5. CRAFTING A HOLISTIC INNOVATION
ORGANISATION
Platform 3:
(Stages VI-IX)
Integrating Technology Innovation with Business Function – Part I: Laying the Foundation
6. PLATFORM 3: VI
VI Form Innovation Teams
KEY COMPONENTS
1. Cross-functional representation
2. Full-time, dedicated team leaders
3. Rewards that recognize performance
4. Regularly scheduled meetings
ENERGIZING TEAMS
Make decisions without senior managers
Establish a common language
Offer team rewards
Provide continuous positive feedback
Establish shared norms & values
Motivate cross-functional members
Define personal objectives
6
7. PLATFORM 3: VI
Building Innovation Teams
Team-Building
Assemble, manage and train teams to foster innovation
throughout the organization / working environment.
7
8. PLATFORM 3: VI
Team-Building
A. CREATING THE TEAM
B. LEADING TEAMS
C. PARTICIPATING ON TEAMS
D. USING TEAMS EFFECTIVELY
E. PROBLEM-SOLVING WITH TEAMS
F. TROUBLE-SHOOTING TEAM OBSTACLES
G. SUPPORTING THE TEAM
8
9. PLATFORM 3: VI
(A) Creating the Team
The role assumed by a given team member is not identical to the
member’s personality type, although roles and personality types are
generally harmonious rather than in conflict
A spectrum of roles necessary for the typical work team:
The Promoter: This person informs and persuades stakeholders regarding the work of the
team
The Organizer: This person maintains schedules and budgets and, in general, serves to keep
other team members “on the same page”
The Inspector: This quality-control agent pays careful attention to the production of the team
and reports to members on their work as well as on the reliability of their sources of
information
The Concluder: This person moves the team toward consensus judgements, stages of
completion, and final sign-offs
The Innovator: This tam member brings fresh ideas and insights t the work of the team
The Specialist: This person makes sure the team is up to date on
technological, marketing, or other information relevant to its work
The Implementer: This team member views the work of the team during development and
upon project completion according to how it can be put to use in the real world
9
10. PLATFORM 3: VI
(A) Characteristics of Effective
Teams
You can determine the health of any team by looking for seven indicators:
1. Buy-in: Team members share a clear perception of their purpose and commitment to that
purpose as “our” goal
2. Tolerance for disagreement: Team members handle differences of opinion as stimulating
opportunity for testing and refining their work. They listen well. They can attack positions
without attacking people
3. Comfort: Team members are relaxed with one another. They trust the intentions and
integrity of fellow team members. They enjoy working together
4. Shared leadership: Even when the company has designated a specific team leader, the
team allows de facto leadership to pass from member to member, depending upon the
obstacles and tasks at hand for the team. Every member knows he or she can rise to
leadership
5. Diversity: Whether differentiated by personality types, roles, culture, or other factors, the
members of the team recognize and respect their mutual diversity
6. Reality checks: The team is not self-deceived regarding the quality of its work. Members
assess team goals and progress in constructive ways that motivate the pursuit of
excellence
7. Consensus-seeking: The team strives for, but does not insist upon, the support of all
members for team decisions
10
11. PLATFORM 3: VI
(B) Leading Teams
What teams expect of their leaders (summary of seven years of
surveys in Best Practice magazine, 1994)
Team members expect their leaders to be:
Honest 87%
Competent 74%
Forward-looking 67%
Inspiring 61%
Intelligent 46%
Fair-minded 42%
Broad-minded 38%
Courageous 35%
Straightforward 33%
Imaginative 32%
Dependable 31%
11
12. PLATFORM 3: VI
(B) Leading Teams
A team’s mistakes can be accepted by management if:
It doesn’t have significant negative impact upon the company
It is a first-time mistake, not part of a pattern
Team members were working outside the team’s responsibilities
The team member was following explicit instruction or following the proper procedures
The team member was working with shared equipment that is not always available
The team learns from the mistake and is able to say how it will be avoided in the future
The mistake occurred within the scope of the team’s authority in pursuit of the goal
The team was really trying to do it right
The team’s actions were consistent with the policies and rules of the company
Incorrect information was given to the team
The team was taking initiative and taking risks
Procedures weren’t clearly defined
Different skill and ability levels of team members caused erratic results
There were extenuating circumstances
The situation was outside the person’s control
The error was not caused by negligence or lack of action
There were time constraints
There was poor training
12
13. PLATFORM 3: VI
(B) Leading Teams
1. Acquire the leadership skills needed not only to get
the job done right, but to develop the people to do it
2. To determine whether delegated, elected, shared, or
distanced leadership is most appropriate for your
team, analyze the three P’s: your project, your
people, and your plans for the future
3. Remember that teams look to the leader to tell the
truth, know the business, and anticipate change as
primary responsibilities
4. Seek out feedback from the team and those affected
by the team not only to measure team performance
but also to determine how your leadership role must
evolve
13
14. PLATFORM 3: VI
(C) Participating on Teams
Qualities of Effective Team Members:
1. Team members should seek out cross-training opportunities
whenever possible
2. Team members should not expect relationships on the team to feel
comfortable at the beginning
3. Team members must be ready to place the welfare of the team
ahead of the interests of their former work units and associates in
the company
4. Team members must understand that teamwork is impossible apart
from mutual respect among members
5. Team members must take responsibility as architects of team
culture and conditions
6. Team members don‟t enter an ivory tower when they become part
of the team. They are influential in the company to the extent that
they remain trusted by the groups to which they link
14
15. PLATFORM 3: VI
(C) Participating on Teams
Qualities of Effective Team Members (continued):
7. Team members must expect to be deeply influenced by other team
members
8. Team members discover that their individual performance
expectations expand dramatically when they embrace the “one for
all and all for one” spirit of the team
9. Team members don‟t try to compete with one another for individual
recognition; they contribute for group accomplishment
10. Team members learn to look upon their leader in a new way –
more as a fellow team member than as a taskmaster or final
decision-maker
11. Team members look upon training as a “must have” for team
success, not a reluctant duty
12. Team members meet or exceed expectations primarily because
they are the architects of those expectations
15
16. PLATFORM 3: VI
(C) Participating on Teams
Qualities of Effective Team Members (continued):
13. Team members take pride in setting a higher standard and
maintaining a faster pace than traditional workers in the
