1. MOOITheme4: HRandOpenInnovation Prof. HenryChesbrough, University of California, Berkeley &ESADE Prof.WimVanhaverbeke, Hasselt University, ESADE & National University ofSingapore Dr. Nadine Roijakkers,HasseltUniversity March 4, 2013 WewouldliketoacknowledgetheeffortsofSvenjaPaul forprovidinginputtothispresentationon the basis of her master thesis.

2. Big gap in the (academic)literature Verylittlehas beenwrittenin theacademicliteratureconcerningHRpracticesan dtheroleof HR professionals in Open Innovation Golightly(2012)statesthat()thereisconsiderab le potential for further researchinto thepeople side of Open Innovation,including()humanresourcepractices () 2

3. Theimportanceof HRpractices OpenInnovationis apeople-drivenbusiness: ()Fundamentally, Open Innovation isaboutpeopledealing withpeople()(Harwood,2010) ItsthereforehighlyimportanttolearnhowHRpract icesrelatedtobothinternalandexternaltalent management can drive Open Innovation success 3

4. Quotes 4 You can create followers, but you cant create leaders - TomCoen, Founder and Managing Director at Induct Openness exists in many people but it is buried - Harry Berry, Founder ofBrightstarInnovations People can be trained to be more open -Luciennevan derWerff, VP HRM at DSM Innovation Center People should be a lot more proactive than average in order to make quick changes - MarcHufkens, HRM and Deputy CEO at Ridley Bikes

5. TherelationbetweenHRandOIeffecti veness 5 HR practices (Internal and external talent management) Employees attitudes and behaviors Organizational climate / culture Open innovation effectiveness

6. Internaltalent management OI skills,traits,androlesrelevantforselection, training ,andevaluationpurposes OtherHRpracticestostimulateOIbehavior Dynamicview on HR inrelationtoOI 6

7. OI skills,traits,androles HR needs toselectandtrainindividualsforOIbasedonidentifi ed skills(duChatenieret al, 2010) Individualsshouldhavetherightcapacities(Wagn er &Piller, 2012),skills(Mortaraet al,2009),andcapabilities(Golightly,2012) Training is essential, rather than merely desirable, when preparing the company for open innovation(Mortaraetal, 2009) 7

8. Softandhard skills Softskillsratherthanhard skillsunderlieOIsuccess OI performanceevaluationshouldfocus on these soft skills:Itsnotonlyimportantwhatpeoplegetdonebu talsohow(Sloane,2012) Thereshouldbeabalancebetweenhardandsoft skills(Thoen, 2011) 8

9. NecessaryOI skills General (basedonThoen, 2011): Tprofile:Breadthand depth fusing specialisation andgeneralisation Threeleggedstool:Thetechnical mastery, the organizationalmastery,and the businessmastery 9

10. ListingofspecificOI skills Entrepreneurship Internalandexternalnetworking Belief in change,bringaboutchange,faciliatechange, question status quo Toleranceofuncertaintyandrisktaking Needtolearn, opentolearn,andquicktolearn Optimism,passion,andenergy Abletograspthe big picture Teamplayer 10

11. Interactive poll 1 What are thethree most importantskills for OpenInnovation? Entrepreneurship Internalandexternalnetworking Belief in change,bringaboutchange,faciliatechange, question status quo Toleranceofuncertaintyandrisktaking Needtolearn, opentolearn,andquicktolearn Optimism,passion,andenergy Abletograspthe big picture Teamplayer 11

12. HRpractices Strategicchallengeexchangetostimulatechange, creationof relations, exchange ofideas,acquisitionofexternalknowledge,createin terdisciplinaryknowledgein employees, etc. (DonkorandMonti, 2010) Leadstohighmotivationandretentionofstaff Examples:Google and P&G swappingemployeesandnetwork of four Swiss MNCs strategically exchanging stafffrequently 12

13. HRpractices Open choice of career paths and researcher mobility within thefirm(Petronietal, 2012) Ideallyall talents and future managersstart in the R&D departmentand then move further, so that R&D knowledge is integrated in all departments(Petronietal,2012; Harryson,1997) 13

14. Adynamicapproach Differentskills areneededindifferentphasesof the innovation process(Lindegaard,2010) It isveryrarefor one person to possess all the ideal skills forOI; differentpeoplemayneedtobeinvolvedin the OIactivityatdifferent points in time(Mortaraetal, 2009) 14

