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Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 1
Encourage Creativity
Innovation
Sylvain Matte, MBA
Founder & Senior Partner
CONACYT ConferenceNovember 11, 2010
Cuernavaca, Morelos, Mexico
to Foster
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 2
Agenda
• Need to Innovate!?
• Creativity,
Innovation
and Change!
• Types of Innovation!
• What is at stake?
Lessons learned!
• Leadership required!
• How to go about it?
• Universities &
Governments!
• Questions?
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 3
Need to innovate!?
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Recognizing the need to innovate!
"The Japanese auto industry is not likely to carve out a big slice of the US market for
itself."
Business WeekAugust 2, 1968.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 5
"This `telephone has too many shortcomings to be seriously considered
as a means of communication. The device is inherently of no value to us!"
Recognizing the need to innovate!
Western UnionInternal memo, 1876.
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Recognizing the need to innovate!
"Get that toy out of my office"
An irate bankertelling Thomas Edison in early 1878,
to take his invention, the phonograph, someplace else.
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Recognizing the need to innovate!
"No flying machine will ever fly from New York to Paris!"
Orville WrightInventor, with his brother, of the 1st flying machine.
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Recognizing the need to innovate!
"I think there is a world market for about five computers!"
Thomas WatsonPresident, IBM, 1943.
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Recognizing the need to innovate!
"The concept is interesting and well-formed, but in order to earn better than a 'C,'
the idea must be feasible.!"
A Yale University management professor in response to Fred Smith's paper proposing reliable overnight delivery service
(Smith went on to found Federal Express Corp).
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 10
Recognizing the need to innovate!
• We all have paradigms about what is possible
• Unfortunately, we seldom recognize their influence,though some manage to see beyond this type of block
• Some companies succeed, but many more fail for lack of innovative-thinking, or fear of change…
• … While others manage to thrive even under adverse conditions
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 11
Creativity VS. Innovation!
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• It is about coming up with ideas
• Creative Thinking leads to ideas being produced
• Creativity and Creative Thinking are everyone’s business
• Creative Thinking is a personal, voluntary act as the result of a personal decision to contribute
• It is about implementing ideas
• Innovative Thinking allows ideas to be put to use
• Innovative Thinking is mostlymanagement’s business
• Innovation is an organizational call to action as a result of a managerial decision to change
Creativity VS. Innovation!
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 13
Other Perspectives
• Edward de Bono:• Innovation is putting into operations in your organization
something which is new to your organization; that idea may be used elsewhere, it may be copied, borrowed, stolen, bought, …
• A.G. Lafley, Chaiman & CEO, Procter and Gamble:• Innovation is anything focused on the customer, such as brand,
design, functionalities, usage, and so on … AND everything else internally that can be done to deliver better products
• Craig Wynett, Chief Creative Officer, Procter and Gamble:• He describes his role as “working on moving creativity from
voodoo & alchemy to a better understanding of the thinking & skills involved and how to better develop these”
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Key Components of Creativity
Source: Teresa Amabile, How to Kill Creativity, Harvard Business Review, Vol. 76, No. 5, 1998, p. 77-87.
Creative-
thinking
Skills
How flexibly and
imaginatively
people approach
problem solving
& other ideation
situations
Expertise
Technical,
functional,
procedural
&
intellectual
knowledge
Motivation
…with intrinsic more effective
than extrinsic
Creativity
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 15
Key Components for Innovation
Factors of
Organizational
Innovation
Capacity
Leadership
Leading by example,quick decision-making & driven-to-action leaders
Direction
Inspiring Vision, Clear Mission, Shared Values,Coherent Strategic Goals
Creative &
Entrepreneurial
People
Driven & Encouraged towards Deliberate Creativity at Work
Collaborative
Structure
Decision Latitude, Positive Co-opetition, &Limited Organizational PoliticsEducation &
Knowledge
Creative Problem Solving,Tools & Techniques,
Facilitation, Training, Knowledge Management, …
Integrated
Strategy
Innovation Master Plan -from Idea to Action and Continuous Improvement
Supportive
Culture
Accountability, Trust, Risk-Taking, Commitment, Idea Time & Idea Support,
Effort Recognition, …
Enabling
SystemsCenters of Excellence, Idea Management, R&D,
Collaboration Environments, …
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 16
• The capacity … &the process thatbrings forthnew ideaswhich may leadto innovation
• The decisions &the actions thattransform ideasinto novelty inthe organization or for its clients
In summary
• The decisions & the actions that allow the organizationto adapt / changeall or part of itscomponents
• We’ll recognize both internal innovation & external innovation(i.e. market / customer focused innovation)
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 18
Creative
Leadership
Perceived
Organizational
Climate
Positively
influences
Creative potential
Deliberate use of
Facilitates &
Encourages
New Idea(s)
Innovation
Leaders &
Champions
Exchanges &
Improvements
INNOVATION Contributes
to improving
Business Results
Change
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 19
Types of Innovation
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 20
Types of Innovation
• We agree Innovation is needed, but what type?
