fostering innovation david spong president american society for quality
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Fostering Innovation David Spong President American Society for Quality Former President Aerospace Support, Integrated Defense Systems, Boeing. Innovation The Key to Sustainability. “ This is the New Economy. The Old Rules do not apply…”. “Innovate or die.”. - PowerPoint PPT PresentationTRANSCRIPT
19th Annual Conference on Quality in the Space & Defence Industry 14 March 20111
Fostering InnovationFostering Innovation
David SpongPresident American Society for QualityFormer President Aerospace Support, Integrated Defense Systems, Boeing
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
InnovationInnovationThe Key to SustainabilityThe Key to Sustainability
“Innovate or die.”
“This is the New Economy. The Old Rules do not apply…”
“But it must be relevant so we must forecast the future!
2
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
What Is Innovation?What Is Innovation?
Instituting significant change that adds value:
• Increasing efficiency
• Increasing effectiveness
• Reducing costs
• Developing new profit streams
3
Microsoft, Redmond, WA 30 September 2010
Needs for Aerospace/ManufacturingNeeds for Aerospace/Manufacturing
Processes
• Reduced Cycle Time
• Reduced Tooling
• Just-In-Time Inventory
• Lean Six Sigma
4
Products• Lightweight Structures
• Increased Reliability
• Reduced Maintenance
• Improved Fuel Consumption
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
So What’s the Problem:So What’s the Problem:Obstacles to Innovation*Obstacles to Innovation*
External• Government and
other legal restrictions• Economic uncertainty• Inadequate enabling
technologies• Workforce issues
arising externally
5
* IBM 2006 CEO Study
Internal• Unsupportive culture
and climate• Limited funding for
investment• Workforce issues• Process immaturity• Inflexible physical and
IT infrastructure• Insufficient access to
information
19th Annual Conference on Quality in the Space & Defence Industry 14 March 20116
All Embedded in the Right Culture
Involve Integrate
InnovateThe “Sweet Spot”
Only at the intersectiondo you get relevant
innovation
How do we facilitate Innovation?How do we facilitate Innovation?The Compelling Case For the Three “I’s”:
Integration, Involvement & Innovation
6
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
Signs of Lack of InnovationSigns of Lack of Innovation
• Fear of failure is palpable (shoot the messenger)
• A complex process with multiple levels of approvals exists for screening new ideas
• A small group is the expected source of new products or services for the organization
• Suppliers and customers seldom contribute to new product and process ideas
• Ideas that originate inside of one country are rarely adopted by others
7
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
Signs of Dis-integrationSigns of Dis-integration
• Each part of the organization seeks to maximize its own profit or “success”
• Strategies and plans are developed independently and often in competition
• Financial and operational measure-ment systems are not linked with or reinforced by reward and recognition systems
• Suppliers and stakeholders held at arms length
• Customers viewed only as sources of revenue and irritation
8
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
The Common DenominatorThe Common Denominator::Organizational CultureOrganizational Culture
• Observed behaviour• Group norms: standards and values• Espoused values: published, public• Formal philosophy: mission• Rules of the game• Climate: group interaction• Embedded skills• Habits of thinking, acting, paradigms • Shared meanings of the group• Metaphors or symbols
9
* Organizational Culture and Leadership by Edgar H. Schein
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
LeadershipLeadership
Cultural aspects of an
organization can only be set
and sustained by leadership!
10
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011 11
“Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it.”
Steve Jobs, Fortune, Nov. 9, 1998
US computer engineer & industrialist (1955 - )
How do you foster Innovation?How do you foster Innovation?
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The Leader’s RoleThe Leader’s Role
Engines
Steering Communications Navigation Catering Entertain
ment
Captain
The “Leader”
ManagementSet of processes used to keep people and technology running smoothly
LeadershipSet of processes that creates/adapts organizations to significantly change them
Uncharted Waters
19th Annual Conference on Quality in the Space & Defence Industry 14 March 201113
2-20
• Technical and professional expertise• Solving problems & analyzing issues• Innovation• Practicing self-development
• Drive for results • Establish stretch
goals• Taking
responsibility for outcomes/initiativ
• Display high integrity & honesty
• Developing strategic perspectives
• Championing change • Connecting outside world
– networking
• Communicating powerfully and prolifically
• Inspiring/motivating others to high performance
• Building relationships• Developing others• Collaboration & teamwork
Leading Leading OrganizationalOrganizational
ChangeChange
CharacterCharacter
PersonalPersonalCapabilityCapability
Focus on Focus on ResultsResults
InterpersonalInterpersonalSkillsSkills
From the “Extraordinary Leader”, Zenger & Folkman (2002)
Leadership AttributesLeadership Attributes
19th Annual Conference on Quality in the Space & Defence Industry 14 March 201114
Culture – A Set of Shared Vision/Values/Beliefs/GoalsCulture – A Set of Shared Vision/Values/Beliefs/Goals
CorporateCitizen
Innovation
Teamwork
Agility
Sharing &Supportive
Learning
Diversity
Quality
CustomerSatisfaction
Integrity
StakeholderRequirements
& Expectations
Safety
The Organization
Join if espouse
shared values
Leave if cannot
accept share
d values
Shared Value Filter
