Innovative culture in a company

1. Frank Dethier

2. Frank Dethier –
HOW TO INNOVATE?
ONE HOLISTIC FRAMEWORK
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Strategy
Process
Organization
Resources
Culture

3. Frank Dethier –
HOW TO INNOVATE?
INNOVATION STRATEGY?
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Innova-
tion
Strategy
1. What’s your goal?
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2. A) How much investment? From where?
B) When?
C) Who?
3. Define & select your opportunities
(strategic innovation area’s)

4. Frank Dethier –
New &
Existing
Markets
Trends
• Technology
• Need
• Business
• Legal
Innovation
challenges
Dev
Projects to obtain
understanding of
• Technology
• Customer Need
• Business
Internal &
External Ideas
INNOVATION PROCESS S
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Strategy
Idea
selection

5. Frank Dethier –
INNOVATION & DELIVERY PROCESS
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Mark
etsTrends
challe
nges
Dev
Projects
Strat
egy
selec
tion
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• Experimentation
• Agile
• Linked to Strategy
• Execution
• Portfolio
• Funding based on
Gate approval

6. Frank Dethier –
HOW TO INNOVATE?
ORGANIZATION
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Explore Exploit
Ambidextrous Open Innovation

7. Frank Dethier –
HOW TO INNOVATE?
RESOURCES
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Right person,
Right job
Individuals Project Teams
Diversity
Leadership
Vision, listening
& advice

8. Frank Dethier
Session 6: Culture

9. Frank Dethier –
HOW TO INNOVATE?
COMPANY CULTURE
 Wikipedia: “Organizational culture is the
collective behavior of humans who are part of an
organization and the meanings that the people
attach to their actions. Culture includes the
organization values, visions, norms, working
language, systems, symbols, beliefs and habits.”
 Deal and Kennedy (1982) defined organizational
culture as the way things get done around here
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10. Frank Dethier –
HOW TO INNOVATE?
COMPANY CULTURE
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Which behavior is present in your company, not allowed to happen, but
nobody knows why?
The Monkey Experiment
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11. Frank Dethier –
HOW TO INNOVATE?
COMPANY CULTURE
 Some company mindsets (not invented here, our
quarterly results, ...) do not go along with an
Innovative culture
 Mindsets are stuck in companies/people while the
world around you changes
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Mistakes Insights+Innovation =
Sole focus of
most
companies

12. Frank Dethier –
HOW TO INNOVATE?
INNOVATIVE COMPANY CULTURE
Characteristics of Innovative Company Culture
 Encourages being open
 Allows interactions
 Ecourages ‘different’ people to collaborate
 Accept failures
 Manages Risks
 Learns
 Shares know-how and experiences with each other
 Explores new things
 Embraces entrepreneurship
 …
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13. Frank Dethier –
HOW TO INNOVATE?
INNOVATIVE COMPANY CULTURE
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Several possible levers to redefine company culture
Attitudes vs
Risks
Communication &
Know-how sharing
Working environment Metrics & KPIs
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Development
Programs

14. Frank Dethier –
HOW TO INNOVATE?
DEVELOPMENT PROGRAMS
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Common
Language
Practical Tools
Offer ongoing
coaching
Externally
oriented
mindset
Inquisitive
mindset
Integrative
mindset Opportunity
driven mindset

15. Frank Dethier –
HOW TO INNOVATE?
ATTITUDE TOWARDS RISKS
 Fail?!
 Key
 Not all ideas become successfull project
 ok to fail
 Ensure organization draws learnings 
mistakes are ok, hiding them not!
 Stop projects early and fast if you don’t
see value
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16. Frank Dethier –
HOW TO INNOVATE?
ATTITUDE TOWARDS RISKS
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Apple Messagepad - 1993
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17. Frank Dethier –
HOW TO INNOVATE?
ATTITUDE TOWARDS RISKS
Encourage Your Team to Take More Risks by being
explicit about what risk-taking really means:
 Define smart risk. Distinguish the areas where risk is
encouraged, and where it is not. For example, you
want minimal “execution risk” regarding customer
commitments, but more “discovery risk” in
developing new solutions to customer problems.
 Use the right words. Terms like “experiment” or
“scouting mission,” as opposed to “successful vs.
unsuccessful project,” signal a more open attitude
toward risk.
 Establish clear phases for funding projects. Stop
providing blank checks and work in defined phases
(with approvals needed)
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18. Frank Dethier –
HOW TO INNOVATE?
COMMUNICATION & KNOW-HOW SHARING
If you stop/change direction of an initiative, which
organization stops to
 Study learning that drove that decision
 Celebrate opportunity to redirect resources in more
promising direction
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19. Frank Dethier –
HOW TO INNOVATE?
COMMUNICATION & KNOW-HOW SHARING
 Which organization praises people who fail for
the right reasons?
 Identify roadblocks early on before the company has
invested significant sums
 Have the guts to say that too much learning is
needed before value ambition level is met
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20. Frank Dethier –
HOW TO INNOVATE?
COMMUNICATION & KNOW-HOW SHARING
 Communicate!
 Home work, but for Innovation?
 Formally and informally
 Sharing of experiences and know-how
(incl failures)
 Online tools
 Face-2-face
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21. Frank Dethier –
HOW TO INNOVATE?
WORK ENVIRONMENT
 Work environment is also crucial
element
 Helps you thinking out-of-the box
 Dedicated spaces
 Both individually and even more
important, in groups
 Creative room!?
 Or at least out-of-the box sessions/spaces
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22. Frank Dethier –
HOW TO INNOVATE?
WORK ENVIRONMENT
 Dedicated Spaces allows team to be
 Inspired by imagery from the field
 Immersed in their post-it notes
 Able to track progress of Innovation project
 Better having 2 different office environments
(exploitation & exploration) than to ask team to
switch context in same environment
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23. Frank Dethier –
HOW TO INNOVATE?
WORK ENVIRONMENT
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Office space designed to collaborate

