Achieving Excellence from ISO 9001 and Innovation World Quality Day Kingston, Jamaica, November 2011 www.petermerrill.com The World is Changing Market Place…Asia Demographics…Aging Technology…Digital Environment…Warming It is not the strongest that survive, nor the most intelligent, but the one most responsive to change. - Charles Darwin 2 Innovation In – nova – tion In a new way The Process of Converting New Knowledge into New Products or Services to enable New Ways of doing things 3 Learn from your Management System Plan Act 5. Leadership (Management Responsibility) 6. Resources Do 8 Measurement + Improvement 7. Operations (Product Realization) Check 4 Learn from your Management System Plan Act 5. Leadership (Management Responsibility) 6. Resources Do Innovate 8 Measurement + Improvement 7. Operations (Product Realization) Creates Knowledge Check 5 9001 and Innovation for Excellence 5. Management Responsibility 6. Resources Management 5.4 Planning 5.6 Management Review 6.2 Human Resources 8. Measurement, Analysis and Improvement 8.2 Monitoring and Measurement 8.3 Control N/C Product 8.4 Analysis of Data 8.5 Improvement 7. Product Realization 7.2 Customer Related Processes 7.3 Design and Developmen t 7.4 Purchasing 7.5 Production/Service Operations 6 9001 and Innovation for Excellence 5. Management Responsibility 6. Resources Management 5.4 Planning 5.6 Management Review 6.2 Human Resources 8. Measurement, Analysis and Improvement 8.2 Monitoring and Measurement 8.3 Control N/C Product 8.4 Analysis of Data 8.5 Improvement 7. Product Realization 7.2 Customer Related Processes 7.3 Design and Developmen t 7.4 Purchasing 7.5 Production/Service Operations 7 Innovation – The People ‘Creators’ find Opportunities Creator Connecter ‘Connectors’ link to Solutions Strategists make Decisions Strategic Planners ‘Developers’ make it Practical ‘Doers’ get to Market Doer Developer 8 Know you Strengths… Creator, Connector, Developer, Doer? 1 I ‘Connect the Dots’ I get things done I like Possibilities I bring things ‘down to earth’ 2 I need to understand I make things work Everything has a good and bad side There has to be a right answer 3 Don’t tell me what to do Give me facts not theory I create choices I like to analyze data 4 A Concept must be sound I like ‘energy’ Don’t fuss with details I like precision 5 I think things through I take risks I like to hear about problems I focus 6 I like the big picture I find a way that works I want to own the problem I am thorough 7 I like to define the problem I push for acceptance I find out the facts I Plan TOTAL TOTAL TOTAL TOTAL Go to www.petermerrill.com for i) an e copy of this assessment ii) a pdf explaining each role 9 Competence (6.2) in ISO 9001. assess the aptitudes of your people where will they make their best contribution ‘Creators’ find Opportunities ‘Connectors’ link to Solutions Strategists make Decisions ‘Developers’ make it Practical ‘Doers’ get to Market 10 Innovation – The Process Creating New Ideas and Radical Solutions Find the Opportunity Connect to the Solution Select the Solution Execute Make it User Friendly 11 The Innovation process links to 9001 Identify the opportunity (8.2.1, 8.3) Connect to potential solutions (8.4, 8.5) Selecting the preferred solution (5.6) Developing a working solution (7.3, 7.4) Deliver the solution to the customer (7.5, 7.2) 12 Change Creates Opportunity – ‘Creators’ The World is changing Know where your customers feel ‘pain’. Change Product not Customer Find ‘Green Field’ Market Space Polo, Cirque, Christy Necessity is the mother of Invention - Plato 13 Customer Satisfaction Monitoring (8.2.1). Find where your customers feel ‘change’ FDIS - “satisfaction and/or dissatisfaction”. Stop asking questions like ‘are you satisfied with our product, delivery etc.’ Start asking questions like ‘what are you having difficulty getting done, ‘where are you wasting time’ Ask for your own products/services … also for those of your competitors. 