MANAGING FOR INNOVATIONMANAGING FOR INNOVATION

Creating the right structure, strategy and culture to foster growth through creativity

Nathan SheranianILRHR 66404.29.2010

IBM Buzzword BingoIBM Buzzword Bingo

Tackling InnovationTackling Innovation

Align innovation with business strategy What fosters innovation

Goals, leadership, skills, organizational structure, and culture

Innovative Companies GE IDEO Netflix

Exploration and Exploitation

Align with Strategy of OrganizationAlign with Strategy of Organization

Breakthrough innovation Emerging business opportunities (EBO’s) High growth business Incremental innovation

Breakthrough InnovationBreakthrough Innovation

Emerging Business Opportunities Emerging Business Opportunities (EBO’s)(EBO’s)

High Growth BusinessHigh Growth Business

Incremental InnovationIncremental Innovation

GE: Leadership, Innovation and GrowthGE: Leadership, Innovation and Growth

Tough Love at NetflixTough Love at Netflix

Flexibility No policy governing time

off No dress code

Annual 360-degree Reviews

Leading market salaries, but no performance bonuses

Employees responsible for own development

IDEOIDEO

The three R’s Rough, rapid, right

“Enlightened trial and error” Show and tell Employees design own workspace No hierarchy

Explore Explore andand Exploit Exploit

Innovation drives growth, success Execution capitalizes on new ideas In the long run, organizations must both innovate

and execute to remain successful

QuestionsQuestions

Thank you!

ResourcesResources

Applegate, Linda M., and Bruce Harreld. 2009 “Don’t just survive—thrive: Leading Innovation in Good Times and Bad.” Harvard Business Review (working paper).

Grossman, Robert J. April 2010. “Tough Love at Netflix.” HR Magazine, Volume 55, Number 4.

O’Reilly, Charles A. III, and Michael L. Tushman. 2004 “The Ambidextrous Organization.” Harvard Business Review, 82: 4-81.

Prokesch, Steven. January 2009. “How GE Teaches Teams to Lead Change.” Harvard Business Review, 99-106.

Thomke ,Stefan and Ashok Nimgade. 2000. “IDEO Product Development.” Harvard Business Case.