24. Frank Dethier –
HOW TO INNOVATE?
METRICS & KPIS
 How do you need to reward your best Innovators?
 Metrics & KPI’s determine your goal
(communicated or not)
 Several possible ways
 Input driven: %budget spent on new innovations,
#ideas generated, ...
 Output driven: customer satisfaction, revenues new
products/services, ...
 Culture: #employees recognized for innovative work,
%time leaders spent on Innovation, ...
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25. Frank Dethier –
HOW TO INNOVATE?
METRICS & KPIS
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Unique
career
opportunities
Public
recognition
Financial (but
intrinsic still
better)
Opportunity
to learn

26. Frank Dethier –
HOW TO INNOVATE?
INNOVATIVE COMPANY CULTURE
Status Quo Culture Innovative Culture
Predictability Un-predictability
Seek stability Seek novelty
Focus on core competence Focus on edge competence
Reinforce organizational hierarchy Reinforce organizational networks
High success rate High failure rate
Avoid surprises Embrace surprises
Accept things as they are Ask tough questions
Extend the status quo Abandon the status quo
Senior managers have critical
knowledge
Everyone has critical knowledge
Look for certainty Embrace ambiguity
Protect the past Create the future
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27. Frank Dethier –
HOW TO INNOVATE?
CHANGE INNOVATIVE COMPANY CULTURE
 Creating an Innovative Company Culture is a
Change Management trajectory
 Change management is a systematic approach to
dealing with change both from the perspective of
an organization and the individual.
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28. Frank Dethier –
HOW TO INNOVATE?
CHANGE MANAGEMENT
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29. Frank Dethier –
DISRUPTIVE INNOVATION
EXPERIENCES FROM OTHERS
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Biggest video rental company
Pay per video
Based on mailing DVDs
Netflix founder Reed Hastings asked himself, “Why can’t you sell movies like
Amazon sells books?” while fuming over the fees he had incurred from his late
return of Apollo 13 to Blockbuster
Hastings combined Amazon’s book-selling approach with gym membership fee
Model and streaming movie & movie suggesting technologies
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30. Frank Dethier –
DISRUPTIVE INNOVATION
EXPERIENCES FROM OTHERS
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How can I make high-quality coffee drinks more enjoyable?
Inspiration by observing Italians from all walks of life enjoying
Espresso at their local watering holes
Roasting & packing business -> Howard Schultz was
sent to Italy as employee to scout equipment
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31. Frank Dethier –
HOW TO INNOVATE?
ENCOURAGE YOUR PEOPLE
 Do your scope of activities encourage big, ambitious
thinking? On what scale?
 To what degree do activities promote
experimentation and iteration?
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32. Frank Dethier –
HOW TO INNOVATE?
EXCERCISE
 How will you create a more Innovative company
culture?
 Which levers will you use?
 Development Programs
 Attitudes towards Risks
 Communication & know-how sharing
 Work environment
 Metrics & KPIs
 Discuss with you neighbor
 Time foreseen: 30 min
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33. Frank Dethier –
 How will you create a more Innovative company
culture?
 Which levers will you use?
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34. Frank Dethier –
HOW TO INNOVATE?
BOOK
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35. Frank Dethier –
HOW TO INNOVATE?
FUTURE INSPIRATION?
 3 basic rules
1. Reserve time
2. Get out of the door/office/mindset/….
3. Do something with it (if you feel it's relevant)
 Additionally: experiment (outside work)
sometimes with something new
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36. Frank Dethier –
HOW TO INNOVATE?
FUTURE INSPIRATION?
 TED talks
 LinkedIn groups (I am subscribed to about 30 groups)
 MeetUp groups (I am subscribed to about 15 groups)
 Magazines (HBR and BloomBerg news)
 Newsletters (HBR daily, Innovatie centrums, VOKA,
...)
 Consultancy offices subscription (McKinsey, BCG,
PWC, Deloitte, ...)
 Meet new people
 Follow webinars
 Organize something
 …
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37. Frank Dethier –
HOW TO INNOVATE?
ONE HOLISTIC FRAMEWORK
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Strategy
Process
Organization
Resources
Culture
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38. Frank Dethier –
FRANK DETHIER
 My professional passions
 Help people and companies change to Innovation & Growth
 Guide young companies/start-ups to sustainable growth
 Act as Change Agent in Company Board
 Can you help me? Of course
 Contacts & Opportunities
 Recommendations
 ...
 Last but not least, do give me feedback
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39. Frank Dethier –
YOUR NEW ROLE
INNOVATION MANAGER
 Building innovation capabilities
 Developing the competencies and capacities to innovate
 Creating breakthrough strategies
 Developing new business models
 Finding opportunities for innovation and new growth
 Catalytic thinking
 Knowing the emerging, leading and best practice of innovation
 Recognizing innovation lifecycle management
 Accelerating and bringing change
 Enhancing the quality of inventive intellectual thinking
 Strengthening the collaborating effect
 Building innovation resources
 Leading clearly for innovation
 Long-term innovation
 See more at: http://www.innovationexcellence.com/blog/2012/01/27/chief-
innovation-officer-checklist/
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