• Here are 2 ways to look at classifying innovation.
Source: Permanent Innovation, Langdon Morris, http://www.permanentinnovation.com/ Source: Blue Rock Innovation, http://www.bluerockinnovation.com/types-types.htm
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 21
Types of Innovation
• As per the Oslo Manual of the OECD (Organization for Economic Co-Operation and Development), there are 4 types of innovation:
• Product
• Process
• Marketing
• Organizational
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 22
Types of Innovation
Finance
Business
ModelNetworking
Process
Enabling
Process
Core
Process
Offering
Product
System
Product
PerformanceService
Delivery
Channel BrandCustomer
Experience
1. Business Model
How the enterprise makes money
2. NetworkingEnterprise’s structure/value
chain & partnering
3. Enabling Process
4. Core ProcessProprietary processes that add value
5. Product PerformanceBasic features, performance and functionality
Intel® Pentium® 4
6. Product SystemExtended system that surrounds an offering
7. ServiceHow you support your customers
8. ChannelHow you connect your
offerings to your customers
9. BrandHow you express your
offering’s benefits and
ideas to customers
10. Customer experienceHow you create an integrated
experience for customers
Assembled capabilities you
typically buy from others
• Monitor Group has proposed a slightly different model
Source: Monitor Group.
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Types of Innovation
• Monitor Group has also studied where organizations spend most of their energies innovating…
Source: Doblin, a member of the Monitor Group,On Innovation Effectiveness, March 2005.
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Types of Innovation
• … and studied as well the actual added-value of the innovations that resulted from such efforts
Source: Doblin, a member of the Monitor Group,On Innovation Effectiveness, March 2005.
Whoa!
Pareto revisited
Less than 10% of projectsproduce
More than 90% of value…
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 25
Types of Innovation
Degree of
management
oversight for
solution
finding and
approval
+
–
Degree of
employee
latitude for
solution
finding and
implementation
+
––
+
• This approach was developed for a large energy-sector client, based on the “intensity of impact on operations”(thus derived from Monitor Group’s model and adapted for 9 types of innovation)
Source: Coefficient Management inc.
• Innovation is then measured for:• Operation processes• Construction methods• Cost control processes
• Staff functions (HR, Finance, …)• Delivery (Client experience, Client relations)• Partnerships & Networking
Disruptive
Innovation
Progressive
Innovation
Continuous
Improvement
Fine-tuning
Adjustments
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 27
Types of Innovation
• What’s key:• Innovation is not just for products (or services)
• Innovation comes in a variety of sizes (big, small and in-between)
• Different areas of focus for innovation have very different impacts on the organization
• Different focus requires involving different people
• Innovation does not “just happen” –it requires conscious efforts and lots of energy
• So you need to know what you want to focus onand involve the right people at the right time
• AND
• Not all innovation efforts are successful
Source: Monitor Group.
