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CYCLES Course (2): Alignment

This course covers what is Innovation and why everything needs to start with alignment.

If you don’t know where you’re going... Chances are you won’t get where you want to go.

Alignment is the foundation of effective growth and Innovation. It is about finding what is important to you (MISSION) and matching this with what the market wants (NEEDS) and plan to deliver and extract value. It is also about an honest assessment of who you are. (CULTURE)

Deliverables: After this course you will be able to identify 3-4 True North priorities for your company /division (True north) priorities can be:

1. Changing what you are doing and why
2. Changing how you work to generate or extract more value
3. How to work smarter and / or get your culture supporting your innovation objectives

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CYCLES Course (2): Alignment

  1. 1. Cycles The simplest, proven way to build your business. Course Alignment
  2. 2. SNARCAlignment
  3. 3. What you can expect today • What is Innovation • Why Alignment • Break • Work on Sprints with time for Q & A Theory Coffee Case
  4. 4. Is this innovation ? Sales up 30% Price up 250% Wastage down 40% + = Source: video: Three Steps for Creating an Innovative Culture (Gary Pisano)
  5. 5. 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 5
  6. 6. 6 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
  7. 7. These all offer less Mini mills Integrated steel mills Community colleges Four-year colleges Discount retailers Full-service department stores Retail medical clinics Traditional doctor's offices
  8. 8. 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
  9. 9. Successful Innovation is not about being 10% cheaper, 20 % better
  10. 10. It is about being 10X better at half the price Or Half as good at 1/10th of the price
  11. 11. Your Definitions of Innovation 0 0,05 0,1 0,15 0,2 0,25 Worse Value Capture Product Building Service Creative Value Different New Better / Improving New combinations of old ? Is better really important ? Where is the innovation without value capture ? What you sent in
  12. 12. 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
  13. 13. 5 types of innovation PRODUCT - SERVICE EXISTING NEW EXISTINGNEW CUSTOMERS SUSTAINING innovation  ADJACENT innovation (marketing focus)  ADJACENT innovation (product focus)  DISRUPTIVE innovation  DISRUPTIVE innovation  DISRUPTIVE innovation  TRANSFORMATIONAL innovation  BUSINESS MODEL PROCESS WORKING SMARTER  About 60% of all Innovation
  14. 14. Why Innovation is important
  15. 15. In Fortune 500 companies… New products (< 5 year) • 40% of revenues • And 50% of profits Source: MIT 2015 A 10 year Harvard study ROI of 692 companies “40 years for 1,000 U.S. companies. No long- term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —The Financial Times First 5 years Next 5 years Top 20% 39% 21% Bottom m 20% 3% 17% ~ Without innovation we all become average
  16. 16. The cycle of life Source: Driving Eureka
  17. 17. Innovation can help you re-start Source: Driving Eureka
  18. 18. 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 Arguably it is everything It is ONE Thing you can do (if you do it well) that will make everything else easier or unnecessary
  19. 19. 3 Myths 1.It is all about big ideas 2.There are recipes for success 3.Soft creative culture
  20. 20. Myth #1 All about ideas The Story of Innovation Engineering
  21. 21. America’s #1 Idea Guru A&E Top 10 America’s #1 New Product Idea Man Inc. Magazine
  22. 22. 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
  23. 23. 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.