organization
14. Team members are ready to assist other team members without
judging them
15. Team members recognize that they are empowered to try new
things and take risks
16. Team members don‟t sweat the small stuff; conformity to
administrative rules and procedures is not viewed as selling out
17. Team members don‟t keep secrets from one another. Knowledge
is used for shared power, not personal power
18. Team members don‟t brush feelings under the carpet – or burden
one another with irrelevant feelings
16
17. PLATFORM 3: VI
(C) Participating on Teams
Qualities of Effective Team Members (continued):
19. Team members take each other at face value. They do not impute
motives unnecessarily
20. Team members “sell” one another on ideas, information, and
perspectives
21. Team members believe their leader is as eager to learn and
improve as they are
22. Team members can‟t be pigeon-holed according to viewpoints;
these change over time
23. Team members make the decisions that logically should be made
at the team level; they do not seek out decision-making power
beyond their scope of authority
24. Team members value their leader and try to support his or her
needs
17
18. PLATFORM 3: VI
(C) Participating on Teams
1. In selecting team participants, be aware of reasons why
workers commonly resist membership on a team: lack of
conviction, incompatible personal styles, and weak
organizational support
2. Remember that effective teamwork requires mutual respect and
trust among participants. Those qualities take time to develop
3. Don’t let an “ivory tower” spirit of superiority or elitism
separate the team from the rest of the workforce
4. As a participant, prepare for team meetings by thoughtfully
considering the agenda and planning for your own
contributions
5. Practice active listening to draw the best from other team
members and to strengthen the bonds of mutual respect and
cooperation
18
19. PLATFORM 3: VI
(D) Using Teams Effectively
Team-based solutions fill a niche bounded by
individual strategies and advisory groups
Specifically, team-based solutions are most
appropriate when the problem is
unstructured, calls for many points of
view, requires broad areas of expertise, and group
members share the interests of the parent
organization
Four factors may impinge on the effectiveness of a
team’s function:
Social Tension
Cohesiveness
Group Polarization
Groupthink
19
20. PLATFORM 3: VI
(D) Using Teams Effectively
Social Tension
Social Tension refers to the natural uncertainty most people feel in a strange situation.
Group activities remain a novelty for many people
Secondary tension is the result of struggles between group members and may manifest itself
in several damaging behaviours:
Unexpected outbursts and shouting matches at team meetings
Limited participation or complete withdrawal by selected team members
Deliberate attempts to sabotage team activities
Cohesiveness
Cohesiveness refers to members‟ feelings about the team. It reflects the degree to which
members like being on the team, and it shows up in the ability of team members to get along
with one another, and feelings of loyalty, pride, and commitment to the team
Group Polarization
Research has indicated that groups may make more extreme decisions than individuals
confronted with the same problem
Groupthink
Occasionally, members of highly cohesive teams become so focused on a single course of
action that they refuse to consider either alternatives or potential difficulties
20
21. PLATFORM 3: VI
(D) Using Teams Effectively
Groupthink
The danger of groupthink is ever-present; teams should be ever vigilant in
watching for the symptoms:
1. The illusion of invulnerability – a belief shared by team members that the team cannot
make an error
2. An unquestionable belief that the team is above ethical or moral restraints and that
their decisions are inherently moral
3. Collective rationalizations that lead team members to discount information that is
inconsistent with their assumptions or decisions
4. Stereotyped views of competitors that suggest they are incapable of responding
effectively to team initiatives or proposals
5. “Self-censorship” which effectively prevents members who disagree with team
decisions from speaking up
6. An illusion of unanimity which implies that all members of the team agree with
decisions even though some may have spoken in opposition
7. Pressure to conform applied to members who argue against team stereotypes,
illusions, or commitments
8. The emergence of “mind guards” – members who protect the group from discordant
information
21
22. PLATFORM 3: VI
(D) Using Teams Effectively
Teams are appropriate for projects that have one or more of the
following characteristics:
They are perceived as worthwhile to team members
They are not highly structured and routine projects. A project that has both of
these characteristics is not the best use of a team approach. Some
projects, such as new product development, have highly structured
processes, but the problems thy tackle are anything but routine
Projects that call for knowledge or expertise beyond the scope of any one
individual can benefit from a team-based approach
The project appeals to members‟ individual interests and match the goals of the
organization
Some organizational environments, like some projects, undermine
effective teamwork:
1. Insufficient support and encouragement of key management and staff
2. Insufficient freedom from undue outside influence or interference
3. Insufficient access to adequate resources
22
23. PLATFORM 3: VI
(E) Problem-Solving with Teams
The best teams employ a carefully crafted process distinguished by
five elements:
1. Building and renewing the foundation for effective teamwork
2. Employing a structured problem-solving process
3. Employing specific problem-solving tools
4. Measuring their results
5. Designating a process champion
Effective teams employ six steps designed to promote creativity, when
appropriate, or structure, when needed:
Step 1. Defining the problem
Step 2. Describing the problem
Step 3. Developing possible solutions
Step 4. Selecting the most promising solution
Step 5. Planning and implementing the solution
Step 6. Evaluating performance
23
24. PLATFORM 3: VI
(E) Problem-Solving with Teams
Step 1: Defining the Problem:
This is a critical step because the definition establishes the boundaries of
the problem, the kinds of data needed, and the range of solutions
Defining the problem should culminate in a simple, one-page statement
describing the specific problem the team intends to solve
The step isn‟t finished until all members of the team agree that it is a clear
statement of the problem
In addition, it is often appropriate to get reactions from higher management
and other affected groups. Their input may result in expanding or
contracting the definition to include all relevant concerns
24
25. PLATFORM 3: VI
(E) Problem-Solving with Teams
Step 2: Describing the Problem:
Different techniques are better suited to different types of problems, but at
this stage detailed information is very important to determine various
stages and degrees of a problem
Many statistical measures can b used to develop information and
understanding about a problem. This information should enable the team
to answer the following kinds of questions:
When was the problem first observed?