Finance
Business
ModelNetworking
Process
Enabling
Process
Core
Process
Offering
Product
System
Product
PerformanceService
Delivery
Channel BrandCustomer
Experience
1. Business Model
How the enterprise makes money
2. NetworkingEnterprise’s structure/value
chain & partnering
3. Enabling Process
4. Core ProcessProprietary processes that add value
5. Product PerformanceBasic features, performance and functionality
Intel® Pentium® 4
6. Product SystemExtended system that surrounds an offering
7. ServiceHow you support your customers
8. ChannelHow you connect your
offerings to your customers
9. BrandHow you express your
offering’s benefits and
ideas to customers
10. Customer experienceHow you create an integrated
experience for customers
Assembled capabilities you
typically buy from others
Finance
Business
ModelNetworking
Process
Enabling
Process
Core
Process
Offering
Product
System
Product
PerformanceService
Delivery
Channel BrandCustomer
Experience
1. Business Model
How the enterprise makes money
2. NetworkingEnterprise’s structure/value
chain & partnering
3. Enabling Process
4. Core ProcessProprietary processes that add value
5. Product PerformanceBasic features, performance and functionality
Intel® Pentium® 4
6. Product SystemExtended system that surrounds an offering
7. ServiceHow you support your customers
8. ChannelHow you connect your
offerings to your customers
9. BrandHow you express your
offering’s benefits and
ideas to customers
10. Customer experienceHow you create an integrated
experience for customers
Assembled capabilities you
typically buy from others
Pareto revisited:Less than 2% of projects produceMore than 90% of value…
Pareto revisited:Less than 2% of projects produceMore than 90% of value…
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 28
Types of Innovation
• Not all innovations are successful!
• And one more recent, and more serious
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 29What’s at Stake? – Lessons Learned!
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 30
What’s at stake? – Lessons Learned!
• On Creativity … We are all creative, but• not all equally comfortable (or willing) to do so at work
• not all equally capable (or willing) to use our creativity in a professional/business setting
• not all equally apt (or able) at being creative on demand
• the ego of some people gets in the way (or their title, their position, …)
• we all can learn to better focus our creativity and apply it deliberately when it counts the most
• we all have “droughts” idea-wise from time to time
• some need help in order to “think out-of-the-box”
• not all equally on all fronts, so we need to surround ourselves with creative people even if we think we’re great at it
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The Ups and Downs of Creativity!
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What’s at stake? – Lessons Learned!
• On Creativity at Work• Incubation is a key moment
• Excessive time pressure hinders creative thinking
• Management often expects almost “instant creativity” with brilliant results
• Management must provide time, space, & means for employees to re-energize/recharge now & then
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What’s at stake? – Lessons Learned!
• On Creative People – Hiring them is easy…• well relatively so if you can relate to truly creative people
• creating a climate to encourage them to be creative at work is not
• integrating them with the rest of the organization is not
• focusing their creativity (without de-motivating them) is more challenging
• dealing with all the ideas they will send your way is not
• keeping them motivated in more traditional if not bureaucratic contexts is not
• keeping them is not
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 34
What’s at stake? – Lessons Learned!
• On Innovation• Do not focus only on big Wow innovations
• Listen to customers to drive external innovation,but understand the paradigms behind their thinking
• Go out there, often, to see how others in different businesses and industries are doing it
• Innovation must be more than about making money
• Trust, recognition, and passion are critical to innovation, just as much as they are for creativity
• Innovation, just like creativity, can benefit from a strong process
• Innovation starts, rots, or stops, at the top of the organization
• Innovation is not about what you want it to be or put in place,it’s about what you get out of the way for it to happen
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What’s at stake? – Lessons Learned!
"If I had asked my customers what they wanted…they would have said ´faster horses`!”
Henry Ford
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 36
What’s at stake? – Lessons Learned!
• In Summary• We’re all creative, so are probably all of your employees
• Creativity comes relatively easily, Innovation does not
• Getting ideas is easy, Implementing them is hard work
• “Being” innovative is easy … “Doing” innovation is not
• In short…
• Most of the blocks & issues appear at Innovationand at Managing the change that this brings
• Thinking creatively is everyone’s responsibility… but
Deciding to innovate and making it happen is not…
• … It’s Yours!
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Leadership required!
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 38
Setting a culture and climate conducive to creative thinking!
Creative Leadership
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Creative Climate
• Challenge & Involvement
• Trust & Openness
• Freedom
• Dynamism
• Idea Support
• Humor & Playfulness
• Idea Time
• Conflict
• Debate & Dialogue
• Risk Taking
Source: Göran Ekvall, 1996.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 41
Recognize Your Own Paradigms!
"The problem is never how to get new, innovative thoughts
into your mind, but how to get old ones out!"
Dee Ward HOCK The Art of Chaordic Leadership, a retired banker who worked with Peter Senge.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 42
Be Open to Suggestions!
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Strive for Quantity
"Nothing is more dangerous
than an idea when it is
the only one you have!"
Émile ChartierFrench philosopher, 1868-1951.
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Now look what you’ve done!
