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Revolutionizing how teams think together to deliver return on innovation (ROI)
Cincinnati 2012 Innovation Summit PDMA & AMA
October 18, 2012
Building Hot Teams
Min Basadur
Copyright Basadur Applied Creativity 2012
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1. Follow an innovation process together
2. Ask the right innovation questions: “How might
we?” and “Why?-What’s stopping us?”
Hot Teams learn how to:
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• The innovation process hot teams learn to follow.
• The questions hot teams use over and over:
How might we?
Why might we? What’s stopping us?
• How hot teams synchronize their diverse cognitive styles
• Real world examples of bottom line ROI
• An On-line hot teams profiling tool
• Questions and Answers
Agenda
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• Engineering Physics, University of Toronto
• Procter & Gamble
• University of Cincinnati, Ph.D.
• McMaster University
• Basadur Applied Creativity
Min Basadur
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• 6 Certified Trainers in US, Canada
• 50+ Certified Facilitators across the globe
• IP licenses with 2 firms – US and Spain
• Academic Research Partners & Publications
• 15,000+ people have taken the Basadur Profile in last 5
years – translated into 15 languages
The Basadur Network
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Some Recent Clients
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Real And Tangible Results for ROI
Procter & Gamble ROI
$400M per year to the bottom line – 4% of sales
The question: How might we
spend our money in more
innovative ways?
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P&G’s People Engagement Strategy
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The Goal:
$400 Million Savings
Common
Team
Innovation
Process
The Structure: Inter-disciplinary hot
teams deliberately
seeking innovative
changes
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Real And Tangible Results for ROI
Frito-Lay ROI
Bottom line cost savings of $500M in four years .
The question: How might we engage our people in using their creativity to offset inflationary cost increases?
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Frito-Lay: Make the Business Need as Measurable as Possible and Start at the Top
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The Goal:
$500 Million in Five
Years to the bottom line
Common
Team
Innovation
Process
The Structure: Begin with
Vice-Presidential
Inter-disciplinary hot team
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Step 1: Ask “Why? / or What’s stopping?
Step 2: Answer in a complete simple statement
Step 3: Transform the answer
Asking the Right Question: Why Might We Want to?
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Irish Spring
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Challenge Statement
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HMW make a better green striped bar?
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Irish Spring Challenge Map
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HMW make a better green striped bar?
HMW regain market share?
Wh
y?
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Irish Spring Challenge Map
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HMW make a better green striped bar? W
hy?
HMW make a more refreshing bar?
Wh
y?
HMW regain market share?
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Coast
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Hot Teams Do Not Jump From 1 To 8
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But, Hot Teams DO Proceed 1 Through 8
Most people think in terms of solutions, not in terms of problems. They often solve the wrong problem because they are in too big a hurry.
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Speaking of ROI
The team could have saved about $150,000 … if it knew
how to follow the innovation process ….and defined the problem at the beginning.
Also it could have entered the market 6 months earlier
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Research: Characteristics of Effective Organizations
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React
Routine
Proactive
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Anticipating problems, trends, opportunities
Seeking new technologies and methods
Deliberately disrupting
Finding new work
Accepting new ideas promptly
Proactive Adaptability
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Good Examples
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Tylenol
Toyota, Honda
Amazon.com, 3M, Apple
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Today’s organizations must deal with complex problems requiring creativity and team work
much more so than in the past.
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Adaptability Requires Different Thinking Skills.
Problem Finding is the key.
Adaptable Organizations do not wait for problems.
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New Scientists and Engineers
Problem Finding Cultures
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World Class Employee Suggestion Systems
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Japanese World Class Employee Suggestion Systems
• Not optional
• Golden eggs
• Natural work teams
- find, solve and implement
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Problems Solutions Actions
Nippondenso Work Team Example
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Japanese World Class Employee Suggestion Systems
The main objective:
• Motivation
• Group interaction
• Job satisfaction
660,000 implemented suggestions in one year from 9,000 people
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• Maslow
• Herzberg
• Berlyne
• Whyte
• McClelland
• Deci and Ryan
• Locke and Latham
Opportunity for creative activity results in motivation (not the other way around)
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By reversing negative thinking
How might we …? Becomes
part of a new language of
innovation .
