Consciously Creating a Culture of Innovation · expertise resourcefully, recognizing that the smartest person in the room is the room itself. Customer-obsessed | We understand our

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Consciously Creating a Culture of Innovation

6 June 2018


C O M P A N Y S T R A T E G Y

Sources: Bloomberg/BCG; Google, Adobe, Bain & Company

INNOVATION 4.3% TSR PREMIUM

AGILE 84% PRODUCTIVITY GAIN

CREATIVITY 3.5XMORE LIKELY TO GROWFASTER THAN PEERS

RISK TOLERANT 19%BOOST ABOVE REVENUETARGETS


Create an evocative story and detail granular behaviors that

define the desired future state

Drive habit change with behavior enablers,

artifacts, and nudges (BEANs)

Have leaders show the way during project review meeting and

other highly visible moments

Use data to iterate towards the desired future

state of culture

DefineDesired Culture

1

ImplementBEANs

3

Role ModelDesired

Behaviors

4HardwireSupporting

Systems

5

Track & Measure

Progress

6

Reinforce in formal systems (e.g. KPIs, budgets) and key

processes (e.g. recruiting, training)

DIAGNOSEBlockers

2Zero in on the systems,

behaviors, and norms standing in the way of success

CONSCIOUSLY CREATING A CULTURE OF INNOVATION

Culture of Innovation


DefineDesired Culture

1

ImplementBEANs

3

Role ModelDesired

Behaviors

4HardwireSupporting

Systems

5

Track & Measure

Progress

6

DIAGNOSEBlockers

2

Culture of Innovation

A good BEAN should be:• Simple … easy to adopt, fun, engaging

and social• Consistent … linked to objectives,

processes, systems, and values• Multimodal … checklists, visual

reminders, legends• Supported … coaching / training • Built to scale … able to generate data


GROWTHSTRATEGY

Growth ambition (revenues, profits) Growth goals and boundaries Identified strategic opportunity areas Innovation common language

ENABLINGSTRUCTURES

Innovation team / incubator Corporate VC / open innovation program M&A / EBD function Innovation training & development

SYSTEMS & PROCESSES

Ring-fenced budgets for innovation Innovation governance Portfolio tracking and management Risk tolerant incentives and rewards

CULTURE OFINNOVATION

Day-to-day ways of working Supportive environment Leader role-modeling Talent attraction & development


Kick-starting questions for Paul

• Talk about Piyush Gupta’s role in this. How essential is his support, encouragement, and participation?

• I’ve lived in Singapore for 8 years, and the idea of a bank filled with Singaporeans as a 23,000 person startup still blows my mind. How have you overcome passive and active resistance from the rank and file?

• How important is story telling in driving culture change?

• What hasn’t worked? What did you learn from it?

• The fact that DBS has not compared itself to other banks, or to other Singaporean companies, but to global icons like Google and Amazon seems important. Is it?

Backup


What employees do and how leaders behave on a day-to-

day basis

Ways of Working

Tangible things we and see and touch, like posters and office designArtifacts

Tacit assumptions that employees have that encourage or discourage

certain behaviorsPerceptions

Repeatable skills that enable day-to-day behaviors to

translate into success

Proficiencies

CULTURE OF INNOVATION

WAYS OF WORKING

(WOW)

Adept in ambiguity | We excel at navigating uncertainty, act confidently despite incomplete information, with data as our guide

Empowered | We exercise initiative, seek out and leverage resources to make decisions confidently, and own our actions

Collaborative | We incorporate cross-functional expertise resourcefully, recognizing that the smartest person in the room is the room itself

Customer-obsessed | We understand our customers’ and employees’ jobs to be done, and the context of our work

Question status quo | We are explorers who are not content to rest on past successes, believing that we can always find better ways

Fail-safe | We expect rapid iteration and experimentation, and celebrate the learning that comes from judicious risk-taking


Fail-safe | Teams with high ratings in psychological safety exceeded revenue targets by 19%6

Innovative firms achieved significantly higher total shareholder return premiums than their less innovative industry peers1

4.3% higher over 3 years 2.6% higher over 10 years

Adept in ambiguity |Agile methods lead to 76% reduced project risk and 84% increased team productivity5

Empowered | Employee empowerment has a direct effect on performance7

Collaborative | Companies promoting collaborative working are 5 times more likely to be high performing4

Customer-obsessed | Top companies in Customer Experience Index had higher stock price growth & total returns2

Question status quo | Companies that foster creativity are 3.5x more likely to outperform peers in revenue growth3

Source: CapGemini, “The Digital Culture Challenge,” 2017Source: 1Bloomberg/BCG study, 2Forrester, 3Adobe, 4Forbes, 5Bain & Company, 6Inc.com (Google study), 7Public Administration Review

https://www.bloomberg.com/news/articles/2006-04-23/creativity-pays-dot-heres-how-muchhttps://www.forrester.com/How+Customer+Experience+Impacts+Company+Stock+Performance/-/E-PRE10229https://blogs.adobe.com/creative/how-creativity-impacts-business-results/https://www.forbes.com/sites/adigaskell/2017/06/22/new-study-finds-that-collaboration-drives-workplace-performance/#4851b003d025http://www.bain.com/publications/articles/agile-innovation.aspxhttps://www.inc.com/mark-thompson/what-makes-a-38-difference-in-team-performance-at-google.htmlhttps://onlinelibrary.wiley.com/doi/abs/10.1111/puar.12049


Adept in ambiguity | We excel at navigating uncertainty and change, act confidently despite incomplete information, with data as our guide

CULTURE OF INNOVATION

WAYS OF WORKING

(WOW) Empowered | We exercise initiative, seek out and leverage resources to make decisions confidently, and take responsibility for our actions

Collaborative | We incorporate cross-functional expertise resourcefully, recognizing that the smartest person in the room is the room itself

Customer-obsessed | We understand our customers’ and employees’ jobs to be done, and the context of our work

Question status quo | We are explorers who are not content to rest on past successes, believing that we can always find better ways

Fail-safe | We expect rapid iteration and experimentation, and celebrate the learning that comes from judicious risk-taking


How frequently do we work in this way? Never Sometimes Regularly Habitually

Customer Obsessed

We understand our customers’ and employees’ jobs to be done, and the context of our work

Question Status Quo

We are explorers who are not content to rest on past successes, believing that better ways of doing things can always be found

CollaborativeWe incorporate cross-functional expertise resourcefully, recognizing that the smartest person in the room is the room itself

Adept in Ambiguity

We excel at navigating uncertainty and change, act confidently despite incomplete information, with data as our guide

Fail-safeWe expect rapid iteration and experimentation, and celebrate the learning that comes from judicious risk-taking

EmpoweredWe exercise initiative, seek out and leverage resources to make decisions confidently, and take responsibility for our actions


What is innovation, and how do you do it?

What is a culture of innovation?

What inhibits culture change?

Why is the fight worth fighting?

Where should you start? How do you scale?




Why inhibits culture change?

Why is the fight worth fighting? Where should you start? How do you scale?




Why inhibits culture change?

Why is the fight worth fighting? Where should you start? How do you scale?

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Consciously Creating a Culture of Innovation · expertise resourcefully, recognizing that the smartest person in the room is the room itself. Customer-obsessed | We understand our