Really acknowledge efforts!
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 45
Support Creative People / Ideas
“This really is an innovative approach, but I’m afraid
we can’t consider it. It’s never been done before!”
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Encourage Out-of-the-box Thinking!And get the most out of everyone’s contribution!
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Making timely, sometime bold decisionsto move creative ideas into action!
Innovation Leadership
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Innovation Leadership
• Vision
• Curiosity
• Openness
• Courage
• Optimism
• Integrity
• Perseverance / Belief
• Humility
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Innovation Conducive Climate
• Risk Taking
• Decision Making
• Management Support
• Collaboration / Teamwork
• Necessary means to succeed
• Proper & timely recognition
• Learning Organization
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"It is easier to tame a wild idea
than to give lifeto a dead one!"
Management Support for Ideas
Dr. Sidney J. PARNESCreativity expert, researcher & teacher, collaborator of Alex Osborn.
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Perseverance / Belief!
"If I had thought about it, I wouldn't have done the experiment.
The literature was full of examples that said you can't do this!"
Spencer Silveron the work that led to the unique adhesives for 3M’s Post-it®.
a story of unshakable belief from home
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Overcoming concerns and resistance, and developing the capacity to change
to facilitate adaptation & appropriation!
Change Leadership
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How to go about it?
Alignment is Key!
How to increase innovation
in your organization
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How to go about it? – The left brain way!
• Encourage creativity… & Facilitate Innovation Decisions
• Develop a clear, realistic and Shared Innovation Vision
• Elaborate an Integrated Innovation Master Plan
• Align Organizational Efforts and Systems
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 57
How to go about it? – The left brain way!
• Beyond the previous, more formal elements…• Define Creativity, Innovation, Change, …
• Develop a process and then train your people
• Start working on the climate early, and don’t stop
• Provide the time, the means, the tools & the support needed
• Start Slowly, on simple stuff and Do not accelerate too quickly
• Understand where you are, where you were & how far you’ve come… using an Innovation Maturity Model if needed
• Be proactive with Organizational Change Management (a MUST)
• Set realistic targets for each organizational unit & make them work
• Know the why, when, where, what and how to innovate
• Find the right balance, for your organization
• Measure and Communicate
• Learn from each initiative
The “CMMI®” from SEI – Carnegie Mellon is the most widely known and usedCapability Maturity Model and it can easily be applied to Innovation Processes;For more information: http://www.sei.cmu.edu/cmmi/tools/index.cfm.
Think for a Change LLC. is another source to consider, and this organization has adapted CMMI concepts into its own Innovation Maturity Model.For more information: http://www.thinkforachange.com/IM2Model.htm.
PRIME Process Management Group has also developed its own model.For more information: http://www.primepmg.com/bpmm.html.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 58
How to Encourage Creativity
• Simple things to do in organizational settings• Train people on the creative problem solving process, as well as
tools & techniques… starting from top management down• Equip a few rooms for creativity and idea generation sessions• Hire people who are “different”, who think “out-of-the-box”,
and who thrive on challenging status quo and set patterns• Encourage the use of deliberate creativity at every meeting• Create a fun atmosphere at work and between all levels• Read a lot (you can’t learn less, anyway), about everything but
the field in which you work, and make the creative connections• Change your “Yes, but …” for “Thank you, and how might we…”
and to “What if…”, “What else…”, and “Why not…”• Praise… often, in a timely manner and in creative ways• Adopt, encourage & applaud attitudes & behaviors which show
that “there are no dumb questions” and that “a childlike outlook on things” can bring valuable insights and creativity
• Be creative in the type, format & activities of company events, and in how you recruit, recognize and compensate people
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 59
How to Foster Innovation
• Simple things to do in organizational settings• Open your processes to improvements, and leave it in the hands
of those who know them best, your employees(one company in Montreal went from 100 employee ideas implemented per year, to 5200)
• Make those who whine and complain accountable to improve what they think needs improvement, and give them the means to do so
• Go for quick wins; use creativity on simple company problemsnot plagued with organizational politics or with commercial risks
• Always question what you do, how you do it and why you do it… Challenge long-held beliefs and what is “too” comfortable
• Don't accept the first solution right away
• Encourage & facilitate interactionsSteve Jobs Says “Interaction = Innovation”: People have to meet and talk to one another face to face. They have to say, “What are you working on?” – and then listen. They cannot huddle in their cubicles alone and be creative, and even less produce good innovative work.
