2 Cycles Remote Innovation - Alignment

Cycles
The simplest, proven way
to build your business.
Course Alignment

Day 1 work in groups
You will need to talk to people Wednesday and Thursday
Now is the time to arrange meetings
1. Personal Introductions
2. Review the True North
3. Decide on key roles
4. Any questions on the program
1. List and vote on key challenges
2. Map success – add to challenges
3. Update TRUE NORTH + sprint targets
Before Mentor Talks
After this talk

What you can expect today
Why
Alignment
First
What is
Innovation
Clarification of
your work later
in groups
A talk through
the work you’ll
do in groups
1
2
3
4

Is this innovation ?
Source: video: Three Steps for Creating an Innovative Culture (Gary Pisano)
+ =
Sales up 30%
Price up 250%
Wastage down 40%

Despair.com
We hate all the senseless, wasted
time on employee motivation and
un-founded optimism
We imagine you do to, buy our
products and show your true
colors

Petrock.com
Pets take a lot of time and energy.
Your kids can have almost as much
fun with a pet rock.
We even include a care guide

These all offer less
Mini mills
Community colleges
Discount retailers
Retail medical clinics
Integrated steel mills
four-year colleges
Full-service department stores
Traditional doctor's offices

And this a lot
less…
 Low quality video
 No SD
 Bad Battery life
 More expensive than competition
But really, really simple
13% of the US video market in 1 year

Successful Innovation
is not about being
10% cheaper,
20 % better

It is about being 10X better
at half the price
Or
Half as good at 1/10th of the
price

IMHO… Innovation is …
Meaningful Unique
Value Creation
If consumers are not willing
to pay more, you are not
meaningfully unique
Value Capture
If you are not earning more
you are not innovating
Innovation = Value Creation * Value Capture

The cycle of life
Source: Driving Eureka

Source: Driving Eureka
Innovation can
help you re-start

Why innovation
 Only insurance against irrelevance
 Only protection against commoditization
 Only hope of long-term customer loyalty
 The only real hope of long-term competitive advantage
It is ONE Thing you can do (if you do it well)
that will make everything else easier or
unnecessary
Arguably it is everything

3 Myths
1. It is all about big ideas
2. There are recipes for success
3. Soft creative culture

In his words..
He sold spark plugs to Industry
Fees for 2-3 day workshops
$100,000 – $ 200,000
then the sparks worked
less and less

They analysed a mountain
of data
PEOPLE Data: innovation benchmarking data on over
100,000 managers.
PROCESS Data: As of this writing we have measured
over 6,000 teams during a day of brainstorming.
IDEA Data: market research on over
26,000 innovations.

They identified the share of
success due to ideas and systems
84 % systems16 % ideas

What is the “guru story”
1. “We’re all going to die”
2. “the bureaucracy is killing us” – so we have to go outside the
normal organizational structure to get the right things done.
3. “There is hope for a brighter future” – as long as we all
follow the guidelines and turn our organizations upside down.
4. “You have the power to make a change for the better” – even
if you occupy the low rung on the corporate ladder.
5. “Follow me”

Can innovation be taught ?
Probably not, but the principles that make it
work can be…

Gurus sell you recipes
to sell you ingredients
I believe you can “learn to cook”, so
you can choose which recipe fits your
company, select your ingredients and
most importantly, still be able to cook
when you’re missing ingredients

Continuous
improvement is not a
conservative strategy
It is about action every day, regular
failure and an unwillingness to
accept there is any product, or
process that cannot be further
improved

Myth # 3
Soft Creative Cultures

A good innovation culture
is NOT soft
Source: video: Three Steps for Creating an Innovative Culture (Gary Pisano)
Everyone Wants
 Tolerance for failure
 Willingness to Experiment
 Collaborative
 Freedom to speak up
 Flat
The reality
 Intolerance for
incompetence
 Demand disciplined action
 Individual accountability
 Brutal Condor
 Strong Leadership

Companies become innovative step by step
Each stage is dependent on the previous
stages
Partnerships
Persistence
Processes
Purpose / Passion
Innovation
Over 90% of companies go through these stages sequentially. That means the right way to move forward is almost
always to simply to identify the stage a company is at now and then work on what will get them to the next stage
Stage 2
Stage 1
Stage 3
Stage 4

