1 ie 2015 conference keynote

2015 Annual Conference

1

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2-1


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2-2


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2-3

8:00 Opening Keynote 9:00 What Did You Learn9:30 Break9:45 Enabling Innovation Engineering 3.0 12:00 Lunch Break1:00 Enabling Innovation Pipeline 3.0 2:00 Enabling Merwyn Rapid Research 3.0 3:00 Break3:15 Enabling Collaboration Cafe 3.0 4:00 Enabling Patent ROI 3.0 5:00 Wisdom from the Legends

Tomorrow: Innovation Engineering Express

Agenda

3

Purpose: by Transforming Innovation from a

Random Gamble to a Reliable Systemdelivering Increased Speed

LAST YEAR

4



LAST YEAR

It Lacked SOUL

MEANING FEELING

5

New Logo

Old Logo

6

Innovat ion Systems

Mission: To Change The World through Systems that Enable Innovationby everyone, everywhere, every day, resulting in

increased speed to market (up to 6X) & decreased risk (30 to 80%).

7

Innovat ion Systems



8

Innovat ion Systems



9





10

3.0Enabling innovation by

everyone, everywhere, every day

11-1

3.0Enabling innovation by

everyone, everywhere, every day

11-2

System Thinking is aboutEnabling The Worker

“94% of failures are due to the SYSTEM 6% are due to the

worker”

12

Dr. Deming was asked, how he would summarize his message in a few words. "I'm not sure, but it would have something to do with variation."

Later he said, "I said earlier that my message, had to do with variation. I've given it some more thought, and I would say it has to do with Pride of Work."

13-1

HOW$ARE$WE$DOING$ON$PRIDE$OF$WORK$How$would$you$rate$the$overall$

$quality$of$work$done$by$your$company?



13-2

5%

35%60%

95%$DON’T$$Feel$Pride$

Base%Size%=%12,272





13-3

5%

35%60%


Base%Size%=%12,272





“94% of failures are due to the SYSTEM 6% are due to the Worker”

13-4

5%

35%60%


Base%Size%=%12,272






When you improve the System

13-5

5%

35%60%


Base%Size%=%12,272






When you improve the System Then workers

can work smarter and feel real

Pride of Work

13-6

The System

14-1

LeadershipENABLES

Innovation Systems • EDUCATION • Innovation Pipeline• Collaboration Cafe• Merwyn Rapid Research• Patent ROI

The System

14-2

LeadershipENABLES


The SystemEmployeesENGAGE

In New Way of Working • Learning• Curiosity• Courage• Experimentation• Taking Responsibility

14-3

LeadershipENABLES


EveryoneWINS

Everyone - Pride of Work! • Double Digit Sales Increases• Double Digit Profit Increases• Optimism for the Future

The SystemEmployeesENGAGE

In New Way of Working • Learning• Curiosity• Courage• Experimentation• Taking Responsibility

14-4

Last August Donnalou Stevens

15-1


Something Told Me She Was On Mission She believed in ENABLING… in a Meaningfully Unique Way

15-2



And she had NO FEAR!

15-3



And she had NO FEAR!

15-4

Everybody’s Got Wings

A voice unspoken is a voice unheard A song not sung deserves your words.

A vision unseen might pass you by. and Wings won’t grow til you choose to fly.

Everybody's Got Wings. Everybody can fly.

Everybody's got a song to sing inside. Everybody can dance, if given a chance.

Everybody's got a gift to bring. Everybody's got wings.

A past forgotten is freedom’s friend Can you let your self be born again

and can you give your dreams your new found wings and let the world hear your voice ring

CHORUS

lada die die die, spread your wings and fly lada die die die, and fly

Together we’ll fly across the sky bringing light to the darkest night

We’ll fly to the moon and then beyond and the dreams we’ve dreamed will carry on.

CHORUS

16-1









CHORUS




CHORUS

16-2

Thing 1: We are significantly ahead of expectations…

LAST YEAR

17

Thing 2: We are in “the saddle” and have 2 to 3 years of work ahead.

LAST YEAR

18

Diffusion of Innovations

PIONEERSEXPLORERS SETTLERS STRAGGLERS RESISTORS

19

What Diffusion Really Looks Like.

20

Early Adopters Early Majority

Innovators

Saddle Is Caused By Transition to NEW STAKEHOLDERS

“Crazy People” “Sane People”

21

Two Views of Speed Bumps

22-1


Innovators SPEED BUMPS

22-2


Early Adopters / Majority SPEED BUMPS

Innovators SPEED BUMPS

22-3

Average Saddle is 4 years

23-1


Many Give Up

23-2


Many Give Up

50X

23-3

The leading edge of the Innovation Engineering

Movement is out of the saddle.

24-2

ANDEverybody can dance

If given a chanceEverybody’s got Wings!

25

N E T W O R K

Our Success is the PRODUCT of our Interactions!

26-1

N E T W O R K

% Perfection % World Class


26-2

N E T W O R K


Department SILO A (B+) 85%


26-3

N E T W O R K



Department SILO B (D) 60%


26-4

N E T W O R K




Department SILO C (A+) 95%


26-5

N E T W O R K





Department SILO D (B) 80%


26-6

N E T W O R K






Department SILO E (F) 40%


26-7

N E T W O R K







.85 x .60 x .95 x .8 x .4 =


26-8

N E T W O R K







.85 x .60 x .95 x .8 x .4 =

SYSTEM SUCCESS 16%


26-9

I’m proud to announce

27-1

Data is from 4-2-2014 for the 60% of ideas that have math. It Does not include deleted, inactive or ideas in define. It does not include Project values over a billion and the $46 Billion in DEFINE.

(Discover - Develop - Deliver)

+39%$11.4 Billion

In Active Projects

• Fortune 10 • Fortune 100• Small Companies• Non Profits• Universities

I’m proud to announce

27-2

What did we learn over the past yearthat got us through the saddle quickly?