• Broaden the decision scope and latitude of your managers, and applaud their courage to decide, to try something, to innovate,even if the outcomes require adjustments or stepping back
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How to push even further!
• Get out for creative excursions
• Look for inspiration outside of your field
• Observe how things are getting done in totally different industries and adapt their concepts to your reality
• Focus on the creative process, not on how it should be integrated into your business processes
• Facilitate the emergence of Creative Spaces
• Become tolerant to failures and accept mistakes; creative ideas and innovation projects are not always successful
Look into the creative economy!
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“Never, ever, think outside the box!”
Know when and where to innovate
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Measure and Communicate
• Indicators must be put in place early on
• Proper measurement will help • Identify successes and areas for improvement
• Document and share progress made and successes
• Mobilize and encourage with simple and relevant dashboards
• Determine where, how, and how much to invest further
• Avoid untimely or inappropriate reactions and cutting
• Encourage contagious, “I can do that too” attitudes
• Facilitate continuous, two-way communications
• Objectives / targets selected must be SMART
• Communication / feedback must be STAR quality
• Separate Creativity, Innovation, and Change Indicators,then correlate
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Creativity• …• …• …• …• …• …• …• …• …• …• …• …
Innovation• …• …• …• …• …• …• …• …• …• …• …• …
Change• …• …• …• …• …• …• …• …• …• …• …• …
Measure and Communicate
Indicators• Training• Mastery • Climate• Application • Integration• Involvement • Commitment• Fluency• Flexibility• Originality• Means to push further• Others
• Define indicators for each dimension, measure constantly,analyze trends, correlate where relevant & adjust approach
• Below are examples of usual indicator categories
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CREATIVITY• Training
• # of programs dev./offered• Attendance by levels / units
• Mastery • Capacity to use• Comfort when using
• Climate• # of judgments per session• % of employees refusing to
attend and/or to repeat
• Application • Qty & Frequency of use at
main organization levels
• Integration• Number of org. units using
all or parts of process
• Involvement • % of employees involved in
main organization levels
• Commitment• Trend in $ and/or time spent
on training, sessions, …• Trend in frequency of use
for problem solving
INNOVATION• Training
• # of programs dev./offered• Attendance by levels / units
• Mastery • Latitude to decide• Willingness to decide
• Climate• % of ideas turned down• % of decisions overturned
by an upper-level manager
• Application • Qty & Frequency of ideas
approved as innovations
• Integration• Number of org. units who
approve ideas as innovation
• Involvement • % of decision makers who
approve ideas as innovation
• Commitment• Trend in $ and/or time spent
on employee innovations• Trend in # of ideas reviewed
and implemented
CHANGE• Training
• # of programs dev./offered• Attendance by levels / units
• Mastery • Capacity to use approach• Comfort with change mgmt
• Climate• # of concerns expressed• % of employees resisting in
some form or another
• Application • Qty & Frequency of change
mgmt process items used
• Integration• Number of org. units who
proactively manage change
• Involvement • % of managers & employees
who participate in change
• Commitment• Trend in # of employees
who participate / contribute• % of mgmt time spent on
communicating / coaching
Measure and Communicate
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 65
CREATIVITY• Fluency
• # of ideas generated
• Flexibility• Diversity of ideas produced
• Originality• # of unique ideas
• Means to push further• Trained facilitators• Adequate rooms• Proper supplies• Collaboration networks• Outside help when needed
• Others• Distribution of topics (% of
ideation sessions per business area, type of org. problem, …)
• % of ideas developed VS. # of ideas generated
• Avg. time to solve problems• Creativity maturity• % of mgmt time on ideation• # of ideas per employee• # of ideas per session hour• % of ideas from the outside
INNOVATION• Fluency
• # of ideas approved
• Flexibility• Diversity of innovations
• Originality• # of unique innovations
• Means to push further• Simplified approval process
