1. NPD PROCESS &
ORGANIZATIONAL
CULTURE
Felfeli , Latifi , Mostafavi

2. Culture definition
 the specific collection of values and norms that are
shared by people and groups in an organization and that
control the way they interact with each other and with
stakeholders outside the organization.
 organizational culture is a set of shared mental
assumptions that guide interpretation and action in
organizations by defining appropriate behavior for
various situations.

3. the NPD
Strategy
NPD
senior
management
commitment
performance NPD process
the
organization
of the NPD
programmed
culture and
climate for
innovation
Important Factors in NPD
performance

4. Impact of culture in NPD
success
 Sick new product development syndrome
New product failed to live up to
management 80%
expectations time.
Industrial product launches fail
time.
33%

5. Impact of culture in NPD
success
 old study usually focused on aspects and
variables that were outcome of something else
rather than the main antecedent.
CULTURE , the true antecedent.
 The way the company organized, managed and
led will influence the way it reacts to it’s market
,customers and competitors.

6. Impact of culture in NPD success
 one cannot fully understand how a successful
new product is designed and introduced simply by
looking at product development processes and
information.
The essential ingredients key people
in delivering
successful new products and services their creative are ideas
the
involved and .

7. Impact of culture in NPD success
 They should feel free to generate and integrate
new ideas, products, service concepts, and
processes into the system.
 Success comes from a vibrant and energetic
organization that encourages its creative members
and partners to think innovatively about what they
are doing.

8. Understanding culture
•Dimensions of organizational culture
• Hofstede , G.; 2002

9. Six Dimensions of Organizational
Culture(Hofstede et al; 1990)
 Process vs. Results
 Employee vs. Job
 Parochial vs. Professional
 Open vs. Closed System
 Loose vs. Tight Control
 Normative vs. Pragmatic

10. Process- oriented vs. results-oriented
effectiveness of the company among
the six dimensions
 Process Orientation
 bureaucratic attitude
 How things are done
 avoiding taking risk and as
spending the least
possible effort
 Results Orientation
 What gets done(Outcome)
 employ people who feel
comfortable in unfamiliar
and risky situations

11. Job- oriented vs. employee-oriented
connected especially with style and tradition
 Concern for Employee
 Employee satisfaction
 Group decision making
 Concern for Job
 Work and what employee
can do
 Individual decision making

12. Open vs. Closed System
common style of internal and external
communication
 Open System
 Easy to join
 Quickly get up to speed
 Openness to new idea
 friendly and open to
newcomers
 Closed System
 Difficult to join
 Only certain kind of
people fit in

13. Loose vs. Tight Control
The degree of formality and punctuality
 Loose Control
 Casual
 Improvisation
 Tight Control
 Seriousness
 cost-conscious

14. Normative vs. Pragmatic
indicates to what extent functioning vis-à-vis the
environment
 Normative Orientation
 Ideologically driven
 applying the procedures
correctly
 Pragmatic Orientation
 Market-driven
 customer's wishes

15. Parochial vs. Professional
 Parochial
 Identity taken from
 being in the organization
 Professional
 Identity from outside
organization

16. Assessing culture
•Importance of Assessing culture
•Tools for assessment

17. Importance of Assessing culture
 By better understanding who you are, you’ll be
better able to implement smart policies and
programs that will sustain your organization’s
character.
 Whatever strategy you use to assess your
organizational culture, the process must be
honest, thorough, and must focus not on
“what we want to be” as much as “who we
are right now.”

18. Tools for assessment
 Interviews of representatives of the organization's
different levels
 allowed us to get a qualitative feel for the gestalt of the unit's
culture and to collect issues to be included in the questionnaire
for the subsequent survey
 Questionnaires
 The questionnaire was aimed at collecting information on the
same four types of manifestations of culture as covered in the
interview checklist
 Studying special situations
 Observation of activities
 Seminars and working groups
 focus groups with employees or customers.

19. Process-Oriented vs. Results-
Oriented
 Important decisions made by individuals
 Organization only interested in work people do
 Decisions centralized at top
 Managers keep good people for own
department
 Changes imposed by management decree
 Newcomers left to find own way
 Management dislikes union members
 No special ties with local community
 Little concern for personal problems of
employees

20. Building culture
•How cultures are created?
•Building a culture to support NPD success.
• User-involving culture
• Accountable culture
• Innovative culture
• Collaborative culture

21. How cultures are created?
 The factors that are most important in the
creation of an organization’s culture include:
 founders’ values and preferences
 industry demands.

22. Founder values and
preferences
 A company’s culture is inevitably tied to the
personality, background, and values of its founder
or founders, as well as their vision for the future of
the organization.
 the way they want to do business determines the
organization’s rules, the structure set up in the
company, and the people they hire to work with
them.

