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The familiar business jargon of “interdisciplinary” and “cross functional” work teams doesn’t adequately refl ect the range of perspective required to stimulate innovation.. Since diverge

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The Spirit of the Garage

171

How can you duplicate in a big company the conditions conducive to the creative connections that existed in the garage? Most creativity paceset-ters bypass hierarchy in favor of “ad hoc innovations pockets.” “Ad hoc” refers to team formation on an as-needed basis, with members disbanding when a project is completed These pockets are free from rigid departmen-tal and hierarchical affi liation so the right talent is able to bring their exper-tise and perspective to a project

To foster the conditions expressed in these pockets of innovation you will need to:

• Develop perspective-rich work teams The wording is important

here The familiar business jargon of “interdisciplinary” and

“cross functional” work teams doesn’t adequately refl ect the range of perspective required to stimulate innovation Since divergent perspectives are essential in the early creative pro-cess, innovation is best accomplished by bringing together people with different academic training, work experience, professional affi liations, proximity to customers, and genera-tional and cultural affi liations

• Elicit the input of outsiders At appropriate times, it is necessary

to actively include the viewpoints of customers, wholesalers, suppliers, and strategic alliance members

• Play the best players available In sports, a coach wouldn’t think

of resting the team’s superstars on the bench during a pionship game When the stakes are high, you play the best players available The rule is the same for trendsetters: elite people work on elite projects Why confi ne top talent to a busi-ness running on autopilot where their contribution is slight, when they could be participating in a newly conceived venture with incredible upside potential? Departmental affi liation takes

cham-a bcham-ack secham-at to penetrcham-ating potenticham-ally golden opportunities

• Mix and match to achieve the right group chemistry Divergent

per-spectives are only a starting point Managers must balance team diversity with supportiveness Supportiveness includes features like: shared excitement for the team’s goal; willingness to help

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teammates through setbacks and diffi cult periods; and respect for the unique knowledge and perspective that other mem-bers bring to the table Supportive fi t among team members combined with a diverse array of talent produces the ideal combination for sparking creative endeavor

• Allocate time for creative thinking A sad but true fact for the

time-conscious businessperson: Creativity takes time Many busy work teams settle for the best idea arising out of

a brisk brainstorming session and then move on to ever is next on the to-do list Unfortunately, brainstorming largely surfaces ideas people already have contemplated, not the ingenious ones that come from unexpected connections

what-of ideas Original thinking is the product what-of holding out for better solutions, looking at problems from different vantage points, mixing knowledge from different fi elds, using dis-agreements to shake up entrenched positions, and allowing incubation time for creative ideas to emerge

• Honor creative dissent Intel is famous for its use of confl ict

as part of its self-questioning culture Would-be innovators

do not present their ideas before an assembly of polite men They must face a barrage of intense grilling and sav-agely frank feedback While the ensuing confl ict is blunt and at times brutal, Intel team members learn to disagree without being disagreeable By allowing their people to air strongly held differences, Intel believes the eventual solu-tions are likely to be of better quality The group norm of harnessing contention to reach consensus on a quality idea opposes the tendency to settle for a watered-down compro-mise to preserve the peace

yes-• Share great ideas Can we really afford to throw up our hands

in concession to hectic circumstances to explain the lack of cross-functional conversation and intellectual isolation? What

is the opportunity cost in terms of connections that stimulate creativity? Barbara Waugh, Worldwide Personnel Manager of

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HP Labs WBIRL (World’s Best Industry Research tory) program, took small steps in the process of transforma-tive change by facilitating people talking to each other She organized informal Friday afternoon talks to discuss what-ever technological issues happened to be on people’s minds, and regularly drew between 50 and 150 participants

Labora-Self-scrutinizing questions

1 What is the “solitary confi nement factor” in your company?

In other words, to what degree do people work on tightly bound departmental projects without a chance to share new ideas with colleagues working in a different functional silo?

2 How many projects are going on in your company where viduals from different departments are regularly collaborating? What practices can you develop to inform people about inno-vative projects being entertained throughout the company and ways they can nominate themselves to participate?

indi-3 Are you comfortable leaving the interdepartmental exchange

of knowledge up to chance meetings at the water fountain or coffeepot?

4 What simple ways can you devise to get people talking with each other to increase the likelihood of creative connections occurring?

5 When your people discover a practice that works, do they routinely think, “Who else can benefi t from this learning?”

6 What communication vehicles can you offer your people to effi ciently share their best practices company wide? Think of video-tapes, e-mails, data banks, company wide voice mail messaging,

-or even site visits to see the new ideas being implemented

Assessing Your Own Company’s Spirit of the Garage

The following questions are for assessing how well your existing ture supports strategic innovation Each question has two parts, a simple rating (circle the number) and a space for comments

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For best results, please answer these questions with “ruthless honesty.” Compare your answers with other team members to notice the specifi c observations of culture that are refl ected in your answers

1 What percentage of your senior management team’s time is spent on conversations about strategic thinking aimed at creat-ing new business opportunities and new value for customers? <10% 10-20% 20-30% 30-40% >40%

Comments: _

2 Does your organization have a strategic plan in writing that establishes direction and priorities for at least 2-5 years ahead?