(shorter decision delays)• Idea Management System• Collaboration networks• Knowledge management
• Others• Distribution of ideas (% of
ideas submitted, rejected, in development, implemented)
• Rate of success / survival• # of prototypes needed• Avg. time to market• Innovation maturity• % of mgmt time on innovation• # of innovations per employee• # of innovations per $ spent• % of project $ on innovation
CHANGE• Fluency
• # of new approaches
• Flexibility• Diversity of approaches
• Originality• # of unique approaches
• Means to push further• Outspoken mgmt support• Senior mgmt involvement• Credible/Capable agents• Issue Management System• Ideas/Successes sharing
• Others• Concern mgmt (Qty and % of
concerns logged, addressed, in resolution, resolved, …)
• Adoption/appropriation rate• # of iterations needed• Avg. time to implementation• Change mgmt maturity• % of mgmt time on change• # of sol. from/per employee• # of sol. from change agents• % of project $ on chg mgmt
Measure and Communicate
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 66
Measure and Communicate
• Use a simple dashboard / scorecard to track progress
No current issue
Keep monitoring GMinor issues
Stay proactiveYMajor issues
Immediate actionR Improving Stable Deteriorating
Business Unit: _______________________________
B.U. Manager: _______________________________
Creativity Lead: _____________________________
Innovation Lead: _____________________________
Creativity & Innovation Dashboard / Scorecard
Last Monthly 3-Month
Indicator Month Average Trend
Ideation stats
- Ideas generated ______ ________ _______
- Ideas selected ______ ________ _______
- Ideas developed ______ ________ _______
Mgmt time (in %) _____ _______ ______
$ spent on means _____ _______ ______
Employees trained _____ _______ ______
Employees involved _____ _______ ______
Last Monthly 3-Month
Indicator Month Average Trend
Innov-action stats
- Ideas submitted ______ ________ _______
- Ideas deployed ______ ________ _______
- Ideas integrated ______ ________ _______
Mgmt time (in %) _____ _______ ______
$ spent on action _____ _______ ______
Managers trained _____ _______ ______
Bus. Units involved _____ _______ ______
Management Involvement
15% 85%
50%
30% 70%
% of Managers Involvedin Approving Innovations
Innov-action Distribution To-Date
# of Ideas Integrated by Innovation Type
0,0
2,0
4,0
6,0
8,0
10,0
12,0
3-Month Trend 0,8 1,7 4,5 12,0
Monthly Avg. 0,5 1,5 3,0 9,0
Last Month 1,0 2,0 4,0 11,0
Disruptive
Innovation
Progressive
Innovation
Continuous
Improvement
Fine-Tuning
Adjustment
Management Involvement
15% 85%
50%
30% 70%
% of Managers Involvedin Approving Innovations
Management Involvement
15% 85%
50%
30% 70%
15% 85%
50%
30% 70%
15%15% 85%85%
50%50%
30%30% 70%70%
% of Managers Involvedin Approving Innovations
Innov-action Distribution To-Date
# of Ideas Integrated by Innovation Type
0,0
2,0
4,0
6,0
8,0
10,0
12,0
3-Month Trend 0,8 1,7 4,5 12,0
Monthly Avg. 0,5 1,5 3,0 9,0
Last Month 1,0 2,0 4,0 11,0
Disruptive
Innovation
Progressive
Innovation
Continuous
Improvement
Fine-Tuning
Adjustment
Innov-action Distribution To-Date
# of Ideas Integrated by Innovation Type
0,0
2,0
4,0
6,0
8,0
10,0
12,0
3-Month Trend 0,8 1,7 4,5 12,0
Monthly Avg. 0,5 1,5 3,0 9,0
Last Month 1,0 2,0 4,0 11,0
Disruptive
Innovation
Progressive
Innovation
Continuous
Improvement
Fine-Tuning
Adjustment
Employee Involvement
15% 85%
50%
30% 70%
% of Employees Involvedin Ideation Sessions
Idea Distribution To-Date
# of Ideas Developed by Innovation Type
0,0
5,0
10,0
15,0
20,0
25,0
30,0
3-Month Trend 1,7 4,0 16,5 27,0
Monthly Avg. 1,5 3,2 16,0 26,0
Last Month 2,0 5,0 14,0 24,0
Disruptive
Innovation
Progressive
Innovation
Continuous
Improvement
Fine-Tuning
Adjustment
Employee Involvement
15% 85%
50%
30% 70%
% of Employees Involvedin Ideation Sessions
Employee Involvement
15% 85%
50%
30% 70%
15% 85%
50%
30% 70%
15%15% 85%85%
50%50%
30%30% 70%70%
% of Employees Involvedin Ideation Sessions
Idea Distribution To-Date
# of Ideas Developed by Innovation Type
0,0
5,0
10,0
15,0
20,0
25,0
30,0
3-Month Trend 1,7 4,0 16,5 27,0
Monthly Avg. 1,5 3,2 16,0 26,0
Last Month 2,0 5,0 14,0 24,0
Disruptive
Innovation
Progressive
Innovation
Continuous
Improvement
Fine-Tuning
Adjustment
Idea Distribution To-Date
# of Ideas Developed by Innovation Type
0,0
5,0
10,0
15,0
20,0
25,0
30,0
3-Month Trend 1,7 4,0 16,5 27,0
Monthly Avg. 1,5 3,2 16,0 26,0
Last Month 2,0 5,0 14,0 24,0
Disruptive
Innovation
Progressive
Innovation
Continuous
Improvement
Fine-Tuning
Adjustment
215 190 225
75 65 70
