I n t e g r i t y - S e r v i c e - E x c e l l e n c e

“Discontinuous improvement with some risk of failure”

XCITEeXperimental Center for Ideas/Technology Exploration

1

Richard T. Backs

412 TW/XP

16 May 2018

Organizational Culture and Innovation

ITEA 2018 Test and Training Workshop

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FOR OFFICIAL USE ONLY XCITEToday’s Outline

• Introspection: Sun Tzu

• Assessing an Organization’s Innovation Culture – Methodology & Measurement

• 412 TW Culture of Innovation Survey

• Understanding the Results – “It is what we make it”

• Strengths

• Opportunities

• Moving Forward: Innovation Blueprint

• Leadership – The Key Ingredient

• Q&A – What didn’t I tell you…?

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FOR OFFICIAL USE ONLY XCITEIntrospection: Sun Tzu

“If you know the enemy and know yourself, you need not fear the result of a hundred battles.”

Sun Tzu, The Art of War

(But what if you don’t know yourself, and fear you may be your own worst enemy?)

• How do we cultivate an innovative culture in our organization?

• Who are our innovators and how do we find them?

• What innovative characteristics does our workforce demonstrate?

• How do we measure the innovation culture in our organization?

• Where are we now, where do we want to be, how do we get there?

Epiphany: We did not have the tools or expertise to answer these questions

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FOR OFFICIAL USE ONLY XCITEAssessing an Organization’s Culture

Methodology

• Contracted for services: Innovation Cultural Assessment

• The Methodology: 4 Phases

– Phase 1 – Define Desired Innovation Vision and Culture

Executive Visioning Sessions

Executive Interviews (14 Senior Leaders across the Wing)

Focus Groups (5 groups ~ 30 participants)

– Phase 2 – Assess Current State

Culture of Innovation Survey

– Phase 3 – Perform Gap Analysis

– Phase 4 – Develop Innovation Roadmap

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FOR OFFICIAL USE ONLY XCITEAssessing an Organization’s Culture

Measurement• We collected inputs to understand the perceived maturity level of innovation at the 412th Test Wing.

INITIAL

Resistant Innovation Capability

• Innovation is not prioritized by leadership

• No disciplined approach to innovation

• No characteristics of an innovative culture

DEVELOPING

Emergent Innovation Capability

• Leaders recognize a need for innovation

• Pieces of a systematized approach are emerging

• Characteristics of an innovative culture are emerging

ADVANCED

Embracing Innovation Capability

• Leaders have embraced innovation as a strategic priority

• Processes, governance and resourcing around innovation are well-defined

• Characteristics of an innovative culture can be found throughout the organization

LEADING

Cutting-Edge Innovation Capability

• Innovation is recognized as an organizational core capability

• Innovation approach isconstantly being refined and improved

• An innovative culture is part of the organization’s DNA

PROGRESSING

Systematized Innovation Capability

• Leaders are taking action to encourage innovation

• Innovation approach exists in some parts of the organization

• Characteristics of an innovative culture can be found in most parts of the organization

Strategic Focus

Tactical Focus

Current State,

assessed in Visioning

Session

Desired State,

conceived in Visioning

Session

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FOR OFFICIAL USE ONLY XCITE412 TW Culture of Innovation Survey

• Innovation Culture Assessment (Workforce Survey Instrument)

– 75 Core Questions + 5 Custom Questions + 2 Collaboration Questions = 82

– 20% response rate (statistically significant) – 906 “Qualified Responses”

• Survey Measured 12 attributes across 4 Dimensions of Innovation

– Metrics & Incentives

– Organizational Structure

– Strategy, Process, & Systems

– Talent and Competencies

• Measured 3 key attributes of our Innovation Climate

– Autonomy

– Courage

– Workplace Dynamics

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FOR OFFICIAL USE ONLY XCITEUnderstanding the Results

“It is what we make it!”

