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The Value of Relationship Capital



                                Managing Connections 
                                         to 
                                Maximize Innovation




© SFB Associates, Inc.  2008 
The creative productivity of R&D 
       organizations depends  on 
identifying, developing and capitalizing 
   on connections and relationships, 
         internal and external. 


  Leveraging “Relationship Capital”  is the 
    competitive advantage where tacit 
      relationships are prevalent and 
                 essential.
Connection             Collaboration           Relationship



  Exchange of value
                       Joint creation of value

                                           Sustained multiple investments
Trust in competency                        in joint creation of new value
                       Trust in intentions
                                              Trust in perceptions


                  Increasing Disclosure and Complexity
Connection                              Collaboration        Relationship


   Arms Length
    Licensing  Consulting
                Services                          Contract 
                                                  Research Collaborative 
                                                             Research Joint Venture
                                                                                      In‐Sourcing &
                                                                                      Joint Venture
 Ready to use
  elements
          Experience & Equipment
                                        Defined outcomes
                                                     Defined problems
                                                                         Shared problems
From: Kleyn, D., Atun, R, and Kitney, R., “Partnerships and 
                                                                                           Reciprocal IP
Innovation in the Life Sciences, Imperial College, London, 2006
ELECTRONICS                                                               INFOCOMM
                              Advanced Display
                                                              Imaging
                           Electronic Components                                       Communications
     Nano‐elect.                                                                                               Ultra wide 
                                                                  Data                    Software & 
    Polymer Elec.            Electronic Modules                  Storage
                                                                                          Computing               Band
                                                                                       Digital Content & 
                              Semiconductors                  MicroElectronics               Media            Home 2015
      Photonics             Storage & Peripherals                                           Devices
                                                              Info‐Comm Sciences

                                                              Materials Sciences

                                                              Chemical Sciences

        Nanotechnology                                     Manufacturing Technology
                                                                                                        Human‐factor 
                                                                                                        Engineering
                                                      Human‐machine interface
                                                       Arrayed sensor networks
                                                                                          Precision 
            Specialty Chemicals
                                                                                         Components
           Performance Materials                                                           Precision 
                                                                                                               Sensors
                                                                                           Modules
                                                                                       Machinery & Systems
         Petroleum/Petrochemicals                 Synthetic
         Bio & Consumer Chemistry                                                         Aerospace             Mfg 
                                                  Chemistry                                                   Systems
            Process Engineering                                                        Offshore Engrg



                  CHEMICALS                                                           ENGINEERING
                                                              Energy



Singapore Science and Engineering Research Council
Dealing with Barriers to Innovation
Individual/Professional
  e.g. Eliminated barriers 
  to sending “bad news” 
  up


 Project Team /Group
  e.g. Monthly work day 
  at one site


 Organizational
  e.g. New central 
  resource organization 
  to deploy technical 
  talent with agility across 
  projects
To what extent do your connections 
enhance creativity or distract?  How do 
you know?
Politics of Creativity™ 
                                                                             Paying 
                 Pacing                                                       The
               Productivity                                                   Price


                                                                        What risks am I willing to take to 
      How do our internal and 
                                                                        maximize the benefits of our 
      external connections impact       Managing Connections            connections and build 
      our pacing?                                                       relationships?




                                                               How do my relationships make 
                                            Capitalizing       learning safe?
                                                on 
                                              Failure
© SFB Associates, Inc.  2008 

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Managing Connections to Maximize Innovation

  • 1. The Value of Relationship Capital Managing Connections  to  Maximize Innovation © SFB Associates, Inc.  2008 
  • 2. The creative productivity of R&D  organizations depends  on  identifying, developing and capitalizing  on connections and relationships,  internal and external.  Leveraging “Relationship Capital”  is the  competitive advantage where tacit  relationships are prevalent and  essential.
  • 3. Connection Collaboration Relationship Exchange of value Joint creation of value Sustained multiple investments Trust in competency in joint creation of new value Trust in intentions Trust in perceptions Increasing Disclosure and Complexity
  • 4. Connection Collaboration Relationship Arms Length Licensing Consulting Services Contract  Research Collaborative  Research Joint Venture In‐Sourcing & Joint Venture Ready to use elements Experience & Equipment Defined outcomes Defined problems Shared problems From: Kleyn, D., Atun, R, and Kitney, R., “Partnerships and  Reciprocal IP Innovation in the Life Sciences, Imperial College, London, 2006
  • 5. ELECTRONICS  INFOCOMM Advanced Display Imaging Electronic Components Communications Nano‐elect. Ultra wide  Data Software &  Polymer Elec. Electronic Modules Storage Computing Band Digital Content &  Semiconductors MicroElectronics Media Home 2015 Photonics Storage & Peripherals Devices Info‐Comm Sciences Materials Sciences Chemical Sciences Nanotechnology Manufacturing Technology Human‐factor  Engineering Human‐machine interface Arrayed sensor networks Precision  Specialty Chemicals Components Performance Materials Precision  Sensors Modules Machinery & Systems Petroleum/Petrochemicals Synthetic Bio & Consumer Chemistry Aerospace Mfg  Chemistry Systems Process Engineering Offshore Engrg CHEMICALS ENGINEERING Energy Singapore Science and Engineering Research Council
  • 6. Dealing with Barriers to Innovation Individual/Professional e.g. Eliminated barriers  to sending “bad news”  up Project Team /Group e.g. Monthly work day  at one site Organizational e.g. New central  resource organization  to deploy technical  talent with agility across  projects
  • 8. Politics of Creativity™  Paying  Pacing  The Productivity Price What risks am I willing to take to  How do our internal and  maximize the benefits of our  external connections impact  Managing Connections connections and build  our pacing?  relationships? How do my relationships make  Capitalizing  learning safe? on  Failure © SFB Associates, Inc.  2008