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Innovation for the Masses

       Brian Romansky
       Director, New Business Opportunities
       Pitney Bowes, Inc.


       November 1, 2011

       Brian.Romansky@pb.com

Product Development and Management Association
35th Product Innovation Management Annual Global Conference
October 29 – November 2, 2011 | Arizona Biltmore | Phoenix, Arizona
Pitney Bowes Overview
  •    $5.6B Revenue
  •    33,000 Employees in over 100 countries
  •    5 Lines of Business
  •    Customer Communications Management:
         – Document prep, print, and mailing
         – Location intelligence
         – Mail Processing
         – On-Site Services (print, scan, copy, mail, records)
  • 90 Year Anniversary in 2010
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           2
Employee Innovation Program
  Launched in 2009
  Goals
         – Engage employees in innovation
         – Foster a culture of innovation
         – Drive ideas to action to create organic growth
  Formation
         – CEO mandate
         – Web-based idea management system
         – Spun-out of R&D and strategy organizations
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           3
Organizational Structure
                                              Director – New Business
                                                   Opportunities

                                                 Challenge Architect
                                               (Sr. Principle Engineer)




                                                                                                          Functional
 Innovation           Innovation             Innovation             Innovation         Innovation
 Champion             Champion               Champion               Champion           Champion
   Finance                HR                     IT                  Strategy             Legal




                                                                                                          Operational
 Innovation           Innovation               Innovation                 Innovation       Innovation
 Champion             Champion                 Champion                   Champion         Champion
  Software           Mgmt Services             Mailing Sys.               Prod. Mail      Mail Services

Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona                                   4
Challenge Process




         – Challenge architect facilitates the process
         – Innovation champion is responsible for results
         – Actions and metrics continue to be tracked after
           the challenge has concluded
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           5
Challenge Results


                                                                      > $50M




• 4000+ ideas and 6000 comments • 6600+ active participants
• 800+ actions                     40% of wired population
                                   World-wide participation
• Survived platform change
                                                                          Functional and Operational Units
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona                               6
Defining the Task
Employee Innovation is not
about building a digital
suggestion box
       – Focus on results and metrics
       – Two-way dialog,
         not anonymous
       – Apply to real business
         problems



Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           7
Setting Expectations
                                                        Operating         Functional
                                                          Units             Units
                                   “Big”
                                   Ideas                                       
                               Incremental
                                   Ideas                                       

              Relative Activity                                                Relative Value




     "Big" Ideas      Incremental                                "Big" Ideas      Incremental
                       Innovation
Product Development and Management Association                                     Innovation
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona                         8
Incremental Innovation Pedigree




Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           9
Make it Meaningful
  • Connect innovation to unit objectives
  • Target the right audience
  • Make the process transparent




Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           10
Managed Progression Over Time
  •    2009: % of employees engaged
  •    2010: All units doing challenges
  •    2011: Challenges linked to unit objectives
  •    2012: Transparent process to manage actions




Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           11
Connecting to Unit Objectives
 1 – Far Exceeds            2 – Exceeds                            3 – Meets                 4 – Threshold
                                                                                             • Identify and publish
                                                                                               Innovation Relevant
                                                                                               Objectives (IRO)1
                                                                                             • Run one IdeaNet
                                                                                               challenge that addresses
                                                                                               an IRO
                                                                   • Run one IdeaNet
                                                                     challenge that
                                                                     addresses an IRO and
                                                                     meets best practices2
                            • Demonstrate progress4 based
                              on one or more actions arising
                              from IdeaNet
                            • Retain an Innovation                        Demonstrate action on ideas
                              Champion3 to facilitate employee
                              engagement
                                                                          for organic growth and/or
                            • Publish an innovation                       process improvements and
                              dashboard5
                                                                          behaviors that foster a culture
 • Document measurable
   results6 based on one                                                  of innovation.
   or more actions arising
Product IdeaNet
   from Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona                                           12
Mapping Challenges to Populations
– Target a population
  that has insight to the
  challenge problem                                                           Business
                                                                                Unit
– Provide background
  information
– Avoid saturation                                            Special Interest Group
– All challenges are
  “visible” to all
  employees, only the
  target group is
  “invited”                                                           All Employees
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona                  13
Mapping Challenges to Populations
                             Business
                             Partners
                                                                              Business
                                                                                Unit
                    Customers


                    External                                  Special Interest Group
                    Experts




                                                                      All Employees
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona                  14
Relentless Pursuit of Results
  • Respond to every idea submitted
  • Look beyond the ideas for common themes
  • Overcome common barriers to
    implementation
  • Emphasize action over analysis




Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           15
Making Sense of Employee Ideas


                                          Idea Ranking and
                                              Selection


  •    Cluster ideas into themes
  •    Define actions that are based on multiple “ideas”
  •    Move from “review meetings” to “project team meetings”
  •    When possible, include idea submitters in the execution
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           16
“We are already doing …”
  Are we really?
         – Often this means “Somebody said something like
           this before and maybe even put it on a project
           plan”
         – Do we have valid metrics and results?