  24. 24. 16 % ideas 84 % systems They identified the share of success due to ideas and systems
  25. 25. Myth # 2 Recipes for Success
  26. 26. 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” 27
  27. 27. Can innovation be taught ? Probably not, but the principles that make it work can be…
  28. 28. 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
  29. 29. 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
  30. 30. Myth # 3 Soft Creative Cultures
  31. 31. Cargo Cult SciencePlanes with materials How to get some
  32. 32. A good innovation culture is NOT soft 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 Candor • Strong Leadership Source: video:Three Steps for Creating an Innovative Culture (Gary Pisano)
  33. 33. Culture and capabilities grow over time The Basics Strategy Hunger Philosophy Learning Orientation Operations Speed Proactivity General systems Customer focus Entrepreneurial Orient. Risk Taking Ecosystem Management Structure Creativity Room to grow Sustaining Innovation Breakthrough Innovation Want it Do it Not scared to do more
  34. 34. FACTS
  35. 35. 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 SEVEN DRIVERS OF INNOVATION SUCCESS THREE YEARS OF RESEARCH… WITH OVER 400 COMPANIES
  36. 36. Even Simpler Purpose Process Persistence
  37. 37. 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…
  38. 38. 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
  39. 39. 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) 40
  40. 40. 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.   
  41. 41. 1 * 1 * 1 * 1 = Beauty 1 * 1 * 1 * 0 = Failure 42
  42. 42. General theories of Innovation What you need to know The Theory Big ideas are grown If you want to end up with big ideas, you must begin by growing small ideas. Winning companies have improvement habits If you can embed improvement habits in your organization, you will be able to grow bigger and better ideas. Effective speed and effort make a world of difference If you cultivate a sense of urgency and a culture of speed, you will grow ideas faster and more effectively.   
  43. 43. The ABCs is a method to make this possible 44 COMMUNICATE ALIGN BUILD CHECK SYSTEMS a a a a Bigger Ideas, faster at lower risk X a a a Chaos, wasted energy a X a a Weak Ideas, small improvement a a X a Resources wasted on bad ideas a a a X Small wins, no big improvements RESULTS
  44. 44. Recap + An important question.. • What is the link between the ABCs and Lean Start-up • Why would someone want to add alignment to Lean ?
  45. 45. SNARCAlignment
  46. 46. 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% A poster child Facts 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 The hard math of Innovation
  47. 47. A simpler View Easy Kill Not willing to pay enough (Hard kill) Happy to pay for the Value Sad to Kill a real JOB willing to PAY not willing to PAY no JOB
  48. 48. Winners learn to do things better over time And build different business models Value Creation * Value Capture = Success
  49. 49. How do you capture value ? Example… A car can’t drive without a drive train, but they get 3% of the profits
  50. 50. The Power of Business model Innovation Source: Deloitte Expert Interviews 2018 Operational Business model Excellence Innovation Innovation Original price 40,000 40,000 40,000 New Value 350 700 Total Price 40,000 40,350 40,700 Labor 15,000 15,000 15,000 Other Parts 18,000 18,000 18,000 Drive Train 2,100 2,100 2,100 Drive Train Extra Value 175 420 Total Costs 35,100 35,275 35,520 Their Margin 4,900 5,075 5,180 Base Margin 147 7% 147 7% 147 7% Extra Value 150 20% 350 20% Your Margin 147 297 497 Your share of margin 3% 6% 10% You win with You bring Your bring more low price and new value value and become value and get a part a critical part of the value chain
  51. 51. The Power of Business model Innovation Source: Deloitte Expert Interviews 2018 Operational Business model Excellence Innovation Innovation Original price 40,000 40,000 40,000 New Value 350 700 Total Price 40,000 40,350 40,700 Labor 15,000 15,000 15,000 Other Parts 18,000 18,000 18,000 Drive Train 2,100 2,100 2,100 Drive Train Extra Value 175 420 Total Costs 35,100 35,275 35,520 Their Margin 4,900 5,075 5,180 Base Margin 147 7% 147 7% 147 7% Extra Value 150 20% 350 20% Your Margin 147 297 497 Your share of margin 3% 6% 10% You win with You bring Your bring more low price and new value value and become value and get a part a critical part of the value chain
  52. 52. The Power of Business model Innovation More margin for you More margin for partners More consumer value OPERATIONAL BUSINESS MODEL EXCELLENCE INNOVATION Original price 40,000 40,000 40,000 New Value 350 700 Total Price 40,000 40,350 40,700 Labor 15,000 15,000 15,000 Other Parts 18,000 18,000 18,000 Drive Train 2,100 2,100 2,100 Drive Train Extra Value 175 420 Total Costs 35,100 35,275 35,520 Their Margin 4,900 5,075 5,180 Base Margin 147 ## 147 ## 147 7% Extra Value 150 ## 350 20% Your Margin 147 297 497 Your share of margin 3% 6% 10% You win with You bring You bring more low price and new value value and become value and get a part a critical part of the value chain INNOVATION
  53. 53. Question: Is Google an innovator or a business model innovator ? They created more value And captured value There value capture was the bigger innovation
  54. 54. A very important fact Autonomy is negatively correlated with innovation results Innovation Results Low Cutomer High Customer 71 57 49 21 Low High Low High Autonomy Autonomy FocusFocus 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.
