18110-01 Corporate Power Point 16_9 format V03.indd

2016 MAP/CAP CapstoneDriving Innovation

Benjamin Berenson | Christian Ying | Sarah Lee | Minesh Mehta | Jake Solomon | Edna Gonzalez | Meghan Keeley

Good afternoon, and welcome! Its nothing less than a sincere pleasure and privilege to present before you. 1

2October 19, 2015

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3October 19, 2015

Michael Jordon is a failure, we should be too

What we are good at is what makes us poor as a Company.

Look around the world at what weve created. As an organization, were builders at heart. We are hard wired not to innovate because of how great we are at building and operating large resorts. Weve operationalized processes to eliminate failure and solidify some of the most iconic brands of this and many generations to come. Building modern marvels has become our Achilles heal.

MGM Resorts is not simply not at its best, because we dont allow ourselves to fail.

Michael Jordan is a failure and we should fail too.

This isnt simply a man or individual failing, its a brand, a $3+ billion dollar brand which controls over half its market.

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CreativityInnovation

Suppose you know two artists. One tells you an idea for a great painting, but he does not paint it. The other has the same idea and paints it. You could easily say the second man is a great creative artist. But could you say the same thing of the first man? Obviously not. He is a talker, not a painter. Creativity and innovation are interdependent, theyre not synonymous. Creativity is not a miraculous road to business growth and affluence. For a line level employee, creativity may very well be millstone rather than a milestone. Creativity in the abstract is often confused with practical innovation. Disregarding every day executive operational problems or underestimating the intrinsic complexity of our organization, speaks to interdependency

Usually, managers equate innovation with creativity. But innovation is not creativity. Creativity is about coming up with the big idea. Innovation is about executing the idea converting the idea into a successful business. We like to think of an organizations capacity for innovation as creativity multiplied by execution. We use multiplication rather than sum because, if either creativity or execution has a score of zero, then the capacity for innovation is zero.

Transition: Interviews with Corporate IT leaders. Touch on leaderships view on creativity versus innovation, and whether theyre synonymous. 4

May 23, 20165

Am I all that I ask my employees to be? If we expect innovation in the workplace, we have to project and live a growth mindset, to overcome doubt and fear of failure. Innovation and Creativity are not interchangeable terms. Alan Van ZandtVice President Infrastructure and Emerging Technologies , AEG

I spent a number of Fridays roaming around the Corporate IT office, knocking on doors, respectfully disregarding titles, pushing for insights from some of our most notable leaders within our own tech space. With a smile on my face, I walked in to the offices of VPs, EDs, Ds and leaders within the ranks of AEG. Their insights on the drivers undermining an innovative culture were enlightening. After speaking with 15 leaders, 1 successfully bridged the relationship between creativity and innovation the two not being synonymous.

The leaders within our organization already know some of the key drivers behind a creative culture but not necessarily an innovative one. These conversations were undeniably extraordinary because many of the leaders I spoke with live by creative principles. But only Alan Van Zandt from AEG spoke to the interdependence of creativity and innovation. Though every leader on the Corporate IT side touched on the importance of an employees willingness to fail human beings overcoming fear of failure.

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Just A Grocery Store Cashier

Got Linux?

Let me ask everyone a question. Who in the audience knows who this penguin is? And now who in this audience knows what this penguin reflects?

Im willing to risk a wager on this little penguin. Im willing to suggest this little guy impacted every single person in this room at some point in their life. IN fact, Im willing to take it one step further, I bet this little penguin touches your daily life and EVEN at this very given moment in time! Let me see those iPhones let me see those Android devices iOS is a derivative of OS X, which itself is a variant of the BSD UNIX (multi-tasking, multiuser Bell Labs 1970s) kernel running on top of a micro kernel called Mach.

Linus Torvalds was a student who worked in a small local grocery store in Norway, and in a small coffee shop by his home, he worked on the Linux operating system. Do you know what drove Linux to create Linux in his spare time? His passion or shall I label it as a frustration for the lack of knowledge transfer across developers. Linus believed in sharing knowledge and bringing the talents of many to make something even better. Linus wasnt paid, given a creative bonus, or told what to do. Linus was engaged because he deeply cared about what his project represented. 6

May 24, 20167AutonomyUrge to direct our own livesIntrinsic Motivation vs. Extrinsic Motivation

MasteryDesire to get better and better at something that mattersPurposeThe urning to do what we do in the service of something larger than ourselves

Our motivations are absolutely remarkable. Human beings are simply not as predictable or easily manipulated as weve been led to believe.