15. Externaltalent management From'talentownership' to 'talent attraction Talents need to bekept connectedeven when notinternallyemployed Attractand manage external talent in addition to finding the best internal talent Buildand curate talent pools Createvaluefortheexternaltalent pool in orderforthemtowanttostayconnected Philipsexampleonspinoffs 15

16. People-drivenOI Individualsandtheirattitudesarethedrivingforcebehindthesuc cessofOI (DuChatenieretal,2010;Lichtenthaleret al, 2011). Focusfirst on getting individualsto realize the potential value of Open Innovation, so that they can then put in place practices that realize its actual value (Golightly, 2012). Theability of an organization to increase theabsorptive capacityof itsindividualshascome throughstronglyas acrucial step in realisingOIvalue(Golightly, 2012). Withrespecttoabsorptivecapacitypeoplemay be in a certain role today buthave the expertise we're looking forbecause of previous experience.We often forget people are in their second and third careers (Byrum, 2012) 16

17. Theroleof the HRdepartment The HR profession will have to buildnew core competences in network orchestration and managing talent- no matter where the talent lives(Kelley,2012) The HR department needs toredefine its role(Mattes,2011):EstablishaChief TalentOfficer;Engagein buildinginternal and external innovationnetworks;Contributeto the design of these networks (with respect to e.g. culturalissues);Driveadoption of internal and external innovationnetworks;SupportOI implementation by providingleadership in culturechange;DriveOI intoall of the firms businessprocesses;ConsiderOI leadership aspectswhenleader/topmanagement positions are to befilled;Bringin OI aspectswhen corporate structures and processes areredesigned;Reviewexisting training and coaching programsin the light ofOI;Designnew training and coaching programsin the light of OI concepts 17

18. Interactive poll 2 What are thethree most importantfocus points for the HR department? 1.Establish a Chief Talent Officer 2.Engage in building internal and external innovation networks 3.Contribute to the design of these networks (with respect to e.g. cultural issues) 4.Drive adoption of internal and external innovation networks 5.Support OI implementation by providing leadership in culture change 6.Drive OI into all of the firms business processes 7.Consider OI leadership aspects when leader / top management positions are to be filled 8.Bring in OI aspects when corporate structures and processes are redesigned 9.Review existing training and coaching programs in the light of OI 10.Design new training and coaching programs in the light of OI concepts 18

19. References Golightly, J. (2012): Realising the value of OpenInnovation Blog entry (2011a): innovation-3, Mattes, F.: HR departments take the drivers seat in Open Innovation Blog entry (2011b): innovation-3, Mattes, F.: Report from the German flagship conference on Open Innovation White paper (2012): innocentive, Kelley, B.: Harnessing the global talent pool to accelerate innovation Harwood, R. (2010): Motivation in Open Innovation, University of Cambridge(audio interview) Du Chatenier, E. (2010): Identification of competencies for professionals in OI teams, R&D Management, 30,3 Sloane, P. (2012): A guide to Open Innovation andcrowdsourcing Interview Chris Thoen (2011): Chris Thoen on Open Innovation partII Lindegaard, S. (2010): The openinnovationrevolution Lindegaard S. (2011): Making OpenInnovationwork 19

20. References Donkor, C. and Monti, F. (2010): Strategischer Talentaustausch als Erfolgsfaktor fr Innovationen Mack, J. (2008): Google, P&G swapping employees, Direct Marketing News Byron, E. (2008): A new odd couple: Google, P&G swap workers to spur innovation, The Wall Street Journal Wupperman, A. (2011): Kann man Talente tauschen? Open Innovation im Bereich Human Resources,Presseanzeiger Petroni, G. et al (2012): Open Innovation and new issues in R&D organization and personnel management, The Int. Journal of Human Resources Management, 23, 1, 147-173 Palensky, F. (2011): 3Ms Open Innovation, strategy+business (Interview) Harryson, S. (1997): How Canon and Sony drive product innovation through networking and application- focused R&D, Journal of Product Innovation, 14,288-295 Bingham A; - Spradlin D. (2011): The open innovationmarketplace 20

21. References Interview with Byrum, J. (Global Head of Soybean Seeds and Traits R&D, Syngenta) (May 2012). From: Syngenta Thoughtseeders, IdeaConnection. Retrieved from; http://www.ideaconnection.com/interviews/00304-Syngenta-Thoughtseeders.html White paper (2012): innocentive, Kelley, B.: Harnessing the global talent pool to accelerate innovation Lichtenthaler, U.; Hoegl, M.; Muethel, M. (2011). Is your company ready for open innovation? In: MIT Sloan Management Review, Vol. 53, no.1. 21

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