How often does the problem occur?
Who is affected?
How severely are they affected?
Effective teams avoid moving to the next step until they have a substantive
body of information to identify he root causes of the problem and to lay the
groundwork for developing the best solutions
25
26. PLATFORM 3: VI
(E) Problem-Solving with Teams
Step 3: Developing Possible Solutions:
Most groups begin by generating a list of solutions that have been
discussed previously and are familiar to most members. These „stock‟
solutions generally lead to disagreement, with members quickly taking
sides
Team members must suspend judgement until a longer list of potential
solutions has been generated
Effective teams regularly push themselves through stags 1-3 because they
understand that truly creative and innovative solutions are most likely to
emerge after commonplace suggestions have been voiced and everyone
begins looking for something more
26
27. PLATFORM 3: VI
(E) Problem-Solving with Teams
Step 4: Selecting the Most Promising Solution:
Selecting from among the potential solutions calls for thoughtful
discussion and judgement. High-performing teams work systematically
to find the most promising solution to satisfy the problem
Teams need to avoid three potential traps at this stage:
1. Taking the easy route: teams can skirt this trap by carefully reviewing
all the alternatives before making a selection. They take even
greater care when one solution appears to be the overwhelming
favourite, and they search for its flaws as well as its selling points
2. Votes: are so widely used in our society that they seem to be the
democratic way to resolve all issues. Votes are seductive traps and
generally lead to inferior results
3. Enforced consensus and coalition formation: when feelings run
high, teams may break into warring sides
27
28. PLATFORM 3: VI
(E) Problem-Solving with Teams
Step 5: Planning and Implementing the Solution:
Many great ideas are never fully realized because of inadequate
implementation
Once a decision has been made, care must be taken not to pass on
responsibility for its implementation to someone else
Effective teams know that implementation is as critical as finding an
appropriate solution. They are far less ready to relinquish responsibility
and often insist on having a role in implementing their proposals
Once a solution has been selected, the team proceeds to outline the key
implementation steps, establish deadlines, assign responsibility for
completion of each step, and monitor progress
28
29. PLATFORM 3: VI
(E) Problem-Solving with Teams
Step 6: Evaluating Performance:
Strong teams treat the conclusion of ach project as an opportunity to
improve their own team processes
While ordinary teams take a break between projects, exceptional teams
use this team to review their procedures, garner feedback, and search
for ways to improve their individual an collective performance
29
30. PLATFORM 3: VI
(E) Problem-Solving with Teams
Selective Problem-Solving Tools for each Step
Problem-Solving Step Appropriate Tools
Step 1: Defining the Problem Brainstorming, problem Census, Man from Mars
Step 2: Describing the Problem Man from Mars, Tally Sheet, Check Sheet, Run Chart, Histogram (Bar Chart),
Scatter Chart, Pie Chart, Customer Survey, Employee Survey, Financial Reports &
Projections, Marketing Reports, Customer Chain Analysis, Cause-Effect
(Fishbone) Diagram
Step 3: Generating Possible Brainstorming, Topic Census, Nominal Group Technique
Solutions
Step 4: Selecting the Best “T” Graph, Screening
Solution
Step 5: Planning Action Plan, Project Management Grid, Gantt Chart
Implementation
Step 6: Evaluating the Results Brainstorming, Topic Census, Nominal group Technique, Screening
30
31. PLATFORM 3: VI
(E) Problem-Solving with Teams
1. Initiate all team projects with team-building activities to
prepare the group for the task ahead
2. Periodically provide time and initiate activities needed to
reestablish the elements of effective teamwork
3. Approach all problems with a structured methodology that
includes defining the problem, describing it in
detail, developing possible solutions, selecting the most
promising solution, planning and implementing the
solution, monitoring progress, and evaluating team
performance
4. Use proven problem-solving tools to support team
activities at every step of the problem-solving
process, documenting the problem and plans for its
solution
31
32. PLATFORM 3: VI
(F) Trouble-Shooting Team Obstacles
When problems do surface among team members etc., skilled trouble-
shooting can help the team overcome its obstacles
Problem 1: Disruptive Individuals on the Team
The Team Leak: this team member violates the trust of other team members by a
constant stream of memos to management
The Sphinx: this person sits silently through most team meanings. His or her attitude is
generally doubtful, if not downright cynical, about the team‟s efforts and processes
The Word Hog: often, Word Hogs haven‟t worked closely with a team before. In their
enthusiasm to contribute, they over-do and, consciously or unconsciously, deprive other
team members of their chance to participate
The Contrarian: this person raises objection to an obsession. Most of these objections
are quibbles that add nothing to the team‟s discourse
The Buzzer: this person talks about shopping, the weather, traffic conditions, company
politics, and what‟s for lunch – virtually any topic not associated with the team‟s goals
Problem 2: The Runaway Team
Many teams make the mistake of exceeding the scope of their authority
32
33. PLATFORM 3: VI
(F) Trouble-Shooting Team Obstacles
Problem 3: The Do-Nothing Team
At the other end of the spectrum from the Runaway Team is the Do-Nothing Team – the
team that meets and meets, drafts memos and outlines future reports, but never seems
to accomplish meaningful work or produce results
Problem 4: The Divided-Loyalties Team
Especially when cross-functional teams have been assembled from highly competitive,
cohesive divisions within the company, it is likely that members will consider themselves
temporary emissaries to the team from their “home base” rather than as loyal team
members
Problem 5: The Team in Turmoil
Even after managers have selected presumably complementary members for a team, the
interpersonal chemistry between members can be wrong – and explosively so. The Team
in Turmoil is one that cannot meet for more than 15 minutes without shouting matches or
seething silences
33
34. PLATFORM 3: VI
(F) Trouble-Shooting Team Obstacles
9 ways to bring teams and team members back into productive work:
1. Praise: for everyone, especially those who respond to immediate feedback
2. Leading Questions: for people who respond to a signal or need to overcome
their reticence
3. Explanations: for people who are motivated by understanding the reasons for
doing something
4. Requests: for people who like to be asked
5. Advice: for people who prefer guidance or are influenced by the logic of the
situation
6. Promises: for people who find the task unattractive or need extra motivation
7. Orders: for people needing exact instruction and where compliance is essential
8. Criticism: for people who respond to negative feedback
9. Threats: for people who do not respond to more positive methods, and where
compliance is essential
34
35. PLATFORM 3: VI
(F) Trouble-Shooting Team Obstacles
12 Symptoms of troubled teams:
1. Watch for team members who seek individual recognition rather than
recognition for the entire team
2. Listen for complaints from individual members who feel they had to go
along with the majority on the team in spite of their own opinions
3. Observe the „bench‟ players who sulk on the sidelines because they
don‟t like the way things are going on the team
4. Pay attention to team members who always seem to be pouring oil on
choppy waters. These members are averse to conflict (even when it is
productive)