If you reward something you get more of the behavior you want, if you punish them you get less of what you want. Researchers from the worlds most premier research institutions created a number of tests to better understand human motivation. They gave a group of students a whole set of challenges, including spacial puzzles, physical tasks and other varieties of challenges. A typical motivation scheme was applied, where the low performers received less incentives and your highest performers received the most incentives. For mechanical skillsets, greater financial incentive worked quite well. But for rudimentary cognitive skills, greater financial incentive led to poorer performance!

So researchers decided to apply this theory to the real world. The experiment was replicated around the world, from the most developed countries to third-world countries. Rather than provide incentive bonuses, they adjusted salaries a direct impact on daily lives. And once again, for simple straight forward tasks, if you do this then you get that, incentives are great. For tasks that carry strict rules, if then instances, or carrots and sticks, incentives are simply outstanding. But with truly innovative thinking its not the creative bonus, its something far more fostering organic motivation

- Urge to direct our own lives- The urning to do what we do in the service of something larger than ourselves- Desire to get better and better at something that matters

Mastery speaks to the human urge to become better at stuff theyre interested in. Why do people spend time on the weekends to build computers, paint master pieces, playing instruments (sax, piano, guitar), cook the next perfect dish, and so on. Challenge and Mastery along with making a contribution speak the importance of purpose in the work place. When the profit motive is paramount or completely unhitched from the purpose motive, people dont do as great things. Organizations flourishing today are animated by purpose. Organizations fostering an environment where the elements of autonomy, purpose and mastery resonate in such a profound way.

Now that we know the underlying human element, we understand the science behind what motivates a human being to do more than what theyre instruct or told. What kind of environment must we create to foster intrinsic motivation? Lets move on to Chapter 2 with my partner Christian.

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TransparencyStrategic PartnershipsEnhance Collaboration

-why are we dressed differently

-3 best practices

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Transparency

The first factor we found that innovative companies have focused on is transparency. They all created an open line of communication, meaning they created an environment where employees are able share what they are doing in all aspects of their day to day with co-workers, the entire company and even with the public. An example of this is Marriotts Travel Brilliantly website. Marriott International has created a website where guests can recommend and vote on innovative ideas to implement at a Marriott hotel to improve their overall experience. These ideas have improved guest room experience, F&B options, mobile app enhancements, business meeting innovations and more. This has allowed Marriotts guests to know exactly what Marriott is doing to enhance their experience and has empowered Marriotts employees to continue to innovate because they know their ideas are actually being considered.So how does this translate MGM Resorts. Transparency is important to MGM Resorts because sharing practices across the entire enterprise will create employee empowerment that will inspire creativity, enhance learning and development, and increase productivity and collaboration.9

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Enhanced Collaboration

In order to create an environment where collaboration and real time sharing of information livesTechnology that is - easy to use

Practical

Scalable across the enterpriseWill allow for real time sharing, practices, feedback and empower our employees to do their best work Ex. Google- Google Apps 5 mil/40 mil Ex. Airbnb Whats App/CrowdsourceHence the importance of having a work environment that is collaborative 10

To capture attention

To inspire a positive emotional climate

To build human networks and relationships

Enhanced Collaboration

Enhanced Collaboration

MGMRI Opportunities

MGMRI Opportunities

Rookie Cookies

Employee Dining RoomsEnhanced Collaboration

Strategic Partnerships

Strategic Partnerships are needed to be able provide what the guest wants.

Strategic partnership: is an agreement with another business that aims to benefit both companies.

EX- Addidas spotify

How many of you like to listen to music while working out?In todays dayAddidas makes great sportswear and spotify playlist

With addias go the it lets your energy control the music

Once youve finished the run.