28

BLACK BELT Guides System

BLUE BELT Leads System

Education - Education - Education

Black Belt - 94% of Application Classes on Company Work

INNOVATION COLLEGE 4 College Semesters in 5 Days

29

BLACK BELT

BLUE BELT

&

Tools & SupportEducation

=

3 Systems

30-2

A. A Front End Innovation System A System for Generating More BIG Ideas

BLACK BELT

BLUE BELT

&


=

3 Systems

30-3


B. A Parallel LEAP Innovation System A System for Taking BIG Ideas to Market Faster

BLACK BELT

BLUE BELT

&


=

3 Systems

30-4


C. Innovation CULTURE Operating System Enabling Innovation by Everyone, Everywhere, Everyday


BLACK BELT

BLUE BELT

&


=

3 Systems

30-5




BLACK BELT

BLUE BELT

&


=

3 Systems

BLUE BELT

&4 Subsystems

30-6


D. Innovation Pipeline Subsystem

Enables Increased Innovation Speed & Decreased Risk By Creating Alignment with Strategy, Departments & Teams



BLACK BELT

BLUE BELT

&


=

3 Systems

BLUE BELT

&4 Subsystems

30-7




E. Collaboration Cafe Subsystem Enables Increased Innovation Speed & Decreased Risk By Confronting the Psychological Barriers to Internal/External Idea Sharing



BLACK BELT

BLUE BELT

&


=

3 Systems

BLUE BELT

&4 Subsystems

30-8





F. Merwyn Rapid Research Subsystem Enables Increased Innovation Speed & Decreased Risk By Reducing Testing Time & Cost by up to 50% / 99%



BLACK BELT

BLUE BELT

&


=

3 Systems

BLUE BELT

&4 Subsystems

30-9


G. Patent ROI Subsystem Enables Increased Innovation Speed & Decreased Risk

By Making It EASY to Find, Filter & File Patents for Competitive Advantage




F. Merwyn Rapid Research Subsystem Enables Increased Innovation Speed & Decreased Risk By Reducing Testing Time & Cost by up to 50% / 99%



BLACK BELT

BLUE BELT

&


=

3 Systems

BLUE BELT

&4 Subsystems

30-10

The Deming Leadership System(System of Profound Knowledge)

31-1


1. Appreciation for a System

31-2


1. Appreciation for a System2. Knowledge about Variation

31-3


1. Appreciation for a System2. Knowledge about Variation3. Theory of Knowledge (PDSA)

31-4


1. Appreciation for a System2. Knowledge about Variation3. Theory of Knowledge (PDSA)4. Psychology

31-5

CREATE 1. Meaningful Uniqueness 2. Stimulus & Diversity 3. Exploring Stimulus 4. CREATE Sessions 1.0 5. Unrelated Stimulus 6. Patent Mining 7. Insight Mining 8. Market Mining 9. Advanced Create Methods 10. Future Mining 11. Wisdom Mining 12. Professional Grade CREATE

COMMUNICATE 13. Blue Card Strategy Activation 14. Yellow Card 15. Synergy of the Concept System 16. Meaningful Uniqueness Clarity 17. Feedback Systems 18. Smart Concept Decisions 19. Patent Translation & Trademarks 20. Advanced Benefit & Proof 21. Meaningful Marketing Messages 22. Professional Grade Marketing Piece 23. Real World Communications 24. Proactive Selling Pitches

COMMERCIALIZE 25. Math - The Innovation Gas Pedal 26. Innovation Operating System 27. Plan - Do - Study - Act 28. Cost & Price Estimating 29. Sales Forecasting 30. Optimizing the Whole 31. Market Risks 32. Technology Risks 33. Organizational Risks 34. The Roles in Depth 35. Projects Step by Step 36. Drive Out Fear

SYSTEMS Driven LEADERSHIP 37. Appreciation for a System 38. Knowledge about Variation 39. Theory of Knowledge 40. Psychology 41. Leading Operating System Changes 42. Leading Collaboration System Changes 43. Leading Rapid Research System Changes 44. Leading Patent ROI System Changes 45. Leading Invention of WOW Innovations 46. Leading World Class Development Systems 47. Leading World Class Development Systems 48. Leading World Class Go to Market Systems

Experience Define/Discover

Experience Develop

Body of Knowledge 6 Col lege Courses of Content

32

Structure Process People

INNOVATIONIt’s how we organize to go from

strategy, to idea, to reality.

33-1


INNOVATIONIt’s how we organize to go from

strategy, to idea, to reality.

33-2

Innovation$Pipeline$$

ALIGNMENT

34

The three biggest drivers of innovation portfolio success are: 1.Project ALIGNED with businesses objective 2.Portfolio contains very high value projects 3.Development spending reflects the business's strategy

Research Technology Management Industrial Research Institute, Vol. 43, number 2, 2000

35

Biggest Challenge IE Conference

Need Ideas

11%

27%62%

Increase Speed Decrease Risk

Alignment

36

#1 Driver of Overall Company Success is STRATEGIC Alignment

Correlation with Innovation Results

Strategic Alignment r = .6Leadership Commitment r = .5Customer Focus r = .5Collaboration r = .5

European Study 2014

37

Innovation Pipeline “Blue Card” Enables Employees

VIO Very Important

Opportunities

For Growth of

Sales & or Profitability

From New or Current

Customers / Markets

VIS Very Important SystemsFor How We Work Creating New Capabilities that enable…Growth, Cost Savings,Performance, Quality or Productivity

38

LEADERSHIP Defines

& WHY we need it

WHAT we need

39

EMPLOYEES invent

HOW to solve

40

What is VERY Important

• Narrative (motivates employees)

• Strategic Mission (real & clear vision)

• Strategic Exclusions (what not doing)

• Tactical Constraints (reality check)

• Exploration Areas (where to start)

41

NOT Created by a Mountain Top

“Revelation” Or Dictated by a Leader

42-1



Created by Strategy Activation “Blue Card” Session

42-2



Created by Strategy Activation “Blue Card” Session

Stimulus Mining + Day & a Half with DIVERSITY

IT’S THAT IMPORTANT

42-3

Powered by Stimulus Mining

PATENT Mining

WISDOM Mining

MARKET Mining

INSIGHT Mining

FUTURE Mining

UNRELATED Mining

43-1

Powered by Stimulus Mining

PATENT Mining

WISDOM Mining

MARKET Mining

INSIGHT Mining

FUTURE Mining

UNRELATED Mining

If you don’t do stimulus mining you will create a strategy for yesterday.