5. Spot the “blamers” on the team, particularly those who chastise the
leader for all the team‟s problems
6. Watch for isolated entrepreneurs on the team – those who are bent on
setting their own goals and choosing their own methods, no matter what
the feelings of the rest of the team
35
36. PLATFORM 3: VI
(F) Trouble-Shooting Team Obstacles
12 Symptoms of troubled teams (continued):
7. Listen for inappropriate “talking out of school” by team members.
These individuals may seek out managers and other co-workers as an
audience for their tales of woe about team mistakes and internal
difficulties
8. Weigh the message being sent by individual team members who want
to bring their clones onto the team as new members
9. Watch for signs of impatience on the part of some team members who
can‟t or won‟t spend time discussing how the team functions
10. Take careful note of team members or entire teams who turn in half-
baked work or consistently miss deadlines, often with excuses about
inadequate time, resources, or assistance
11. Track absenteeism
12. Look for signs of premature celebration on the part of some team
members
36
37. PLATFORM 3: VI
(F) Trouble-Shooting Team Obstacles
1. Treat team problems as normal, not special.
Problems are an inevitable part of desirable
processes of change and adaptation
2. Be prepared for five common team problems: the
disruptive individual, the runaway team, the do-
nothing team, the divided-loyalties team, and the
team in turmoil
3. Watch for the twelve symptoms of troubled
teams. These signal a wise leader to take early
action
4. Troubleshoot the troubleshooters, making sure
that those responsible for teams are not also
those causing the team’s major problems
37
38. PLATFORM 3: VI
(G) Supporting the Team
What is the curriculum for training team players? By whatever titles, training
programs across industries emphasize four topics:
Self-Direction
Training departments have the double challenge of undoing old assumptions about he
nature of work and instilling, through conceptual and experiential lessons, the skills
necessary for self-direction as participating team members
Value Complementary Talents
Trainers have the often difficult task of convincing traditional workers to accept diversity
as a value, not a hindrance, to teamwork
Mastering New Administrative Responsibilities
Trainers face the challenge of teaching workers not only to stay within a budget, but how
to create one, negotiate for resources in the organization, hire necessary personnel, and
monitor performance through fair evaluation procedures
Developing Cross-Functional Skills
Trainers must change workers used to saying “that‟s not my job” to team members
willing to say “it‟s our job”. The “best thoughts of the best minds” are supposed to b
active on the effective team, with no artificial classifications , or role definitions to limit
team discussions and action
38
39. PLATFORM 3: VI
(G) Supporting the Team
Externally Directed Team Recognition
1. Compliment the work of the team in a memo to top management
2. Invite a company leader to attend a team meeting with the purpose of
praising the team
3. Create social occasions where the team is honoured informally
4. Ask a newsletter writer in the company or in your industry to develop an
article about the work of the team
5. Seek out professional speaking opportunities (at conferences, service
organizations, or industry interest groups) where your team can present
aspects of its processes or work
6. Speak well of the team as often as possible in as many company forums
as possible
7. Nominate the team for competitions and awards within your industry
39
40. PLATFORM 3: VI
(G) Supporting the Team
Internally Directed Team Recognition
1. Free the team to establish its own work hours and work sites
2. Ask the team to mentor a les successful team