  55. 55. But not if you’re customer focused Innovation Results Low Cutomer High Customer 71 57 49 21 Low High Low High Autonomy Autonomy FocusFocus 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.
  56. 56. Why … Needs first, not ideas first ! Success rate * * According to Strategyn research on outcome driven innovation… 5 - 10% 70% Develop a solution Find a need Find a market IDEAS first Find a need Develop a solution Find a market NEEDS first
  57. 57. What for who before how… Ask how more value / value capture Culture Then get started with a clear mission 58
  58. 58. Objective Working on the right things to start Right Things Wrong Right Things Right Wrong things Wrong Wrong Things Right
  59. 59. Doing the wrong things right … Makes you wronger (RTW is better than WTR)
  60. 60. •SNCF Reducing Overcrowding on Trains A fast (very fast) case study
  61. 61. Details •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) Objective How to reduce standing or feelings associated with standing on the train
  62. 62. A 5 Step process 65 1 | What 2 | check What has value 3 | how better 4 | how to 5 | Share Tools to come to alignment
  63. 63. Doing the wrong things right … Makes you wronger
  64. 64. 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
  65. 65. What are the jobs of people standing ? (ways to solve their job)
  66. 66. 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
  67. 67. 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
  68. 68. Who Situatio n Objective Outco me H o w Jo b better Daily Commuter I go to work Make my travel less tiring Fresh and happy when I arrive home Fresher, Happier by Who is standing now ?
  69. 69. Could we change how to do things to deliver or capture more value
  70. 70. The future ain’t what it used to be First there was a focus on Then there was: Now companies need INNOVATION BUSINESS MODEL INNOVATION How and what can be copied, systems are sustainable HOW? Focus on effectiveness And efficiency WHAT? Focus on new customer value WHAT? WHO? HOW? WHY? Focus on the entire Value system Operational Excellence
  71. 71. The future ain’t what it used to be First there was a focus on Then there was: Now companies need INNOVATION BUSINESS MODEL INNOVATION How and what can be copied, systems are sustainable HOW? Focus on effectiveness And efficiency WHAT? Focus on new customer value WHAT? WHO? HOW? WHY? Focus on the entire Value system Operational Excellence
  72. 72. The future ain’t what it used to be First there was a focus on Then there was: Now companies need INNOVATION BUSINESS MODEL INNOVATION How and what can be copied, systems are sustainable HOW? Focus on effectiveness and efficiency WHAT? Focus on new customer value WHAT? WHO? HOW? WHY? Focus on the entire value system Operational Excellence
  73. 73. The basics A business model = 4 parts A sustainable BM is usually different in at least 2 ways Step by step 76 Create , sell , capture value WHO WHA T WHY value HOW Value propositio n Profit mechanis m Value chain
  74. 74. How are things done now … Subscriptions Reduction cards Ord. tickets Peak hour Commuters And other Discount for Frequent travel some hourly discounts 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)
  75. 75. 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 http://tiny.cc/BMICARDS
  76. 76. A ticket with a Sit-down add on
  77. 77. Auction the Seats ?