Hot teams help Create a New Culture … They learn to say “How might we?”
We can’t because …
Would cost too much …
It’s not budgeted …
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By looking for problems to
turn into golden eggs
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Research: Teams who learn to use the innovation process produce better results (ROI)
Innovative Results = Content (The What)
+ Process (The How)
+ Process Skills
(to make the process work)
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The Innovation Process Has Four Continuous Stages
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Different people prefer different innovation process stages
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We call these innovation process styles
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A Fundamental Concept
Successful Innovation requires a combination of Knowledge, Imagination, Evaluation, and Action
But we have different styles of using this combination …
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Two ways of gaining knowledge:
- Through direct experience
- Using abstract thought
The Basadur Profile : How we are different:
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• Two ways of using knowledge:
- To ideate (create options)
- To evaluate (judge options)
The Basadur Profile: How we are different
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Two Different Ways of Gaining and Using Knowledge
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Implementer Generator • new problems, challenges • different perspectives • create options (diverge) rather
than evaluate • enjoy ambiguity • keep all options open
Which might be your most preferred style ?
• action, results
• understanding not necessary • adapt to changing circumstances • enthusiastic but impatient • bring others on board, but … • dislike apathy
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Optimizer Conceptualizer • abstract thinking • create new insights
• problem definition; big picture
• clear understanding necessary • high sensitivity to and
appreciation of ideas • not concerned with moving to action
• analytical thinking
• practical solutions to well
defined problems • find the critical few factors • evaluate options rather than
diverge • see little value in “dreaming” • dislike ambiguity
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Quadrant Tensions
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• Wonder why they get paid
• Never see them do anything
• Always see them thinking
Implementers View of Conceptualizers
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• Dangerous because they’ll do anything
• Don’t appear to think first
• Bang their heads against the wall
Conceptualizers View of Implementers
QUADRANT TENSIONS 40
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• Unable to focus on the “real” problem
• They start working on five new
problems before one is solved
• Are hard to “pin down”
Optimizers View of Generators
QUADRANT TENSIONS 41
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• Too narrow minded
• Cannot see the big picture
• Think they know the right
answer but might be for
the wrong problem
Generators View of Optimizers
QUADRANT TENSIONS 42
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1. Everyone is a blend of preferences
2. States not traits
3. You can be skilled in all four quadrants
4. Heterogeneous teams perform more innovatively
(but have less satisfaction)
5. Generators are in shorter supply in corporations
6. Different jobs/functions favour different styles
What Our Research Shows About the Different Process Style Preferences
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1. One quadrant very preferred
2. Two quadrants equally strongly preferred
3. One quadrant most preferred with two adjacent
quadrants substantially preferred
Examples of Blends of Styles
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Quadrant 1 Very Preferred, All Others Small
45 EXAMPLES OF BLENDS OF STYLES
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Quadrant 2 Very Preferred, All Others Small
46 EXAMPLES OF BLENDS OF STYLES
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Quadrant 3 Very Preferred, All Others Small
47 EXAMPLES OF BLENDS OF STYLES
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Quadrant 4 Very Preferred, All Others Small
48 EXAMPLES OF BLENDS OF STYLES
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Quadrants 4 and 1 Equally Strongly Preferred
49 EXAMPLES OF BLENDS OF STYLES
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Quadrants 1 and 2 Equally Strongly Preferred
50 EXAMPLES OF BLENDS OF STYLES
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Quadrants 2 and 3 Equally Strongly Preferred
51 EXAMPLES OF BLENDS OF STYLES
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Quadrants 3 and 4 Equally Strongly Preferred
52 EXAMPLES OF BLENDS OF STYLES
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Quadrant 1 Most Preferred Two Adjacent Quadrants Also Substantially Preferred
53 EXAMPLES OF BLENDS OF STYLES
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Quadrant 2 Most Preferred Two Adjacent Quadrants Also Substantially Preferred
54 EXAMPLES OF BLENDS OF STYLES
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Quadrant 3 Most Preferred Two Adjacent Quadrants Also Substantially Preferred
55 EXAMPLES OF BLENDS OF STYLES
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Quadrant 4 Most Preferred Two Adjacent Quadrants Also Substantially Preferred
56 EXAMPLES OF BLENDS OF STYLES
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• Overly Short-Term Focus
• May be overloaded with Implementers and Optimizers
- “Fire fighting”
- Constantly re-working failed solutions
- Missing opportunities to improve and change
Imbalanced Teams
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• Overly Short-Term Focus
• May be overloaded with Generators and Conceptualizers
- Develop good ideas but don’t get them implemented
- Slow to market with new products and services
- Satisfied even if not much is getting done
Imbalanced Teams
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Not Enough Time Devoted to Conceptualization and Optimization
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An organization attempting to establish new financial products quickly in a very competitive environment, but encountering a high percentage of failures.
