On the street I meet 3 bricklayers – I ask them what are you doing? The first says I am laying bricks. The second says I am building a wall. The third

On the street I meet 3 bricklayers – I ask them what are you doing? The first says I am laying bricks. The second says

I am building a wall. The third says I am building a cathedral.

MANAGING FOR MOTIVATION & INNOVATION

Blaine Callard

BLAINE CALLARD

MANAGING DIRECTOR

HARVEY NORMAN EUROPE

d.o.o

[email protected]


Blaine Callard

HARVEY NORMANQUICK INTRODUCTION

• Founded 1972

• Market Capitalization of over € 2.1 Billion EURO

• 300 Harvey Norman stores worldwide

• Turnover €3,25 billion EURO

• Number one retailer of furniture, electrical, and computer equipment in Australia and New Zealand.

• Property portfolio valued at over €940 Million Euro

GERRY HARVEY


Blaine Callard

OUR BRANDS

Joyce Mayne


Blaine Callard

HARVEY NORMAN SLOVENIA

•LJUBLJANA RETAIL SQM 9214EMPLOYEES 104

•KOPERRETAIL SQM 5100EMPLOYEES 55

•GROUP TOTAL RETAIL SQM 14314EMPLOYEES 159

PLUS PLANS FOR 3 NEW STORES 2009


Blaine Callard


Blaine Callard

OUR BUSINESS MIX ...

FurnitureFurniture

Electrical

BeddingBedding ComputersComputers

ElectricalElectrical


Blaine Callard

GERRY HARVEY

• Self-made millionaire• Successful promoter• Risk Taker• Strong Interpersonal skills• Unusual business style• Open and accessible• Business Genius –

problem solver

CULTURE OF THE FOUNDER

CULTURE OFTHE COMPANY


Blaine Callard

WHO AM I ?• Born in Australia 1972• 14 Years with Harvey Norman• Degree in Law and Arts (Psych)• Marketing and problem solving

are my areas of experience• Helped with many broken

businesses• I am a plain talker – no pie charts

– no research papers – no theories - just brain food


Blaine Callard

BUSINESS CANCER• Unmotivated

• Unappreciated

• Unempowered

• Uninformed

• Fear everywhere

• Weak leadership

• Coming to work with their brains turned OFF


Blaine Callard

BUSINESS IS CHANGING

• Markets are becoming ultra competitive• Global competition = shrinking margins

• Competitors are not sleeping

• Instant information age

• Shorter life cycles

• Less customer loyalty

• Bureaucracy is growing

• Shareholders demand growth


Blaine Callard

INNOVATION IS THE KEY

• Drucker (1964)– principle of abandonment

• Innovation is not...

• It’s about PEOPLE

• Are your people innovating– Customer Innovation

– Product Innovation

– Process innovation

– Strategic Innovation

CORRECT ENVIRONMENT+

CORRECT PEOPLE


Blaine Callard

THE INNOVATION DEPARTMENT?• “INNOVATION IS FOR THE R&D DEPARTMENT”

THIS IS AN INCORRECT AND DANGEROUS ASSUMPTION

• INNOVATION DOESN’T NEED COMPLEX PROCEDURES OR EXPENSIVE CONSULTANTS?

• CAN YOU STRUCTURE INNOVATION?• IT IS A CREATIVE ORGANIC PROCESS• WHAT WOULD YOU HEAR IN YOUR COMPANY

IF YOU PUT A MICROPHONE IN YOUR CAFE? MANY SOLUTIONS TO COMPANY PROBLEMS.

• EVERYONE IN A COMPANY CAN INNOVATE

All you need is the correct soil, and innovation will grow


Blaine Callard

IN YOUR COMPANY...A QUICK AUDIT...

• are many people unhappy at work?• is management open to new, unusual, or crazy ideas?• do top managers spend most of their time at their desk?• can any employee speak to the boss?• what happens to people who try something and fail?• can people make decisions without permission?• do most employees know your profit or sales results for

the last 12 months?• do people work only for money?


Blaine Callard

PEOPLE ARE PEOPLE

• “Isn’t most work boring?”