The Leader establishes the culture to be shared by his/her behavior
19th Annual Conference on Quality in the Space & Defence Industry 14 March 201115
Mission, Vision & ValuesMission, Vision & Values
MissionMissionProvide world-class sustainment
solutions to our aerospace customers
VisionVisionPeople working together as the world’s number one provider of
innovative sustainment solutions
10 Year Objective10 Year ObjectiveWe will be a recognized world-class,
global business, providing sustainment solutions aligned with
our customers’ evolving needs
ValuesValuesLeadership
Integrity
Quality
Customer satisfaction
People working together
A diverse & involved team
Good corporate citizenship
Enhancing shareholdervalue
Culture/IntegrationCulture/IntegrationCulture/IntegrationCulture/Integration
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Leadership SystemLeadership System
StakeholderRequirements
& Expectations
Vision & Values
Set andCommunicate
Direction
Perform to Plan
Reward & Recognize
Organizational& Employee
Learning
Organize, Plan,and Align
Be RoleModelsBe RoleModels
EmpowerTeams
EmpowerTeams
ContinuouslyImprove
ContinuouslyImprove
MotivateEmployeesMotivate
Employees
Analyze& Compare
Analyze& Compare
• Customer• Work force• Suppliers
• Community• Shareholders
CorporateCitizen
Innovation
Teamwork
Agility
Sharing &
Supportive
Learning
Diversity
Quality
CustomerSatisfaction
Integrity
GP30117.ppt
19th Annual Conference on Quality in the Space & Defence Industry 14 March 201117
Focused SurveyFocused SurveyIDS– 58 Questions
–1 Narrative question
– Results to only the Business,
Function, Department? Level
– Results not actionable
Aerospace Support– 58 Questions
– 3 Narrative questions
+
– 28 Focused questions
– Results to the Business, Program,
Function, Site, to the manager level
with 5 or more D/R
– Results actionable
Summary for 17 key issues
Exec summaries for each Bus,
Site, & Function
CultureCultureCultureCulture
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
Code Of ConductCode Of Conduct
Enabled by the correct behavior
where messengers don't get shot
and failures are not punished but
learned from
18
19th Annual Conference on Quality in the Space & Defence Industry 14 March 201119
• We insist on integrity, first and foremost • We tell it like it is• We communicate openly and candidly in all our dealings• We respect, honor, and trust one another• We work toward consensus• Disagreement is healthy and encouraged, but once a decision is made,
we proactively support it• We have one conversation at a time• Our silence is consent• We focus on issues and ideas rather than titles or personalities• We actively listen and question to understand• We do not attack the messenger• We identify clear objectives and expectations for our meetings • We start on time, observe time limits, and end on time• We praise in public, we coach in private• We have a bias for velocity
Operating PrinciplesOperating Principles
Have Fun. . . Enjoy the journey and each otherHave Fun. . . Enjoy the journey and each otherHave Fun. . . Enjoy the journey and each otherHave Fun. . . Enjoy the journey and each other
CultureCultureCultureCulture
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
Employee InvolvementEmployee Involvement
A Human Resource Focus on
developing a team-based culture
with a robust recognition and
rewards program
20
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• The extent of workforce commitment – both emotional and intellectual – to accomplishing the work, mission, and vision of the organization
• Members of the workforce find personal meaning and motivation in their work
• An engaged workforce benefits from trusting relationships, a safe and cooperative environment...
Employee Employee InvolvementInvolvement
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
EMPLOYEE INVOLVEMENT (EI)
Is it a Culture?
Is it a Belief?
Is it a Way of Life?
"It is not a new program, project or process. EI is a cultural change in the way we treat each other and work together. It is a journey in which people apply their skills to improve individual, team and organizational performance continuously. This leads to employee satisfaction and improved business results.“
Raj Kanungo
Is it Teams?
Is it Belonging?
Is it a Process?
InvolvementInvolvementInvolvementInvolvement
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Leadership Drives the Leadership Drives the Employee Satisfaction IndexEmployee Satisfaction Index
Leadership Effectiveness Deciles
10987654321
ES
I P
erc
en
t P
osi
tive
90
80
70
60
50
40
30
78
7371
66
6260
58
52
47
39
Poor Leadership Results in Low
Satisfaction
Great Leadership
Results in Top Quartile
Satisfaction
Good Leadership Results in Okay
Satisfaction
CultureCultureCultureCulture
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Managers Level of Leadership Effectiveness (Deciles)
10987654321
Perc
ent P
osit
ive
on E
mpl
oyee
Inv
olve
men
t 100
90
80
70
60
50
40
30
Great Leadership Results in Top
Quartile EI
Good Leadership Results in OK EI
Poor Leadership Results in Low EI
Leadership Drives Leadership Drives Employee InvolvementEmployee Involvement
InvolvementInvolvementInvolvementInvolvement
19th Annual Conference on Quality in the Space & Defence Industry 14 March 201125
50%
50
54
58
62
66
1999 2000 2002 20032001
EI
ESINew Leader
Boeing Aerospace Support’sBoeing Aerospace Support’semployees are more motivatedemployees are more motivated
19th Annual Conference on Quality in the Space & Defence Industry 14 March 201126
Employee
InvolvementVision &Values
Operating
Principles Diversity“Open Door”
Empowerment
RecognitionEthics
Cooking the “Soup” or Creating an Innovation Culture
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
Motivated Employees
“Smells Good”Business Results“Taste Great”
Employee
Involvement
Vision &Values
Operating
Principles
Empowerment
RecognitionEthics
Focused Survey
Cooking the “Soup” or Creating an Innovation Culture