43-2

If you don’t BELIEVE in your Innovation Development System

44-1


You will not create BRAVE Strategies

44-2


You will create Cowardly Strategies

You will not create BRAVE Strategies

44-3

Strategic System Design Decision

45-1


Option 1 Design for CONTROL

45-2


Option 2 Design to ENABLE

Option 1 Design for CONTROL

45-3

empowerTo give official authority or legal power to.

46-1


enableTo provide with the means or opportunity.

To make possible, practical, or easy.

46-2




What is the root cause of your lack of Disruptive LEAP Innovations?

46-3




What is the root cause of your lack of Disruptive LEAP Innovations?What is the root cause of your lack of Speed to Market?

46-4




What is the root cause of your lack of Disruptive LEAP Innovations?What is the root cause of your lack of Speed to Market?

Is Change Possible, Practical, Easy?

46-5

The Secret is SYSTEMS

47-1

The Secret is SYSTEMS

SYSTEMS that ENABLE Employees

47-2

New World Mindset

Old World Mindset

48-1

New World Mindset

Control

Old World Mindset

48-2

New World Mindset

ControlExpert Teams

Old World Mindset

48-3

New World Mindset

Control

Trust Gut InstinctExpert Teams

Old World Mindset

48-4

New World Mindset

Control

Trust Gut InstinctExpert Teams

Old World Mindset

Check List of WHAT to do

48-5

New World Mindset

Control

Trust Gut Instinct

Focus on Idea Creation

Expert Teams

Old World Mindset


48-6

New World Mindset

Control Enable

Trust Gut Instinct


Expert Teams

Old World Mindset


48-7

New World Mindset

Control Enable

Trust Gut Instinct


Expert Teams Everyone, Everywhere

Old World Mindset


48-8

New World Mindset

Control Enable

Trust Gut Instinct Quantitat ive Customer Research



Old World Mindset


48-9

New World Mindset

Control Enable




Old World Mindset

Check List of WHAT to do Check List of What, Why, How

48-10

New World Mindset

Control Enable


Focus on Idea Creation Ideas to Market is the Focus


Old World Mindset

Check List of WHAT to do Check List of What, Why, How

48-11

Check Lists

Define Blue Card Alignment Yellow Card Complete Discovery Clarity on what "Number" is needed for Success Yellow Card Concept - Customer Validated Yellow Card Concept -Technology Validated Regulatory & Patent Fermi Review Development Scope Fermi Plan Business Opportunity Develop Recommendation Leadership Approval for Development Development (Alpha) Visual Prototype - Customer Validated Naming Decision Tradeoff Prototypes Validated Smart Development Plan Doing the Math Proactive Review Regulatory & Patent Proactive Review Production Partners Engagement Route to Market Engagement Business Opportunity Alpha Update

Development (Beta) Functional Prototype - Finalized Marketing Message - Customer Validated Functional Prototype - Customer Validation Route to Market - DRAFT Plan Production & Quality - DRAFT Plan Customer Documentation DRAFT Materials Regulatory & Patent - DRAFT Plan Lifecycle Forecast - DRAFT Plan Business Opportunity - Beta Update Development (First Release) Sellable Prototype - Technical Validation Marketing Message - Quantitatively Validated Sellable Prototype - Customer Validated Route to Market Plan FINAL Customer Documentation FINAL Production & Quality FINAL Regulatory & Patent FINAL Business Opportunity - Launch Recommendation Leadership Approval to LAUNCH Delivery Punch List Completion Technology Optimization Market Optimization Business Opportunity 6 Month Review

WHAT we do WHY we do it HOW we do it

Clear Check Lists ENABLE Employees

49

Check Lists


50-1

Check Lists BEST PRACTICES LISTS


50-2


SIMPLIFIED LISTS


50-3


SIMPLIFIED LISTS

SHORT LIST


50-4


SIMPLIFIED LISTS

SHORT LIST


IE CORE & IE LEAP

TO ENABLE LEAP - SEPARATE LISTS

50-5

Check Lists

NOTE: Without transparent standards every project is a

total DICE ROLL.

51-1

Check Lists

NOTE: Without transparent standards every project is a

total DICE ROLL.

It’s easier to SET SMART STANDARDS when you are not in the

middle of the game!

51-2

Check Lists… are an agreement on our rules for enabling employees who want to help with Blue Cards.

INVEST Time

Energy Money

52-1


LEADERSHIP (Investors)

PROJECT LEADERS Who Want to Make

a Difference…

Project Team (Investors)

INVEST Time

Energy Money

52-2


DEPARTMENT (Investors) How we support Ideas that

address the Blue Cards

LEADERSHIP (Investors)

PROJECT LEADERS Who Want to Make

a Difference…

Project Team (Investors)

INVEST Time

Energy Money

52-3

PLAN: What success looks like - goal, metric or desired outcome - when addressing this Death Threat (Milestone), at this point in time, for this project and for this Blue Card.

53-1


DO: To achieve this, we will do the following work, activity or experiment.

53-2



STUDY: Did we reach our success standard? THINK deeply, why did we or why didn’t we?

53-3




ACT: Based on what has been learned, has this Death Threat (Milestone) been resolved?

53-4




ACT: Based on what has been learned, has this Death Threat (Milestone) been resolved?

SUCCESS IS GUARANTEED

We just don’t know the number of cycles.

53-5

DEATH THREATS MILESTONES

Old World: Name your own Death Threats

54-1


New World: Pre populated lists linked to one of three risks…Name your own TASKS - This reduces Variation in System


54-2

1. Market Risk Distributors, Channels, End Users, etc.

2. Technology Risk R&D, Production, Supply Chain, etc.

3. Organizational Risk Investment, Profits, Regulatory, Legal, etc.


New World: Pre populated lists linked to one of three risks…Name your own TASKS - This reduces Variation in System


54-3

Management$Coach$adapts$the$Check$List$to$prevent$rework$&$wasted$work.

