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Leadership in Business

Development

UBS - 03-03-2016

Agenda

✓Strategy & Direction✓Innovation Culture✓Designing an Innovation Organization Structure✓Innovation Process / Way of Working/ Innovation

Toolkit

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STRATEGY & DIRECTION

Waarom Innoveren?

Om meer waarde te kunnen leveren door …

• snellere• betere• efficiëntere

… producten of services aan te bieden.

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Innovation can come from anywhere, anytime & anyplace.Innovation is not only technology innovation but also product/service innovation, business model innovation and process innovation; innovation ranges from incremental (horizon 1 to disruptive innovation (H3).Business Development encompasses the creation of long-term value for an organization from customers, markets, and relationships, and, thus, also includes innovation.

Clayton Christensen: Disruptive Innovation

Opening for Killer Applications

Progression of Technology

Incremental Business Change

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Examples

• +++ Uber &c

Virtual: New RulesUber The world’s largest

Taxi company, ownsNo vehicles

The world’s mostPopular media owner

Creates no content

Facebook

Alibaba The most valuableRetailer, has no inventory

The world’s largestAccommodation provider

Owns no real estate

Airbnb

Something interesting is happening.

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Start-up mentality = Survival

No longer exist… No one can live without…

Unbundling

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Accelerating Speed of Unicorns created

HOW TO DEAL THE SPEED OF CHANGE?

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Vision & Ambition

LightingLighting

Consumer ElectronicsMedical Systems

Health &

Wellbeing Company

Forestry Mobile TechnologyNokia  Networks

HereNokia Technologies

Content streamingContent creation

+Content streaming

DVD rental

Forced to adapt new identity and business model by market

Slowly adapting to new market forces

Pro-active / pre-emptive change while still making profits

Enterprises don’t change; people in enterprises change

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KNOWLEDGE SETTOOL SETSKILL SETMINDSET

Innovation CharterWhat’s needed to be able to innovate?

• Your MTP• Innovation Culture• Innovation Strategy• Innovation Structure• Innovation Processes• Innovation Toolkits

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MTP

Maximum Transformative Purpose

Source:  Exponential Organizations,  Salim  Ismail

The  Massive  Transformative  Purpose  is  the  higher,  aspirational  purpose  of  the  organization,  capturing  the  hearts  and  minds  of  those  inside  and  (especially)  outside  of  the  organization.

Source:  Exponential Organizations,  

ExO’s

Source:  Exponential Organizations,  Salim  Ismail

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Examples MTPs

• Google : "Organize The World'sInformation”

• Ted Talks: "Ideas Worth Spreading”• Wikihow: "Positively Impact The Lives

Of Others”• X-Prize Foundation: “Making the

impossible possible.”• Singularity University: “To positively

impact the lives of a billion people in ten years.”

• Quirky: “Make invention accessible”• The Coca Cola Company:” Open

Happiness”

1. It's uniquely yours2. Aspirational - what they aspire to accomplish

it completely inspires you3. Neither narrow nor even technology specific4. Aimed at the heart and mind.5. Declared with sincerity and confidence.6. Power Of Pull: so aspirational that a

community forms around it.7. Helps you attract and retain talent.8. Changes the organizational focus from internal

politics to external impact.

MTP: Attributes

So, what drives innovation?

Vision Leadership

RigorousProcess

OrganicChange

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Ambition

Mission

Purpose

Toolset

Portfolio Management

Funnel Management

Acceptance of failure

Learning by doing

Learning culture

Skillset

Mindset

Knowledge

Vision Leadership

RigorousProcess

OrganicChange

INNOVATION CULTURE

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*:  Nathalie  Baugartner

Understand   what culture  really is

Don’t ask youremployees  what yourculture   is

Culture   is   howyou do   things in  your company

Actual culture:  how your people

are  wired

Aspirational culture:  what youwrite on  your walls,  your

website There is  no   single   right  culture

Allign yourculture  with

everything youdo

Identify youremployees   core

values (core valuesare  very personal)

Use your own tools to hire peoplewho fit in the culture

Use culture   todevelop yourpeople

Your culture   drives  engagement

Actively managing  yourculture   lets people betheir best

Freedom of  Thought

Freedom toAct

Space  &  Focus

Passion &  Energy

People

Openness &  Transparency

Enabling conditions

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Types of Innovation Culture

Entrepreneurial CulturesFormulaic Cultures

Formulaic Cultures

• At BMW, the creation of a new car concept is a wonderful orchestration. Every detail, from engine size to how a door closes and to how an engine should sound, is carefully planned. Any new technology, such as a rear-view camera, is prototyped, integrated into the design, endlessly tested, and weighed to the gram. To accomplish allof this requires the coordination of multiple departments—materialsscience, styling, power train, ergonomics, and manufacturing.

