Strategic Innovation

Leadership

John Scotland
BA Grad Dip Ed Grad Dip HRD
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 Thomas Edison

“I have not failed, I’ve just found 10,000

ways that won’t work”.
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Strategic Innovation Leadership
 Fear, innovation and business success
 Innovation leadership attitudes and
competence
 The blueprint for workplace innovation
 How to build and lead the best teams for
innovation
 How to implement a proven creative problem
solving process in your organisation

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What are they??
Creativity
and
Innovation
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 Sources of Competitive Advantage Over Time
Knowledge and
Ideas • Creativity &
2000 Innovation
• 5th generation mgt
1990
• BPR
1980 • Learning org.
• TQM
• MBO
1970 • HR planning
• Strategic planning
1960 • Managerial grid
• Industrial relations
1940 • Time and motion
• Group theory
1920
• Scientific mgt.
1900
Approaches
1850 • Systematic mgt.
Command and control / Individual focus Coach and develop / Team Focus
Capital Fixed reward / hard systems Flexible benefits / Soft values5
Bureaucracy Networked teams
 Innovation
and
Financial Performance
35
30
25
20
Financial 15
Performance 10 ROA
5
in % Points 0 Market Share
(using Bottom 20%
-5
as benchmark) -10
-15
Bottom Middle Top
20% 20% 20%

Innovation
(Soo, C. et al. 2002).
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 “New Concepts in Innovation”
Business Council of Australia (2006)

The prevailing view among Australian business leaders and

Government agencies is an old one – that creativity is the
domain of the artist or researcher.

OLD INNOVATION NEW

INNOVATION

Australian business and public sector management is imbued

with a sense of research and development but it lacks the
skills, knowledge and confidence to work creatively and 7
Innovation Leaders 2006/07*
 Boeing (US)  Reckitt Benckiser (UK)
 Virgin Atlantic (UK)  PepsiCo (US)
 Toyota (Japan)  Tesco (UK)
 RBS (UK)  Apple (US)
 Du Pont (US)  Aviva (UK)
 Samsumg (S Korea)  Google (US)
 LEGO (Denmark)  Canon (Japan)
 BP (UK)  Novartis (Switzerland)
 H&M (Sweden)  Microsoft (US)
 Nokia (Finland)  Adidas (Germany)
* Innovaro Ltd 2007 # Note: No Australian Company

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Innovation Leaders 2006/07

 Strategic Focus
 Insight
 Collaboration
 Process
 Organisation

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Managers’ Perceptions of Innovation
- An Exploratory Study
(September 2003 – March 2004)

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 ‘The Innovation Gap’
Elaborated responses
No = 25% (30.5%)

Yes = 44.5%

Only 9.3% reported having a formal innovation strategy

and allocated budget in place

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 Summary AIC Research Findings
‘THE INNOVATION GAP’
 Concept of Innovation not always clearly understood.
 Most organisations don’t know how to cross the bridge
between concept and implementing performance-based
innovation strategies.
Whilst 44.5% of organisations claimed their organisation
to be innovative only three had a formal innovation
strategy in place.
Only one organisation offered their employees
creativity/innovation related education and training.

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Supporting factors and barriers
Supporting factors Barriers
Leadership and
Resistance to change
support from top management

Culture, climate and identity Org culture and climate

Rewards and recognition Corporate structure

Competition and deregulation, Workloads and

need and diversity Lack of skills

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FE A R
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 Desired Future
Discrepancy
Innovation
Gap Need Champion

Strategy on how
to get there

Current State
• Lack of useful ideas
• Lack of skills or support for creative and strategic breakthroughs
• Perhaps, other challenges and problems 15
 Business Creativity & Innovation
Framework (BCIF)

Product

Innovation
Innovation
Press 4Ps
4Ps
® Process

People
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Innovation 4Ps: A Whole System Innovation

Product Process

People
ss
e
Pr

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 Determinants of Organisational
Creativity and Innovation (AIC)
Organisational Climate
Leadership Style

Organisational
Innovation

Resources & Skills

Organisational Culture

Structure & Systems

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 The First P of Innovation

Refers to the context

(ie: climate, culture and environment)

Press

Press is short for pressure - that is, the context within which
people, process and product operate. The environment, both
internal and external to the organisation, presses in on and out
from the organisation.
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 Climate Survey - Impact of the Work Environment (KEYS)
Innovation within the organisation depends upon:

• Organizational Motivation – the basic orientation of the

organization toward innovation

• Resources – everything the organization has available to aid in

the area targeted for innovation

• Management Practices – supporting freedom and autonomy in

the conduct of work; challenging interesting work;

• Expertise – knowledge, talent and skill

• Creativity Skills – having a flexible problem-solving approach,.

