culture of innovation jay rao professor. 2 3 culture 6 building blocks 4 © jay rao
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Culture of Innovation
Jay RaoProfessor
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Culture 6 Building Blocks
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© Jay Rao
Culture of Innovation6 Building Blocks & 18 Factors
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© Jay Rao & Joe Weintraub
Culture of Innovation6 Building Blocks, 18 Factors & 54 Elements
© Jay Rao & Joe Weintraub
MeritocracyTeam >> Individual
SafetyForgiveness than Permission
Dedicated TeamFacilitatorBossM/C Shop
Constraints — $, TimeNeeds – Safety, Checkout,…# of PrototypesCustomer feedback
Encourage wild ideasBuild on wild ideas
Do not criticizeStay focused
OpenFun,
PlayfulFlat
Direct contact with customerAnthro researchVotingBrainstormingRapid Prototyping
© Jay Rao
IDEO’s Process:Opportunity Identification Development Capture
LearningExperimentation
Accept failureLong term orientation
A-TeamVenture CapitalistsCustomer ideasCollective IBM expertise
Big $1 B hitsBusinesses & not technologiesMilestones for progress
Spend time on emerging businessesI don’t know & will learn
Discover, Learn, AdjustSupport and Coach
HumorCelebrate
FailureSecurity
Small pilotsMarket experimentsProof of ConceptQuick KillsSlow to Staff-up
© Jay Rao
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Lattice Enterprise250 people/plant
Minimal BureaucracyPatient about success
Sharing/Collaboration
Employee OwnedLeaders have followersJudged by peers and teamCompensation = Contribution
Real, Win, WorthIdea marketplaceExperimentationGift economySupport mentoringBreak up to remain smallCommitments, not assignments
Act with utmost integritySelf motivated
InitiativeRecruit Followers
Personal relationshipsDirect 1to1 communication
Freewheeling small R&D task groupsPTFE knowledgeFree dabble timeSupport for experiments
Make money, have funFree spirits
All are leadersHigh trust, Low fear
© Jay Rao
Pathologically ObsessedHigh-Touch
CollaborationContinuous Learning
Speed
Service is Sales Enabler Guilty until proven innocent
CEO 600 customer calls/yrEverybody Makes Customer Calls
Problem Solver, Responsibility, Ownership
Preemptive “Phone Home” Tech.Customer interaction skills trainingCustomer Councils & EMC WorldOne level of service to all customersCollective Expertise to Solve Problems
CEO 500 customer visits in 10 yrs
Executives very tacticalNo heroes in the field
Team playersEmbed yourself into
customers’ lives
Single level of service8hr problem escalation to CEOHiring & Training ProcessesTCE Executive Summit
80% of sales to repeat customers99% customer retention rateIndustry experts’ accoladesStealing market shareMetrics, incentives aligned to CC
© Jay Rao
Youngest FleetHighly trained CrewDisciplined LeadershipManagement Expertise
Told what to doNo cliques
Lots of rulesFollow procedures
Stringent HiringTrain, Train, TrainMonitor & FeedbackMandatory retirement
Top DownRigid
ParanoidStructured
Best Customer ExperienceYoung, Fresh, Youthful
Worldly & SophisticatedOperational Excellence
AwardsBest of the Best#1 in the WorldHigh Profitability
© Jay Rao
Responsibility, AccountabilityMeaningful Relationships
Wellbeing, TrustOwnership, Inclusive
Measured on StabilityMeasured on InnovationsMutual Fun end points – cost, learningBonus for community serviceEngaged even after retirementLow turn-over Meaningful relationship
FreeNon-threateningEnjoying, Social
Belonging, CaringCommunity, Homely
Seniors assigned to GuidepostsCommunity, Mutual FunAdventure CapitalCommunity service timeKnowledge base (who?)Quiet Genius
HiringWelcome partiesSocial periodMutual Fun SoftwareOne Year Forcing Function2-people ruleEmployee newsletter
UpbeatOpenness
OptimisticCollaborativeParticipation
How you thinkVolunteerCoaching
© Jay Rao
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Flat Org.Open door
Mgt. by walking aroundSharing
Fair & FearlessSelf Mgt. / Self Supervision
High ProductivityHigh QualityProfit SharingLow Cost ProducerHigh Equipment Utilization
Constant MonitoringFeedbackModular workLots of communication
Self motivatedHard work
InitiativeENTREPRENEURIAL
Management TalentHome grown talentTechnology expertise
TRUSTBelief in individuals
Reward for performanceEgalitarian
Pride
© Jay Rao
Fun, WeirdLifestyle
High EnergyOwnership
No DoorBuild your own workspace
Family – Coworkers socialize
Customer ObsessedEmployee Happiness
Learning = Energize, Engage, EnableTrust you will make the right decision
Purpose, Not ProfitLong Term Focus
Team
Lots of opportunities to LearnTraining CoursesCustomer Service = investment not expenseFree Food
Positive Emotional ConnectionHumilityHonesty
CommunicationNo Scripts
Flexibility not EfficiencyPassionate & Determined
ApplicationHiring – Technical +Cultural FitTraining – 4 Wks$2000 offer to Quit after trainingMore with lessEvery one starts in the call center & warehouse“Customer Service Platform”
Net Promoter Score7% churn vs. 150% churn50% Technical 50% CulturalLong Term OrientationFortune’s Best Places to Work
© Jay Rao