Innovation is not for Lone Rangers

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Innovation is Not for Lone Rangers

Doug Jackson, CBAP andPaula Pierce, PMP, HCS, BMC

03/06/2014

2 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC

• Innovation Defined• Application through Innovation

Networks• Innovation Case Study• Bringing Innovation to Life• Understanding Culture• Creating the Framework Right

for Your Organization• Preparing for and Managing

Change

Agenda & Objectives

Learning Objectives

1. Apply BA and OCM best practices to create an environment for innovation

2. Identify and capitalize on existing networks

3. Identify the root of change resistance in your organizations

Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC

WSJ - MIT Sloan Management Findings on Innovation

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So how can we create a network for innovation?


1. Problems in Communications - Geography, politics, just not knowing that a group who can contribute exists in your organization. However, the main communication problem is a failure to plan for how constructive interactions can take place

2. Bad Gatekeepers – Key individuals who filter ideas and new concepts, who are unwilling to back them for reasons that are not valid

3. Insularity – Contributors to the innovation are too isolated to work in a constructive way to innovate. Isolation may be geographical, contractual, or a difference in paradigm

Key Innovation Barriers

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1. Get the right people talking

2. Rapidly test and refine ideas

3. Think twice about leadership

4. Make collaboration easy

5. Consider energy

Key Aspects of Creating a Innovation Network

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These related articles from MIT Sloan Management Review can be accessed online

The New Principles of a Swarm Business

By Peter Gloor and Scott Cooper (Spring 2007)

In every large company, groups of creative individuals self-organize to explore and develop ideas

that they care deeply about. http://sloanreview.mit.edu/smr/issue/2007/spring/12/

Are You Networked for Successful Innovation?

By Polly Rizova (Spring 2006)

To investigate how companies can best manage their efforts to innovate, the author conducted an

in-depth study of six R&D projects at the laboratory of a Fortune 500 corporation and found that

highly successful R&D projects have four crucial factors that reinforce each other.

http://sloanreview.mit.edu/smr/issue/2006/spring/10/

Using Supplier Networks To Learn Faster

By Jeffrey H. Dyer and Nile W. Hatch (Spring 2004)

Many companies keep their suppliers and partners at arm's length, zealously guarding internal

knowledge. Toyota Motor Corp., however, embraces its suppliers and encourages knowledge

sharing through established networks. http://sloanreview.mit.edu/smr/issue/2004/spring/11/

Don't Just Relate -- Collaborate

By Mohanbir Sawhney (Spring 2002)

Collaborative innovation occurs when companies tap into user expertise and integrate it into the

business's new-product development process.





Situation:• A very large commercial financial institution serving defense employees,

veterans and their families was looking for new ways to increase “revenue lift” on their consumer loan portfolio

• Defense employees are showing increasing interest in getting loans for late model vehicles

• With the age of the internet, veterans were increasingly buying more vehicles off the internet, wanting to have them ready to drive when they get back from their tour of duty

Customer Problems:• Often the buyer would get a vehicle that was prone to problems that were

not disclosed• To buy extended warranty insurance, the customer would need to go

through a dealer and pay a very high premium for the insurance product

Innovation Opportunity: Find a way to provide insurance with a car loan

Partners In Innovation – Case Study

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The scope of the effort was depicted in a model with the innovation opportunity at the top and a listing of all of the team who might be involved listed along the left side.

To set up the network:• Leadership purposefully adopted a “there

must be a way” mentality praising creative thinking

• Participants who had a role were selected on their backgrounds, informal connections and chemistry rather than their job title

• Partner (insurance provider) were part of the innovation team – introduced during a face to face teaming session.

• Role of team members set up around the part of the challenge they needed to address rather than requirements they can give (focus on “what could be”)

• The sessions were designed to be fun and informal

Getting the Right People Talking

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The concept was high level and the test was to understand how to make it work. Two tools where used:1. The concept of a user story but a very

high level to develop scenarios that we need to consider

2. Process models starting with a “to-be” state, breaking down innovation challenges for team members.

Rapidly Test & Refine Ideas

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• Perceived problems were creatively addressed early – this kept the energy of the team high

• The vendor model was replaced with a partner model, mitigating risks and increasing constructive collaboration throughout the product development (win-win)

• The business case was optimized for realistic goals• A program that had failed two years earlier, was

set up for success much faster than other projects of its size and scope

• The innovation opportunity contributed to the goals of the organization (revenue lift)

The Results from the Case Study

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Key Benefit for Business Analysts: Innovation was a career builder for BAs in each of these examples. Why? Because executives value the intangible value of translating ideas into outcomes.

