Fostering Learning and Innovative Cultures

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© AIPMM 2013 www.aipmm.com

The Hub Of All Things Product Management Association of International Product Marketing and Management • With members in nearly 70 countries, the AIPMM is the worldwide certifying body of product team professionals • The only organization that addresses the entire product life cycle (inception to obsolescence) throughout any industry • Presently has offerings in North America, Europe, Middle East, Australia and Southeast Asia • Membership benefits include eligibility for the certification programs, discounts to AIPMM events, and access to the career center, peer forums, tools, templates and publications © AIPMM 2013 www.aipmm.com

AIPMM Certifications AIPMM offers globally recognized certifications: • Certified Product Manager (CPM®) • Certified Product Marketing Manager (CPMM®) • Agile Certified Product Manager (ACPM®) • Certified Innovation Leader (CIL®) • Certified Brand Manager (CBM®) © AIPMM 2013 www.aipmm.com

Tweet! Use AIPMM: Innovative Culture: #AIPMM #InnovativeCulture Follow Linda Gorchels Hector Del Castillo: AIPMM: @LindaGorchels @hmdelcastillo @AIPMM © AIPMM 2013 www.aipmm.com

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Today’s Speaker Moderator: Hector Del Castillo, CPM, CPMM, PMP Presenter: Linda Gorchels, Professor Emeritus Emerita Director, Executive Education, University of Wisconsin-Madison Creativity Curator, Tomorrow’s Mysteries, LLC lgorchels@exed.wisc.edu lgorchels@sbcglobal.net © AIPMM 2013

Fostering Learning and Innovative Cultures ©Linda Gorchels

Learning objectives This session will introduce you to: • the importance of having a learning and innovative culture (or cultures) • positive and negative aspects of culture • the concept and support requirements of corporate entrepreneurs ©Linda Gorchels

What is innovation? Is it the same as creativity? ©Linda Gorchels

Innovation: my definition Innovation is the process and/or output of creating and realizing value from that which is new. ©Linda Gorchels

Where does value come from? Value = ©Linda Gorchels Perceived benefits Perceived costs

Value can come from … New Products or Services ©Linda Gorchels

Value can come from … New Processes ©Linda Gorchels

Value can come from … New Business Models ©Linda Gorchels

How does culture come in? What is an innovative culture? And why is it important? ©Linda Gorchels

Innovation is linked to culture Innovation is the process and/or output of creating and realizing value from that which is new. ©Linda Gorchels Culture is “the way we do things around here.” It is how innovation “happens” (or not …).

Why is that important? • Growth rates in many mature industries have stagnated • Customer value propositions are becoming less clear • Almost all sales are coming from existing offerings ©Linda Gorchels

Why is that important? • New entrants are disrupting the status quo of incumbents • Organizations may (unknowingly) become less responsive to market shifts ©Linda Gorchels

Why is that important? • Globalization and competency mismatch create an urgency to do a better job of organizational learning and unlearning ©Linda Gorchels

Why is that important? • Society is challenging long-held assumptions ©Linda Gorchels

Is there one “best” culture? Innovation is the process and/or output of creating and realizing value from that which is new. ©Linda Gorchels There are many types of innovation that create value – and different cultures to build them.

Gorchels’ innovation growth portfolio Boost existing customer markets Cultivate and reframe existing products, offerings, revenue streams and competencies Cultivate and collaborate with external partners for products, offerings, revenue streams and competencies ©Linda Gorchels Move into adjacent customer markets Create new customer markets Sustaining Growth (shorter-term planning horizon; mining the core) Transformative Growth (intermediate-term planning horizon; advancing into adjacencies) Disruptive Growth (long-term planning horizon; inciting breakthroughs)

Interrelated organizational factors Leadership Management People Strategy & mission Power centers Culture Insights Skillbuilding External Multi- Forces dimensions Interaction Governance Processes Creativity Adapted from Peter van den Brink, “Organizational Competencies for Radical Innovation” University of Twente, 2005. ©Linda Gorchels

Dan Pink - Motivation • Note the different impacts of incentives for creative versus routine tasks by viewing Dan Pink’s speech at TED

Henry Mintzberg on culture “Culture is the soul of the organization — the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.” ©Linda Gorchels

Positive aspects of culture Positive • social glue • boundary-defining • common sense of identify • facilitates commitment ©Linda Gorchels

Negative aspects of culture Negative • can be a barrier to change • can be a barrier to diversity • can be dysfunctional for new business models ©Linda Gorchels

Multi-functional teams versus Multi-faceted individuals ©Linda Gorchels

T-shaped corporate entrepreneurs ©Linda Gorchels

Componential Model of Creativity The Environment Domainrelevant skills Mop Task motivation ©Linda Gorchels Creativityrelevant processes Adapted from Teresa M. Amabile, Working Paper: “Componential Theory of Creativity,” April 26, 2012.

The company is a crucial part of the environment Training Role clarity Resources Domainrelevant skills Job “fit” Recognition ©Linda Gorchels Task motivation Creativityrelevant processes Time Freedom Risk tolerance Confidence

Key points • Challenge everyone in your organization to be alert to changes in how customers value your offer • Be open to relearning as well as to opportunities for sustaining, transformative and possibly breakthrough innovation • Take advantage of the positive attributes of culture (and minimize the negative aspects) to establish a portfolio of innovative thinking • Look for corporate entrepreneurs – individuals with depth in desired competencies along with a breadth of awareness and empathy ©Linda Gorchels

Linda M. Gorchels Linda Gorchels is an emeritus of the executive education faculty of the University of Wisconsin-Madison’s business school in Madison, Wisconsin USA. She has taught over 10,000 corporate executives from the United States and globally. As a member of the international World Future Society, she provides insights into 21st Century trends that are important for companies to consider in their strategic planning efforts. An award-winning author, Linda received the Excellence in Thought Leadership distinction from the Association of International Product Marketing and Management for The Product Manager’s Handbook (now in its 4th edition). This work plus her other books (The Product Manager’s Field Guide ; The Manager’s Guide to Distribution Channels; and Business Model Renewal) have been translated into multiple languages. Gorchels has provided on-site instruction for organizations such as Trane Commercial Systems, GE Medical, Siemens, Metso Automation, Nokia (in Beijing), J.F. Pearson (in Shanghai); conducted workshops in Poland and Hungary; and lectured in an MBA forum at Fudan University in Shanghai. She can be contacted through her website (BrainSnacksCafe.com where she posts miscellaneous tidbits , i.e., “brain snacks”), at lgorchels@exed.wisc.edu, or through LinkedIn or Twitter. She is in the process of launching Tomorrow’s Mysteries, LLC to branch out into mystery writing and jewelry creation.

Q&A Moderator: Hector Del Castillo, CPM, CPMM, PMP Presenter: Linda Gorchels, Professor Emeritus Emerita Director, Executive Education, University of Wisconsin-Madison Creativity Curator, Tomorrow’s Mysteries, LLC lgorchels@exed.wisc.edu lgorchels@sbcglobal.net © AIPMM 2013

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