3. Make available to the team new technology or other special resources
not generally available in the workplace
4. Share your own challenges with the team and ask their advice
5. Take the time to respond in detail to reports and other communications
sent from the team
6. Let the team members know why they were chosen for the team and the
high expectations top management has for the team‟s work
7. If the team has none of its own, develop a catchy, affectionate nickname
for the team that can be used as a compliment. At Xerox, for
example, one top photocopier sales team is known as the “Assassins”
40
41. PLATFORM 3: VI
(G) Supporting the Team
1. Provide training so that traditional workers can
develop the skills and abilities necessary for
effective team participation
2. Realign resources, performance evaluations, and
compensation policies to suit team-based work
3. Establish organizational safety nets so that,
when team members take reasonable risks, they
feel supported and safe – that they aren’t
endangering their reputations, positions, or
compensation levels in the organization
4. Integrate team experiences into the worklife of
the company so that non-team employees can
learn what team-based work is all about
41
43. PLATFORM 3: VII
VII. Influencing and Leading
Others
People Management
1. Understanding Behaviour: Identify and apply incentives to
motivate different personality types develop an innovation
mindset, stimulate creative thinking and seek new
market, product or process possibilities.
2. Motivators
3. Financial Rewards
4. Non-Financial Rewards
5. Influence Games & Strategies: Convince decision-makers
and strategic planners of the value and significance of
cultivating an innovation mindset.
43
44. UNDERSTANDING BEHAVIOUR
Platform 3:
(Stages VII, Part 1)
Integrating Technology Innovation with Business Function – Part I: Laying the Foundation
45. PLATFORM 3: VII(1)
VII(1). Understanding Behaviour
A. Motivational Patterns
B. Emotional Patterns
C. Thinking Patterns
D. Action Patterns
E. Interaction Patterns
F. Group Patterns
45
53. VII(1).
C. THINKING PATTERNS Under-
standing
Behaviour
7b. Time Preference
Focus on: THE PAST
Focus on: THE PRESENT Focus on: THE FUTURE
53
54. VII(1).
C. THINKING PATTERNS Under-
standing
Behaviour
8. Woods or Trees?
Focus on:
THE DETAILS
Focus on:
THE BIG PICTURE
54
55. VII(1).
C. THINKING PATTERNS Under-
standing
Behaviour
9. Equilibrium or Metamorphosis?
Move towards:
DIFFERENCE
Move towards:
SAMENESS
55
56. VII(1).
C. THINKING PATTERNS Under-
standing
Behaviour
10a. How Do You Get Your Proof?
Focus on: WRITTEN EVIDENCE
Focus on: Focus on:
VISUAL HANDS-ON
EVIDENCE EVIDENCE
Focus on: VERBAL EVIDENCE
56
57. VII(1).
C. THINKING PATTERNS Under-
standing
Behaviour
10b. Who Needs To Give You Proof?
Prefer: OWN JUDGEMENT
Prefer: Prefer:
TRUSTED CREDIBLE
FRIEND ROLE MODEL
Prefer: OBJECTIVE PROOF
57
58. VII(1).
C. THINKING PATTERNS Under-
standing
Behaviour
10c. How Many Repeats Do You Need?
NEED REPETITION TO
BELIEVE
ACCEPT SOMETHING ALMOST NEVER
AUTOMATICALLY CONVINCED
58
59. VII(1).
D. ACTION PATTERNS Under-
standing
Behaviour
11. Starting / Finishing Strategy?
Interested &
Motivated in:
FINISHING THINGS
Interested &
Motivated in:
STARTING THINGS
59
62. VII(1).
D. ACTION PATTERNS Under-
standing
Behaviour
14. Judging / Perceiving Strategy?
Go with the flow:
PERCEIVE MORE
Mover-shaker:
JUDGE MORE
62
64. VII(1).
E. INTERACTION PATTERNS Under-
standing
Behaviour
16. Extrovert / Introvert Strategy?
Recharge Batteries:
BEST ALONE
Recharge Batteries:
BEST WITH OTHERS
64
65. VII(1).
E. INTERACTION PATTERNS Under-
standing
Behaviour
17a. External / Internal Inspiration?
Take the lead from Others:
EXTERNALLY INSPIRED
Take the lead from Self:
INTERNALLY INSPIRED
65
66. VII(1).
E. INTERACTION PATTERNS Under-
standing
Behaviour
17b. External / Internal Willpower?
