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Do You Job Swap?

January 19, 2010 Innovation Leadership 1 Comment
by Stefan Lindegaard

GoogleA while ago, I read an interesting article on how P&G and Google benefited by swapping employees for a couple of weeks.

This is a great way to learn new things and a good approach to establish long term partnerships.

Furthermore, it helps a company develop a more external-focused culture which is quite useful as we move towards open innovation.

I can’t get access to the original article but I found a copy here: A New Odd Couple: Google, P&G Swap Workers to Spur Innovation.

You should also check out the comments made by Innosight as they wondered how many other companies will team up to do this and if a more formal network and a business model will emerge to facilitate it.

It has been almost a year since these stories surfaced. The crisis most likely killed attempts by other companies, but perhaps we will see a comeback on this in the coming years. I definitely like the idea : -)

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Innovation leadership and culture: Observations from Johnson & Johnson

by Stefan Lindegaard

I have had the pleasure of getting to know Jeff Murphy over the last couple of months. Jeff is an executive director at Johnson & Johnson where he is working with improvement methodologies and business innovation.

At a meeting a couple of months ago, we got into a discussion on key leadership behaviors and decisions with regards to innovation leadership and culture. Jeff works with this at Johnson & Johnson and he has made the following observations on what business leaders who are seeking to improve their organization’s innovation capability and capacity should do.

They should:

• make innovation a TRUE business priority
• encourage cross-functional collaboration on innovation.
• make innovation part of everyone’s performance review. Recognize publically and  rewardappropriately.
• view failures as learning opportunities. Celebrate and recognize successes and failures from innovation. 
• put the emphasis on questioning, not telling. Your style and type of questions matter.
• allow flexibility to explore new possibilities. Collaborate inside and outside the organization.
• hire and value a diversity of thinking styles, experiences, perspectives and expertise.
• purchase or develop an idea management system that captures ideas and encourages people to build on and evaluate new possibilities.
• establish a seed fund for early innovation work.
• recognize and communicate that innovation is a long-term business process that needs to be cultivated, just like any other business process.

Besides these observations, Jeff also shared some of the questions he asks within Johnson & Johnson as they work to develop an even better innovation culture. Jeff has divided these questions into three categories: Culture, Capability and Cash.

Questions on Culture:

• What is your business case for improving at innovation?
• Who is/will be the senior management innovation champion?
• Who is/will be the deployment leader?
• How are key innovation management behaviors being demonstrated?  Communicated?
• What is your company’s innovation archetype or style?
• What communication vehicles are being used?  Who owns this?
• How is innovation ingrained in your rewards and recognition system?
• How is risk and failure handled?
• How do you measure and monitor your culture and engagement?
• What management and staff training has been conducted/planned?

Questions on Capability:

• What is your 3-year innovation deployment plan?  How is it aligned with your strategic plan?
• How do you plan to balance Big I vs. Little I?  What about internal vs. open innovation?
• What is your standard innovation framework or process?
• What training has been conducted for team leaders – and individuals?  What percentage has been trained?
• How do you get deep customer and market insights?
• How are ideas submitted?  Evaluated? Built upon? Tracked?  Killed?
• How do you hire for creativity and innovation?
• What do you measure regarding capability?

Questions on Cash:

• What innovation projects have been chartered and funded? In what areas?
• What do you measure regarding value realized?
• What is your track record (past 2-5 years)?
• What are your 1-3 year goals?
• What is your risk adjusted innovation pipeline value?
• What areas of your innovation process are working well?  Not working well?

Jeff and his team have developed an on-line Innovation Diagnostic Survey which quickly evaluates current conditions and performance around 75 key areas (including, Leadership, Strategy, Portfolio Management, Customer Focus, Culture, Innovation process, Training, and Metrics & Results) related to innovation.  This tool provides executives with a prioritized roadmap for innovation performance improvement.

I hope the sharing of these insights from Johnson & Johnson provides you with some inspiration on the development of innovation leadership and culture within your company. It would be great to hear your comments and other insights as well.

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Defeating the corporate antibodies

by Stefan Lindegaard

Change is frightening to many elements inside the typical organization. Change threatens people’s power, their status, their egos, and, in some situations, even their jobs. Change can make someone’s expertise obsolete and thereby make them obsolete as well. Because people are afraid of change, innovation efforts often cause the eruption of corporate antibodies that fight to kill innovation and maintain the status quo.