THREE YEARS OF RESEARCH…
WITH OVER 400 COMPANIES
SEVEN DRIVERS OF
INNOVATION SUCCESS
7 Key Learnings:
1. Strategic alignment is the cornerstone of
successful innovation
2. If you want to give autonomy, you need to have
strategic alignment first
3. If you get alignment, attitudes and learning
orientation in place, systems will follow
4. The right balance disruptive/incremental is
key
5. Proactivity is the one thing you need to reward
6. If you are in a big company or a small company
you need to act like you are in a successful start
up
7. Walk before you run

Even Simpler
Purpose
Process
Persistence

The challenge:
Make this information
actionable…
The Solution
= Theory
Good Theory
 Based on Facts
 Parsimonious (simple)
( Think E = MC2 )
 Prescriptive
 And something that can be tested…

The importance of
theory
For years people looked at birds and concluded feathers are linked to the ability to fly
 Yes, birds have feathers
 But, people with feathers cannot fly
Observation Theory

My innovation theory
in simple terms
"We are what we repeatedly do. Excellence, then, is
not an act, but a habit." ~ Aristotle
What we are willing to repeatedly do is determined
by our desires , abilities and systems (and systems
are what drive everything)

The goal :
Level 1 to Level 3
LEVEL 1 ‐ INNOVATION AS AN EVENT
This is where most companies find themselves. They
conduct brainstorming sessions or hold random
contests to generate new ideas.
LEVEL 2 ‐ INNOVATION AS A CAPABILITY
The organization puts in place structures and
processes to define problems, generate and evaluate
solutions, and develop action plans to implement
those solutions.
LEVEL 3 ‐ INNOVATION AS A SYSTEM
The ultimate level involves creating an environment
where innovation is embedded in everything you do.
With embedded innovation, people innovate to deal
not only with “problems or challenges” that are
presented to them but with everything they do.




1 * 1 * 1 * 1 = Beauty
1 * 1 * 1 * 0 = Failure

The ABCs is a method to
make this possible
CO M M UN ICATE
ALIG N BUILD CH ECK SYSTEM S
    Bigger Ideas, faster at lower risk
X    Chaos, wasted energy
 X   Weak Ideas, small improvement
  X  Resources wasted on bad ideas
   X Small wins, no big improvements
RESULTS

This lecture is available on slack

The hard math
of Innovation
Total
100 products launched 100
About 40% not doing a real job 60
About half not doing enough to get hired 30
About half hired profitablly 15
Successes 15
Source Success Rate
Frost & Sullivan, "Growth Process Toolkit: New Product
Development,” 2008. 1%
Andrew Campbell and Robert Park, ‘Stop Kissing Frogs,” Harvard
Business Review, July-August 2004. 1%
Dr. John Sviokla, “The Calculus of Commerce,” Diamond Cluster
International, Inc. 2004. 3%
Corporate Strategy Board, "Stall Points,” 1998. Cited in Clayton
Christensen and Michael Raynor, "The Innovator’s Solution,” , 2003. 5%
Andrew Campbell and Robert Park, ‘Stop Kissing Frogs,” Harvard
Business Review, July-August 2004. 10%
Kevin J. Clancy and Randy L. Stone, "Don’t Blame the Metrics,” Harvard
Business Review, June 2005. 10%
Corporate Strategy Board, "Overcoming Stall Points,” 2006. 10%
PriceWaterFlouseCoopers, "Shaking the Money-Tree,” slide 33, U.S.
Venture Liquidity 2001-2007, Q3 2008. 11%
Average 8%
Average Success Rate VC (2018) 11%
Dr. Robert G. Cooper, "Doing it Right,” Product Development Institute
Inc., 2006. 25%
Facts
A poster child

A simpler View
Happy to pay for the
Value
Not willing to pay enough
(Hard kill)
willing
to PAY
Sad to Kill not willing
to PAY
no JOB a real JOB
Easy Kill

Winners learn to do things better over time
And build different business models
Value Creation * Value Capture = Success

A very important fact
Autonomy is negatively
correlated with
innovation results
 In most companies, there is not clarity on
what they are doing for customer (70% of
companies)
 People get lost in what they are doing.
Innovation Results
Low Cutomer High Custom
7
57
49
21
Low High Low Hig
Autonomy Autonom
FocusFocus

