Culture of Innovation

Jay Rao
Professor

Culture
6 Building Blocks

Jay Rao

Culture of Innovation
6 Building Blocks & 18 Factors

Jay Rao & Joe Weintraub

Culture of Innovation
6 Building Blocks, 18 Factors & 54 Elements

Jay Rao & Joe Weintraub

Dedicated Team
Facilitator
Boss
M/C Shop

Meritocracy
Team >> Individual
Safety
Forgiveness than Permission

Direct contact with customer

Anthro research
Voting
Brainstorming
Rapid Prototyping

Constraints $, Time
Needs Safety, Checkout,
# of Prototypes
Customer feedback

Jay Rao

Encourage wild ideas

Build on wild ideas
Do not criticize
Stay focused

Open
Fun,
Playful
Flat

IDEOs Process:
Opportunity Identification Development Capture

A-Team
Venture Capitalists
Customer ideas
Collective IBM expertise

Spend time on emerging businesses

I dont know & will learn
Discover, Learn, Adjust
Support and Coach

Small pilots
Market experiments
Proof of Concept
Quick Kills
Slow to Staff-up

Big $1 B hits
Businesses & not technologies
Milestones for progress

Jay Rao

Learning
Experimentation
Accept failure
Long term orientation

Humor
Celebrate
Failure
Security

10

Freewheeling small R&D task groups

PTFE knowledge
Free dabble time
Support for experiments
Real, Win, Worth
Idea marketplace
Experimentation
Gift economy
Support mentoring
Break up to remain small
Commitments, not assignments
Employee Owned
Leaders have followers
Judged by peers and team
Compensation = Contribution

Jay Rao

Make money, have fun

Free spirits
All are leaders
High trust, Low fear
Act with utmost integrity
Self motivated
Initiative
Recruit Followers
Personal relationships
Direct 1to1 communication
Lattice Enterprise
250 people/plant
Minimal Bureaucracy
Patient about success
Sharing/Collaboration

Preemptive Phone Home Tech.

Customer interaction skills training
Customer Councils & EMC World
One level of service to all customers
Collective Expertise to Solve Problems
Single level of service
8hr problem escalation
to CEO
Hiring & Training
Processes
TCE Executive Summit

80% of sales to repeat customers

99% customer retention rate
Industry experts accolades
Stealing market share
Metrics, incentives aligned to CC
Jay Rao

Service is Sales Enabler

Guilty until proven innocent
CEO 600 customer calls/yr
Everybody Makes Customer Calls
Problem Solver, Responsibility, Ownership
CEO 500 customer visits in
10 yrs
Executives very tactical
No heroes in the field
Team players
Embed yourself into
customers lives

Pathologically Obsessed
High-Touch
Collaboration
Continuous Learning
Speed

Youngest Fleet
Highly trained Crew
Disciplined Leadership
Management Expertise

Stringent Hiring
Train, Train, Train
Monitor & Feedback
Mandatory retirement

Awards
Best of the Best
#1 in the World
High Profitability

Jay Rao

Best Customer Experience

Young, Fresh, Youthful
Worldly & Sophisticated
Operational Excellence

Told what to do
No cliques
Lots of rules
Follow procedures

Top Down
Rigid
Paranoid
Structured

Seniors assigned to Guideposts

Community, Mutual Fun
Adventure Capital
Community service time
Knowledge base (who?)
Quiet Genius
Hiring
Welcome parties
Social period
Mutual Fun Software
One Year Forcing Function
2-people rule
Employee newsletter
Measured on Stability
Measured on Innovations
Mutual Fun end points cost, learning
Bonus for community service
Engaged even after retirement
Low turn-over
Meaningful relationship
Jay Rao

Responsibility, Accountability
Meaningful Relationships
Wellbeing, Trust
Ownership, Inclusive

Upbeat
Openness
Optimistic
Collaborative
Participation
How you think
Volunteer
Coaching
Free
Non-threatening
Enjoying, Social
Belonging, Caring
Community, Homely

14

Management Talent
Home grown talent
Technology expertise

Constant Monitoring
Feedback
Modular work
Lots of communication

High Productivity
High Quality
Profit Sharing
Low Cost Producer
High Equipment Utilization

Jay Rao

TRUST
Belief in individuals
Reward for performance
Egalitarian
Pride
Self motivated
Hard work
Initiative
ENTREPRENEURIAL

Flat Org.
Open door
Mgt. by walking around
Sharing
Fair & Fearless
Self Mgt. / Self Supervision

Lots of opportunities to Learn

Training Courses
Customer Service = investment not expense
Free Food
Application
Hiring Technical +Cultural
Fit
Training 4 Wks
$2000 offer to Quit after
training
More with less
Every one starts in the call
center & warehouse
Customer Service Platform
Net Promoter Score
7% churn vs. 150% churn
50% Technical 50% Cultural
Long Term Orientation
Fortunes Best Places to Work

Jay Rao

Customer Obsessed
Employee Happiness
Learning = Energize, Engage, Enable
Trust you will make the right decision
Purpose, Not Profit
Long Term Focus
Team
Positive Emotional Connection
Humility
Honesty
Communication
No Scripts
Flexibility not Efficiency
Passionate & Determined
Fun, Weird
Lifestyle
High Energy
Ownership
No Door
Build your own workspace
Family Coworkers socialize