NOT VERY STRONG-WILLED
MODERATELY STRONG-WILLED VERY STRONG-WILLED
66
67. VII(1).
F. GROUP PATTERNS Under-
standing
Behaviour
18. Group Interaction Styles
INDEPENDENT: NEEDS TO
WORK ALONE
TEAM-PLAYER: NEEDS TO BE PROXIMITY: NEEDS TO
INVOLVED WITH AND WORK WITH OTHERS WITH
DEPENDANT ON OTHERS OWN RESPONSIBILITES
67
68. VII(1).
F. GROUP PATTERNS Under-
standing
Behaviour
19. My Rules or Yours?
MY RULES FOR ME, AND
MY RULES FOR YOU: DO
AS I SAY
MY RULES FOR ME, AND YOUR RULES FOR ME, AND
YOUR RULES FOR YOU: YOUR RULES FOR YOU:
DO YOUR OWN THING WHATEVER YOU SAY
68
69. VII(1).
F. GROUP PATTERNS Under-
standing
Behaviour
20. How Hard Do You Bite Back?
LEVELLERS (LEVEL-HEADED):
BALANCED FLEXIBILITY
PLACATORS: BLAMERS:
APPEASE BLAME
OTHERS OTHERS
COMPUTERS: DISTRACTORS:
DISCONNECT DIVERT
EMOTIONALLY ATTENTION
69
70. MOTIVATORS, FINANCIAL, NON-FINANCIAL
REWARDS
Platform 3:
(Stages VII, Parts 2, 3 & 4)
Integrating Technology Innovation with Business Function – Part I: Laying the Foundation
71. PLATFORM 3: VII (Parts 2, 3 & 4)
Establish Reward Systems
Motivators (0=Least, 5=Most)
1. 4.49: Sense of personal accomplishment 2. 4.06: Peer recognition
3. 3.74: Top management exposure 4. 3.37: Career advancement
5. 2.97: Compensation 6. 2.74: Peer pressure
7. 2.23: Part of job description 8. 2.06: Mandate or edict
Financial Rewards
1. One-Time Individual Bonus (44% Prefer)
2. Bonus Based on New Product Performance with No Penalty for Failure (48% Prefer)
3. One-Time Team Bonus (53% Prefer)
4. Bonus Based on New Product Performance with Penalty for Failure (40% Prefer)
5. Team Invests & Shares in Financial Returns (40% Prefer)
Non-Financial Rewards
1. Recognition (Pats on the Back) (96% Prefer)
2. Increased Job Responsibility (81% Prefer)
3. Social Interaction with Senior Management (63% Prefer)
4. Awards (Plaques, etc.) (66% Prefer)
5. Increased Budget / Control Authority (39% Prefer)
71
73. How - and Thank You
Remuneration Working Party (staff, managers, PSA, HR).
Recommended a remuneration structure that incorporated:
Economic movement;
Market relativity;
Reward for individual performance;
Affordability (the size of the budget pool);
Achievement of the IRL business plan;
Career movement and career options; and
Transparency, clarity, equity and consistency.
Considered a superannuation scheme.
Remuneration Steering Group (GMs, PSA)
Staff feedback about the performance management system
gathered 2003 and 2004.
73
74. INFLUENCE GAMES & STRATEGIES
Platform 3:
(Stages VII, Part 5)
Integrating Technology Innovation with Business Function – Part I: Laying the Foundation
75. PLATFORM 3: VII (Part 5)
Persuading Others
What Motivates Us to Act?
The desire to GAIN The desire to AVOID LOSS
To make money To avid criticism
To save time To keep possessions
To avoid effort To avoid physical pain
To achieve comfort To avoid loss of reputation
To have health To avoid loss of money
To be popular To avoid trouble
To experience pleasure
To be clean
To be praised
To be in style
To gratify curiosity
To satisfy an appetite
To have beautiful possessions
To attract the opposite sex
To be an individual
To emulate others
To take advantage of opportunities
75
76. PLATFORM 3: VII (5)
Influence Games
A. Laying the Foundation:
1. Defining Goals: What influence games do you need to play?
2. Organizing to Influence: How should you organize your
government relations efforts?
3. Cultivating Relationships: With whom do you need to build
relationship capital?
B. Crafting Winning Strategies:
1. Identifying Leverage Points: Where do you need to exert
influence?
2. Building Coalitions: Who are your potential allies and
adversaries?
3. Framing Arguments: What messages do you want to send?
76
77. PLATFORM 3: VII (5)
Influence Games
C. Coalition Building
1. Map the influential players. Who are the key decision makers? Who holds sway over
them? Who are your potential allies and adversaries?
2. Identify potential alignments. What foundations can be laid to establish alliances?
3. Assess winning and blocking coalitions. Whom do you need to get on board? Which
parties seem positioned to coalesce and oppose you?
4. Shift the balance of forces. How can you convince the convincible?
5. Shape the agenda. How can you define “the problem” favourably?
6. Alter perceptions of alternatives. How can you shape others‟ perceptions of their
options?
7. Exploit the power of deference. Who influences the people you need to influence?
8. Leverage the power of commitment. How can you propel potential allies onto the
slippery slope toward commitment?
9. Set up action-forcing events. What will induce potential allies to make the necessary
tough choices?
10. Plot out a sequence to build momentum. What is the best strategy for approaching
others?
77
78. PLATFORM 3: VII (5)
Hybrid Strategies Model
Government and business need a framework for
developing hybrid strategies: strategies both for
a. identifying and playing key games and for
b. shaping the rules.
The term hybrid emphasizes the need for
businesses to develop strategies to both
1. play varied and potentially linked games and
2. shape the creation, interpretation, and enforcement of rules.