The factors that cause angst within a closed system of innovation may prove to be even more threatening when a company shifts toward open innovation. Executives and managers may feel they can control the degree of change and shape it to their own needs as long as everything is happening within the organization. But start to bring outside forces in and it’s a whole new ballgame. One reason is that change related to open innovation impacts the whole company. It is not just driven from R&D or the innovation guys. If you want to succeed in open innovation you have to make changes in business functions such as sales, supply chain, production in order to accommodate your new external partners. This can be scary to many people.

Detecting antibodiesThe signs that corporate antibodies are at work can be heard in statements such as:

 

“We already tried that and couldn’t make it work.”
“What we’re doing has worked fine for years; there is no need to change.”
“Our current product is still profitable; I don’t see why we need to spend money on something new that might not even work out.”
“We already explored that idea years ago but decided against it.”
“If that were a good idea, we’d already have thought of it. After all, we are the experts on this.” (Said about an idea coming from the outside)
“Let me just play devil’s advocate here….”
“Of course, I support innovation, but I just don’t think this is the right time to make a big change. The market isn’t ready.”

People who are making these types of statements may truly believe that what they’re doing is best for the company. Or they may be putting their personal interests ahead of company loyalty. Some people also become antibodies because they don’t feel there are being recognized enough – that their opinions should be given more weight than they are. Such feelings can cause people to continuously take the negative side or to chronically play the role of devil’s advocate – the person in the room who believes it is their job to question everything. The phrase “I hate to bring this up, but…” comes from them a lot, followed by a boatload of negativity.

This is not to say that anyone who questions the need for change or the direction that change is taking is an antibody. Sound feedback is needed from many quarters for real innovation to occur. But what I’m talking about is not constructive criticism. Rather it is the relentless negativity, foot dragging and throwing up of needless roadblocks that pose a true threat to innovation ever becoming a reality.

Here’s how the corporate antibodies often play out during three stages of innovation:

•  Discovery
Often in this early phase, people will appear to be sceptics but will generally still be open minded. Antibodies are often not yet a real problem.

•  Incubation
In this phase people begin to learn what a new initiative will do to them. This can be where the big battles occur as people begin to understand how the proposed innovation might put their status or influence at risk. Most will be inclined to see changes as threats, not opportunities. So you’ll become locked in power battles as people decide that they want to block you instead of back you.

•  Acceleration
In this final phase, you’ll have to deal with corporate politics at its toughest. When it becomes clear that the innovation is going forward, some people will even fight to own and control it, even if they fought against the innovation at every step of the way up to this point.

Some solutions It’s never too early to start making people backers rather than blockers. By being proactive rather than reactive, you can sometimes co-opt the antibodies into the process in a way that satisfies their egos and makes them feel their ideas and authority are being appropriately recognized and that they can play a valuable role in shaping the company’s future, including their own destiny. Bring people together to facilitate knowledge sharing and the building of new relationships that broaden everyone’s perspectives. Keep people involved in the innovation process.

Make people backers rather than blockers.

Stay below the radar. In some situations, the best choice is to stay below the radar as long as possible. Don’t become too interesting too early. This will help you avoid people who want to own the idea or process or who want to apply standard corporate processes to the project even though this can kill it.

Have frameworks and processes in place. Such debacles can partly be avoided by setting internal rules on how to bring innovation projects forward. With a framework and process in place, it becomes easier to move projects forward without having them get hung up in destructive warfare. This, however, can be difficult in organizations where the executives do not have a good understanding of how innovation works, as I discussed in the previous chapter. This is one more reason to make sure you educate top leaders about innovation.

Provide high autonomy. Having innovation councils with high autonomy or units with their own assigned budgets and goals are other ways to get around the damage that can be done by corporate antibodies. Such structures help shelter new ideas against situations where executives are not willing to spend their political capital in supporting innovation or when they believe the change will impact their own career negatively. 

Manage your stakeholders. You need to understand that the projects you run affect other people. The more people you affect, the more likely it is that your actions will impact people having the power and influence to make or break your project. This makes stakeholder management a critical discipline for you to master if you want to become successful with your innovation projects. You can get an idea of stakeholder management by thinking in terms of three steps: identification, profiling and communication.

Check this older post: Can you manage your stakeholders?

What is your take on antibodies? It would also be great to hear your stories on defeating the corporate antibodies.

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Six ways to make top executives understand innovation

by Stefan Lindegaard

In my previous post, I argued that most top executives do not understand innovation. Check this link: Why top executives do not get innovation

It is a major challenge for an innovation leader to operate in an environment where the top executives don’t get innovation or – perhaps even worse – do understand it but are unwilling to fully embrace it because it means going against the board of director’s focus on short-term financial goals.