The targets to guide performance; the

measures to evaluate progress and the

incentives (monetary and otherwise) to

drive innovation

The units that house innovation at an

organization – teams, divisions,

leadership – and the ability of those units

to collaborate with each other and

interface with leadership

The strategy, decision-making, and

evolution process behind innovation at

an organization; the ways in which an

organization’s leaders define and

approach innovation challenges

The individuals who perform the work of

innovation; the skills, tools, and training

they need to do it capably; and the

funding and time to fuel it

Rewards & Recognition 51% Collaboration 54% Innovation Strategy 49% Resources 47%

Innovation Metrics 35% Governance 38% Process 42% Talent Strategies 37%

Senior Leadership 49% Risk Intelligence 46% Continuous Learning 61%

Agility 47%

Dim

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Empowering employees with the freedom to make

independent decisions about their work

The degree to which employees exhibit resolution and

resilience when confronting adversity, ethical

dilemmas, failures, or opposition

Creating a workplace environment in which employees

are able to communicate, debate and discuss, and

manage ambiguity or uncertainty

AUTONOMY 68% COURAGE 74% WORKPLACE DYNAMICS 60%

METRICS &INCENTIVES

ORGANIZATIONAL STRUCTURE

STRATEGY, PROCESS, & SYSTEMS

TALENT & COMPETENCIES

• Within the Dimensions of Innovation, the highest scoring attribute is Continuous Learning; scores are

lowest in Innovation Metrics, Talent Strategies, and Governance.

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FOR OFFICIAL USE ONLY XCITEStrengths

• The following strengths are based on leadership interviews, focus groups, and Culture of Innovation

survey results.

Personnel perceive strong support for innovation from Gen. Schaefer, and appreciate his messaging on the importance and necessity of innovation for the Wing

Strong communication from senior leadership

Personnel generally feel empowered to take risks, and are not afraid to pursue opportunities in the face of adversity

Healthy innovation climate

In interviews and focus groups, personnel across groups and ranks/levels immediately link innovation to the Wing’s ability to stay in front of adversaries

Linking innovation to the mission

Personnel strive to continuously update their skills and knowledge, and feel that the Wing provides them with opportunities to meet changing skill requirements

Culture of continuous learning

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FOR OFFICIAL USE ONLY XCITEOpportunities

Define actionable metrics to track progress, make innovation tangible, and hold people accountable in innovation efforts

Track innovation with metrics

Furnish personnel with the physical infrastructure, updated equipment, and IT systems they need to perform innovative work

Provide the tools to get the job done

Automate routine tasks to create unstructured time for brainstorming and prototyping

Prioritize time for innovation

Reduce the barriers and bureaucracy involved in moving an innovation from idea to actuality

Streamline the innovation process

Create a shared understanding of the goals of “innovation” at the Test Wing, define what it means to employees and ensure that personnel – regardless of role or level – feel included

Define clear innovation strategy

Empower local-level leaders to support and approve innovation efforts

Engage middle managers/supervisors

Become the “first movers” – transform the culture by demonstrating innovative behaviors from the top

Demonstrate innovative behaviors

Align talent management practices with innovation strategy by targeting the skills and temperament required for innovation

Attract and retain top talent

Develop Talent to Support Innovation Strategy

• These areas of opportunity represent potential strategic priority areas for the Wing.

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• Deloitte facilitated an Action Planning Workshop with the 412th Test Wing innovation leadership where

participants selected three strategic priority areas and brainstormed actions and solutions for tackling them.

1. Communicate Innovation Program Goals,

Successes and Failures

2. Engage Middle Managers & Supervisors to

Catalyze Innovation

2.1 Identify and Engage Middle Managers Already Open to

Innovation

2.2 Address Middle Managers’ Reservations about

Innovation

2.3 Launch an Online Platform to Enhance

Communication for Middle Management

3. Demonstrate and Reward Innovative

Behaviors

3.1 Model Innovative Behaviors

3.2 Reward Innovative Behaviors

3.3 Provide Innovation Tools & Services

1.1 (Re)Develop Innovation Message that Resonates with

All Personnel

1.2 Broadcast the Message

1.3 Empower the Community of Innovators to Spread the

Message

Activities

The Wing prioritizes innovation, but employees haven’t yet

heard the message. Communicating goals, sharing success

stories, and making it personal will engage and energize

employees.