55-1


OFFICIAL$CHECK$LIST$

Milestone

55-2



Milestone

+

Adapts based on Blue Card

55-3



Milestone

+

Adapts based on Blue Card

=PLAN: What success looks like - goal, metric or desired outcome - when addressing this Milestone at this moment in time, for this project and for this Blue Card.

55-4

Blue Cards Mission - Exclusions - Constraints

“Commanders Intent”

56-1



OVERULE

56-2

Even the Organization’s Customized Check Lists

WHAT - WHY - HOW



OVERULE

56-3

PLAN DO STUDY ACTthe success standard that the owner,investors & departments have agreed to.

Modified based on the Blue Card relative to this project at this moment in time.

57-1



what is the fastestand cheapest wayto learn.

57-2




what we learned.

57-3




what we learned. Review versus the Plan.

57-4





New theory of how we might evolve

to get a GO for further investment

57-5





New theory of how we might evolve

to get a GO for further investment

In extreme cases, the Management Coach might change the success standard.

57-6

Without Absolute Clarity from the Organization on What Success Looks Like Using…

58-1

Check List Standards What, Why, How


58-2


Blue Card

Constraints Exclusions

& or


58-3


Blue Card


& or Setting The Plan

Success Standards

& or


58-4


Blue Card


& or Setting The Plan

Success Standards

& or


Being a Change Agent is Very RISKY As there are no rules.

58-5

It’s about Freedom within a FrameworkALL THE WAY TO MARKET

59-1

It’s about Freedom within a FrameworkALL THE WAY TO MARKET

IDEA • Customer • Problem • Promise • Proof • Price • Passion • Purpose • Math • Death Threats

DEFINE DISCOVER DELIVERDEVELOP

AlphaDEVELOP

BetaDEVELOP

1st Release

It’s about always getting smarter…as Fast & Cheaply as possible.

59-2

DEVELOP Alpha DELIVERDEVELOP

BetaDEVELOP

1st ReleaseDEFINE DISCOVER

VOLUNTEERSAnd to ensure passion,

they do it in addition to regular job.Work as Fast & Cheap as possible.

60-1


BetaDEVELOP




DEDICATED StaffingIdeal is Project Leader on just 1 or 2 projects.

Invest Real Time, Energy & MoneyStill as Fast & Cheap as possible

60-2


BetaDEVELOP






Project Leader

Management Coach

Process Coach

IDEAL is same staff Start to Finish Second Best is New Advocates

Worst is “Pass & Pray”

60-3


BetaDEVELOP






Project Leader

Management Coach

Process Coach

IDEAL is same staff Start to Finish Second Best is New Advocates

Worst is “Pass & Pray”NEW RECORD - after 6 months work -

handed off idea and it was killed in 48 hours.

60-4


INNOVATIONIt’s how we organize to from strategy, to idea, to reality.

61-1



61-2

CREATE Sessions STRETCH the MIND

62-2

CREATE Sessions STRETCH the MIND

But Once Over… The Mind Snaps Back To Reality

62-3

ACCELERATOR Sessions Allow for Cycles of LEARNING

63

ACCELERATOR Sessions Allow Ideas to

Break The Gravitational Pull of Conformity

64

ACCELERATOR SessionsLEAP Innovations

65-1


DAY 1

Really UglyIdeas

65-2


Still UglyIdeas

DAY 2DAY 1

Really UglyIdeas

65-3


Still UglyIdeas

DAY 2

Less UglyIdeas

DAY 3DAY 1

Really UglyIdeas

65-4


Still UglyIdeas

DAY 2

Less UglyIdeas

DAY 3

Good enoughto Go to Discover

Patents FiledTrademarks Filed

DAY 4DAY 1

Really UglyIdeas

65-5

Option for ACCELERATOR Sessions

LEAP Innovations

Still Ugly Ideas

Less Ugly Ideas

Good enough to Go to Discover

Patents & TM Filed

Week 1 1 or 2 Days

Really Ugly Ideas

Week 2 1 or 2 Days

Week 3 1 or 2 Days

Week 4 1 or 2 Days

66

Get Your Hands Dirty Growing Ideas

Accelerator Consequence

You Do the Work

67

Simultaneous Engineering of all Aspects

Product PositioningPackaging NamingPricing Marketing ModelBusiness Model

YOU are in CHARGE of ALL

R&DMarketing

Sales Finance

Accelerator Consequence

You Work the Whole

68

VERYVERY

Fast Paced

It’s FAST

69-1

VERYVERY

Fast Paced

SpeedHelps withOver Think

It’s FAST

69-2

VERYVERY

Fast Paced

SpeedHelps withOver Think

There will be plenty of time later for never ending debate!

It’s FAST

69-3

It Features Overwhelming

Amounts of Stimulus

70

It Is Also a Ton of

FUN

71

“Early on ALL of our movies SUCK. That’s a blunt assessment, I know, but I make a point of repeating it often, and I choose that phrasing because saying it in a softer way fails to convey how bad the first versions of our films are.”

Ed Catmull - PIXAR Co-founder & President

72-2

“Early on ALL of our movies SUCK. That’s a blunt assessment, I know, but I make a point of repeating it often, and I choose that phrasing because saying it in a softer way fails to convey how bad the first versions of our films are.”

Ed Catmull - PIXAR Co-founder & President

takes you from SUCK to Not Suck

in 4 Days not 9 MonthsAccelerator

72-3

MATH is the Gas Pedal

73

New Systems for Doing The Math

74

Step 1: Deconstruct Your Problem into Key Factors You Can Estimate

75-1

Deconstruction Estimate Reasons

Population of Chicago

5,000,000 People

Based on an estimate that Chicago is half the size of New York City, where I am from, which is 10M

% of Population who owns a Piano

5% Based on the people I know, about 1 in 20 have a piano

Time to tune the chords on a piano

1 Hour

Based on my experience tuning a guitar, which takes about 3 minutes. And I am guessing a piano is more complicated because there are over 200 keys

Time to travel and set up 2 Hour

Based on driving around my own city, sitting in traffic, parking and lugging around equipment will take time.