But not if you’re
customer focused
 In most companies, there is not clarity on
what they are doing for customer (70% of
companies)
 People get lost in what they are doing.
When customer focus is high. Autonomy
is positively correlated with results.
Innovation Results
Low Cutomer High Customer
71
57
49
21
Low High Low High
Autonomy Autonomy
FocusFocus

Why?… Needs first, not ideas
first !
Develop
a solution
Find
a need
Find
a need
Develop
a solution
Find
a market
IDEAS first
NEEDS first
5 - 10%
Find
a market
70%
Success rate *
* According to Strategyn research on outcome driven innovation…

What for who before how…
Ask how more value / value capture Culture
Then get started with a clear mission

Objective
Working on the right things to start
Right Things
Wrong
Right Things
Right
Wrong things
Wrong
Wrong Things
Right

Doing the wrong things right …
Makes you wrong
(RTW is better than WTR)

A fast (very fast) case study
SNCF
Reducing Overcrowding on Trains

Details Objective
 New construction in Paris –
demand now
 Traffic getting worse –
more demand soon
 No way to increase capacity
on specific lines
(e.g. Periphery to Paris)
How to reduce standing or
negative feelings associated
with standing on the train

Why you gotta be clear !!
only 55%
of the middle managers can name even
1
of their company’s top five priorities

A tool to make
things clear …
(Step #5)

Our commitments to you
Our parent company is a state-owned
industrial and commercial enterprise with a
public service mission (EPIC)—and we’re
proud of that.
As a linchpin—and architect—of shared
mobility, we work hard every day to keep our
promises to our customers.
We serve the public.
Getting you there is our business.
We make social progress a priority.
Our role has always been to promote regional
development and reduce regional inequality.
We offer fares that are right for you.
We’ve got specially designed solutions—for
large families, jobseekers, students and more
Get people
Where they need to
Go and reduce auto
traffic
A modern, efficient
railway network
A better, faster trip

What are the jobs of people standing ?
(ways to solve their job)

What is my job ?
Example :
Expensive prepared
Dinner Waterloo
station with flowers
I get home Apologize and
show I care
So I don’t sleep
on the couch
People only buy
products / services
to get
a job done
and they will pay
a lot more
to get
the right job done

Pick your core job(s)
Comfort during the trip
Take the Car
The energy I have when I
get to work
I go to work Make my travel
easy
Be fresh and happy
when I arrive at
work and home

Who is standing now ?
Who Situation Objective Outcome How progress measured
Daily Commuter I go to work
Make my travel less
tiring
Fresh and happy
when I arrive home
Feelings verus alternative
transport methods

Culture is the thing that makes
everything possible

Public Service
Some desire to
innovate
More desire to
stay the same
Customer Centric
Willing to treat
different people
differently
Greed is good
See the value of
treating people
different
Build the Basics
now

Could we change how to do things
to deliver or capture more value

The basics
A business model = 4 parts
A sustainable BM is usually different in
at least 2 ways
Step by step
Create, sell, capture value
WHO
WHAT
WHY
value
HOW
Value
proposition
Profit
mechanism
Value
chain

Pick your core job(s)
Subscriptions
Reduction
cards
Ord. tickets
Peak hour
Commuters
And other
A seat 1st or
2nd class on a std
SNCF train
If we don’t change something, more people standing
will get more and more frustrated
Things that could be
changed
 Type of tickets
 Pricing
 Train design
 Perceptions of seating
 Change how you stand
(chargers, TVs, desks,
etc)

How to use the cards…
Pick 3 at random and really think about how
you could change your business to match

Steal the best business models
55 pattern cards,
which are able to
explain over 90%
of all business
model
innovations in the
last 150 years

A ticket with a
Sit-down add on

Instructions
1. Open these 2 files
2. Review Cards together
3. Identify at least 2 possible business models
changes to Increase value provided
AND/OR capture more value
4. Then fill in the TRUE NORTH (slide 2 of
document 2)
http://tiny.cc/remoteBMcards
http://tiny.cc/remoteBMI
subscriptions
Reduction
cards
Ord. tickets
Peak hour
Commuters
Discount for
Frequent travel
some hourly
discounts
A seat 1st or
2nd class
If we don’t change something more people standing

Your business model Innovation
subscriptions
Reduction
cards
Ord. tickets
Peak hour
Commuters
Discount for
Frequent travel
some hourly
discounts
A seat 1st or
2nd class
If we don’t change something more people standing

