Improving your innovation quotient

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Solving THE INNOVATION EQUATIONImproving your innovation quotientDr. Andrew Maxwell, Canadian Innovation Centre Lassonde Engineering, York University1WHAT STOPS US INNOVATING?We dont fully understand what innovation isWe design our organizations to stifle innovationIt means stopping what we are good atIts easy to come up with new ideas; the hard part is letting go of what worked for you two years ago, but will soon be out of date. Roger von Oech22017-01-25SHARING MY INSIGHTSExplain why innovating is difficultHelp you identify your innovation barriersAnd remove them. tomorrowInnovation is serendipity, so you don't know what people will make. Tim Berners-Lee 32017-01-25WHAT, WHY, WHEN & HOWWhat is an Innovation Quotient?Why you might want one?When can you improve it?How much does it cost?It isn't the incompetent who destroy an organization. The incompetent never get in a position to destroy it. It is those who achieved something and want to rest upon their achievements who are forever clogging things up. F.M. Young"It isn't the incompetent who destroy an organization. The incompetent never get in a position to destroy it. It is those who achieved something and want to rest upon their achievements who are forever clogging things up. F. M. Young 42017-01-25DR ANDREW MAXWELLEngineer/MBA/Large technology cos, 4 startupsU of T/U of W/ Temple University/York UniversityCIC/Innovators Alliance/IRI/IRAP/VentureWellInnovation Cartography, Journey and CompassYou have all the reason in the world to achieve your grandest dreams. Imagination plus innovation equals realization. Denis Waitley 52017-01-25DEFINING INNOVATIONAny project that is:New to your organization (not just improvement)Has an uncertain outcome (involves risk)New products/services (and business models)Changing what you do (and how you make decisions)Discovery consists of seeing what everybody has seen and thinking what nobody has thought. Albert von Szent-GyorgyBut your organization is designed for improvement, not innovation, and an improvement culture stifles innovation 6MEASURING INNOVATIONCommon techniques for measuring innovation: ReputationNumber of patents filed% revenue from new products/servicesMeasuring outcomes doesnt help improve themYoucan'tmanage what youcan't measure Peter DruckerWhat works in one context may not work in anotherA Man in a BalloonA man in a hot air balloon realized he was lost. He reduced altitude and spotted a man below. He descended a bit more and shouted,"Excuse me, can you help me? I promised a friend I would meet him an hour ago, but I don't know where I am."The man below replied, "You are in a hot air balloon hovering approximately 30 feet above the ground. You are between 40 and 41 degrees north latitude and between 59 and 60 degrees west longitude.""You must be an engineer," said the balloonist."I am," replied the man, "How did you know?""Well," answered the balloonist, "everything you told me is technically correct, but I have no idea what to make of your information, and the fact is I am still lost. Frankly, you've not been much help so far."The man below responded, "You must be a manager.""I am," replied the balloonist, "but how did you know.""Well," said the man, "you don't know where you are or where you are going. You have risen to where you are due to a large quantity of hot air. You made a promise that you have no idea how to keep, and you expect me to solve your problem. The fact is, you are in exactly the same position you were in before we met, but now, somehow, it's my fault."7CAN YOU DESIGN FOR INNOVATION?DESIGN FOR PERFORMANCE Efficiency Repeatability Predictability DESIGN FOR INNOVATIONSpeed ImpactUncertaintyIf you always do what you always did, you will always get what you always got. Albert EinsteinORGANIZATIONAL AMBIDEXTERITYPERFORMANCE (EXPLOITATION) ENGINEFollow rules, drive out variance/slackFocus on existing customer needsManage/refine existing competenciesOptimize organization for existing rulesMake money nowIf you look at history, innovation doesn't come just from giving people incentives; it comes from creating environments where their ideas can connect. Steven Johnson INNOVATION (EXPLORATION) ENGINEBreak rules, promote variance /slackServe new customers with new needsDevelop and lead new competenciesDevelop new organization + new rulesMake money laterBALANCING INNOVATION & PERFORMANCEHow do you? Keep your eye on the ball..and on the game?Take risks..... mitigate risks?Make informed decision.....take action?The Innovation Quotient helps measure innovation drivers to increase innovation & change behaviours.Great energy only comes from a correspondingly great tension of opposites. Carl JungCOMPONENTS OF THE