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Not Enough Generators?
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A typical group of managers from a large aerospace company serving the aircraft, airline, and aerospace industries wanting to expand faster into new products and new market.
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Great Ideas But No Action!
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Old fashioned company desperately needing a breakthrough idea forms a team and is successful.
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Maybe We Selected the Wrong Mix of People?
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A small “Spin Off” company especially created for generating new product opportunities but only a few trickling in ….
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Too Many Conceptualizers?
63 SECTION OR PRESENTATION TITLE
An HR strategy development team in a large health insurance company is having difficulty moving forward. They are unable to decide which new strategy to recommend and keep on coming up with new ones.
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A Major High Tech Software Company Fearing Falling Behind …
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Air Traffic Controllers, Aren’t We Glad?
65 SECTION OR PRESENTATION TITLE
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A Pretty Well Balanced Team, Wouldn’t You
Say?
66 SECTION OR PRESENTATION TITLE
An interdisciplinary team leading a new quality of work life initiative at a large hospital.
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Is It Going To Be Difficult To Get Their Attention?
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The leaders and staff of the hospital are being asked to get involved a new quality of work life HR initiative.
But they are awful busy doing the day-to-day work.
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The Market Research Team Looks a Lot Like This
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Is the market research team in for a big surprise?
69 SECTION OR PRESENTATION TITLE
The Market Research team is eager to present 57 pages of great new data to the Sales Team (assembled and waiting).
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A Financial Services Division Wanting to Differentiate Its Credit Cards and Needing Help
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Ontario College of Art and Design: Students
Entering Master’s Program in Strategic Foresight and Innovation
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Lean Six Sigma Symposium
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More Examples of Return on Innovation
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Impact of Integrating Innovation Process And Skills Into CI Teamwork
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Impact of Integrating Innovation Process And Skills Into CI Teamwork
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Impact of Integrating Innovation Process And Skills Into CI Teamwork
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It is: Diversity in How people think and problem solve
It is not: Diversity in What people know (due to differences
in function, education, race, ethnicity, gender, etc.)
What Is Cognitive Diversity?
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• Using the process continually: finding and defining
problems, solving them, and implementing the solutions
• Performing the skills that make the process work
• Respecting others’ problem solving styles
• Devoting special attention to problem definition and
implementation
Simplexity Thinking: A Process Driven by Skills
And Synchronized Styles
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Innovative Behavior: A Continuous Process Flow
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Here’s how:
1.Visit our profile website www.basadurprofile.com
2.Follow the instructions
3.Sign up as an individual or create a team account
4.Purchase the Team Builder Kit to facilitate a fun
hot team session
5.You will receive an Instructor's Guide and a set of
facilitator’s slides
Would You Like to Try Out the Styles Profile?