  Can we better communicate ongoing actions?
         – Well informed employees armed with a clear
           strategy are better innovators
         – How do you effectively share the current portfolio?
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           17
Classic Implementation Barriers
  Functional units are not designed for change
         – Quick-fix is to simply define projects with accountable
           leaders – run them as an “exception”
         – Rely on innovation champion to follow-through
         – Longer-term solution: Create a program office

  Operational units resist change
         – Classic “innovator’s dilemma” problem
         – Most new product concepts get stuck in analysis
         – Advise learning through action in the market (lean startup)

Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           18
Emphasis on Action over Analysis




Product Development and Management Association                       www.pbsalestrigger.com
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona                  19
Future Plans
  • Each unit to implement a transparent process to
    follow-through on actions
  • Further de-centralization of innovation process
  • Corporate function to focus on implementing
    breakthrough concepts


  Research
  • Methods to communicate innovation activity
  • Use challenges to identify unmet needs
Product Development and Management Association
35th Product Innovation Management Annual Global Conference
                      35th 2011 | Arizona Biltmore | Phoenix, Arizona
October 29 – November 2, Product Innovation Management Annual Global Conference
                       October 29 – November 2, 2011 | Phoenix, Arizona           20

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Innovation for the Masses

  • 1. Innovation for the Masses Brian Romansky Director, New Business Opportunities Pitney Bowes, Inc. November 1, 2011 Brian.Romansky@pb.com Product Development and Management Association 35th Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Arizona Biltmore | Phoenix, Arizona
  • 2. Pitney Bowes Overview • $5.6B Revenue • 33,000 Employees in over 100 countries • 5 Lines of Business • Customer Communications Management: – Document prep, print, and mailing – Location intelligence – Mail Processing – On-Site Services (print, scan, copy, mail, records) • 90 Year Anniversary in 2010 Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 2
  • 3. Employee Innovation Program Launched in 2009 Goals – Engage employees in innovation – Foster a culture of innovation – Drive ideas to action to create organic growth Formation – CEO mandate – Web-based idea management system – Spun-out of R&D and strategy organizations Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 3
  • 4. Organizational Structure Director – New Business Opportunities Challenge Architect (Sr. Principle Engineer) Functional Innovation Innovation Innovation Innovation Innovation Champion Champion Champion Champion Champion Finance HR IT Strategy Legal Operational Innovation Innovation Innovation Innovation Innovation Champion Champion Champion Champion Champion Software Mgmt Services Mailing Sys. Prod. Mail Mail Services Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 4
  • 5. Challenge Process – Challenge architect facilitates the process – Innovation champion is responsible for results – Actions and metrics continue to be tracked after the challenge has concluded Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 5
  • 6. Challenge Results > $50M • 4000+ ideas and 6000 comments • 6600+ active participants • 800+ actions 40% of wired population World-wide participation • Survived platform change Functional and Operational Units Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 6
  • 7. Defining the Task Employee Innovation is not about building a digital suggestion box – Focus on results and metrics – Two-way dialog, not anonymous – Apply to real business problems Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 7
  • 8. Setting Expectations Operating Functional Units Units “Big” Ideas   Incremental Ideas   Relative Activity Relative Value "Big" Ideas Incremental "Big" Ideas Incremental Innovation Product Development and Management Association Innovation 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 8
  • 9. Incremental Innovation Pedigree Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 9
  • 10. Make it Meaningful • Connect innovation to unit objectives • Target the right audience • Make the process transparent Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 10
  • 11. Managed Progression Over Time • 2009: % of employees engaged • 2010: All units doing challenges • 2011: Challenges linked to unit objectives • 2012: Transparent process to manage actions Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 11
  • 12. Connecting to Unit Objectives 1 – Far Exceeds 2 – Exceeds 3 – Meets 4 – Threshold • Identify and publish Innovation Relevant Objectives (IRO)1 • Run one IdeaNet challenge that addresses an IRO • Run one IdeaNet challenge that addresses an IRO and meets best practices2 • Demonstrate progress4 based on one or more actions arising from IdeaNet • Retain an Innovation Demonstrate action on ideas Champion3 to facilitate employee engagement for organic growth and/or • Publish an innovation process improvements and dashboard5 behaviors that foster a culture • Document measurable results6 based on one of innovation. or more actions arising Product IdeaNet from Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 12
  • 13. Mapping Challenges to Populations – Target a population that has insight to the challenge problem Business Unit – Provide background information – Avoid saturation Special Interest Group – All challenges are “visible” to all employees, only the target group is “invited” All Employees Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 13
  • 14. Mapping Challenges to Populations Business Partners Business Unit Customers External Special Interest Group Experts All Employees Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 14
  • 15. Relentless Pursuit of Results • Respond to every idea submitted • Look beyond the ideas for common themes • Overcome common barriers to implementation • Emphasize action over analysis Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 15
  • 16. Making Sense of Employee Ideas Idea Ranking and Selection • Cluster ideas into themes • Define actions that are based on multiple “ideas” • Move from “review meetings” to “project team meetings” • When possible, include idea submitters in the execution Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 16
  • 17. “We are already doing …” Are we really? – Often this means “Somebody said something like this before and maybe even put it on a project plan” – Do we have valid metrics and results? Can we better communicate ongoing actions? – Well informed employees armed with a clear strategy are better innovators – How do you effectively share the current portfolio? Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 17
  • 18. Classic Implementation Barriers Functional units are not designed for change – Quick-fix is to simply define projects with accountable leaders – run them as an “exception” – Rely on innovation champion to follow-through – Longer-term solution: Create a program office Operational units resist change – Classic “innovator’s dilemma” problem – Most new product concepts get stuck in analysis – Advise learning through action in the market (lean startup) Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 18
  • 19. Emphasis on Action over Analysis Product Development and Management Association www.pbsalestrigger.com 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 19
  • 20. Future Plans • Each unit to implement a transparent process to follow-through on actions • Further de-centralization of innovation process • Corporate function to focus on implementing breakthrough concepts Research • Methods to communicate innovation activity • Use challenges to identify unmet needs Product Development and Management Association 35th Product Innovation Management Annual Global Conference 35th 2011 | Arizona Biltmore | Phoenix, Arizona October 29 – November 2, Product Innovation Management Annual Global Conference October 29 – November 2, 2011 | Phoenix, Arizona 20