  78. 78. No Seat Tickets
  79. 79. Seats at a price
  80. 80. How to use the cards… Pick 3 at random and really think about how you could change your business to match
  81. 81. 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 will get more and more frustrated
  82. 82. Culture is the thing that makes everything possible
  83. 83. Culture and capabilities grow over time The Basics Strategy Hunger Philosophy Learning Orientation Operations Speed Proactivity General systems Customer focus Entrepreneurial Orient. Risk Taking Ecosystem Management Structure Creativity Room to grow Sustaining Innovation Breakthrough Innovation Want it Do it Not scared to do more
  84. 84. Culture to make it happen 87 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
  85. 85. Why you gotta communicate things only 55% of the middle managers can name even 1 of their company’s top five priorities
  86. 86. A tool to make things clear … (Step #5) 89
  87. 87. Best Practice = 3 Clear objectives • One Product Objective • One Culture Objective • One working smarter
  88. 88. 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 Product objective
  89. 89. What for who before how… Ask how more value / value capture Culture Then get started with a clear mission 92
  90. 90. Class Break
  91. 91. Assignment • Why is this work important before BUILD ? • Complete alignment Canvas for Sprints • Strategic Insights for Sprints • Who has the job (who to focus on) • How will you optimize the ability to deliver value • How will you best capture value • Culture you’ll need to create • Your NEW True North
  92. 92. A 5 Step process 95 1 | What 2 | check What has value 3 | how better 4 | how to 5 | Share Tools to come to alignment
  93. 93. Another Example
  94. 94. Healthy Fast Food
  95. 95. “Wendy’s Mission is to deliver superior quality products and services for our customers and communities through leadership, innovation and partnerships.” POWER OF THE MISSION STATEMENT
  96. 96. “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 Do people know what to do next?
  97. 97. Our case Study
  98. 98. The SPRINT Challenge TRUE Truly Simple A better way to build innovation habits using Sprint techniques and the ABCS of Innovation N Narrative. Why it is important (the story) Building innovation habits is hard. Most companies focus on motivating habit change. This doesn't work. The key to building habits is to facilitate habit change. Through their active methods, sprints are powerful ways to build skills and common methods. This is an opportunity for habit change O Objective A new productizable sprint program that will help build positive Innovation habits, launched when the CYCLES book is published R Restrictions: We are not interested in New methods or techniques (we need to use what we have) A program that needs to be adapted for each client/company T Tactical Constraints: Actionable with your Team A clear link to CYCLES and the ABCS of Innovation Could be done at the time of the Cycles launch (Jan 2020) A link to Sprint ideas AND building habits No new methods of techniques (Cycles or "off the shelf") Budget < 50K H Here is the place to start Google Sprints EXO Sprints Innovation Engineering - Acceleration programs The Fourth Method Our first Thoughts TRUE Truly Simple N Narrative. Why it is important (the story) O Objective R Restrictions: We are not interested in T Tactical Constraints: Actionable with your Team A clear link to CYCLES and the ABCS of Innovation Could be done at the time of the Cycles launch (Jan 2020) A link to Sprint ideas AND building habits No new methods of techniques (Cycles or "off the shelf") Budget < 50K H Here is the place to start
  99. 99. Make Innovation a habit * Assume everything on right is available to you You need to define innovation in your group … One Definition Value Creation AndValue Capture Assets Available • Innovation Assessment • An international network of freelancers (high-paid) • An international network of freelancers (low-paid) • Innovation Certification • Cycles content • Partnerships: • EIA • Innovation Engineering (OK) • Exo-sprints (weak) • Author 4th method (weak ) • Executive programs (Berkeley + Chicago)