This allows addidas and spotify to go into areas they are not strong and give their customers what they want

All of these pillars that we have talked about are a driving force to innovation14

May 24, 201615Driving Innovation

Innovation isnt about structuring a process to lead to an outcome so much as its about creating space/environment Example: Atlassian A group of enterprise software founded in 2002, headquartered in Sydney Australia. With an intent to have a different kind of Software company. Creator of JIRA, development software tool used to project manage that lives on the cloud, server, and data center. Companies who use Atlassian products: facebook, NASA, Cisco, Ebay, Linkedin, Toyota, GILT etc. In the spirit of being relevant and innovative, Atlassian leaders created a .A FedEx Day is a 24-hour event in which employees deliver innovation to the company they work for. It is called FedEx Day, because you have to deliver overnight, like the parcel delivery company.Structure: Fed-Ex Day is a 24 hour immersion opportunity to innovate by brainstorming, hacking, prototyping, designing and present2 hour Kick off8 Hour Day 2 hour Demo with Dinner (set time and allow for weeks ahead to start building a team)- must work on something not in their day job- must deliver it in 24 hours - sets some time to think - must be fun (beer/gathering, snacks)- have dinner together drink beer Result: Intense pace, abandon hesitation, be fearless, empowers and motivates people to be self-directed and creative No compensation, no bonus, no salary implications- thrill of showing people your ideasPeople will abandon idea, groups and join othersAllows for freshman members to be involved in innovating Produces: immediate value Boosts innovation Fosters creativity Highly Motivated Ignites passion and interest Builds teams Ie: Rumor has it Googles Gmail and facebook like came from a similar initiative

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16October 19, 2015

72,000 = 12mx 1,000Amazoniansx 6ideas

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May 24, 201617MGMRI Annual Innovation Summit

So based on all of our internal and external research, weve decided to move forward with an annual MGMRI Innovation Summit.Our idea is to crowdsource and get these people together who wouldnt normally get together and create a serendipitous collision where when we get the right minds meet, they can collaborate and create an exponential output that could transform our business. Everyone in attendance will be considered an MGM Innovator.17

What Happens at the Summit?

We will have equal representation with different verticals of the departments, properties and levels.The first half of the day will include various booths and stages with internal and external speakers who speak different topics, challenges and ways their companies or departments has been implanting innovation or lack of, workshops, creative activities (such as coloring or zentangle). We want to get them to start thinking differently.The second half of the day, the MGM Innovators will network and work either individually or in groups towards coming up with their self-directed ideas. They will take what theyve learned, ideas theyve heard and shared and come up with their own ideas. It will be self-directed which is different from all the other collaborative days or events weve done in the past. At the end of the day, these ideas and proposed solutions will be submitted to a 3rdparty software vendor who will then quantity and qualify the ideas and sort and push the top ideas to executives for consideration.The executives will then examine the top ideas and select the department and the individual/group to spearhead the ideas selected to move forward into fruition.

We are not disregarding the complexity of our organization, but capturing this kind of thought from our sample and raising it to above to our decision makers. 18

What Does the Summit Create?May 23, 201619

Ultimately, this one day summit will produce:A place where people can feel safe risk-taking and failing.-We will be creating an ecosystem that strips people of their titles, using their first names only. It will be a fun, comfortable environment where people can interact on a very human level. Its not about taking more risk to find more success, but allowing people to have the mindset to not be afraid to fail. Not sharing an idea is a form of avoiding failure. An ecosystem that engages and taps into peoples intrinsic motivation.-Allow them to freely express their feelings and ideas as well as work on what they believe in and are truly passionate about-Allow for recognition of ideas from top level executives and colleagues.An environment that incorporates the three best practices that create a culture of innovation:-Transparency that will take place at the various booths through invited speakers and departments openly sharing their knowledge and experience in their respected department along with challenges presented-Enhanced collaboration that will occur through the nature of the summit with networking opportunities as well as opportunities to collaborate on projects or assist one another on challenges presented or personally shared challenges-Strategic partnerships through the 3rdparty software vendor that can quickly and expertly sift through ideas 19

Who Will Drive the Summit?May 23, 201620

Who will drive this summit?-The MAP/CAP Class will coordinate and execute this event, similar to that of Project Homeless Connect and the Capstone Projects where they have divided into groups with delegated tasks, including the analytics group who will measure the event to assist the next class further improve the event

Project homeless connect was put together for 3,000.20

May 23, 201621How?

22October 19, 2015

Thank you Any Questions?

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