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The Basadur CPSP Profile
Facilitator’s Guide to Debriefing the CPSP Profile Experience
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• Hot Wax
• Automatic Case Pack: Lay the Bags Flat
• Cube Utilization
More examples of ROI
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Hot Wax
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The team is stuck.
It s not a hot team.
84 HOT WAX
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The team has been working very hard for 12 months to
find a solution to the challenge: “How might we mix the wax and water without violating the competitor’s patent?”
85 Hot Wax
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“How might we develop something we could call a hot
wax that is compatible with water and provides a
benefit to cars?”
ROI: a unique product with a patent … to the market in
five months.
ROI: 12 months of wasted time $100,000
Redefining the problem
86 Hot Wax
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The Automatic Case Packing team
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The team is stuck.
It is not a hot team.
88 THE AUTOMATIC CASE PACKING TEAM
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Fact: Manufacturing has found a way of automatically packing
bags of potato chips into cartons instead of manually. This
saves $30 Million but the bags must be laid flat instead of
upright in the carton.
Fact: Sales people need to let the grocer count the number of
bags in a carton quickly before he will pay. If the bags are
flat this will take longer and this will prevent the
salesperson from making the target number of sales calls
per day.
Fact: The group is stuck and management is frustrated.
Lay the Bags Flat
89 THE AUTOMATIC CASE PACKING TEAM
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“How might we lay the bags flat yet still let the grocer
quickly know how many bags are inside the carton?”
ROI: $30 Million per year… directly to the bottom line
Defining the Problem Creatively
90 THE AUTOMATIC CASE PACKING TEAM
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Cube Utilization
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The team is stuck.
It is not a hot team.
92 CUBE UTILIZATION
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Fact: Frito-Lay trucks go out only half full of potato chip cartons.
Fact: A new method of loading trucks has been identified.
• Trucks would be 95% full.
• $12 Million would be saved.
Fact: A team has been testing the new method to ensure the
new method will not result in more chip breakage.
The team is also trying to determine if there is an optimal
level of chip breakage that consumers prefer.
93 CUBE UTILIZATION
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The facilitator repeatedly asked the team the question:
“What else is stopping you from making a
recommendation to adopt the new method?”
Someone on the team finally answered:
“We are afraid of making the recommendation without
being sure there is no risk ”.
Digging out the Hidden Facts
94 CUBE UTILIZATION
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“How might we write the recommendation in such a way that
management understands the risk and shares it with us?”
The recommendation was written that same day and adopted
by management immediately.
ROI: Saving $12 Million directly to the bottom line
Hot teams learn to say :’What’s stopping us?”
Defining The Problem Creatively for ROI !
95 CUBE UTILIZATION
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Additional Examples of ROI
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The management team is very worried. None of their solutions have worked. Their team styles profile looks like this:
Ford Motor Company 40 cases/shift
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Eight Implementers
Seven Optimizers
Zero Generators
Zero Conceptualizers
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The team agreed to devote two days to fact finding and problem defining.
Ford Motor Company 40 cases/shift
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Problem finding Fact finding
Problem definition
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The team defined three new problems, solved them, and implemented the solutions.
Ford Motor Company 120 cases/shift
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Generating (Problem finding, fact finding)
Conceptualizing (Problem definition)
Implementing (Action)
Optimizing (Solutions)
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Toronto Sunnybrook and Hamilton Ontario Juravinski
Regional Cancer Centers
- Innovation teams reduced Radiation Therapy Wait Times by 39%
J.P. Morgan
- Innovation process used as a RAPID BUSINESS ANALYSIS tool to strategically plan company wide IT investments.
- Prioritized 300 projects down to 16 in 4 months vs. traditional tools which take more than 1 year.
- Breakthrough success resulted in 50% increase in IT budget.
Real & Tangible Results for ROI (continued)
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Real And Tangible Results
Pfizer
• Aspirational strategic planning and bold business-accelerating ideas for double-digit growth
• Unified regions under a single World HQ vision and imperative
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For further information on the Profile or the Simplexity Applied Creativity process, please visit
www.basadur.com
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TITLE
Thank You!