, direct and motivate people in pursuit of a vision.
  25. 25. Leadership Leadership is more than an accumulation of knowledge and technical skill. Leaders guide andLeaders guide and motivate others to do more than they thoughtmotivate others to do more than they thought possiblepossible.. It takes creativity, empathy and hard work. Leader development is progressive. Individuals become leaders by facing increasingly difficult challenges that are attainable, given their training, but that stretch them well beyond what they've done in the past. Those responsible for leader development must understand each person’s stage of development and steer him or her toward next big challenge.
  26. 26. Leadership is not Developed in a Day  Character • People follow/emulate what they see and what they like • Cannot demand trust it must be earned  Relationship builder • Must have follower (mangers) • Spend the majority of the time with the right people  Experience • Shows proof of capability – need to have delivered  Intuitive • Make the right decisions based on facts and intangibles  Learner • Know the facts and set the vision “A leader is the one Who climbs the tallest Tree, surveys the Entire situation, and Yells “Wrong Jungle” -Steven Covey e.g. Apple Computer
  27. 27. Striving towards leadership  It’s a well-known fact that many people have become successful by compensating for personality or physical flawscompensating for personality or physical flaws. In each of the following examples, it was the fiery trials that brought out the best in the person. • Winston Churchill, stuttered as a youth yet became a great orator. • Glenn Cunningham was so badly burned as a boy it was thought he would never walk again. He became, however, one of the world’s great milers. • George Bernard Shaw was so painfully shy that he found it difficult to talk with anyone. But Shaw forced himself to join organizations where he would have to speak before audiences.
  28. 28. Leadership  Although your position as a manager, supervisor, lead, etc. gives you the authority to accomplish certain tasks and objectives in the organization, this powerpower does not make you a leaderdoes not make you a leader...it simply makes you the Boss. Leadership differs in that it makes the followers want to achieve high goals, rather than simply bossing people around. "It is amazing what you can accomplish if you do not care who gets the credit." - Harry S Truman
  29. 29. Leadership - Attributes  Leadership is a process by which a person influences others to accomplish a vision. The vision is translated into clear objectives and directions in which to make the organization function more cohesively. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, confidence (presence) and skills.
  30. 30. Development - Leadership  Where does leadership come from? How is it nurtured and developed? The secret lies in individuals gaining exposure to on-the-job experiences that provide them with new lessons and stretch their abilities.. Job-Job- based experiences account for as much asbased experiences account for as much as 70% of leadership development70% of leadership development and far outweigh the contributions of mentoring or training programs. The organization can play a role in creating experiences for employees that will provide them with the maximum learning benefit and strengthen the foundation of their leadership skills.
  31. 31. People Management  The self-deceived view others as problems to be managed, resources to be used, or distractions to be ignored. People who escape this mindset are able to respond to others as human beings with emotions, hopes, and dreams.
  32. 32. Leaders - summary  The most important component of leadership is setting a vision  As said earlier, managers rely on systems and controls, great leaders rely on people.  Leaders are innovators and creators that rely on people. Creative ideas become a reality when people who are in a position to act catch the vision of their innovative leader.
  33. 33. Creative Thinking Finding your way out of the Box Without a map
  34. 34. Knowledge is powerful but creativity produces solutions. • Companies can train you on technology, give you access to information and technical experts but it is ultimately up to YOU to take this and come up with ideas. Successful companies foster an environment of creativity. KEY: Once the environmentOnce the environment (company culture) is set then it is(company culture) is set then it is only a matter of direction settingonly a matter of direction setting for the business.for the business.
  35. 35.  What if every customer was always greeted at the door? • Leave it to Sam Walton when it comes to CREATIVITY. Not only was he the pioneer of employee nametags, but he changed the entire customer service process by introducing a church- style icon to retail stores. According to Walmart, greeters are the front-line "soldiers" of the company, and prove that people and customer service make the difference in building customer rapport. Revolutionary ideas come from ridiculous questions
  36. 36. Creativity Michelangelo is often quoted as having said that inside every block of stone or marble dwells a beautiful statue; one only need to remove the excess material to reveal the work of art within.  Michelangelo when asked what he was doing staring at a block of marble everyday he said “working”. Years later that piece of marble because the statue of David.
  37. 37.  Join all nine dots with four straight lines, without taking pen from paper. If you have not done this before you will most likely struggle to join them in the space of the box If I added “use the whole paper then it is likely that the solution would become apparent to you
  38. 38. Getting out-of-the-box  If you want to originate breakthrough business solutions, you will need to think differently than you usually do. How does a person go beyond the boundaries of their own mind?  Perhaps the simplest and most powerful way is to awaken the image-making part of your brain. To imagine (ever wonder why the word "image" is the root of the word "imagination?").