Innovation QUOTIENTStrategy role of leadershipNew customers, products & processesExperimentation, risk and failureEstablishes guidelines for other factorsLinks the five elements of the Innovation QuotientInnovation Drivers Processes and resources: Hiring and incentives decisionsManaging risk/allocating resourcesStrategic decision making CommunicationInnovation Drivers Relationships and culture:Relationships within organizationRelationships with suppliers/customersRisk taking and mitigationMEASURING YOUR INNOVATION quotientMEASURING YOUR INNOVATION quotientINCREASING YOUR INNOVATION QUOTIENTStrategy: Embed innovation in corporate strategyProcesses: Review current practices for innovationResources: Allocate strategic resourcesRelationships: Build and develop innovative relationshipsCulture: Align values and behaviours around innovationThe reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man. George Bernard ShawAbility to rely on others16IMPROVING THE INNOVATION CULTURE A BEHAVIOURAL APPROACHObserved behaviours in innovative organization that: Improved collaborationEnhanced knowledge sharingImproved risk taking Enhanced communicationIdentified the importance of trust behaviours, reinforcing the importance of trust as the universal lubricantTrust is the universal lubricant that enables innovation, it enables the innovation engine to engage with the performance engine. Andrew MaxwellINTRODUCING THE BEHAVIOURAL TRUST FRAMEWORK (BTF)Moving trust from a sentiment to a behaviourLink specific behaviours to building, damaging or violating trustHelps individuals decide who to trust, and how to trust: enabling the development of trust based relationshipsHelps build higher levels of relationship trust: overcomes relationship risk, encourages collaboration We identified four categories of trust behaviour: capability trusting, and communications trustworthy, Ability to rely on others18RELATIONSHIP TRUST is a (trust level)Trust level is = (Trust building - trust damaging) behaviours (controls) subject to the absence of trust violating behavioursMEASURING INNOVATION CULTURE AS A FUNCTION OF TRUSTLearning to collaborate is part of equipping yourself for effectiveness, problem solving, innovation and life-long learning in an ever-changing networked economy. Don Tapscott Collaboration is an essential ingredient for innovationTrust is a necessary pre-condition for effective collaborationIn the absence of Trust, we develop proxies for Trust:Any mechanism which seeks to control behaviour is a proxy for trust (examples: employment contracts, performance reviews, annual budgeting processes, rigid organizational structures and reporting relationships, over-applied lean methodology, outcome-based objective setting)The higher the Trust Level, the lower the need for controlsThe higher the Trust Level, the greater the level of collaboration, which results in a higher level of innovation2017-01-2519Trusting:Disclosing: Shows vulnerability by sharing confidential informationReliance: Willingness to be vulnerable through reliance on othersReceptive: Demonstrates coachability and willingness to changeBehavioural Trust FrameworkTrustworthiness:Consistent: Displays of behavior that confirm previous promisesBenevolent: Exhibits concern about well-being of othersAlignment: Actions confirm shared values and/or objectivesThere is no innovation and creativity without failure. Period. Brene Brown Speak to behaviours in each dimension can build, damage or violate trust202017-01-25Capability:Competent: Displays relevant technical and/or business abilityExperienced: Demonstrates relevant work/training experienceJudgment: Shows ability to make accurate / objective decisionsCommunication:Accurate: Provides truthful and timely informationExplanation: Explains details & consequence of information providedOpenness: Open to new ideas or new ways of doing things21Behavioural Trust FrameworkVision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world!Joel Arthur BarkerSpeak to behaviours in each dimension can build, damage or violate trust212017-01-25BEHAVIOURAL TRUST FRAMEWORKBEHAVIOURAL TRUST FRAMEWORKTo explore team dynamics in organizations looking to increase innovation capacityTo identify challenges to building partnerships with new innovation partners To facilitate innovation coaching and team building discussionsEvidence BTF users can identify short term actions to reduce controls, to repair damaged trust and increase trustApplying the Behavioural Trust Framework242017-01-25For a copy of this deck or the Behavioural Trust Framework:Andrew.Maxwell@lassonde.yorku.caHelen.Leighton@gmail.comor download from INNOVATION CAPACITY, ONE TRUST BEHAVIOUR AT A TIMELearning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. William Pollard2017-01-2525