45 47 50
R
Y
R
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 67
Look into the Creative Economy
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 68
The Creative Economy
• A sample of publications, studies and even recent events on the subject over the last 10 years or so
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 69
The Creative Economy
• Creative Industries:• are the cycles of creation, production and distribution of goods &
services that use creativity & intellectual capital as primary inputs
• constitute a set of knowledge-based activities, focused on but not limited to arts, potentially generating revenues from trade and intellectual property rights
• comprise tangible products and intangible intellectual or artistic services with creative content, economic value and market objectives
• are at the cross-road among the artisan, services and industrial sectors
• constitute a new dynamic sector in world trade.
Source: United Nations Conference on Trade and Development (UNCTAD). Creative Economy Report 2008. The Challenge of Assessing the Creative Economy Towards Informed Policy-making.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 70
The Creative Economy
Source: United Nations Conference on Trade and Development (UNCTAD). Creative Economy Report 2008. The Challenge of Assessing the Creative Economy Towards Informed Policy-making.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 71
Innovation Myths
• Business Week’s 2005 article took time to list and bust the most frequently overheard innovation myths
Source: Business Week, August 1, 2005 / Special Report – Get Creative, http://www.businessweek.com/magazine/content/05_31/b3945401.htm, visited on October 24, 2010.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 72
Innovation Benefits
• Business Week’s 2005 also focused on the rewards of innovation for companies… The data goes back 10 years and was based on the “experience” economy but the underlying principles still hold true today
Source: Business Week, August 1, 2005 / Special Report – Get Creative, http://www.businessweek.com/magazine/content/05_31/b3945401.htm, visited on October 24, 2010.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 73
Innovation Strongholds
• Open Innovation
• Contextual Innovation
• Interaction-based Innovation
• Break-with-the-past Innovation
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Openness to other styles and to change
“We expect our young executives to produce
creative, innovative ideas without ever upsetting our time-honored customs!"
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Patience and Focus!
"You cannot make a plant grow by pulling on its leaves!"
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 76
Universities & Governments!
Providing Partsof the Innovation Puzzle!
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Universities & Governments!
• Creative People
• Innovation process
• Strong Leadership
• Inspiring Direction
• Integrated Strategy
• Collaborative Structure
• Market/Client Awareness
• Supportive Culture
• Enabling Systems
• Change Capacity
• What organizations need?• Knowledge
• Education
• New Technology
• Best Practices
• New Markets
• Some Policies
• Some Funding
• Potential Partners
• Quick time-to-market
• Intellectual Property (Protection)
• … they need your help!
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 78
Universities & Governments!
• What organizations need… is synergy!
UniversitiesGovernments
Innovation-Focused
Companies
• This means• Training, Knowledge, In-the-Field Action and Participation, … from Universities
• Support and Simpler/Leaner/Faster/Value-Added Involvement from Governments
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 79
Universities & Governments!
• … but what companies really face almost everywhere!• Multiple levels of Governments
• National
• Provincial/State
• Regional (within State)
• Local (municipal)
• Too many stakeholders• Politicians (and political parties or alliances)
• Ministries (from National and Provincial/State governments)
• Para-public companies or entities (also from National and Provincial/State governments, with overlaps for oversight and on many regulations)
• Other Government agencies (also from various levels and with overlaps)
• …
• Various other players who chime in (or would want to)• Employee unions• Professional orders & associations• Consumer protection agencies• Industry interest groups • And so on
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 80
Universities & Governments!