  39. 39. Getting out-of-the-box - Think in images  Friedrich Kekule, the noted German chemist, at a loss for words, described his breakthrough understanding of the benzene molecule as "a snake biting its own tail." And Einstein’s Theory of Relativity was preceded by one of his famous "thought experiments," in which he imagined himself riding a light beam into outer space while holding a mirror in front of his face. No wonder Einstein said, "I rarely think in words at all." No wonder Aristotle, centuries before, concluded, "It is impossible to even think without a mental image."
  40. 40. You can increase your odds of getting those great ideas. Better yet, it's fairly easy and painless. Here is a way to get started.* Read, read and read some more. Read lots and lots of different things, but keep it general -- don't read deeply. You can even skim if that's all you have time for. Whatever you do, DON'T read publications related to your industry. That's for another time. This is brain-feeding time, not keeping up in your profession time. *Michele Pariza Wacek is the author of "Got Ideas? Unleash Your Creativity and Make More Money."
  41. 41. Innovation Development  A rare breed of individual never gets out of practice- innovation is a habit. It's easy to find them: In all walks of life, they're the most satisfied, ingenious (regardless of natural intelligence), and high achieving. Four distinguishing traits work in tandem to set personal innovators apart: awareness, curiosity, focus, and initiative. By developing these traits, you will cultivate a habit of innovation.
  42. 42. Curiosity  Curiosity flows seamlessly from awareness. Once you open yourself to the nuances of life, it's hard not to find things that fascinate you and to begin wondering why.  To be curious, you must give yourself the freedom to risk and make mistakes. Interestingly, curiosity requires trust-trust that everyone and every situation have something to teach you. Even when there's no immediate practical application of the things you learn, you're training creative muscles that innovators keep "buff."well toned.
  43. 43. Initiative  The innovative spirit without action is like the proverbial tree falling in the forest with no one to hear it. Initiative to act gives purpose and momentum to the habit of innovation.  But someone incapable of action would never “Start a race”, you might say. Exactly! But capability without initiative also does not translate into results.  You no doubt know gifted people who lack initiative. They languish in jobs they hate, have ideas they never pursue, or are perpetual students, never venturing into the world. It's easy to see that they need initiative, but what about you? You have once-in-a-lifetime opportunities every day of your life to shape the world.
  44. 44. Take Initiative  Why do we avoid taking initiative? In a word, fear. We're afraid of putting ourselves out there, of failing, of risking, of looking stupid. Eventually, we must decide that our goals matter more than our fears. To develop initiative: • Define your goals. Then do what it takes to propel yourself toward those goals. • Make your environment motivating. Get rid of non-productive things that take away your energy. Surround yourself with natural light, energizing people, reminders of those you admire, and inspiring quotes or pictures. • Become optimistic, looking for the positive lessons, the good in others and yourself, the win-win solutions. Visualize yourself succeeding. • Take risks, which bring increased confidence. • Use awareness to assess the impact of all you do. Measure actions by impact; small actions can have great results. • Live so that you will have no regrets about paths not taken and actions undone
  45. 45. Know your company • Read company reports and updates. UNDERSTAND your companies technology. Don’t repeat what's already been done • Network with others that have been at the company much longer. Ask questions, use the word “WHY” frequently. • Understand all the functions within your organization i.e. marketing, sales, process engineering, manufacturing, supply chain etc. • Know your current customers and think beyond them such as how to use your company’s capabilities that will led to new types of customers.
  46. 46. Know yourself • What makes you like to come into work everyday • Look for ways to improve yourself identify areas for improvement Technical skills Management skills/style Leadership skills/style Culturally and interpersonally • What do you want to do long term? – be patient in getting there it takes time and experiences Management People leadership Technical expert Another function
  47. 47. Environment for Successful Innovation Access to Experts – make it an expectation for good role models to be accessible to employees  Freedom to fail – need a defined amount of risk. Learn and Adapt  Open communication – generate idea flow. No idea is too stupid to discuss.  Senior management should be seen and show interest in people and encourage people to be open and honest.  Reward Reward Reward – Publicly Recognize results. DO NOT FORGET WHERE THE IDEAS WERE GENERATED – do not let managers / coworkers take credit  Think beyond core competencies  Keep in touch with competitors – patents and market – this is a lagging measure but it is better late than never  Always consider purchasing innovation if possible. Time to market is critical and a protectable position is has enormous value  Market • Search and reapply – utilizing existing or new products in several industries. • Provide EXACTLY what the customer wants/needs. Do not over engineer. Must have Voice of the Customer. • New market opportunities must be sought after they will not come to you.
  48. 48. Create you own environment for creative thinking • Do not be afraid to take a risk, try new ideas • Constantly be thinking • Take some time to talk with senior leaders • Your thinking should be “there is a better way” • Broaden your understanding – look for ideas that may be synergist with your company’s core competencies but do not let this limit you! • Embrace change - change creates opportunities • Ideas propagate ideas • “Can’t be done” means a solution has not been found yet
  49. 49. Leave you with this quote by W.C. Fields (comedian) "If at first you don't succeed, try, try again. Then quit. No use being a damn fool about it." Don't take life so seriously; it's not permanent. -- Unknown