• Looking to speed communication and promote idea-sharing across divisions, executives have brought all of the critical functions together under one roof. The headquarters building in Munich uses a hub-and-spoke model with a centralcore connected to each of the floors that house the product groups. No matter whereyou are in the complex, you’re within easy walking distance of any of the expertise centers—electronics, safety, environment, drive train, etc. As you spiral down into thebuilding, you can experience firsthand how even the most mundane task is stillconnected to the overall vision of the BMW experience.

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Entrepreneurial Cultures

• Despite the outsize attention they often garner, true entrepreneurial cultures are rare in large companies. One of their hallmarks, at least in their early days, is that they oftenfeature a single, rogue innovator, a leader who by timing or luck finds himselforchestrating a maelstrom of technology disruption. Think Steve Jobs, Mark Zuckerberg, Carroll Shelby, Stephen Elop, Sergey Brin, or, long ago, Edwin Land at Polaroid. In keeping with the bold personalities that run them, the companies are usually willing totake risks that normal companies would consider off the charts.

• Cultures that form in response to these leaders are almost never satisfied withincremental growth but rather strive for major disruption. Like sharks, they target andattack mature companies where they are weakest—in their business models. They preyon lethargic industries with outdated practices that can be completely disintermediated. They use the power of emerging and disruptive technologies to reinvent the way products and services are used.

• Such companies and their cultures can accomplish historic things. They are the veryembodiment of the go-big-or-go-home mentality.

Entrepreneurial Cultures

• The challenge with entrepreneurial cultures is that they can rely too heavily on thegenius and charisma of the central innovator. His (or her) singular vision can overshadoweverything, often devaluing the ideas of others and fostering an atmosphere of suppression and fear. In fact, the leader can be so difficult to handle that the company grows weary of the struggle and forces him out. One of the more stunning images in Silicon Valley history is that of ousted disk drive legend Al Shugart driving each morningpast the company bearing his name. And of course, Steve Jobs became the poster childfor fired icons after being booted from the first iteration of Apple under John Sculley.

• The antidote for this kind of lopsided culture is to empower others. Designateintrapreneurs. Create models and practices that don’t just encourage novel thinking but also offer channels and forums to openly challenge leadership. Steve Jobs did thisbrilliantly in his second term at Apple.

• Sergey Brin, the co-founder of Google, may have started as a maverick, but he has settled into being the kind of visionary leader it takes to create and nurture a culture friendly to other entrepreneurs. Google revealed its 9 Principles of Innovation last year, and they’re worth studying. Like BMW, Brin and his team deliberately establishedprocesses to provide the necessary protection for risk takers.

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Google’s 9 principles of Innovation• Innovation comes from everywhere• Focus on the user• Think 10x, not 10%• Bet on technical insights• Ship & iterate• 20% rule• Default to open• Fail well• Have a mission that matters

General views• Know Thyself

There’s no singular method to creating a culture of innovation. Establishing one, and making it stick, depends on understanding the climate.

• Innovation is business as usualInnovation isn’t just a pet project. From R&D to human resources, customer service to financial operations, success relies on a constant evaluation of creativity—it’s everyone’s job, all the time.

• Just do itYou want to move quickly when innovating. Moving too slowly can be the death knell of new ideas.

• Knock failure off its pedestalInstead of glorifying failure, these companies knock it off its pedestal, disempower it, and move on.

• Lead infectiouslyStrong leaders don’t just maintain control. They communicate their vision clearly, which enables others to think expansively.

• Innovation is a human conditionInnovation is not a rare quality inherent in a lucky few—it’s a way of thinking and behaving that comes naturally. An organization’s job is to foster the right climate to unleash its employees’ innate innovative tendencies.