1. Innovate themselves! Lead by example!
2. Make Innovation a “real” priority, beyond politics
3. Remember that …
• “Innovation is about what you get out of the way”
• It will take a while for benefits to materialize,and multiple investments might be required
• It’s not about “more” government,it’s about “smarter” government
4. Minimize bureaucracy, undue delays, and other hurdles… adopt a No Nonsense approach
5. Simplify and align national, regional & local policies / regulations and really facilitate the emergence & growth of creative industries
6. Think beyond $ in R&D, # of companies created, patents & such
• How can Governments help?
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 81
Universities & Governments!
1. Innovate themselves! Lead by example! Walk the talk!
2. Collaborate more, Compete less!
3. Remember that …
• “Innovation is about doing, not just talking or writing about”
• Focus less on theoretical research, more on in-the-field action and development of applicable tools; articles will follow…
• It’s not about “more” research,it’s about “smart” sharing of knowledge
4. Move from Study and Publish to Learn while Contributing … to“How could we help your company innovate more/better…”
5. Facilitate access to and exchange of knowledge, take a leadership role in facilitating creativity/innovation focused networking
6. Align research initiatives and think long-term
• How can Universities help?
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 82
Universities & Governments!
• Creative People• Innovation process• Strong Leadership• Inspiring Direction• Integrated Strategy• Collaborative Structure• Market/Client Awareness• Supportive Culture• Enabling Systems• Change Capacity
• Some forms of support to be considered!These are mostly the responsibility of each organization’s management.
Still, Universities can do research, publish, document best practices, organize conferences and serve as network connectors for communities of practice & other forms of trend and knowledge sharing …
… and develop action-learning based Leadership Development Programs around key, related competencies and skills, such as HR, Leadership, Strategy, Change Management, KM, Marketing/VOC, and so on.
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 83
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 84
• Competitive & Distinctive Innovation Requires Creativity• Employees will chose to leverage their creative potential
at work with the proper organizational climate & support• Climate is key - and there are ways to assess it if needed• Styles matter - and they can also be assessed if relevant• Culture must align - so manage organizational change
• You must nourish & applaud employee creative potential• Innovative ideas will not/cannot be implemented without
the managerial decision-making of courageous leaders• Climate is key - so innovation related decisions must be facilitated• Styles matter - and managers must adapt… or get out of the way• Culture must align - so applaud courage and tolerate mistakes
• All of these imply, and require, true lead-by-example (walk-the-talk) leadership at all managerial levels(as real innovation requires major paradigm shifts & change)
Conclusions / Final Food-for-Thought
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 85
• Innovative ideas that emerge are fragile and unpolished• Real creative thinking (“brainstorming”) sessions produce raw ideas• Raw ideas need time for refinement, strengthening, and polishing• Such fine-tuning is the critical success factor for true innovation
• Innovation requires minimal long-term outlook on things• Not all the ideas produced can be used or implemented short-term…• … but things change faster than we think, so keep these ideas safe• … and revisit them now & then as they might become more realistic
• Your innovation potential for success is directly related to • team diversity & complementarities, and appreciation of differences• the time, means, tools, support and encouragement provided• how you deal with innovations that are not so successful• how you leverage ideas that can’t be used right now • your organization’s capacity to manage change
Conclusions / Final Food-for-Thought
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 86
Conclusions / Final Food-for-Thought
• Innovation is not just about cost-related factors (new products/markets, brand image, increases sales, lower costs, …)
but mostly about people and ensuing cultural change… • … so employees must be involved throughout, not just at ideation• … with various forms of ongoing employee involvement• … and culturally-adapted communication & listening programs• … and various (creative) forms of recognition, on efforts and results• … and proper alignment of the compensation, bonus & reward systems
• Stay focused…• Set targets for each area or type of innovation• Innovate even in downturns … if not even more so• Commit to action, time frames, deadlines, and measures• Keep at it, even if the first few attempts are not so successful• See each less-than-expected result as a learning opportunity
• And go out there to see what companies in other sectors are doing, especially the creative economy industries
Encourage Creativity to Foster Innovation /CONACYT - 11 Nov. 2010© 2010, S. Matte & Coefficient Management inc. 87
¡Muchas Gracias!