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Understanding the CultureDefining the Innovation FrameworkPreparing for and Managing Change

Bringing Innovation to Life


Understanding Organizational Culture

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• Visible & feelable structures & processes

• Observed behavior• Ideals, goals, espoused

values & aspirations• Ideologies• Rationalizations

• Unconscious, taken-for-granted beliefs and values

Organizational culture is an evolutionary pattern of employee assumptions, beliefs, thoughts and feelings about how to be successful in the organization.


Innovation Framework

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Organizational Culture

Facilities

Recognition & Rewards

Processes

Interaction

Systems

Language

Proclamations

Norms

Innovation


• Harvard Business Review, Jan-Feb

2014

• A model of a help-friendly

organization

• Why it Works – Culture

• Assumptions and beliefs

• Leadership conviction

• Defined roles

• Aligned processes

IDEO’s Culture of Helping

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A design and innovation consulting firm.


Assessing your organization’s readiness

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Change Complexity Change Capability

The business problem is easy to articulate There is a clear sponsor who will engage to move this project forward

The business problem is easy to solveThe sponsor has demonstrated capabilities to lead change in the past

The change impacts one stakeholder group that reports up through the same management chain (sr manager, director & executive)

The stakeholder groups have a strong sense of urgency to solve the business problem

The change impacts all stakeholder groups in the same wayThe stakeholder groups have a common vision of what defines success for this problem

The change has clear alignment to the firm’s mission and strategic objectives

There are consistent processes and mechanisms in place to cascade messages and information through the management chain

The change impacts only one of the following elements (business process, technology, jobs, organization structures, facilities, compensation)

There are no other initiatives or projects the will impact the stakeholder groups as the same time

The change has no impact on the way work is conducted (business processes)

There are no other initiatives or projects that have conflicting objectives or expectations for the stakeholder groups

The change has no impact on supporting technology systems

Middle management understands what is expected of them when managing change and has the capability to do so

The change has no impact on the way employees’ jobs are defined and the work they’ll be expected to perform

The project team has adequate time to assess the change circumstances and develop a plan to manage the change

The change has no impact on the way employees are organized into teams and management reporting relationships

Employees are experienced and have demonstrated past success in managing their personal change transitions

The change has no impact on physical infrastructure (work location, physical infrastructure, office space, etc.)

There are requisite human resources available to design, develop and manage implementation of the solution

The change has no impact on compensationThere is adequate funding available to design, develop and manage implementation of the solution

The change will be completed in 3-12 monthsOrganizational systems are in place to reinforce and institutionalize the solution

The stakeholder groups will experience the same beneficial outcomesThe stakeholder groups have the same concerns about the how they’ll be impacted


Change Strategies by Phase

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Develop

Implement

Sustain

• Communicate vision

• Establish urgency

• Engage stakeholders

• Allocate resources

• Identify strengths & weaknesses

• Define success• Establish

measures• Plan your course

• Communicate course of action

• Be active & visible

• Model behavior• Gather feedback• Remove barriers• Address resistors• Measure progress• Celebrate

accomplishments• Modify plan

• Communicate progress

• Maintain momentum

• Modify systems• Revise

recognition & rewards

• Check adoption• Refine and adjust• Reinforce desired

behavior• Celebrate

success!


• Find and engage a sponsor

• Clearly articulate vision

• Understand and communicate business benefits

• Describe consequences of status quo

• Provide a comprehensive picture of innovation framework – what needs to change

• Document success definition

• Set realistic timeline

• Secure requisite resources

• Establish performance measures

• Don’t go it alone – form a team of trailblazers

Making the Case for Innovation

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Doug Jackson, CBAPSenior Director, Requirements & Business Analysis, Robbins-Gioia [email protected] www.robbinsgioia.com/who-we-help/client-success/case-studies/a-financial-institution-builds-a-business-case.php

Paula Pierce, PMP, HCS, BMCCEO and Principal Transformation Strategist, Peridona Strategies [email protected] www.peridonastrategies.com

Thank You!

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