Hours worked by Day 8 Hours Based on a typical work day

How many days does a piano tuner work

240 DaysIf there are 30 days per month, and 8 are weekends, thats 22 working days per month which I will round to 20 and multiply by 12 months

How often does a piano need to be tuned?

1A guess based on owning a piano my whole life, and only seeing a tuner once, averaged with higher frequency users who might get tuned each year.

STEP 2: Estimate Lowest Level & Give ReasonsStep 1: Deconstruct Your Problem into Key Factors You Can Estimate

75-2

Deconstruction Estimate Reasons

Population of Chicago

5,000,000 People

Based on an estimate that Chicago is half the size of New York City, where I am from, which is 10M

% of Population who owns a Piano

5% Based on the people I know, about 1 in 20 have a piano

Time to tune the chords on a piano

1 Hour

Based on my experience tuning a guitar, which takes about 3 minutes. And I am guessing a piano is more complicated because there are over 200 keys

Time to travel and set up 2 Hour

Based on driving around my own city, sitting in traffic, parking and lugging around equipment will take time.

Hours worked by Day 8 Hours Based on a typical work day

How many days does a piano tuner work

240 DaysIf there are 30 days per month, and 8 are weekends, thats 22 working days per month which I will round to 20 and multiply by 12 months

How often does a piano need to be tuned?

1A guess based on owning a piano my whole life, and only seeing a tuner once, averaged with higher frequency users who might get tuned each year.

STEP 2: Estimate Lowest Level & Give ReasonsStep 1: Deconstruct Your Problem into Key Factors You Can Estimate

5,000,000 x 5% = 250,000 Pianos

(1 Hour + 2 Hours)/8 Hours = ~3 Pianos Tuned Per Day

3 x 240 = ~1,000 Pianos per year

250,000 / 1,000 = 250 Piano Tuners

Step 3: Do Simple Math to Answer Question

75-3

Three Levels of Number Estimates

76-1

Three Levels of Number EstimatesLEVEL 1: Fermi Estimate a. Deconstruct question into elements we can estimate. b. Provide reasons for each estimate c. Do simple math d. Bound Estimates to Identify Greatest Variance

Fastest &Cheapest

76-2


Fastest &Cheapest

LEVEL 2: PDSA Calibration of Estimate a. Calibrate using Stimulus Mining to Learn More b. Calibrate using Delphi Technique to Learn More

Takes Some Time

76-3


Fastest &Cheapest

LEVEL 2: PDSA Calibration of Estimate a. Calibrate using Stimulus Mining to Learn More b. Calibrate using Delphi Technique to Learn More

Takes Some Time

LEVEL 3: PDSA Experimentation a. Virtual Experiment (Simulation or Simulated Test Market) b. Number Experiment (Real World situation) c. Learning Lab / Test Market (Real World situation)

Costs Time& or Money

76-4

How Much Are We Going to Sell?

78

Demo

79

What’s our Game Plan?

80

REMEMBER…

Awareness & Distribution IS THE KEY TO BIG SALES

BIGGEST VARIANCE

81

You Have Three Paths To Changing the World

82-1

Invest a TON of Money


82-2


Invest 8 to 10 YEARS


82-3


Invest 8 to 10 YEARS


Be WOW Meaningfully Unique

82-4

0

20

40

60

80

1 2 3 4 5 6 7 8 9 10

Sales (Millions)

Year

There are 3 Sales Forecast - Game Plan Options

83-1

0

20

40

60

80

1 2 3 4 5 6 7 8 9 10

Sales (Millions)

Year


HIGH Marketing Spend Plan

83-2

0

20

40

60

80

1 2 3 4 5 6 7 8 9 10

Sales (Millions)

Year



Patience Marketing Plan

83-3

0

20

40

60

80

1 2 3 4 5 6 7 8 9 10

Sales (Millions)

Year



Patience Marketing Plan

Ignite Word of Mouth Plan

83-4

0

20

40

60

80

1 2 3 4 5 6 7 8 9 10

Sales (Millions)

Year

The SMARTEST PLAN For Generating “PULL”

Ignite Word of Mouth Plan

Be Really Meaningfully Unique

84

That Means Ignite WORD OF MOUTH

Rogers - 1962 1st Edition (now 5th)

Original Research Agriculture in 40’s

Third World Modeling in 60’s

Bass Diffusion Model 1969

85

Meaningful Uniqueness Increases Diffussion

Odd

s of

Wor

d of

Mou

th D

iffus

ion

0%

10%

20%

30%

40%

50%

60%

Meaningful Uniqueness. 60% Purchase Intent, 40% Uniquneness0 1 2 3 4 5 6 7 8 9 10

10 10 10 20 32 44 56 68 81 90 90 Merwyn Scores

86

Odd

s

0%

5%

10%

15%

20%

25%

30%

35%

40%

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90

Purchase WOM

Merwyn Score

When you have A REAL LEAPREAL NEWS

You Can Almost DOUBLE Word of Mouth Awareness

Moving from 6.0 to 7.5 Rapid Test - Purchase / New & Different 60/40

Moving from 50% to 70% Merwyn Score

87

DRAFT Change to Standards

Current Standards - CORE 40% (5.0) LEAP 50% (6.0)

88-1

DRAFT Change to Standards

Draft Standards - CORE 50% (6.0) LEAP 70% (7.5) Draft Standards - Nearly Double Word of Mouth

Current Standards - CORE 40% (5.0) LEAP 50% (6.0)