There are five key components to this model:
78
79. PLATFORM 3: VII (5)
Hybrid Strategies Model
1. Business strategy as game playing
2. Value-net games and public interest games
3. Governments as rule makers, referees, and
players
4. Multi-level games
5. Linked games
79
80. PLATFORM 3: VII (5)
Hybrid Strategies Model
1. Business strategy as game playing
In the new lexicon of business strategy, companies
participate in ongoing games in which economic value gets
created and distributed. Games are a useful metaphor
because outcomes (market share, profits) in business are
the result of interactions among the strategies of a set of
players. The games businesses play involve a mix of
cooperation to create value and competition to divide up (or
claim) the value that has been created. Companies make
moves as they play these games and these moves interact.
They also seek to shape the rules in advantageous ways, for
example, by undertaking a merger, or entering a new
market.
80
81. PLATFORM 3: VII (5)
Hybrid Strategies Model
2. Value-net games and public interest games
We will focus on these two categories of business games,
both of which may or may not involve government. Value-
net games have to do with cooperation and competition
among businesses. Public interest games pit coalitions of
businesses, and even entire industries, against non-
business organizations like unions, consumer groups, and
environmental organizations.
81
82. PLATFORM 3: VII (5)
Hybrid Strategies Model
3. Governments as rule makers, referees, and
players
In both value-net games and public interest
games, governments establish the rules by which the
players operate, acting as rule makers. But governments
also interpret and enforce the rules, effectively acting as
referees. Governments may even participate directly as
players, for example, as customers in value-net games or as
initiators of policy changes in public interest games.
82
83. PLATFORM 3: VII (5)
Hybrid Strategies Model
4. Multi-level games
Many influence games involve multiple interacting levels of
government – local, state, federal, and international. Actions
at one level can influence what goes on at other levels.
Understanding these interactions is critical to devising good
influence strategies.
83
84. PLATFORM 3: VII (5)
Hybrid Strategies Model
5. Linked games
Many influence games also have both value-net and public
interest components. A merger, for example, needs
government approval; it may also elicit the opposition of
environmental groups. Thus it is often essential to
understand and manage linked games.
84
85. PLATFORM 3: VII (5)
5 Strategies and Counter-Strategies
1. Imitation: 1. Forestalling Imitation:
Companies seek to imitate Businesses seek to protect
others‟ successful their intellectual property
products, processes, and from imitation through
systems while preventing patents, copyrights, and
imitation of their own. trademarks and by
designating critical
information as trade secrets.
Companies often turn to the
courts to referee disputes
over intellectual property.
85
86. PLATFORM 3: VII (5)
5 Strategies and Counter-Strategies
2. Combination: 2. Blunting Combination:
Companies seek to increase Businesses seek to prevent
concentration within their competitors‟ strategic
industry, and their own combinations by raising
position in it, by acquiring or antitrust questions or
merging with other challenging deals in court.
businesses. Competitors Sometimes businesses form
(and affected customers and coalitions with competitors,
suppliers) may seek to block customers, and suppliers for
these moves. this purpose. Even if they
fail to kill the deal outright,
antitrust authorities may
demand substantial
concessions in order to
approve the deal.
86
87. PLATFORM 3: VII (5)
5 Strategies and Counter-Strategies
3. Shutout: 3. Winning Standards Wars:
Companies seek to have Governments can play
their own technologies central roles in standards
accepted as standards, wars. Sometimes winning a
shutting out competing government contract to
technologies. Developers of develop a new technology
competing technologies represents an inside track to
engage in “standards wars”. establishing a technology as
a standard. In other
cases, governments may
favour domestic standards
over foreign ones or one
domestic standard over
another.
87
88. PLATFORM 3: VII (5)
5 Strategies and Counter-Strategies
4. Entry: 4. Deterring Entry:
Companies seek to enter Businesses seek to deter or
new markets, either alone or delay competitors‟ entry into
in alliances or joint ventures. a market by calling on
Their products or services governments. Government
may essentially duplicate may also prevent incumbent
existing offerings, or they companies from taking
may offer attractive actions to discourage the
substitutes based on entry of new competitors.
different technologies.
Companies whose markets
are threatened attempt to
exclude potential
competitors and oppose
their efforts to establish a
beachhead.
88
89. PLATFORM 3: VII (5)
5 Strategies and Counter-Strategies
5. Holdup: 5. Preventing Holdup:
Companies seek to promote Governments may act to
competition in their prevent companies from
customer or supplier “holding up” their customers
industries by encouraging or suppliers. Typically, the
the entry of new companies, vehicle is antitrust review by
development of substitutes, the Federal Trade
and fragmentation of Commission in the U.S., the
upstream and downstream Justice Department, or other
industries through agencies.
contracting practices.
Customers and suppliers
seek to prevent being “held
up”.
89
91. PLATFORM 3: VIII
VIII Measure Progress & Returns
3 categories of Measure
Company-wide
Team
Individual
Return on Innovation
= Sum [Cumulative net profits generated from new products Launched]
--------------------------------------------------------------------------------------------
Research costs + Development costs + Incremental Production
Investments + Initial Commercialization Pre-launch Costs
3 Purposes for Indices
1. Provide a snapshot in time of how well the innovation effort is progressing
2. Help calibrate the appropriate allocation of people resources & financial
investments
3. Offer a diagnostic tool that can be used to pinpoint potential problem areas that
might need fixing or shoring up
91
92. PLATFORM 3: VIII
Measure Progress and Returns
Top 10 Innovation Indices
1. Survival Rate (3 years)
2. Success or Hit Rate (3 years)
3. R&D Innovation Effectiveness Ratio
4. R&D Innovation Emphasis Ratio
5. Innovation Sales Ratio
6. Newness Investment Ratio
7. Innovation Portfolio Mix
8. Process Pipeline Flow
9. Innovation Revenues Per Employee
10. Return on Innovation
92
93. PLATFORM 3: VIII
Top 10 Innovation Indices
1. SURVIVAL RATE (3 YEARS)
A measure of the harsh reality of market acceptance. Indicates how
many commercialized new products are still on the shelf or in distribution
after a three-year period. This index provides a bare-bones minimum
look at how your new products are cutting it in the market.