Then a
TRUE NORTH
TRUE Truly Simple
N
Narrative. Why it is
important (the story)
O Objective
R
Restrictions: We are not
interested in
T Tactical Constraints: No new capacity (already full)
H Here is the place to start

Your results …
• The goal here was not to have make something perfect, but
to get you thinking about putting strategic choices into the
TRUE NORTH format
• When I run TRUE NORTH workshops, I work with
companies for 2-3 hours

Question: how could this
process be applied to your
work in groups

POWER OF THE
M I S S I O N
STATEMENT
“Wendy’s Mission is to deliver superior
quality products and services for our
customers and communities through
leadership, innovation and partnerships.”

Do people know
what to do next?
“Wendy’s Mission is to deliver superior
quality products and services for our
customers and communities through
leadership, innovation and partnerships.”
TRUE
Truly Simple Healthy Fast Food
N
Narrative. Why it is
important (the story)
When consumers are looking for ordinary fast food
they have lots of choices; Wendys needs to be the
choice for healthy fast food
O
Objective
Better and healthier food that consumers notice is
healthier and better. And they will talk about it
R
Restrictions: We are
not interested in
Being classfied as a health food place. For many health
food = no food
T
Tactical Constraints:
The margin needs to be the same as before
H
Here is the place to
start
See Subways: Jared Campaign

Day 1 work in groups
Before Mentor Talks
1. Personal Introductions
2. Review the True North
3. Decide on key roles
4. Any questions on the program
After this talk
1. List and vote on key challenges
2. Map success – add to challenges
3. Update TRUE NORTH + sprint
targets
You will need to talk to people Wednesday and Thursday
Now is the time to arrange meetings

Final
Deliverable
1. Update TRUE NORTH
2. Up to 3 targets for the Sprint
Up to 3 targets for the Sprint
Target 1
Target 2
Target 3

Watch this VIDEO
On challenge mapping
https://www.youtube.com/watch?v=JTqCR84fzeg

Exercise Draw
the Map
Watch video together
1. Facilitator takes the marker
2. Write the “user” on the left
3. Write the “objective” on the right
4. Start filling in what happens in between
(until the time is up)
Discover Learn Use

Exercise Sprint
Questions
What all the reasons you could fail
1. List key challenges
2. Vote on challenges
3. The decider chooses
If stuck, watch this video:

Dot voting…
 Voting (or creating a poll) gives your team the
ability to quickly form a hierarchy of ideas and
improve idea synthesis. You can initiate multiple
voting sessions to really dig down.
 Here's how:
 Just click on the dot voting box in top-left corner,
and “Start Voting Session.”
 Choose the number of votes per person and name
the session
 Also choose whether you would like any member of
the mural or only facilitators of the mural canvas to
have the ability to end the voting session
 Start voting! To vote, click directly on the desired
element(s). To de-select a vote you've already cast,
hold the SHIFT key while clicking on it.
 End the session by clicking “End Voting Session”
when everyone is finished.
https://youtu.be/LX24speZ0X8

Meeting request
A new contact
Hi Elise, I see you are interested in TRIZ
and Innovation. Would you be willing to do
an expert interview for a student project
on: The use of TRIZ to classify academic
articles to make it easier to find articles
that really spark new ideas. If yes, sign up:
http://tiny.cc/trizexpert
Someone you know
Hello Floor,
I would like to ask for your help. Would you be willing to participation in an
expert interview on 'how to train managers to manage remote innovation
teams’?
The context
------------------
The future is going to be more and more remote. More managers will need to
have the ability to manage remote innovation teams. But how do you train
people to manage these teams? Innovation is not something you learn from a
book, but from doing. We are now in the 3rd week of an innovation sprint
designing a new type of learn by doing training program. We have identified
a way to train managers while they manage a remote innovation team
working on some of their hardest innovation challenges. Our current
thinking is a 5-week program with teams of students certified in remote
innovation management.
Could you help?
---------------------
We still have a lot of questions about how to do this best and would like to
ask if you are willing to participate in an expert interview. In exchange for
your time, you will be able to learn about advances in remote working and
leading innovation teams.
Could you please fix a time that works for you using this link?
http://tiny.cc/remote-expert-k
Kind regards,
Bryan

2 Cycles Remote Innovation - Alignment

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