• Measure what’s meaningful

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Leadership styles

A  great  study  on  the  subject   of   kinetic  leadership   is  Daniel   Goleman’sLeadership   That   Gets  Results,   a  landmark   2000  Harvard  Business   Review  study.   Goleman and  his   team  completed  a  three-­‐year  study  with  over  3,000  middle-­‐level   managers.   Their  goal  was  to  uncover   specific   leadership  behaviours   and   determine   their  effect  on   the  corporate   climate   and  each  leadership   style’s   effect   on   bottom-­‐line  profitability.The  research   discovered   that  a  manager’s   leadership   style  was  responsible   for  30%   of   the  company’s  bottom-­‐line   profitability!  That’s   far  too  much   to  ignore.  Imagine   how  much  money   and   effort   a  company   spends   on  new  processes,   efficiencies,   and  cost-­‐cutting  methods   in  an   effort   to  add  even  one   percent   to  bottom-­‐line   profitability,  and   compare   that  to  simply   inspiring  managers   to  be  more   kinetic  with  their  leadership   styles.  It’s   a  no-­‐brainer.

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Taking a team from ordinary to extraordinary means understanding and embracing the difference between management and leadership. According to writer and consultant Peter Drucker, "Management is doing things right; leadership is doing the right things."

Manager and leader are two completely different roles, although we often use the terms interchangeably. Managers are facilitators of their team members’ success. They ensure that their people have everything they need to be productive and successful; that they’re well trained, happy and have minimal roadblocks in their path; that they’re being groomed for the next level; that they are recognized for great performance and coached through their challenges.

Goleman’s 6 Leadership stylesand when you should use them (1)

Conversely, a leader can be anyone on the team who has a particular talent, who is creatively thinking out of the box and has a great idea, who has experience in a certain aspect of the business or project that can prove useful to the manager and the team. A leader leads based on strengths, not titles.The best managers consistently allow different leaders to emerge and inspire their teammates (and themselves!) to the next level.

Goleman’s 6 Leadership stylesand when you should use them (2)

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When you’re dealing with ongoing challenges and changes, and you’re in uncharted territory with no means of knowing what comes next, no one can be expected to have all the answers or rule the team with an iron fist based solely on the title on their business card. It just doesn’t work for day-to-day operations. Sometimes a project is a long series of obstacles and opportunities coming at you at high speed, and you need every ounce of your collective hearts and minds and skill sets to get through it.

Goleman’s 6 Leadership stylesand when you should use them (3)

Not only do the greatest teammates allow different leaders to consistently emerge based on their strengths, but also they realize that leadership can and should be situational, depending on the needs of the team. Sometimes a teammate needs a warm hug. Sometimes the team needs a visionary, a new style of coaching, someone to lead the way or even, on occasion, a kick in the bike shorts. For that reason, great leaders choose their leadership style like a golfer chooses his or her club, with a calculated analysis of the matter at hand, the end goal and the best tool for the job.

Change Leadership Styles

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Quote from George Kohlreiser from a blog post by Daniel Goleman

“People do not naturally resist change. They resist the pain of change. They resist the fear of the unknown. The brain is naturally going to seek, be curious, explore, and do new things. It’s how the brain thrives. But to do that, you have to feel safe. When you feel safe enough, then you go out and explore. You can't change when you’re defensive. A leader has to be able to give that trust and sense of security. That’s when explosions of creativity can occur.

The failure for many leaders is that they are creating negative states in other peoplebecause of their own negative mindset. They can’t hold on to positive energy or positive focus. You have to look beyond the pain and frustration to find the opportunities. There are great stories of people who experienced personal and professional catastrophes but were able to overcome it by seeing or creating an opportunity from the setback/”.

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Real Drives Model

Top 10 Lessons from Startups

1. Start from scratch2. Fund to scale3. Ask for help4. Export5. Think Social

6. Think Big7. Use Technology8. Promote from within9. Form Partnerships10.Be fun

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Appendix

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Gartner's 2015 Hype Cycle for Emerging Technologies Identifies the Computing Innovations That Organizations Should Monitor

Inspirational Reading

Zero Marginal Cost, Jeremy Rifkind

Exponential Organisations, Salim Ismail, Yuri van Geest, Michael S. Malone

The Brain and Emotional Intelligence: New Insights, Daniel Goleman

Lean Startup, Eric Ries

The Innovator’s Dilemma, Clayton Christensen

The Innovator’s Manifesto, Michael E. Raynor

Drive, Daniel H. Pink

Zero to One, Peter Thiel

Creativity Inc., Ed Catmull