Enabling middle managers that are inclined to innovate

and demonstrating the value of innovation to skeptics will

help the Innovation Team decentralize the innovation

process and spur local momentum within groups and

squadrons.

Innovation is not just another program with a budget and a

staff. For innovation to succeed, leaders, managers, and

personnel need to act in a way that fosters the ideation of

new and improved products, services, and processes.

Moving Forward: Innovation Blueprint

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FOR OFFICIAL USE ONLY XCITELeadership – The Key Ingredient

• Culture change starts at the top with a strong Leadership vector

– Magnitude and direction of desired organizational change

• Leaders should encourage “Innovating as you Implement”

– No plan survives the first engagement, and that’s OK

• Trust, Empower, and Hold Accountable– Note: Hold accountable doesn’t mean “EXECUTE”

• Recognize a brilliant idea when someone ELSE has it

• Leaders must acquire risk intelligence and gain risk tolerance

– Most real innovations fail – that MUST be OK

• Leaders must be decisive: The worst decision is INDECISION

– Opportunity may only knock once!

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FOR OFFICIAL USE ONLY XCITEQuestions

• What did you really want to know

that I didn’t think to tell you?

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FOR OFFICIAL USE ONLY XCITEInnovation Trips

• 412 TW Innovation is coordinating with AFWerX Vegas to meet at May 2018 ITEA

Secretary of the Air Force Heather Wilson, along with guest of honor Vice President Mike Pence as well as the Chief of Staff of the Air Force Gen. David L. Goldfein, opened the AFWERX-Vegas storefront Jan. 11 at the Howard Hughes Center in Las Vegas.

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FOR OFFICIAL USE ONLY XCITECrowdsourcing

“If you’ve got a good idea and want to pitch it to the Air Force, AFWERX Vegas is going to give you access. We’re going to give access to the platforms and the people that you need to make a difference.”

Vice President Mike Pence

412 TW has partnered with AFWerX to launch a Crowdsourcing tool. • Will connect AFTC sites to AFWerX Spark Cells• Drive Air Force collaboration and ideation across the

country• Pilot program will utilize Spigit• Local training to begin within the next 30 days

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FOR OFFICIAL USE ONLY XCITEInnovation Challenges

2017 RVR Challenge

Chris Klug, 412 OG

Technical Advisor,

will be leading the

2018 412 TW

Innovation Challenge

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FOR OFFICIAL USE ONLY XCITECommander’s Challenges

2017 RVR Challenge Team

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FOR OFFICIAL USE ONLY XCITEInnovation Courses

Design ThinkingInnovation and StrategyInnovative Solutions to Complex ChallengesStrategies for Leading Successful Change InitiativesLeadership Development for Building High Performing

TeamsEffectively Negotiating with the Power of Persuasion Empathize and Prototype: A Hands on Dive into the Key

Tools of Design ThinkingThe Power of Stories to Fuel InnovationLeading Innovation Scaling Excellence: How you can help make it happenSimple Rules for Strategy Driven InnovationCultivating the Entrepreneurial Mindset

Building, Leading, and Sustaining the Innovative Organization

The Innovator's DNA: Mastering Five Skills for Disruptive Innovation

Leadership by Design: Innovation Process and CultureDisney's Approach to Employee EngagementDisney's Approach to Leadership ExcellenceInnovate on Demand (Online)Design Your Innovation Blueprint: Leveraging Systematic

Inventive ThinkingInnovative OrganizationCatalyzing Innovation for Sustained Business SuccessLeadership Impact Through InnovationNegotiating for Positive Results

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• Innovation Awards

– People’s Choice Award at Maintenance Innovation Challenge (MIC) for

Fuselage Inspection

Innovation Awards