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SOLVING THE INNOVATION EQUATION Andrew Maxwell and Helen Leighton Innovators’ 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

Innovators Alliiance 2016

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Page 1: Innovators Alliiance 2016

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

Page 2: Innovators Alliiance 2016

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

Page 3: Innovators Alliiance 2016

• 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

Page 4: Innovators Alliiance 2016

• 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

Page 5: Innovators Alliiance 2016

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”

Page 6: Innovators Alliiance 2016

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

Page 7: Innovators Alliiance 2016

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

Page 9: Innovators Alliiance 2016

Behavioural Trust Framework: Trustworthiness/Capability

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Behavioural Trust Framework: Trusting/Communication

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• 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)

Page 12: Innovators Alliiance 2016

“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