No 1 2 3 4 5 Yes

Comments: _

3 To what extent does your company have a formal gic planning process that surfaces, develops, and supports innovation?

No formal process 1 2 3 4 5 Formal process in placeComments: _

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4 Do you have processes in place that encourages front line employees to offer customer insights and ideas for new busi-ness opportunities to senior management?

No 1 2 3 4 5 Yes, a formal process

Comments: _

5 Do senior executives have roles and responsibilities defi ned

in such a way that they can prioritize suffi cient time for ing on strategic long-term issues as opposed to operational/tactical issues?

No 1 2 3 4 5 Yes

Comments: _

6 What percentage of senior management’s time is spent cuting a prepared strategic plan (as contrasted to time spent putting out fi res or reacting to customer requests)?

<10% 10-20% 20-30% 30-40% >40 %

Comments: _

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Invent Business Opportunities No One Else Can Imagine

8 Does your company have any reward or recognition grams explicitly tied to innovation (as opposed to process improvement suggestions)?

No 1 2 3 4 5 Yes

Comments: _

9 Is strong disagreement acceptable in your culture? Do versations tolerate no-holds-barred disagreement in the inter-est of improving innovations rather than settling for watered down compromises in the interest of being nice to one another?

con-Disagreement discouraged 1 2 3 4 5 con-Disagreement encouragedComments: _

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10 What percentage of time at your annual strategic planning

retreat is typically spent on developing an original strategic position for the future (as opposed to reviewing last year’s results, extrapolating goals based on recent numbers, etc)?

<10% 10-20% 20-30% 30-40% >40%

Comments: _

11 Does your company use different methods for understanding

the needs of tomorrow’s customers (about 2-5 years ahead) compared to how you go about understanding the needs of today’s customers?

No 1 2 3 4 5 Yes

Comments: _

12 Has an individual been assigned formal responsibility for

man-aging your organization’s innovation performance/results?

No 1 2 3 4 5 Yes

Comments: _

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Off the Org Charts

Great strategies are worth no more than the paper they are printed

on unless you have the organization to implement them Now you know why so few companies become persistent trendsetters Not every company

is willing to seek out the best people, to inspire them with a task worth doing, to risk giving them autonomy and freedom to make mistakes, and

to facilitate independent project teams Not every company develops the kind of organization that can be the only one to do what it does This is why developing the spirit of the garage pays off so profoundly both in net worth and self-worth

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9 Strategic Planning

for Innovators

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Strategic Planning for Innovators

It came from a small number of dedicated employees

who saw events unfolding.”

—Bill Gates, Microsoft Corporation

Strategies shape destinies Yet strategic planning for innovation is the

most misunderstood process in any business While most nies spend a small fortune developing every detail of their one-year

compa-or fi ve-year strategic plan, they scarcely bother to examine the

pro-cess whereby they come up with that plan

In trendsetting companies, strategic planning is a process, not a time event It is dynamic, not static And it involves all the people in the company, not just senior managers

one-We can safely assume that most

senior managers know the nuts and bolts

of what goes into a strategic plan, which

is fi ne However, their planning process

has probably remained unchanged for

decades—so innovation occurs only by

coincidence

Now here is the critical issue If the inherited planning process ports the level of innovation needed to compete today, you are lucky In most cases, the process will favor replication There is a huge difference between strategic planning that evolves to suit replication and one designed for strategic innovation

sup-?????

How do you rethink gic planning so you produce bold innovations?

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Strategy plays too vital a role to tolerate planning processes that can’t meet your trendsetter goals So let’s boil them down to essentials If you can say yes to these four questions you are in great shape:

• Does your process increase the chances of conceiving a

blockbuster idea?

• Can you repeat the process reliably?

• Does your strategic plan provide a sustainable competitive

advantage?

• Does the plan inspire enthusiastic execution?

While the study of strategic planning for innovation is still incomplete,

I have learned a great deal from observing how my trendsetter clients inject the seven Big Ideas into their planning processes The following guidelines will help you rethink every part of your process for strategy development

to capitalize on your organization’s full capacity for innovation

Guidelines for the Innovative Planner

Start with trendsetting aspirations

All your communications about the purpose of strategic planning should position innovation as the top priority Be clear from the outset that

fi xing and improving take a back seat to fi nding ways to be the only pany that does what you do

com-Warning! In most companies, the need for bold innovation is hugely underestimated Organizations have a number of built-in biases for main-taining the status quo The bias for quick-fi x, expedient solutions in order

to get back to the real business of running the company disregards the time needed for conceiving original innovations The bias to produce short-term results leads to conservative strategic moves and rules out developing new capabilities Finally, the bias to play by the industry’s rules of competition will put a damper on innovations that stray too far from what’s customary and familiar

Given these biases, leaders inevitably face a barrage of colleagues’ sons why current conditions are not conducive for innovation, such as cash

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