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“If we get the right people in the
“If we get the right people in the
right jobs, we’ve won the game.”
right jobs, we’ve won the game.”
- Jack Welsh , GE
- Jack Welsh , GE
______________Smart Moves, LLC
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Staged processes, management reviews for NPD
have been in existence for 50+ years
Benchmarking studies for 50+ years focused on
success factors associated with industrial NPD
Top success factors are product advantage and
high quality NPD process
But in spite of all the changes and improvements in
NPD systems, commercial launch remains
unchanged.
60% of NP launches succeed - true globally stat!
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Studies:
- Most significant difference between
successful and unsuccessful products lie in
the quality of execution of the first few
stages of NPD, aka ‘Fuzzy Front End’
“The First Few Plays in the Game
determines the Outcome”
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- NPD and Market Research in the early stages
requires high risk tolerance, creativity,
openness to the ‘irrational process’ of NPD,
however, studies find that industry fills these
positions with people that are risk adverse,
patient and persistent.
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Despite the improvements in NPD
systems, some underlying factor
Despite
the improvements
in NPD
remains
unchanged…….?
systems, some underlying factor
remains unchanged…….?
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Rainmaker uses several Orientation
instruments in determining an Index score:
◦
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Myers-Briggs
Myers-Briggs Creativity Index,
Keirsey’s Four Temperaments
KAI
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Myers-Briggs
Extroversion
Introversion
Sensory
Intuitive
Thinking
Feeling
Judging
Perceiving
Myers-Briggs Creativity Index
= 3SN+JP-EI-0.5TF
Keirsey’s Four Temperaments
Rational
“NT”
12% of Population
Idealists
“NF’
12% of Population
Guardians
“SJ”
38% of Population
Artisans
“SP”
38% of Population
Kirton Adaptor-Innovator (KAI)
30-160
Perfect the system
Finishers
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Change the
System
Starters
Myers-Briggs
Extroversion
Introversion
Sensory
Intuitive
Thinking
Feeling
Judging
Perceiving
Myers-Briggs Creativity Index
= 3SN+JP-EI-0.5TF
Keirsey’s Four Temperaments
Rational
“NT”
12% of Population
Idealists
“NF’
12% of Population
Guardians
“SJ”
38% of Population
Artisans
“SP”
38% of Population
Kirton Adaptor-Innovator (KAI)
30-160
Perfect the system
Finishers
______________Smart Moves, LLC
Change the System
Starters
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Did more projects
Branched the projects more frequently – redirected or
significantly ‘morphed’ them – Key to high success rate
Identified concepts that, when later commercialized, made far
greater profits: $197.5MM vs. $15.2 MM
People selected to operate the NPD are as important as the
process itself.
Success rates improved from 11% to 97% when compared on
the Universal Success Curve.
Scores in the top third of the Rainmaker Index earned 95
times (9,500 percent!) more profit than those in the bottom
third.
Top 20% RI produced 80% of the profits ( “80-20 rule”)
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Rainmakers are typically difficult to manage
and undisciplined in their thinking.
The top performing Rainmakers in the
organization were actually the least wellthought-of employees
When staff reductions occurred (in the
companies undergoing study), the results
showed a loss of over half of the top third
of the RI employees (the profit makers in
the company) and none in the lowest third
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First time an orientation instrument fixed an
economic value to style
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Center of Creative Leadership sponsored study
CCL established group in 1981, grew to 70 members by
1998 - AMI, leaders of innovation within corporations
By 1998, saw that about 1/3 of members were gone consulting, downsized or early retirements. Decided to
study phenomenon
Questionnaire- individual, programs, budgeting, why
program ended
Findings:
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All programs generated new ideas and
significant new business ($50-100MM)
Higher level of interaction between Marketing,
R&D, and customers
Stimulated the integration of other departments:
Emerging Technology, CI/BI efforts, Venture,
etc… in other words, the company adopted an
“outside-in” perspective, became more
comfortable with “being in the lead” and risk,
and growth occurred
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….so why were these programs terminated?????
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Dimension
R&D
Marketing
Principal Mission
Technology
Development
Customer
Satisfaction
Time Horizon
Years
Months
Pacing Metric
Project Milestones
Product Launches
Source of Esteem
Peer Recognition
Promotion/many
Employers
Educational
Background
BS, PhD
BA, MBA
Tenure
Medium to Long
Short
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Continuously questioned the level of and number of
successes vs. expectations…but expectations were never
defined, just the ‘need to innovate’, ‘do something different’
Didn’t recognize that the culture needed to change in whole
or at least in part
Exclusive focus on the R&D function with some Marketing
assistance
Funded at the expense of existing Technology budgets or
spreading innovation funding amongst SBU and almost no
involvement with the Commercial or Marketing functions
except as a service to them.
Subtle forms of sabotaging if SBU believed Innovation
funding and time is inhibiting their ability to accomplish
short-term objectives
Financial and staffing requirements were significantly
underestimated
Sponsorship was too narrow. Leadership base of only one of
two senior executives who frequently were near retirement
age. Too shallow to have staying power
______________Smart Moves, LLC
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Time projections for bottom-line impact were seriously
underestimated. For shorter development time companies,
innovation didn’t have a chance and shut down prematurely.
