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SOLVING THE INNOVATION EQUATIONAndrew Maxwell and Helen LeightonInnovators’ Alliance, May 4, 2016
“An established company which, in an age demanding innovation, is not able to innovate, is doomed to decline and extinction” - Peter Drucker
Solving the innovation equationUnits of measurement?
Possible Outcome Measures:• Company’s reputation for innovation – Business Week • Percent of new products in last 5 years - Eurostat• Number of patents filed – Michael Porter• Expect to be most innovative – Forbes• Return on new product development – Balanced Scorecard
However:Measuring outcomes doesn’t help improve innovation capacityRather, it requires an understanding of how you change behaviors
• Team and cross-functional collaboration • Sharing ideas with internal and external partners • Two way, open, knowledge exchange, • Deferred judgment and idea exploration• Speedy decision making• Experimentation and willingness to learn from failure• Incentives that reward new activities• Access to appropriate resources
Achieving the balance between loose practices & tight processes
Behaviours that increase innovation capacity
• Innovation involves: • Sharing ideas, knowledge and resources• Collaboration• Trust
• Increasing your innovation capacity involves:• Changing behaviors• Working in new ways• Creating new partners
Trust is the universal lubricant that enables innovation
Innovation happens between gaps in organizations
Trust is the universal lubricant that enables innovation
“Engaging with another party and being willing to be vulnerable to their actions without direct means of controlling their actions or behaviours1”
Trust as a behavioural construct
• Moving trust from a sentiment, to a behaviour that can be audited.
• Developed Behavioural Trust Framework (BTF) to enable individuals to understand how to build, damage or violate trust.
• Enables individuals to decide who to trust and build trust based relationships
• Higher levels of trust reduce relationship risk and foster innovation
Innovation Capacity = Level of Trust x Available Resources
Level of Trust = ∫(Trust building - trust damaging) behaviours – ƒ(controls)
Solving the innovation equation
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Trusting:• Disclosing: Shows vulnerability by sharing confidential information• Reliance: Willingness to be vulnerable through reliance on others• Receptive: Demonstrates ‘coachability’ and willingness to change
Capability:• Competent: Displays relevant technical and/or business ability• Experienced: Demonstrates relevant work/training experience• Judgment: Shows ability to make accurate / objective decisions
Trustworthiness:• Consistent: Displays of behavior that confirm previous promises• Benevolent: Exhibits concern about well-being of others• Alignment: Actions confirm shared values and/or objectives
Communication:• Accurate: Provides truthful and timely information• Explanation: Explains details & consequence of information
provided• Openness: Open to new ideas or new ways of doing things
Behavioural Trust Framework
Behavioural Trust Framework: Trustworthiness/Capability
Behavioural Trust Framework: Trusting/Communication
• To explore team dynamics in organizations looking to increase innovation capacity• To identify challenges to building partnerships with new
innovation partners • To facilitate coaching discussions
• Evidence BTF users can identify short term actions to reduce controls, to increase trust & to repair damaged trust • Now gathering data on how people use this tool to share
with innovation community (especially Innovators’ Alliance)
Apply the Behavioural Trust Framework (BTF)
“A culture of innovation can be a company‘s primary source of competitive advantage, and can pay off steadily over the years” - Stephen Shapiro
For a copy of this deck or the Behavioural Trust Framework:
[email protected]@gmail.com
Building innovation capacity, one trust behaviour at a time