88-2

5 Ways to Accelerate Diffusion

Adapted from

89-1

1. WOW Meaningful Uniqueness - A Wow concept & more importantly a Wow “after use” experience


Adapted from

89-2


2. Compatibility with existing habits/behaviors - Minimize “speed bumps” to usage


Adapted from

89-3



3. Easy Way to “Try & Experience” the meaningful uniqueness- Reduce “risk” created by true innovation


Adapted from

89-4




4. Tangibly Different not “Smoke & Mirrors” - If it looks the same, feels the same it’s the same - Different Form Factors Reinforce WOW Meaningful Uniqueness


Adapted from

89-5




4. Tangibly Different not “Smoke & Mirrors” - If it looks the same, feels the same it’s the same - Different Form Factors Reinforce WOW Meaningful Uniqueness

5. REALLY REALLY SIMPLE Message- The Meaningful Uniqueness is super easy for people to tell to others


Adapted from

89-6

3.0 Enables Innovation By Everyone, Everywhere, Everyday

90

Innovation Pipeline Subsystem Enables Increased Innovation Speed & Decreased Risk

By Creating Alignment with Strategy, Departments & Teams

91

Collaboration Cafe Subsystem Enables Increased Innovation Speed & Decreased Risk

By Confronting the Psychological Barriers to Internal/External Idea Sharing

Enabling AcceleratorMultipliers

Enabling Project

Problem Solving

Enabling Ideas to Action Super Groups

Enabling Knowledge

Sharing

that changes a culture one idea and one person at a time

“We innovate all the time.” “We collaborate

fast.”“I can get help

myself.”“I’m connected to the

innovation we do.”

92

Merwyn Rapid Research Subsystem Enables Increased Innovation Speed & Decreased Risk By Reducing Testing Time & Cost by up to 50% / 99%

93

Mining

Patent ROI Subsystem Enables Increased Innovation Speed & Decreased Risk

by Everyone, Everywhere finding Competitive Advantage through Patents

94



95

There are three critical roles.

Management Coach

Project Leader

Process Coach

Formal or informal team members

who support Project Leader…

…they are a great asset, but not critical at the start.

96

HUB of the WHEEL

• Responsible for the MISSION

• No Authority over departments

Modeled on Classic P&G Brand Manager Toyota Chief Engineer Role

R&D Sales

Finance

Marketing

ProductionProcurement

Legal

Project Leader

Regulatory

Project Leader

97

Responsibility with NO AUTHORITY ARE YOU KIDDING… I’ll Be Killed!

What tools do I have to Protect Me?

98

R&D Engineering

Sales Marketing

Finance Legal

Production Procurement

PROJECT LEADER Responsible for Bridging Departments

99-1

R&D Engineering

Sales Marketing

Finance Legal



4 Tools

99-2

R&D Engineering

Sales Marketing

Finance Legal



Mission

4 Tools

99-3

R&D Engineering

Sales Marketing

Finance Legal



Mission

Quantitative Research & Forecasting

Math

4 Tools

99-4

R&D Engineering

Sales Marketing

Finance Legal



Mission

Fail FAST Fail CHEAP

Optimize System

Mindset


Math

4 Tools

99-5

R&D Engineering

Sales Marketing

Finance Legal



Mission


Optimize System

Mindset


Math Mgt. Coach

4 Tools

99-6

A MISSION That IS VERY IMPORTANT

To Project Leader

To Customer

To Organization

100

MathQuantitative Research

Sales & Cost Forecasting

Year 1 - Risk Adjusted Sales Forecasts - Current Plan Highlighted

Marketing Support Level A = Customer Awareness, D = Distribution

Conservative 80% odds of at least

Middle50% odds of at least

Aggressive20% odds of at least

Word of Mouth - A = 3% D = 5% $11,000 $26,000 $51,000

Small Company - A = 10% D = 20% $11,000 $26,000 $51,000

Medium Company - A = 25% D = 50% $100,000 $180,000 $300,000

Photo

The caption can have up to about 150 characters maximum. Is is typical that patent pictures are vertical like above rather than landscape.

Forecasting Assumptions

Meaningful Uniqueness (29 is average) 28

This is the amount of space that can hold 80 characters maximum for assumptions.

# of Possible Customers 705,000

25% of MBS reports used more than 80 characters.

Revenue per First Purchase $35

The old reports allowed 160 characters for assumptions.

Percent RepeatPurchase 0%

That would be double the amount of space here.

# of Repeat Purchases 0


Revenue per Repeat Purchase $0


STATUS: This is enough space to fit 5 lines of text with a max of 80 characters per line. This should be plenty of space to say what the inventor or company is looking for as well as talk about death threats and issues with the idea.

Updated 1.13.13:

Diaphragm Foam Pump

It is the first foam pump to combine an electric motor with a single mixing chamber with in diaphragm to properly mix liquid and air to result in an ideal foam.

Customer: Office building owners

Problem: In the past, foam dispensers mixed a two steams, a liquid stream and an air stream in a mixing area. The mixed streams were then forced through a screen to better disperse the air as bubbles. The ideal foam is thick and soft, and has a greater number of small air bubbles.

Benefit Promise: The key to an ideal foam is violent mixing of liquid and air to disperse air bubbles. Other foam dispensers use a single piston movement that does not change the foam volume or mix liquid and soap violently. Having a single chamber diaphragm allows for adjusting the volume of foam.

Proof: It works because the electric motor causes the diaphragm to repeatedly collapse and expand. Expanding the diaphragm causes a vacuum in which the liquid and air are forced into the diaphragm. Collapsing the diaphragm causes the mixed liquid and air out of the diaphragm as foam.

Price: $35.00 for a dispenser

Value: This product is great for bathrooms in office buildings and doctor's offices.

The above concept is about 1200 characters and there is room for about 1500 maximum in this yellow space. 53% of the ideas in the marketplace have more than 1500 characters. We may have to reduce the font size to accommodate.