The 3000 to 1 universal rule was not understood.
The thinking that R&D, R&D management - acting alone, can
significantly affect organization’s long term bottom line
development
Managers didn’t know what to expect.
Low KAI profile of Innovation champion and leadership
High KAI profile of innovation (champion) verses mid-lower range
KAI profile of managers: ...when asked to change or improve
something an innovator profile will prefer to replace existing with
new and different, whereas managers profile more likely to focus on
improving existing
Innovation champions more likely to see threats and opportunities
outside the organization, managers more likely to focus on threats
and opportunities inside the organization.. Do the right thing vs. do
things right
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Look at former Innovation champions: of the number that
had not return to AMI, over 60% became consultants,
retained by Fortune 500 companies and in many cases their
former employers
Traditional physical innovation center format is no longer
sufficient to sustain effort
Everyone involved
Divided into Hunting (developing and assessing the New) and
Gathering functions (design, manufacturing and marketing)
Intellectual property emphasis with Innovation
Independent funding - TI’s IDEA program, HP Grassroots
program, Zenith’s Bull Market
KAI/ Rainmaker placement - Gifted high KAIer’s in front-end
of project, gifted low KAIer’s in back-end of project. ( 900%
more speed, effectiveness in commercialization rates)
______________Smart Moves, LLC
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Fast approvals through few, if any, layers
Empower leaders
Don’t expect the perfect plan or traditional ways
of execution with no deviations. Get your hands
dirty and learn
Stay the course - abrupt changes makes people
turn passive
Understand the 3,000 to 1 ratio*
Incentives for innovation will not fit standard
compensation methods
*The “universal industrial success curve”, Research and Technology Management,
March-April 2003
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Organization structure that separates the
innovative initiative from the main business and
protects the new
Leadership that buries the corpse of failed ideas
and learn from mistakes
Leadership that understands the psychology of
innovation in corporations and remains
alert/recognizes to unconscious “bandit actions”
Leadership that strokes the protocol of Innovation:
a culture, a way of leading, doing, an awareness….
not an event or training session.
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Invention/ Innovation
(160 KAI)
Innovator
ManagedRisk
Platforms
Entrepreneuria
l
INNOVATION PROCESS
IDEA BANK
+
PHASE/GATE
INNOVATION PROCESS
PORTFOLIO
MANAGEMENT
Horizon #2
-
Incremental Products
PROJECT MANAGEMENT & STAGE/GATE
PORTFOLIO MANAGEMENT
Horizon #1
Adapter
(32 KAI)
______________Smart Moves, LLC
Invention/Innovation
Tech Center
Acquisition / Affiliation (160 KAI)
Innovator
Marketing & Sales
(Anthropolgy)
ManagedRisk
Sales &Marketing (Expediting)
Platforms
IDEA BANK
+
PHASE/GATE
PORTFOLIO
MANAGEMENT
Horizon #2
-
Incremental Products
PROJECT MANAGEMENT & STAGE/GATE
PORTFOLIO MANAGEMENT
Horizon #1
Adapter
(32 KAI)
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Manufacturing
The
7 L ev els of C hang e
• L ev el 1 : D o in g th e rig h t th in gs
• L ev el 2 : D o in g th in gs rig ht
• L ev el 3 : D o in g th in gs b etter
• L ev el 4 : S to p p in g d o in g th in g s
• L ev el 5 : D o in g th in gs o th ers are d o in g
• L ev el 6 : D o in g th in gs n o on e else is d o in g
• L ev el 7 : D o in g th in gs th at can ’t b e d on e
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Growth Chart for Corporate New Business Development
Tech Center
Acquisition / Affiliation
Marketing & Sales
(Anthropolgy)
(160 KAI)
Innovator
Managed Risk
Pacing
Key
Sales & Marketing (Expediting)
Horizon #3
Culture
Technology
Emerging
IDEA BANK
Platforms
Deg
+
ree
of D
iffic
ulty
PHASE/GATE
PORTFOLIO
Horizon #2
-
Incremental Products
MANAGEMENT
PROJECT MANAGEMENT & STAGE/GATE
Base
Horizon #1
PORTFOLIO MANAGEMENT
Adapter #7
#6
(32 KAI)
#5
CI
#4
#3
Manufacturing
#2
Seven Levels of Change
#1
Do The Right Things (Programs)
Doing Things Right (Manage me nt)
Doing Things That Can’t Be Done (Innovation)
Doing Things Better (CI Effort)
Doing Things No One Else Is Doing (Market Driven)
Stopping Doing Things (Portfolio)
Doing Things Other People Are Doing (Be nchmarking)
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UPSHOT TO ALL OF THIS…………..
• People have KAI
• Job titles have KAI
• Cultures have KAI
• Innovation Process have KAI
….Match the people to the job to the culture
to the process.
______________Smart Moves, LLC