Formula Calculation:
Number of commercialized new products still on the market
-------------------------------------------------------------------------------
Total number of new products commercialized
93
94. PLATFORM 3: VIII
Top 10 Innovation Indices
2. SUCCESS OR HIT RATE (3 YEARS)
A measure of how well commercialized new products are performing financially
relative to the original revenue or profit forecast. This metric provides insights on
two different fronts. First, it indicates the accuracy of the process for forecasting
new product revenues or profits, a process that takes place in the business
analysis and market testing stages. Second, it provides a clear measure of the
financial revenue or profit performance of all commercialized new products. A hit
rate of more than 50-60 percent is excellent.
Formula Calculation:
Number of new products exceeding three-year original revenue forecasts
-------------------------------------------------------------------------------------------------
Total number of new products commercialized
94
95. PLATFORM 3: VIII
Top 10 Innovation Indices
3. R&D INNOVATION EFFECTIVENESS RATIO
A measure that shows how much bang you‟re getting for your R&D buck. Of
course, the measure does not provide a precise correlation because of the lag
between R&D expenses and results. It is a good metric to use to judge whether
you are spending enough in R&D and whether you are spending it wisely. It also
shows whether R&D investments can successfully be converted into new
products that yield a solid return in gross profits. The reason for tracking gross
profits versus net profits is to avoid all the debate and usual “clutter” that is
associated with sales and marketing costs. This way you can look more directly
at the contribution from new products.
Formula Calculation:
Cumulative three-year gross profits from commercialized new products
----------------------------------------------------------------------------------------------
Cumulative three-year R&D expenditures allocated solely to new products
95
96. PLATFORM 3: VIII
Top 10 Innovation Indices
4. R&D INNOVATION EMPHASIS RATIO
A measure that clearly indicates how much of your total R&D investment is being
allocated toward the development of new products. Depending on your innov-
ation strategy and the importance of new products to your overall growth
goals, this ratio can be adjusted appropriately. Usually, at least 50-75% of total
R&D expenditure is dedicated to innovation when it has a high level of
importance.
Formula Calculation:
Cumulative three-year R&D expenditures allocated solely to new products
----------------------------------------------------------------------------------------------
Cumulative three-year R&D expenditures
96
97. PLATFORM 3: VIII
Top 10 Innovation Indices
5. INNOVATION SALES RATIO
This measure indicates the overall magnitude of your innovation efforts
compared to the total company revenue size. If innovation is important to
growth, this ratio will usually be 15-25 percent or more annually.
Formula Calculation:
Cumulative third-year annual revenues generated from commercialized new products
-------------------------------------------------------------------------------------------------
Total annual revenues
97
98. PLATFORM 3: VIII
Top 10 Innovation Indices
6. NEWNESS INVESTMENT RATIO
A measure that indicates the level of investment being allocated to totally and
radically new innovations. This metric should be examined in concert with the
innovation portfolio mix.
Formula Calculation:
Cumulative three-year expenditures allocated to new-to-world or -country products
---------------------------------------------------------------------------------------------
Cumulative three-year new product total expenditures
98
99. PLATFORM 3: VIII
Top 10 Innovation Indices
7. INNOVATION PORTFOLIO MIX
This measure gauges the percentage of and actual revenues coming from each
type of new product commercialized. Usually 30-40 percent of new products are
in the new-to-the-world and new-to-the-company categories if a truly balanced
portfolio is to be maintained.
Formula Calculation:
Percentage of new products (by number and revenues) commercialized by type:
New-to-the-world, -country
New-to-the-company
Line extension
Product line improvements
Repositioning
99
100. PLATFORM 3: VIII
Top 10 Innovation Indices
8. PROCESS PIPELINE FLOW
A measure that provides a snapshot of how full the new product development
pipeline is. It is based on your company‟s historical conversion factors in terms
of how many concepts are typically needed to yield a commercialized new
product. It gives you a fairly good way to project the number of future
commercialized new products that your current pipeline will generate.
Formula Calculation:
Number of new product concepts in each stage of the development process at
year-end
100
101. PLATFORM 3: VIII
Top 10 Innovation Indices
9. INNOVATION REVENUES PER EMPLOYEE
This ratio should continue to increase over time as the experience base of the
people doing innovation increases. This measure also provides insight about the
effectiveness of additional resource allocations.
Formula Calculation:
Total annual revenues from commercialized new products
-------------------------------------------------------------------------------------------------
Total number of full-time equivalent employees devoted solely to innovation initiatives
101
102. PLATFORM 3: VIII
Top 10 Innovation Indices
10. RETURN ON INNOVATION
This is the grand-daddy measurement that provides a holistic look at the total
return generated in terms of cumulative net profits from all innovation
investments.
Formula Calculation:
Cumulative three-year net profits from commercialized new products
-------------------------------------------------------------------------------------------------
Cumulative three-year new product total expenditures
(for all commercialized, failed, or killed new products)
102