23. Industry demands
 the industry characteristics and demands act as
a force to create similarities among
organizational cultures.
 many companies in the insurance and banking
industries are stable and rule-oriented
 many companies in the high-tech industry have
innovative cultures
 those in nonprofit industry may be people-oriented.

24. Building a culture to support NPD
success
 User-involving culture
 Accountable culture
 Innovative culture
 Collaborative culture

25. User-involving culture
 A user-involving NPD culture is a mindset
centered on an attitude of wisdom that makes
Organizations to encourage and reward
cooperation and knowledge sharing across
company boundaries, both internally and
externally.
 A user-involving NPD culture has three design
elements that motivate, grow and sustain the
user-driven mindset of NPD.

26. 1- User integrator role
 User integrators are individuals designated to
perform external and internal knowledge
brokering. They process information and build
new ideas rooted in organizational experience.
The key function of user integrators are to
establish and to maintain relevant links between
users and new product projects.

27. key tasks of user integrators
1. Filter the information flow to and from users
and the organization.
2. Provide clear focus for user contributions to
NPD.
3. Nurture relationships with users.
4. Match users’ role with the stage of the new
product project.
5. To maintain an internally and externally
innovative dialogue.

28. 2- NPD transparency
 When involving users in new product projects, it
is essential that users understand their role in
the NPD process and how their inputs will be
treated. Transparency is a condition of high
openness and trust on the part of users.
Expectations have to be clear to avoid user
dissatisfaction and negative impact on the
quality of the user inputs.

29. 3- knowledge relationships
 This element is about generating and using
information to build a knowledgeable NPD
process. Knowledge relationships with users are
significant to user driven NPD, because their
main purpose consists of generating two-way
flows of creative input.
 A good knowledge relationship not only provides
information but also ensures that this
information is given to the right people for
further processing and feedback.

30. Accountable culture
 speed to market is everything in the new
product development environment. Creating a
culture of accountability where people and
teams stay focused on priorities, engage their
inventiveness in everything they do, creatively
deal with obstacles and take personal
accountability to hit deadlines and budget
expectations is essential to success.

32. Innovative culture
 Creating the right organizational culture that can
encourage innovation is one of the primary
tasks for top management to ensure success of
NPD.
 Innovative culture promotes new product ideas
and reward staff for their contribution towards
new product development.

33. Collaborative culture
 Collaboration is the basis for bringing together
the knowledge, experience and skills of multiple
team members to contribute to the development
of a new product more effectively than individual
team members performing their narrow tasks in
support of product development. As such
collaboration is the basis for concepts such as
 concurrent engineering or
 integrated product development.

34. Collaborative culture
 Early involvement and the availability of resources to
effectively collaborate.
 A culture that encourages teamwork, cooperation and
collaboration.
 Defined team member responsibilities based on
collaboration.
 A defined product development process based on early
sharing of information and collaboration.

36. Change culture

38. Maintaining culture
•attraction-selection-attrition (ASA)
•New employees on-boarding

39. attraction-selection-attrition
(ASA)
 Organizational culture will act as a self-defending
organism that protects itself from
external forces. It is maintained through a
process known as attraction-selection-attrition
(ASA)

40. New Employee Onboarding
 On-boarding refers to the process through which
new employees learn the attitudes, knowledge,
skills, and behaviors required to function
effectively within an organization

41. Some techniques for getting
onboard
 Being proactive, seek feedback, and build
strong relationships.
 Relationship building or networking
 A formal orientation program
 mentorship

42. Case studies
•Apple
•GN Resound

43. Case study : Apple
Apple was near the brink of death in 1997s. It had $150 million in the bank,
and its stock was trading at a few bucks a share. Steve Jobs, is widely
recognized as the driving force behind apple’s culture of innovation that
took it from near collapse to become an industry leader and one of the most
respected brands globally.

44. Case study : Apple
Jobs could have focused on near-term fixes. Instead, he
focused on building a high-performance culture by doing three
things well. 1. He refocused the strategy to be about one thing.
2. He eliminated passive aggressiveness and encouraged debate
when new ideas were forming
3. He set up a cross-disciplinary view of how the company would
succeed. This holistic vision means there is cohesion throughout the
company, from concept to product to sales

45. Case study : GN Resound , user-driven
NPD culture
 Resound values:
 Accountability: empower employees to be accountable for their actions ,
their ideas and their innovations
 Innovation: share what we learn and experience , we thing outside the box
 Results oriented : we encourage new thinking, initiatives and dynamics
energy in all employees
 Openness
 Commitment

46. Case study : GN Resound , user-driven
NPD culture
 CIT :concept innovation team
 Insures internal and external communications.
 Resound insures transparency through an open internet platform.
 Knowledge relation through their special interest group.