Module: SILA

Culture
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Module: SILA

• Culture matters!
Strategy succeeds when the culture supports it.
Culture
INPUT: CULTURE – THE SECRET SAUCE
• “Innovation should also be understood as developing an
innovative culture within the company, which is what will
enable it to produce … innovations.”
– from “Winning at Innovation: A-to-F Model.” Trias De Bes, F. & Kotler, P. (2011, p. 3)
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(Booz, 2011)
Module: SILA

INPUT: CULTURE
• The shared beliefs, core values, assumptions, and
expectations of people in the organization
–
–
–
–
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Reflects the organization’s values
Observable in customs, rites, ceremonies, stories, heroes, patterns
Infers how work is accomplished
Expresses survivability: What we know to do to survive
(Hofstede & Hofstede, 2004)
Module: SILA

INPUT: SUPPORTIVE CULTURE ELEMENTS
Source: Booz & Company. The 2011 Global Innovation 1000 Report
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(Booz, 2011)
Module: SILA

TASKS
1. Mission, Vision & Values: Analyze implications and
define/refine as necessary
2. Corporate Strategy & Goals: Understand and define/refine
as necessary
3. Innovation Strategy & Goals: Define if it does not exist and
analyze alignment
4. Culture: Identify “how things are done” and analyze if
supportive of innovation; reflects values
5. Alignment: Conduct an alignment analysis between the
above elements
6. Change Plan: Create change plan to make improvements
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(AIPMM)
Module: SILA

DELIVERABLES
• Mission, Vision & Values
• Corporate Strategy & Goals
• Innovation Strategy & Goals
• Change Plan
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(AIPMM)
Module: SILA

TOOLS
• Systems Thinking
• Mission, Vision & Values Evaluation
• Booz & Company Innovation Strategy Profiler
• Hofstede Culture
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(AIPMM)
Module: SILA

TOOLS: SYSTEMS THINKING
• “A way of thinking about, and a language for describing and
understanding, the forces and inter-relationships that shape
the behavior systems (from Senge’s “The Fifth Discipline”)
• Ability to see the big picture
• Recognize how isolated events impact the whole
• How the puzzle pieces fit (or don’t fit) together
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(Senge, 1990)
Module: SILA

TOOLS: MISSION EVALUATION
Source: adapted from Campbell, A. (1997). Mission statements. Long Range Planning, 30(6), 931-932.
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(Campbell, 1997)
Module: SILA

TOOLS: VISION EVALUATION
Source: adapted from Campbell, A. (1997). Mission statements. Long Range Planning, 30(6), 931-932.
www.aipmm.com
(Campbell, 1997)
Module: SILA

TOOLS: VALUES EVALUATION
Source: adapted from Campbell, A. (1997). Mission statements. Long Range Planning, 30(6), 931-932.
www.aipmm.com
(Campbell, 1997)
Module: SILA

TOOLS: INNOVATION STRATEGY PROFILER-ALIGNMENT
Need Seekers
Market Readers
Goal
Advantaged products
Products customized
to local markets and
geographies
Culture
Openness to new ideas Collaboration across
from customers,
functions and
suppliers, competitors, geographies
and other industries
Technology Drivers
Developing low-cost
products
Reverence and respect
for technical talent and
knowledge
Source: Booz & Company
www.aipmm.com
(Booz, 2011)
Module: SILA

TOOLS: INNOVATION STRATEGY PROFILER
• All three strategies (need seekers, market readers,
technology drivers)
– Goals
• Superior product performance
• Superior product quality
– Culture
• Strong identification with the customer and overall orientation toward
the customer experience
• Passion for and pride in the products and services offered
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(Booz, 2011)
Module: SILA

Tools: Innovation Strategy Profiler
Fast Follower
First to Market
Technology First
Market First
Limited R&D
Big R&D
Available at time of writing at:
http://www.vcs-gsa.com/InnovationStrategyProfiler
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Module: SILA

TOOLS: CULTURE PER HOFSTEDE
Symbols: Words, gestures, pictures, objects of
meaning by those who share the culture.
Examples: Jargon, dress, status symbols
Symbols
Practices
Heroes
Rituals
Values
Heroes: Persons who possess characteristics that
are prized by the culture and serve as models.
Example: Customer service rep who works all night
to correct a problem
Rituals: Collective activities considered as an
essential ( but probably not meaningful to
reaching the desired ends).
Example: How meetings are organized and
conducted
Values: Broad-based tendencies of preference –
this is the core of a culture.
Examples: Evil versus good, emotional versus
rational, revenue at any cost
Practices: The visible aspects of culture – what an
outside observer can see, but their meaning is only
understood by insiders.
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(Hofstede & Hofstede, 2005, p. 7)
Module: SILA

REVIEW: WHY SILA?
• Only about half of the most innovative companies have:
– A corporate culture that supports their innovation strategy
– Alignment between the innovation strategy and the corporate
strategy
• Nearly 20% do not have a well-defined innovation strategy
• “…companies with unsupportive cultures and poor strategic
alignment significantly underperform their competitors”
(Booz, 2011, p. 1)
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(Booz, 2011)
Module: SILA

REVIEW: KEY ELEMENTS OF AN INNOVATIVE
COMPANY
•
•
•
•
•
•
Focused innovation strategy
Winning business/corporate strategy
Deep customer insight
Great talent
Proper set of capabilities
Supportive culture
SILA
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An expression of the thread
necessary between these
elements
(Booz, 2011)
Module: SILA

REVIEW : CORPORATE STRATEGY PROCESS
1. Decide what your business is
2. Decide who your customers are and what you want to offer
them
3. Decide how you will play the game
4. Identify strategic assets and capabilities
5. Create the right organizational environment
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(Markides, 2000)
Module: SILA

Review: Innovation Strategy Profiler
Need Seekers
Market Readers
Goal
Advantaged products
Products customized
to local markets and
geographies
Culture
Openness to new ideas Collaboration across
from customers,
functions and
suppliers, competitors, geographies
and other industries
Technology Drivers
Developing low-cost
products
Reverence and respect
for technical talent and
knowledge
Source: Booz & Company
www.aipmm.com
(Booz, 2011)
Module: SILA

www.aipmm.com