Global Innovation Registry

101

MindsetTest, Learn, Pivot

On Objections REALLY FAST

Simultaneous Engineering of

Business Model


Optimize System

102

Management Coach

Has REAL Understanding of the Organization’s “BIG PICTURE” and is

103-1

Management Coach


HONEST & HELPFUL

103-2

Management Coach


HONEST & HELPFULwith…

103-3

Management Coach


HONEST & HELPFULwith…VERTICAL Leadership Alignment

103-4

Management Coach


HONEST & HELPFULwith…VERTICAL Leadership Alignment

HORIZONTAL Departmental Alignment

103-5

Management$Coach$is$on$the$plane.$Fully$Engaged$&$100%$On$Board

104-1


Not$a$remote$“Mentor”$Flying'a'drone'from'the'ground…

104-2


Not$a$remote$“Mentor”$Flying'a'drone'from'the'ground…

AcSve$Project$CoUPilot$We'all'go'down'together!'REAL%TIME%HONESTY

104-3

Process Coach IE Black Belt

Education

ToolsExpertise

105-1

Process Coach IE Black Belt

Education

ToolsExpertise

Management Coach

Project Leader

Coaches & Supports BOTH

105-2

Process$Coach$is$on$the$plane.$Fully$Engaged$&$100%$On$Board

106-1


Not$a$remote$“Coach”$Flying'a'drone'from'the'ground…

106-2


Not$a$remote$“Coach”$Flying'a'drone'from'the'ground…

AcSve$Project$Navigator$We'all'go'down'together!'

Real%Time%Honesty

106-3

Provides….

Process Coach Innovation

Engineering Black Belt

Hands on USEFUL WORK

107-1

Provides….

Watch One…Do One…Teach One…Process Coach

Innovation Engineering Black Belt


107-2

Provides….




World Class EXPERT at everything…*

107-3

Provides….




*They can do this because they can admit without any apology They don’t know… they need help… they fail a lot!


107-4

Provides….

Watch One…Do One…Teach One…

* They quickly and frequently ask for help and give help to the…

Black Belt Community “who has their back”

Process Coach Innovation

Engineering Black Belt


*They can do this because they can admit without any apology They don’t know… they need help… they fail a lot!


107-5

Operating System Structure & Processes

108-1


A. Blue CardA strategic “theory” on what is very important for our organization’s short & long term success.Also known as the “Leadership’s Intent.”

108-2



B. Yellow CardsTactical “theories” of a how we might accomplish the Leadership’s Intent (new or improved products, services or systems). Their only reason for existence is to deliver on the Blue Card.

108-3



C. Phases (aka Stages & Gates)DELIVERDEFINE DISCOVER DEVELOP

Our phases for increasing investment in Yellow Cards.


108-4


D. Check List Process (Lists customized for how the culture manages CORE & LEAP - Death Threats & Milestones)

CHECK LISTS are our standardized “game plans” for WHAT (standards), WHY (reasons), and HOW (methods) Yellow Cards become reality. The aim of the check list process is to create alignment between leadership, employees & departments.





108-5


D. Check List Process (Lists customized for how the culture manages CORE & LEAP - Death Threats & Milestones)

CHECK LISTS are our standardized “game plans” for WHAT (standards), WHY (reasons), and HOW (methods) Yellow Cards become reality. The aim of the check list process is to create alignment between leadership, employees & departments.


E. Work Process for TasksThis is the process for how it all comes together when we are doing the work. It’s an iterative system that guides the work on the Yellow Cards by integrating the Commander’s Intent (Blue Card), with the organization’s “game plan” for change (check lists).




108-6

Application Assignments

Lead Blue Card Session

4 Hour Minimum

Deliver IEWorkshop

Series

Yellow CardFacilitation

4 Hour Minimum

Stimulus Mining2 Spark Decks

Created/Presented

Problem SolvingFacilitation

4 Hour Minimum

QuantitativeStimulus Mining

Problem/Idea Starter

QualitativeConcept Feedback

InterAct or 1 on 1

3 Cycles of Concept Writing

Using Tools

Prototype Build/Test/Revise

Rapid Test

CollaborationTo Problem Solve

Outside & Inside Co.

Deep Dive Into Sales & Cost Forecast

Improve Numbers

Make MeaningfulImprovements to

a Company Innovation Check List

Meaningful CompanySystem InnovationFFFC, Collaboration

or Patent ROI

ProvisionalPatent & BusinessOpportunity Report

Concept WritingExploratory

Writing 10 Versions

Write Yellow Card for 2 Distribution Valves

Get Feedback & Revise

Experience Assignments - Concurrently Leading A Project

Black Belt

93% of time spent APPLYING to Your Organization

109

Results in 6 Months

Mission Critical…

It can be Patents - In Development - Shipping

110

“A Goal Without a Method is Madness.”Dr. Deming

111

On Campus Upgrade Coming

112-1

On Campus Upgrade Coming

Customized APPLICATION Classes

Based on Instructor Experiences

Based on Local Companies

Based on Industry Partnerships

- Pulp & Paper, Oil & Gas, Etc.

Based on Academic Disciplines

- Nursing, Engineering, Environmental, Etc.

112-2

R&D Over This Past Year Has Been Focused On…

Human and Digital Systems for

Enabling Innovation by Everyone, Everywhere, Everyday

113-1

R&D Over This Past Year Has Been Focused On…


Enabling Innovation by Everyone, Everywhere, Everyday

R&D Over the Next Year Will Be Focused On…


Enabling LEAP Innovations

113-2

Erick James

114-1

Erick James

114-2

Erick James

May 6, 2012

115-1

Erick James

May 6, 2012

115-2

Erick James

May 6, 2012

115-3

Like the Deming Prize - It’s An Open Award

116-2

Like the Deming Prize - It’s An Open AwardIt’s about helping those outside of your organization.

116-3

Like the Deming Prize - It’s An Open AwardIt’s about helping those outside of your organization.It’s an award that EVERYONE should get one day!

116-4


The decision was impossible to make…

116-5


The decision was impossible to make…So while my decisions are wrong - And I take Full Responsibility

116-6


The decision was impossible to make…So while my decisions are wrong - And I take Full Responsibility

I hope they are useful

116-7

Doug,

Thank you for this and I'm really sorry I can't be with you and the team this week, please feel free to share this email with everyone there.