What can you do to thrive in such an environment? Based on my experiences, here are some methods to apply:

•  Challenge and stretch the mindset of the top executives. Innovation is a holistic activity that needs to be understood and embraced by everyone from the top to the bottom. For this reason, your innovation training initiatives should include top executives. In addition to building their knowledge of how innovation actually works, this will also help create a common language around innovation, one of the factors that is important for helping innovation work.

I once did a presentation at a company where my audience was a fairly typical crowd – the R&D guys and a few innovation leaders. But there was one person who was not part of the usual suspects. It was a finance guy who asked good questions and was really engaged. It was not until the end of the presentation that I learned it was not just a finance guy; it was actually the CFO.

The innovation leader who had recently joined the company was having success in trying to make all executives understand they had a role to play when it comes to innovation. The innovation leader used the Ten Types of Innovation framework from Doblin to make the CFO understand he should also be involved.

The level of a company’s innovation culture and efforts can generally be gauged by the people who attend internal innovation events. If the event has been publicized to the whole company and all business areas – not just those who are supposed to care about innovation – you can simply look at the diversity of the participants.

The more diverse the attendance – both in terms of business areas and in terms of people from all levels – the better the innovation culture. So when you set up training efforts and work to create the common language make sure you reach out to everyone, including senior executives.

•  Help your top executives understand – and buy into – that the innovation strategy should be tightly linked to the overall strategy. This is a way to make them commit personally as they are all vested in the overall strategy. Create a roadmap for the executives that shows the path from the corporate strategy to the innovation strategy and then through the various elements of innovation you’re pursuing. Any time you’re doing a presentation, be sure to include this roadmap as a reminder of why you’re doing what you’re doing. 

•  Understand what really matters to the top executives and especially the CEO. Is the CEO more focused on the bottom line (streamline processes, cut costs and such) or the top line (grow sales)? Make sure you initiate innovation projects on areas having preference of the top executives and get support from key people having influence on this preference. If you can find ways to get top executives personally committed to innovation efforts because they match with what really matters to them, you can make good long-term progress by getting even small wins in areas that matter to your top executives. This and others of the below suggestions can help you win the backing needed to move into other – and bigger – innovation initiatives later.

•  Leverage the power of corporate communications. If you have to really educate your top executives on innovation, you should invest heavily in building strong working relationships with your corporate communication department. Make sure they understand what you’re doing and its importance to the company. This will help generate stories – both internally and externally – that can create a perception that the company is making strides in innovation while still keeping people aware that there is ample room to improve.  This perception can help when you need to ask for resources and support.

•  Do not start too many initiatives. Most innovation leaders are highly driven people who thrive on change and are capable of keeping many balls in the air at the same time. But remember that many leaders do not share these traits; they prefer for things not to change and aren’t interested in taking on anything new. Thus, while you’re tempted to start a flurry of initiatives, it is better to narrow your focus rather than going in many directions at once.

•  Get some small wins. Achieving some small successes can help convince top executives that you understand the need for the short-term results they value. This will build confidence in your overall program and give you credibility for going after larger innovation goals.

The one part of the system that you have little influence over is the board of directors. Since they choose the CEO and influence top executives through him/her as well as decide the basis for salary raises and bonuses, they have a huge impact on whether innovation gets the support it needs. Unfortunately, there is little you can do as an innovation leader to influence the board.

This also brings brings us to a final word of advice. When you take on the role of innovation leader, you need to get things to develop. But if you find yourself constantly hitting your head against the wall because of roadblocks thrown up by a leadership team that does not understand or support innovation, you need to ask yourself if you are in the right place. And you probably need to get out. In most situations, I would advice giving yourself a maximum of two years before giving up on being able to help senior executives become true supporters of innovation.

It would be great to hear your suggestions on how to work with top executives who do not get innovation.

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Do you job swap?

by Stefan Lindegaard

GoogleI just read an interesting article on how P&G and Google really benefited by swapping employees for a couple of weeks.

This is a great way to learn new things and a good approach to establish long term partnerships.

Check out this short article to learn more about how and why these innovation leaders made their employees swap jobs: http://www.google.com/hostednews/ap/article/ALeqM5hc2R2XPvVoPxwYrItOdbFWjE6o0AD94I91V81

Why not start something similar with the partners of your company?

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Who’s right?

by Stefan Lindegaard

I often talk with innovation leaders who believe their company does well on innovation. This contrast what the below people further down the org chart says.

Are leaders generally on the same page as their employees or do they tend to exaggerate the state of the organizational innovation capabilities?

What is your take on this?

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