1. Innovation Leaders
Invest in a Better Future for
Organisations and their People

2. w w w . h a y g r o u p . c o m 1
Most executives are disappointed
with the levels of innovation...
Creativity without proper leadership
and processes will not result in
sustainable innovation...

3. w w w . h a y g r o u p . c o m 2
Innovation Model
Leadership and
Direction
Novel Combinations of
Existing Approaches
Generation of New
Ideas
Culture and Climate
Effective
Implementation
Organizing for innovation: A conceptual model

4. w w w . h a y g r o u p . c o m 3
Innovation Model
Leadership and
Direction
Novel Combinations of
Existing Approaches
Generation of New
Ideas
Culture and Climate
Effective
Implementation
Organizing for innovation: A conceptual model

5. w w w . h a y g r o u p . c o m 4
“Formally integrate innovation into
the strategic management agenda”
Innovation encouraged AND
managed, tracked, measured...

6. w w w . h a y g r o u p . c o m 5
Leadership and Direction
Innovation is guided by leadership direction
63
69
69
76
80
81
0 10 20 30 40 50 60 70 80 90 100
We have a vision for
innovation, clearly identifying
the areas in which we will
pursue new ideas .
We are proactive in
addressing issues and
opportunities.
Managers and employees are
actively encouraged to
innovate (i.e., to “fix" things
that aren't broken).
Peer GroupInnovation Leaders
% Agree

7. w w w . h a y g r o u p . c o m 6
52%
63%
60%
58%
42%
59%
35th
45th
55th
65th
Percentile
Normed against Hay Group global databases
Leadership and Direction
What is the Leadership styles profile in innovative organizations

8. w w w . h a y g r o u p . c o m 7
Innovation Model
Leadership and
Direction
Novel Combinations of
Existing Approaches
Generation of New
Ideas
Culture and Climate
Effective
Implementation
Organizing for innovation: A conceptual model

9. w w w . h a y g r o u p . c o m 8
Supportive Cultures
•Teamwork
•Customer Focus
•Fair Treatment of
Employees
•Taking Initiative
•Achieving Budgeted
Objectives
•Supporting
Management
Decisions
•Respecting Chain of
Command
VS

10. w w w . h a y g r o u p . c o m 9
Trust

11. w w w . h a y g r o u p . c o m 10
56%
57%
53%
58%
55%
51%
40th
42th
44th
46th
48th
50th
52th
54th
56th
58th
60th
Normed against Hay Group global databases
Percentile
Supportive Climates
Innovation-oriented work climates score high in standards,
responsibility, and flexibility

12. w w w . h a y g r o u p . c o m 11
Innovation Model
Leadership and
Direction
Novel Combinations of
Existing Approaches
Generation of New
Ideas
Culture and Climate
Effective
Implementation
Organizing for innovation: A conceptual model

13. w w w . h a y g r o u p . c o m 12
Investment in Innovation
Focused investments in innovation
58
44
70
65
0 10 20 30 40 50 60 70 80 90 100
% Agree
We invest more resources
in new initiatives than do
our major competitors.
We have clear procedures
for determining the level
of investment in
innovative ideas.
Peer GroupInnovation Leaders

14. w w w . h a y g r o u p . c o m 13
High Levels of Empowerment
Empowerment promotes innovative behavior
% Agree
Peer GroupInnovation Leaders
Decisions are generally
made at the right level
(i.e., where the most
appropriate knowledge
and expertise resides).
Managers are given the
decision-making authority to
carry out their responsibilities.
Staff given time to pursue and
develop innovative ideas.

15. w w w . h a y g r o u p . c o m 14
Risk Taking is Encouraged
People are supported in taking chances
70
80
82
91
0 10 20 30 40 50 60 70 80 90 100
% Agree
Managers and employees are
encouraged to take reasonable
risks in an attempt to increase
our effectiveness.
Innovative ideas can fail
without penalties to the
originating person or group.
Peer GroupInnovation Leaders

16. w w w . h a y g r o u p . c o m 15
Innovation Model
Leadership and
Direction
Novel Combinations of
Existing Approaches
Generation of New
Ideas
Culture and Climate
Effective
Implementation
Organizing for innovation: A conceptual model

17. w w w . h a y g r o u p . c o m 16
Novel Combinations of Existing Approaches
Cross-functional teamwork and collaboration
fosters innovation
59
81
76
84
0 10 20 30 40 50 60 70 80 90 100
% Agree
We do a good job of capturing
innovative ideas/best
practices and diffusing them
throughout the organization.
Peer GroupInnovation Leaders
We frequently make use of
cross-functional (or cross-
organizational) teams to
encourage innovative
approaches.

18. w w w . h a y g r o u p . c o m 17
Innovation Model
Leadership and
Direction
Novel Combinations of
Existing Approaches
Generation of New
Ideas
Culture and Climate
Effective
Implementation
Organizing for innovation: A conceptual model

19. w w w . h a y g r o u p . c o m 18
Effective Implementation
Innovation leaders balance patience and accountability
59
62
69
75
0 10 20 30 40 50 60 70 80 90 100
% Agree
We are patient with promising
ideas that don't generate
immediate returns (i.e., we
don't withdraw funding or
support too quickly).
Individuals and groups who
initiate innovative new
approaches are held
accountable for seeing them
through to full implementation.
Peer GroupInnovation Leaders

20. w w w . h a y g r o u p . c o m 19
Effective Implementation
Performance management systems must support
innovative activity
% Agree
Peer GroupInnovation Leaders
74
42
45
86
53
57
0 10 20 30 40 50 60 70 80 90 100
Innovation is directly
measured in scorecard and
reward processes for
executives.
Innovation is directly
measured in scorecard and
reward processes for
managers (below the
executive level).
We do a good job of providing
recognition to individuals or
groups who generate
innovative ideas.

21. w w w . h a y g r o u p . c o m 20
“Innovation isn't something confined to
a company's R&D unit.
It's a mindset… It takes leaders,
entrepreneurial spirit, great ideas,
good management, and the right
organizational structures.”

22. w w w . h a y g r o u p . c o m 21
 Innovation needs motivation, and
the right incentives – no extrinsic
rewards!

23. w w w . h a y g r o u p . c o m 22
 10-20% rule (time people spend on
personally satisfying)

24. w w w . h a y g r o u p . c o m 23
Final thought...
What fuels Innovation is Autonomy,
Mastery, Purpose