• Most people want to succeed and do well – to be valued

• People are not machines

• People need PRAISE and RESPECT

• Ideas take time

• People want to be in winning teams

• People need leadership

• People give 100% when they want to

IDEA ONE


Blaine Callard

BREAK LARGER BUSINESS INTO SMALLER PIECES

• Smaller teams can help• Independent manager of each team =

THE LEADER• Teams must be empowered• People feel safer in small teams• Intimacy with boss for idea sharing• Run like a small business• Eg. Skunkworks (Lockheed Martin)

IDEA TWO


Blaine Callard

SHARE THE REWARDS

• Alignment of goals – company and staff

• Share the profit

• Not just money – recognition and respect

• Grow the pie, don’t fight over the slices

• People will take ownership...

• Reward ideas not just profit

IDEA THREE


Blaine Callard

RISK TOLERATING CULTURE GET A SECOND CHANCE...

• Why do people who have the answers stay quiet?

• Remove the fear – starts at the top• Core to the culture • Tolerate risk NOT incompetence• People learn from mistakes• Basic safety nets encourage INNOVATION• “Better to seek forgiveness than ask permission”• Rules can be “guidelines”

IDEA FOUR


Blaine Callard

ORGANIC NOT MECHANIZED

• Does your company have too many procedure manuals?

• Central control, authority, defined tasks – all create rigid and uncreative environments

• People assume things in writing are fact - dangerous

• Procedures stifle innovation – they control freedom & time

• Organic companies can adapt• Share best practice ... Quickly• Make sure you have FUN in your workplace

IDEA FIVE


Blaine Callard

TRANSPARENCY OF INFORMATION

• People must be INFORMED • Trusted staff feel valued• Micro Innovation at every level• Information teaches• Information allows self measurement• Information helps CHANGE ACCEPTANCE• Commercial awareness – BIG PICTURE

(Like the Bricklayer story)

IDEA SIX


Blaine Callard

THE VALUE OF EXCELLENCE

• Measure performance • Celebrate success• Constant Improvement• Talk about the competition – create the TRIBE• People seek Spectacular Success

IDEA SEVEN


Blaine Callard

PROTECT THE CULTURE

• The most important job of TOP MANAGEMENT• Culture is the key• Talk about the values• Open door management – listening (HN)• Promote from within• Hierarchy or Status not so important• F.I.G.O. (Fit In or Get Out)

CULTURE

IDEA EIGHT


Blaine Callard

GET THE RIGHT PEOPLE

Many traditional companies

PUSH OUT

UNUSUAL PEOPLE

IDEA NINE


Blaine Callard

CHARACTERISTICS OF INNOVATORS?

STRONG COMMUNICATORS

VERY PRIVATE

RISK TAKERS

COMPETITIVE

AMBITIOUS

HIGH LEVEL SELF CONFIDENCE

DRIVEN BY IDEAS

NEED INFORMATION

WORK BETTER ALONE

CHALLENGED BY FAILURE

PROBLEM SOLVERS

EASILY BORED

DIFFICULT TO WORK WITH

WANT SPECTACULAR SUCCESS

VERSATILE

LIKE TO BE THE BOSS

CAN MULTI-TASKTAKE OWNERSHIP

RULE BREAKERS STRANGE


Blaine Callard

GET THE RIGHT PEOPLE

• Tolerate variety

• Hire people who have travelled

• Positive people

• Playful people – mental flexibility

• Background not experience

• Education is not everything

IDEA NINE


Blaine Callard

• TREAT PEOPLE LIKE PEOPLE• BREAK BUSINESS INTO SMALLER PIECES• SHARE THE REWARDS• TOLERATE RISK• LESS PROCEDURE MANUALS• TRANSPARENCY OF INFORMATION• VALUE EXCELLENCE• PROTECT THE CULTURE• GET THE RIGHT PEOPLE

SOIL FOR INNOVATION

SUMMARY OF IDEAS


Blaine Callard

The world is changing very fast. Big will not beat small anymore. It will be the fast

beating the slow.Rupert Murdoch


Blaine Callard

THANKYOU

Documents

On the street I meet 3 bricklayers – I ask them what are you doing? The first says I am laying bricks. The second says I am building a wall. The third