• Intrinsic Motivation – the desire to solve the problem or

accomplish a task

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Blueprint for Innovation
 Culture Climate Analysis (KEYS)

 Business Creativity and Innovation

Index (BICI)

 Strategic Approach to Innovation in

your Organisation

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Components of Individual
Creativity

Creativity
Expertise Skills

C
Intrinsic
Motivation

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Organisation
Creativity Building
Trusting
Relationships

Success Creating
Increasing
the Future
Energy &
Effectiveness Initiative
Innovation &
Under Pressure
Unique Potential

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Innovation within the
Organization

Resources Management
Practices
I
Organizational
Motivation

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 Innovation within the organization
depends upon:
 Organizational Motivation – the basic orientation of the
organization toward innovation; shared vision; providing
rewards and recognition; lack of internal politics, and lack of
overemphasis on the status quo.

 Resources – everything the organization has available to aid in

the area targeted for innovation, including time, funding,
information and materials.

 Management Practices – allowing freedom and autonomy in

the practice of work; providing challenge; specifying clear
strategic goals and forming work teams comprised of individuals
with diverse skills and perspectives.

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 Impact of the Work
Environment
Management
Work Resources
Practices
Environment I Innovation

Organizational
Motivation

Creativity
Expertise
Skills
C
Individual/Team Creativity
Creativity Task
Motivation

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Impact of the Work
Environment on Performance

 What you CAN do: Talent

 What you WILL do: Motivation

 HOW you will do it depends upon your

intrinsic motivation

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 The Second P of Innovation

Process

What are the mechanisms and processes that

lead to innovative products, services, processes
or procedures?

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 4-Power Innovation

Clarify Ideate Develop Implement

Pinpoint the Come up Refine ideas Put the plan
problem to with new into strong into action
solve ideas solutions

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 Diverging and Converging
Diverging thinking Converging thinking

Generating lots of options and Judging, assessing options,

ideas, making lists. focusing, making decisions.
Green light = speed Red light = brakes on!
These are two mutually exclusive mental activities 33
 The Third P of Innovation

Addresses the issues related to PEOPLE,

such as individual differences and
teamwork

People
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 FourSight Preferences

Clarifier
Developer
Diagnostic
Evaluative
Thinking Ideator
Thinking
Visionary
Implementer
Thinking Tactical
Thinking 35
On average, it takes about 3,000 raw ideas to lead to a
commercially successful product or process

Initial Experiments New

ideas product
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Stevens & Burley, 1997
Team Profile

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 The Fourth P of Innovation

Product

What makes products, services,

practices or procedures innovative?

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 Characteristics
Characteristics of
of an
an INNOVATIVE
INNOVATIVE
Product
Product or
or Service
Service

NOVELTY Originality
(Is it new or different?)

• Does it solve the problem or help

manage the challenge?
• Is it understandable?
• Is it useful and practical?
• Is it well presented?
• Does it work?
• Is it attractive and credible?
• Does it provide value?
• Will people ‘buy it’?
• Is it cost-effective
• Can it be commercialized?

ELABORATION & RESOLUTION

SYNTHESIS
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 Ideas Management
 Ideas need to be:
 Generated

 Captured and Retrievable

 Evaluated

 Developed

 Implemented

 Rewarded

 Measured

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Innovation Leadership:
Attitudes
 Deliberate climate creation and cultural
influence
 Innovation vision
 Encourage challenge & risk taking
 Collaboration
 Resources for innovation
 Celebration
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Innovation Leadership:
Innovation Competence
 Model and coach for innovation and
creativity
 Develop innovation teams and leaders
 Generate breakthrough ideas
 Capitalise on intrapeneurship
 Customer Service
 Insight into drivers and opportunities
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Innovation Leadership:
Metrics, systems and prcatices
 Measure innovation costs & benefits
 Incorporate innovation in performance
management
 Establish supportive systems
 Use innovation to increase profit
 Seek to accelerate breakthrough
thinking

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 Thankyou

Strategic
Innovation
Leadership
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