Published on March 7, 2014
Innovation is Not for Lone Rangers Doug Jackson, CBAP and Paula Pierce, PMP, HCS, BMC 03/06/2014 11 Canal Center Plaza, Alexandria, VA 22314 T 800.663.7138 F 703.684.5189 www.robbinsgioia.com
Agenda & Objectives • Innovation Defined • Application through Innovation Networks • Innovation Case Study • Bringing Innovation to Life • Understanding Culture • Creating the Framework Right for Your Organization • Preparing for and Managing Change 2 Learning Objectives 1. Apply BA and OCM best practices to create an environment for innovation 2. Identify and capitalize on existing networks 3. Identify the root of change resistance in your organizations Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
WSJ - MIT Sloan Management Findings on Innovation So how can we create a network for innovation? 3 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Key Innovation Barriers 1. Problems in Communications - Geography, politics, just not knowing that a group who can contribute exists in your organization. However, the main communication problem is a failure to plan for how constructive interactions can take place 2. Bad Gatekeepers – Key individuals who filter ideas and new concepts, who are unwilling to back them for reasons that are not valid 3. Insularity – Contributors to the innovation are too isolated to work in a constructive way to innovate. Isolation may be geographical, contractual, or a difference in paradigm 4 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Key Aspects of Creating a Innovation Network 1. Get the right people talking 2. Rapidly test and refine ideas 3. Think twice about leadership 4. Make collaboration easy 5. Consider energy These related articles from MIT Sloan Management Review can be accessed online The New Principles of a Swarm Business By Peter Gloor and Scott Cooper (Spring 2007) In every large company, groups of creative individuals self-organize to explore and develop ideas that they care deeply about. http://sloanreview.mit.edu/smr/issue/2007/spring/12/ Are You Networked for Successful Innovation? By Polly Rizova (Spring 2006) To investigate how companies can best manage their efforts to innovate, the author conducted an in-depth study of six R&D projects at the laboratory of a Fortune 500 corporation and found that highly successful R&D projects have four crucial factors that reinforce each other. http://sloanreview.mit.edu/smr/issue/2006/spring/10/ Using Supplier Networks To Learn Faster By Jeffrey H. Dyer and Nile W. Hatch (Spring 2004) Many companies keep their suppliers and partners at arm's length, zealously guarding internal knowledge. Toyota Motor Corp., however, embraces its suppliers and encourages knowledge sharing through established networks. http://sloanreview.mit.edu/smr/issue/2004/spring/11/ Don't Just Relate -- Collaborate By Mohanbir Sawhney (Spring 2002) Collaborative innovation occurs when companies tap into user expertise and integrate it into the business's new-product development process. http://sloanreview.mit.edu/smr/issue/2002/spring/11/ 5 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Partners In Innovation – Case Study Situation: • A very large commercial financial institution serving defense employees, veterans and their families was looking for new ways to increase “revenue lift” on their consumer loan portfolio • Defense employees are showing increasing interest in getting loans for late model vehicles • With the age of the internet, veterans were increasingly buying more vehicles off the internet, wanting to have them ready to drive when they get back from their tour of duty Customer Problems: • Often the buyer would get a vehicle that was prone to problems that were not disclosed • To buy extended warranty insurance, the customer would need to go through a dealer and pay a very high premium for the insurance product Innovation Opportunity: Find a way to provide insurance with a car loan 6 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Getting the Right People Talking The scope of the effort was depicted in a model with the innovation opportunity at the top and a listing of all of the team who might be involved listed along the left side. To set up the network: • Leadership purposefully adopted a “there must be a way” mentality praising creative thinking • Participants who had a role were selected on their backgrounds, informal connections and chemistry rather than their job title • Partner (insurance provider) were part of the innovation team – introduced during a face to face teaming session. • Role of team members set up around the part of the challenge they needed to address rather than requirements they can give (focus on “what could be”) • The sessions were designed to be fun and informal 7 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Rapidly Test & Refine Ideas The concept was high level and the test was to understand how to make it work. Two tools where used: 1. The concept of a user story but a very high level to develop scenarios that we need to consider 2. Process models starting with a “to-be” state, breaking down innovation challenges for team members. 8 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
The Results from the Case Study • Perceived problems were creatively addressed early – this kept the energy of the team high • The vendor model was replaced with a partner model, mitigating risks and increasing constructive collaboration throughout the product development (win-win) • The business case was optimized for realistic goals • A program that had failed two years earlier, was set up for success much faster than other projects of its size and scope • The innovation opportunity contributed to the goals of the organization (revenue lift) Key Benefit for Business Analysts: Innovation was a career builder for BAs in each of these examples. Why? Because executives value the intangible value of translating ideas into outcomes. 9 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Bringing Innovation to Life Understanding the Culture Defining the Innovation Framework Preparing for and Managing Change 10
