experimentation and innovation presentation v0.3
DESCRIPTION
http://daniellock.com/ How to unlock value and productivity with creativity, experimentation and innovation.TRANSCRIPT
Drive value and productivity with
EXPERIMENTATION AND INNOVATION
A publication of Daniel Lock Consulting.
Want to skip ahead? Here’s what we’re going to cover.
A. COMMON MANAGEMENT APPROACH • The test and learn environment B. INNOVATION THROUGH PARTNERSHIP • How competitive collaboration works C. THREE KEY STAGES • Create the perfect managed experimentation process D. MAKING INNOVATION FLY • How one of today’s great innovation leaders works
COMMON MANAGEMENT APPROACH The Test and Learn Environment
• Large scale and company-wide, or • Conducted by small focus groups
targeted for purpose The problem with these approaches: • Can be large, unwieldy, and
difficult to manage, or • Lack of resource and seen as
peripheral to business strategy
How experimentation works in business today
Properly managed and measured experimentation affects a business by charting: • Business course and strategy • Products and Services • Industry and business positioning
EFFECTS OF EXPERIMENTATION ON A BUSINESS
INNOVATION THROUGH PARTNERSHIP How Competitive Collaboration Works
• Create an innovation culture • Go large scale, and bring on board external expertise • Create faster innovation • Increase internal knowledge base • Extend customer base
Spreading your experimental wings
The Story of Nestlé An inbred innovative culture
1
2
Partners with some of the world’s largest companies
3
4
Managed internally to large scale
Created ‘Sharing is Winning’ Strategy
THREE KEY STAGES Create the perfect managed experimentation process
1) ESTABLISH TRUST
CEO’s and Strategy Officers must learn to trust middle management • Reward innovative failure • Release the middle manager from constraints of risk aversion • Allow greater experimental nature
Middle managers are often unwilling to take risk: • Failure often leads to no bonus, no pat rise, possible firing
• So business strategy is narrowly framed • Conducted in a risk averse atmosphere • Leading to Rigidity and over-planning
2) ESTABLISH GOODWILL
• Leadership from the top • Direction that creates an innovative and experimental culture • Metrics of success (and failure) measurement • Learning from past experience and innovating the experimental model
Establishing goodwill requires
The Example of 3M
A mandate for employees to ‘change the basis of competition within your business unit.’
1
2
Further to establishing such a high level of goodwill from board level all the way down, 3M also expects 25% of revenues to come from products launched in the previous three years.
3
Allowing risks to be taken
Time allotted to develop novel and revolutionary strategies, products, and services.
In establishing company-wide goodwill 3M management took several initiatives:
3) CREATE BUSINESS VALUE
Without value creation, then an innovative and experimental culture is redundant, even bankrupt. Ensure the partners to your innovation are encouraged to be innovative and experimental in their approach. Lead from the top, with a culture of innovation and experimentation pointed firmly toward value creation
VALUE
• Ensure your innovation partners benefit from the following:
• Well defined responsibilities • Encouraged to take risks • A defined set of success metrics
Set a charter for risk and experimentation, and an
expectation of a flow of new products and services.
MAKING INNOVAGTION FLY How one of today’s great innovation leaders works
Chief Innovation Officer at Airbus, Head of EADS Innovation Works • Fostered trust and goodwill throughout internal innovation partnerships • Mandated fast and systematic screening at each decision making level • Provided senior management guidance down the line • Encouraged experimental attitudes to strategy and product development • Defined clear roles and goals
Learn to innovate from Yann Barbaux
Without the leadership, and experimental entrepreneurship of Yann Barbaux, Airbus may never have produced the….
AIRBUS A320
BY Daniel Lock.
Twitter: @DanielLock | Web: DanielLock.com
Do you have business goals that require innovation … …can help with that.
What does?
How does it.