I am truly honoured to work with everyone involved with Innovation Engineering. It has always been stimulating and educational working with your team on our innovation projects, but the development of innovation engineering system has taken this to another level; it is a total business mind set, not just a series of bespoke projects.

The journey isn't always a smooth one but I have never learnt so much or developed so much by being part of the innovation engineering community. Steve Jobs famously said that you need to love it or be insane to persevere with innovation because it is so hard - I really love the quote and I use the video clip in most innovation sessions, but what I think he also meant is that it is the right thing to do.

We all deal with people that question the need for innovation but in their hearts most CEO's and board of directors know that innovation is a necessity, the challenge we have in the IE community is to continuously improve the system to make it the easy choice, not the risky or difficult choice.

It is an honour to be connected with Erick and all the other people that have made IE so special. I look forward to seeing the new content and using the output from the conference on a project soon.

Take care and have a great conference.

There is a light and it never goes out!

John

117

Everybody’s Got Wings!

We Will Change the World!

120

What have you learned in the past 12 months?

121

Wisdom From Elders

122

“The aim of the program is to have everyone

looking each day to improve”

123

“The most important point to be made for the success of this program is

that no involvement of the system or any reduction of special causes of

variation will take place unless management attacks common causes with as

much science and vigor as the production workers and engineers attack

special causes.

In other words, management has to get involved. The problem is not the

workers; the problem in American industry is management. What we have

proven at Nashua and what anyone can prove if they enter this quality

program is that the majority of the workers anywhere in the world will

perform well if given the tools and proper support.

124

The Roots are Deep

Akio Toyoda

125


126-1


1. Appreciation for a System

126-2


1. Appreciation for a System2. Knowledge about Variation

126-3


1. Appreciation for a System2. Knowledge about Variation3. Theory of Knowledge (PDSA)

126-4


1. Appreciation for a System2. Knowledge about Variation3. Theory of Knowledge (PDSA)4. Psychology

126-5

Dr. Deming Was The RightPerson At The Right Time

Kenneth Hopper

127

Japan Pre 1950Participatory

Kenneth Hopper

128-1


Last printed 0/0/00 0:00 AM Page 1 of 1

1950 - 1962Learned

Scientific Management

Kenneth Hopper

128-2



1950 - 1962Learned


1962 Deming PrizeSumitomo Electric

Participatory & Scientific Mgt.Taught & Enabled All Employees

Kenneth Hopper

128-3



1950 - 1962Learned


1962 Deming PrizeSumitomo Electric

Participatory & Scientific Mgt.Taught & Enabled All Employees

Kenneth Hopper

“The key was Japan blended the Western

Analytical Mindset with the Eastern System

Mindset.

Clare Crawford-Mason

128-4

Diana Deming Cahill

“You Have to Change The Person Before You Can Change the Organization.”

129-1

Diana Deming Cahill

“You Have to Change The Person Before You Can Change the Organization.”

We used to have what we called Stealth Deming zealots

129-2


130-1


Management has become an empirical process not a philosophy. (Bob)

130-2



We need a sense of urgency. The world has changed.

130-3




We need to replace management with leadership.

130-4





We are unconscious prisoners of some assumed beliefs.

130-5






You need to be able to say you don’t know (Clare)

130-6







It is critical that we learn how to become larger than the sum of our parts.

130-7








Dr. Deming said - Every Day I Learn

130-8









The Genius of Deming is the 4 Principles of Profound Knowledge (Bob)

130-9









The Genius of Deming is the 4 Principles of Profound Knowledge (Bob)

If we don’t learn this we are screwed.(Clare)

130-10

Lessons from Gordon McGiltonLessons from Gordon McGilton

• When in a maze all you see is walls and halls- Need to get above it and see the bigger issues - Need to make the system visible

131

• You will SEE IT when you Believe It- Need to experience to believe

Lessons from Gordon McGilton

• Did you design your innovation system- Or did your organization design it by itself - When someone finds a way it becomes the way - We become efficient at explaining / dealing with failures/defects

- Finance adjusts numbers, Sales uses discounts, mgt. holds money

Lessons from Gordon McGilton

132

Lessons from Walter

Deming'wanted'to'build'a'perfect'tree'and'didn't'spend'a'lot'of'6me'worrying'about'all'the'items'that'were'going'to'be'needed'to'make'the'tree'func6onal.'Crosby'built'an'adequate'tree'and'began'trying'to'add'func6ons'to'it.'Crosby'had'to'worry'about'diverse'customers'(scale)'because'he'was'market'driven.'Deming'did'not'worry'about'scale'because'he'was'internally'driven.'He'let'the'clones'worry'about'that.'Crosby'had'to'worry'about'the'resistance'to'change'distribu6on'because'he'could'not'hand'pick'his'clients.'Deming'did'not'consider'it'because'he'did'hand'pick'his'clients.'

If'there'was'a'mistake'in'Deming's'thoughts'it'was'that'he'didn't'consider'the'task'he'was'leaving'to'his'clones.'He'didn't'think'about'marke6ng'into'the'seBlers'and'doubters.'He'then'failed'to'warn'his'clones'that'they'could'not'behave'as'his'duplicates'but'had'to'think'much'more'like'Crosby.'''We'were'no'longer'working'with'firms'that'were'perfectly'suited'to'the'tough'love'style.'

133

Lessons from Walter

Dr.'Nelson'told'me'all'those'years'ago'that'I'would'go'to'our'supplier'

because:'"I'was'the'best'we'had."'I'was'terrified'but'I'would'have'been'

even'more'so'if'I'only'knew'how'much'more'I'would'change.'Perfec6on'

is'a'goal'in'our'clients,'our'teaching'and'our'selves.'We'are'the'best'we'

have'because'our'clients'need'us'today.'We'can't'stop'challenging'

ourselves.'We$can't$stop$growing.$We$also$can't$wait$unSl$we$achieve$

perfecSon.$

134

Innovat ion Systems



135









CHORUS




CHORUS

136-1









CHORUS




CHORUS

136-2

1 ie 2015 conference keynote

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