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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
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