I. We live in a world of innovation:
- Charles Darwin = survival of the fittest
- Rate of Change = Economist Schumpeter
- Companies that are gone because of a failure to innovate
- Every day I see entrepreneurs launching companies with little resources that can take out existing companies in lightning speed
What if you were Borders?
Cell phone banking
Blockbuster and Netflix
Milwaukee Journal Sentinel
II. Innovation: What are we talking about?
Innovation: the development and implementation of new or modified products, services, technologies, processes, systems, organizational structures or business models that increase the efficiency or productivity of business operations or encourage the emergence of new markets.
It is not invention as we think of by Thomas Edison. That is when you create something totally new that's not been thought of before.
EXAMPLES: Encyclopedia Britannica eliminated hard books; went online and generated K12 niche.
ACTIVITY: Give us some examples of innovation in your companies.
- Wisconsin has had some spectacular successes:
Epic in Madison; Metavante; Fiserv; Quad Graphics; Marquette Electronics; Jami Doucette
III. Why is innovation such a problem? Why is it so difficult?
- The Human Mind and the habits of daily decision-making
Overview – what are habits? FOCUS reinforced over time that reinforced strong neurological links that generate predictable behavioral result = example taking a new route to work; golf;
b. The science of the brain = neurons axioms connections
c. How do you change a corporate habit?
KODAK... If you don't
Identifying various corporate habits that impact productivity
- QUESTION; Why are corporate habits difficult to change?
arrogance; entrenched bureaucracy; fear of unknown; insularity from bad news; it ain't broke; it's not my job; sub optimization; past successes; it means more work and stress; trappings of the existing office
Think about Mayor Giuliani and the broken windows theory in New York
IV. The tools of innovation leadership
1. Embrace Uncertainty = explain why uncertainty is so important to the creative/innovative process and how as a leader you support your team - Bob DeKoch Boldt
2. The Port Case Study to demonstrate reason for existence starting with customers of Port
- Defining the brutal facts (In God we trust everyone else get the facts)
DO YOU HAVE ANY TRUTH TELLERS? They may not even be employees but VCs ley customers, industry analysts, weird people like Mark Zukerberg
- Explain the Cause-and-Effect Diagram
- Explain the Pareto Chart
3. Problem identification tools: (Shoot Ready Aim)
- Cause & Effect Diagram
- 5 Whys
- Customer need identification
- Appreciative Inquiry
- Blue Ocean Process
- Flow charts
- Ansoff Matrix
- Core Competencies
- USP = Unique selling proposition = Why do you exist?
4. Solutions using the Lean Startup Methodology
- Pareto Chart
- Cost-Benefit Analysis
- Decision trees
- This stepladder technique
- Affinity Tracking
- Replacement Product
- Reverse Engineering (John Deere; GE)
- Minimum Viable Product
- Boston Matrix for risk assessment
- Risk/Impact Probability chart
- Critical Path Analysis
- Shareholders State Analysis
6. Transformation Agenda… To drive innovative change: Prof. John Kotters steps on the implementation of transformational change
7. Innovation Scorecard: this is a transparent, all-encompassing tracking of the innovation planning process that can be monitored on a monthly basis
8. Truly Adaptive companies = How They Function