  100. 100. Who wants to make innovation a habit … Who to focus on ? Who Situation Objective Outcome Current Alternatives Meaningful Unique Score Research Directors 0 CEOs 0 HR Directors 0 CFO's 0 Team Leaders 0 Division leaders 0 Innovation Directors 0 New Business Dev. Director 0 Consultants already working with the Co. 0
  101. 101. Delivered better via through business model innovation Choose An existing Method or combination of methods E.g. Google Sprint Exo Sprint Innov. Eng Fourth Method Details Attached
  102. 102. Google Sprint Exo Sprint Innov. Eng Fourth Method Solve a problem Wake up your organization More, better ideas fast 1 week Sprint / 1 problem 10 Weeks 5-day training 20 weeks No real training / arrive and go 2-day kick off "wake up" Itensive kick off Ongoing training + workshops 1 maybe 2 external 2-Day suppport after 5 weeks Weekly Support Lead the Sprint Trained Google Sprint Leaders Exo Sprint leaders Trainined Innovation Engineers Trained Forth Facilitators Sometimes led by local blackbelts R& D CEOs CEOs CEOs Project mnagers Innovation Directors HR Innovation Directors Typically not an innovation manager 30 K for a Spring 400-600 K for a spring 15 K per person trained 75-150 K in consulting fees Repeat Sprints 120 K for a Sprint Board positions Company Systems 500-700K for a large company Build an Innovation management system Value Extraction but usually run by Innovation Engineering Plus a worlwide network of consultants What How Who
  103. 103. Disrupt TWO-DAY IN- PERSON WORKSHOP 1 Define TWO-DAY IN-PERSON WORKSHOP 2 Refine ONE-DAY IN-PERSON WORKSHOP 3 Awake and Align sessions followed by Research of pain points, technologies, startups, & macro trends WEEK 1 Discover WEEK 2 Ideate WEEK 3 Experiment WEEK 4 Assemble WEEK 5 Disrupt WEEK 6 Correct WEEK 7 Prototype WEEK 8 Validate WEEK 9 Improve Define ten ExO initiatives per team Run experiments with clients & prioritize four initiatives per team Draft five-minute pitches for each initiative Rehearse pitches for each initiative and present to disrupt panel for feedback Corrections & updates, narrow down to two initiatives per team Build a prototype or MVP for each initiative Acquire market validation by testing with potential customers Improve initiatives based on validated learning Rehearse pitches and present two initiatives per team to leadership VIRTUAL COACHING 10-Week Format for the ExO Sprint VIRTUAL COACHING WEEK 10 Launch
  104. 104. See full description Here: https://finnkollerup.com/services/i nnovation-projects/forth- innovation-method/ Full Steam Ahead (5 weeks) Observe and Learn (6 weeks) Raise Ideas (2 weeks) Test Ideas (3 weeks) Homecoming (4 weeks) Stage Full Steam Ahead (5 weeks) Observe and Learn (6 weeks) Raise Ideas (2 weeks) Test Ideas (3 weeks) Homecoming (4 weeks) Totals 5 6 2 3 4 20 Activities Innovation focus workshop Explore preparation workshop New product brainstorm Concept testing 4 mini new business case workshops Core team introductory meeting Exploring trends & technology Concept improvement workshop 2nd concept improvement workshop Final presentation Kick-off workshop Discovering customer’s issues Concept transfer workshop Exploring innovation opportunities Four observe & learn workshops Deliverables Innovation assignment An open mind 500 – 750 ideas 3-5 best and improved tested concepts3-5 mini new business cases Ideation team Best innovation opportunities 30 – 40 idea directions Effective ideation process FORTH planning Understanding of customer issues 12 concepts Innovative mindset Departure document 12 improved concepts ready for market research Potential target groups 6 -10 innovation opportunities Days Low 10 15 4 6 12 Est. Budget 15000 22500 6000 9000 18000 70500 Days High 25 20 15 20 30 Est. Budget 37500 30000 22500 30000 45000 165000
  105. 105. The Big Idea… based On 7 truths
  106. 106. Culture to make it happen 111 Imagine doing This with your current team