Understanding Organizational Culture Organizational culture is an evolutionary pattern of employee assumptions, beliefs, thoughts and feelings about how to be successful in the organization. • Visible & feelable structures & processes • Observed behavior • Ideals, goals, espoused values & aspirations • Ideologies • Rationalizations • Unconscious, taken-for-granted beliefs and values 11 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Innovation Framework Facilities Recognition & Rewards Proclamations Organizational Innovation Culture Language Norms Interaction Systems Processes 12 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
IDEO’s Culture of Helping • Harvard Business Review, Jan-Feb 2014 • A model of a help-friendly organization A design and innovation consulting firm. • Why it Works – Culture • • Leadership conviction • Defined roles • 13 Assumptions and beliefs Aligned processes Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Assessing your organization’s readiness Change Complexity Change Capability The business problem is easy to articulate There is a clear sponsor who will engage to move this project forward The business problem is easy to solve The sponsor has demonstrated capabilities to lead change in the past The change impacts one stakeholder group that reports up through the same management chain (sr manager, director & executive) The stakeholder groups have a strong sense of urgency to solve the business problem The stakeholder groups have a common vision of what defines success for this problem There are consistent processes and mechanisms in place to cascade messages and information through the management chain The change impacts all stakeholder groups in the same way The change has clear alignment to the firm’s mission and strategic objectives The change impacts only one of the following elements (business process, technology, jobs, organization structures, facilities, compensation) The change has no impact on the way work is conducted (business processes) The change has no impact on supporting technology systems The change has no impact on the way employees’ jobs are defined and the work they’ll be expected to perform The change has no impact on the way employees are organized into teams and management reporting relationships The change has no impact on physical infrastructure (work location, physical infrastructure, office space, etc.) The change has no impact on compensation The change will be completed in 3-12 months There are no other initiatives or projects the will impact the stakeholder groups as the same time There are no other initiatives or projects that have conflicting objectives or expectations for the stakeholder groups Middle management understands what is expected of them when managing change and has the capability to do so The project team has adequate time to assess the change circumstances and develop a plan to manage the change Employees are experienced and have demonstrated past success in managing their personal change transitions There are requisite human resources available to design, develop and manage implementation of the solution There is adequate funding available to design, develop and manage implementation of the solution Organizational systems are in place to reinforce and institutionalize the solution The stakeholder groups will experience the same beneficial outcomes The stakeholder groups have the same concerns about the how 14 they’ll be impacted Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Change Strategies by Phase Develop • Communicate vision • Establish urgency • Engage stakeholders • Allocate resources • Identify strengths & weaknesses • Define success • Establish measures • Plan your course 15 Implement • Communicate course of action • Be active & visible • Model behavior • Gather feedback • Remove barriers • Address resistors • Measure progress • Celebrate accomplishments • Modify plan Sustain • Communicate progress • Maintain momentum • Modify systems • Revise recognition & rewards • Check adoption • Refine and adjust • Reinforce desired behavior • Celebrate success! Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Making the Case for Innovation • Find and engage a sponsor • Clearly articulate vision • Understand and communicate business benefits • Describe consequences of status quo • Provide a comprehensive picture of innovation framework – what needs to change • Document success definition • Set realistic timeline • Secure requisite resources • Establish performance measures • Don’t go it alone – form a team of trailblazers 16 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
Thank You! Doug Jackson, CBAP Senior Director, Requirements & Business Analysis, Robbins-Gioia LLC email@example.com www.robbinsgioia.com/who-we-help/clientsuccess/case-studies/a-financial-institution-builds-a-business-case.php An acknowledged leader in independent program management, RG’s comprehensive range of professional services enables us to design and deliver customized solutions to address our clients' most challenging requirements. Headquartered in Alexandria, VA, we deliver groundbreaking management solutions to public and private sector clients across the globe. RG’s professionals strategically leverage people, processes, and leading technologies to help clients achieve desired performance outcomes and overall program success. Paula Pierce, PMP, HCS, BMC CEO and Principal Transformation Strategist, Peridona Strategies LLC firstname.lastname@example.org www.peridonastrategies.com Only when the light shines exactly right do you see the true brilliance of a gemstone. So is the case with organizations— brilliance resides within each and every one, but it takes the right illumination to bring it to the surface and make it shine. At Peridona Strategies, we partner with clients to access that inner brilliance and use it to solve problems, create solutions and transform performance. We are passionate about digging deep to uncover what’s really working or not working, rolling up our sleeves along side our clients and tapping into the brilliance that already resides within to move your organization to it’s next stage—whether that be the next step in your growth plan or a complete performance turn around. Let us help you too, be brilliant. 17 Confidential and Proprietary ©2014 Robbins-Gioia, LLC and Peridona Strategies LLC
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