14 Non Conforming Product or Service (8.3). Another source of input to the IMS, Repeated failure here Clear candidate for Innovation. Process Innovation also S.C.A.R.s 15 Connecting to the Solution – ‘Connectors’ Define the problem Connect to new environment…Ford No sudden epiphany… Archimedes Many Solutions - “One is not enough” Sacrifice the Sacred If I had an hour to save the world I would spend 55 minutes defining the problem and 5 minutes finding the solution. - Einstein 16 Define the Problem - Data Analysis 8.4 Data Analysis of customer satisfaction (8.2.1) and product and service failure (8.3), Define - what customer can’t get done or Process failure which leads to product and service requirements not being met. Data analysis – Understand the Problem. Define the Problem 17 Continual Improvement - 8.5 Conceptual solutions; Simple Problem solving methodology such as I-Ching, TRIZ or “5 Why’s”. Methodology which takes you ‘out of the box’, engages other people inside and outside the organization not something done by folks in the quality department. Key element in connecting to an innovative solution Need a “Learning Culture” 18 Communities of Innovation Networking Collaborating Exploring, Interacting and Observing Building Trust Experimenting Embracing Failure, Capturing ‘Lessons Learned’ “The only competitive edge an organization has is the ability to learn faster than the competition”. Arie de Guess in Peter Senge’s book ‘The Fifth Discipline’ 19 Get lots of ideas Best solutions from collective knowledge. Connect with other environments and industries. For each idea you also need data on time, cost and risk for implementation. Risk assessment - external as well as internal “The best way to get a good idea is to get lots of ideas”. - Linus Pauling, 20 New Idea - Manage External Risk Hurdles to ultimate user. New product or service - new supplier not a conventional source…I-Pod Four new suppliers three at 90%, one at 40% probability of delivering probability of success; 0.9 x 0.9 x 0.9 x 0.4 = 29% 21 New supplier evaluation (7.4 – 8.2.2) New supplier evaluation (7.4) Use your internal audit capability (8.2.2). We evaluate a supplier’s QMS …. Not just their product or service Know how well your supplier is managed Mitigate any risk. 22 The Innovation Cycle Find the Opportunity Connect to the Solution Select the Solution Get to Market Make it User Friendly 23 Strategic Planning - The Tipping Point Data and Information to make decisions Assess the risk on those solutions we select Set Strategy….Time, Skills, $ Narrow focus Monitor change from ‘loose’ to ‘tight’ "If you see a bandwagon...... -its too late" - James Goldsmith 24 Management Review (5.6) Management Review at least quarterly. If not - then not managing QMS. Where you select the solutions Selections made based on good risk data. Decisions must be documented. Where you monitor progress. 25 Make it User Friendly – Developers Make it “user friendly”…Kahneman Fast and Not secretive Involve the customer Someone, somewhere will be ….. working on the same problem as you. Genius is 1% inspiration and 99% perspiration – Thomas Edison 26 Design and Development 7.3 Largest element of ISO 9001 and Aims to force rigor and discipline. Too many slow down… Slowness caused by… Concept design work executed at this stage Should be in the ‘Connector’ stage i.e. Prior to selecting solutions. 27 Development 7.3 A well defined project plan (7.3.1) Time line needed and Well defined Design Review stages (7.3.4). Review Output (7.3.3) and Verification (7.3.5) Feed back to Management Review Resource issues need to be addressed. 28 Execution – Doers Best ideas don’t always make it ‘Early Adopters’ looking for “opportunities”. Value Proposition Marketing Partner? Speed…Bell and Gray Game changes at final stage. The best way to predict the Future is to create it – Peter Drucker 29 ‘Benefit’ to the customer 7.2.1 Focus on features in the design stages Remember reason for starting innovation? This ‘reason’ is the ‘benefit’ to the customer ‘Value proposition’ address benefits to the customer Address the customer’s pain. Focus on customer requirements – Close the loop 30 Innovation Management Other 9001 requirements can be drawn in I focused on those which are critical. System thinking - vital for successful innovation If Innovation not integrated into QMS it will die. For Innovation Management Create framework using key elements of 9001 Create a ‘Learning Organization’ 31 The Path Forward Assess your Organization Have your people self assess e-mail pm@petermerrill.com go to www.petermerrill.com Project Plan e-mail pm@petermerrill.com 32