  107. 107. The Challenge TRUE Truly Simple A better way to build innovation habits using Sprint techniques and the ABCS of Innovation N Narrative. Why it is important (the story) Building innovation habits is hard. Most companies focus on motivating habit change. This doesn't work. The key to building habits is to facilitate habit change. Through their active methods, sprints are powerful ways to build skills and common methods. This is an opportunity for habit change O Objective A new productizable sprint program that will help build positive Innovation habits, launched when the CYCLES book is published R Restrictions: We are not interested in New methods or techniques (we need to use what we have) A program that needs to be adapted for each client/company T Tactical Constraints: Actionable with your Team A clear link to CYCLES and the ABCS of Innovation Could be done at the time of the Cycles launch (Jan 2020) A link to Sprint ideas AND building habits No new methods of techniques (Cycles or "off the shelf") Budget < 50K H Here is the place to start Google Sprints EXO Sprints Innovation Engineering - Acceleration programs The Fourth Method Our first Thoughts TRUE Truly Simple N Narrative. Why it is important (the story) O Objective R Restrictions: We are not interested in T Tactical Constraints: Actionable with your Team A clear link to CYCLES and the ABCS of Innovation Could be done at the time of the Cycles launch (Jan 2020) A link to Sprint ideas AND building habits No new methods of techniques (Cycles or "off the shelf") Budget < 50K H Here is the place to start
  108. 108. Some inspiration for you Objective: help me remember you…
  109. 109. Work before the next class As a Group • Why is this work important before BUILD ? • Complete alignment Canvas for Sprints • Strategic Insights • Who has the job (who to focus on) • How will you optimize the ability to deliver value • How will you best capture value • Culture you’ll need to create • Your NEW True North Send to : bryan.course.eslsca@gmail.com Individual • Readings +video on spark decks • Link • Your Introduction (link) • Weekly Journal http://tiny.cc/ESLSCA_journal
  110. 110. Pieter M. Once upon a time, there was a boy not knowing what to do with his life. Until one day, an extraterrestrial appeared and told him that learning the cunning tricks of marketing could make him a millionaire. Following up on the alien’s advice, he began his marketing studies at the KUL. My philosophy Live the life you love, love the life you live. Why doing things the hard way if there are far more easier ways to do it? A bit more... He likes doing things out of the ordinary and would therefore wants to be the first to market products in space. He also acknowledges the fact of having a girlfriend from out of space is an important plus. Only such a girlfriend has the power to look after him and to keep him on the right track. Anything is possible, only if you set your mind to it.
  111. 111. Anna K. I came here on a Viking ship... This Danish girl has always enjoyed school. She has been studying in many different countries, which have given her an extra ordinary knowledge about other nationalities and cultures. She is an energetic and committed student with an excellent experience for other cultures. She is a team player that takes initiative and motivates others. Her Secrets... It is always horrible to ruin the stereotype of a “Danish”. But the truth about this Danish girl is... • She can’t mention one single soccer player on the Danish national team. • Shortly after she was born, her mermaid long tail shriveled up and the long blond hair became discolored. Never in her life has she worn a helmet with horns. But the Danish girl’s Viking genes have not totally disappeared. The humor and mentality is still there. She loves irony, especially when she is able to get away with it!

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This course covers what is Innovation and why everything needs to start with alignment. If you don’t know where you’re going... Chances are you won’t get where you want to go. Alignment is the foundation of effective growth and Innovation. It is about finding what is important to you (MISSION) and matching this with what the market wants (NEEDS) and plan to deliver and extract value. It is also about an honest assessment of who you are. (CULTURE) Deliverables: After this course you will be able to identify 3-4 True North priorities for your company /division (True north) priorities can be: 1. Changing what you are doing and why 2. Changing how you work to generate or extract more value 3. How to work smarter and / or get your culture supporting your innovation objectives

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