Creativity ≠ Innovation How Organizations Can Really Make Innovation Happen

1. Creativity ≠ InnovationHow Organizations Can Really Make Innovation Happen Barbara Kivowitz Senior Partner im21: innovation/measurement/21st century bkivowitz@post.harvard.edu

2. Innovation & Financial Performance Performance in % Points Innovation “The greater the amount of innovation, the greater the market and financial performance”Soo, Devinney, Midgley & Deering (2002)

3. What have innovative companies done? • 3M – corporate goal of achieving 30% of sales from newer products. "3M 15% Rule" allows employees to spend 15% of their time on projects of their own choosing • Google – holds 8 brainstorming sessions a year with 100 engineers. All engineers can dedicate 20% of their time to pet projects • Toyota – OObeya = big, open office. Brings together people from all parts of the company every month to discuss design, costs, mistakes, bottlenecks. Has saved Toyota millions of dollars • P&G - shifted from R&D as the innovation pipeline to C&D, "Connect and Develop.” P&G acquires 50% of its innovations outside the company, resulted in 3 successful new products in the first 6 months • Whirlpool - group of employees serve as innovation consultants to assess best ideas and strategies to market. Employees submit ideas via a corporate-wide virtual bulleting board. A third of senior leader pay is tied to innovation. Whirlpool had record results in 2005 • GE– GE WorkOut – 60% of projects initiated in this creativity program become successful products

4. Remember the Segway Customers don’t buy innovations They buy solutions to problems

5. Defining Our Terms • Creativity • Innovation Creativity is thinking up new things. Innovation is doing new things.

6. CREATIVITY • Generation of new & unusual ideas • Divergent thinking • Quantity driven process

7. 4 Rules of Idea Generation • Withholding judgment • Freewheeling • Generating a quantity of ideas • Hitchhiking

8. Brainwriting: Quick & Quiet

9. Exercise How many uses can you come up with for:

10. Creativity is the ability to modify self-imposed constraints. Barriers to Creative Thinking • Functional fixedness • Previous experience • Excessive faith • Intolerance of ambiguity • Paradigms • Emotion and Assumptions

11. The Astronaut Pen (urban legend #1) During the space race in the 1960’s NASA was faced with a major problem. The astronauts needed a pen that would work in zero gravity. NASA spent $1.5 million developing the “Astronaut Pen.” It enjoyed minor commercial success back on Earth. The Russians were faced with the same problem. They used a pencil.

12. Let’s Do Some Math 1000 40 1000 30 1000 20 1000 10

14. Let’s Do Some Math 1000 40 1000 30 1000 20 1000 10 4100

15. A radio conversation with the US Chief of Naval Operations(urban legend #2) • NAVY: Please divert your course 15 degrees to the North to avoid a collision • CIVILIAN: Recommend you divert YOUR course 15 degrees to the south to avoid a collision • NAVY: This is the captain of a US Navy ship. I say again, divert YOUR course • CIVILIAN: No, I say again, you divert YOUR course • NAVY: THIS IS THE AIRCRAFT CARRIER ENTERPRISE. WE ARE A LARGE WARSHIP OF THE US NAVY. DIVERT YOUR COURSE NOW! • CIVILIAN: This is a lighthouse. Your call.

16. Exercise: • How do you spell your name • How else could you spell it?

17. SALE • Solution • After • Last • Example

18. INNOVATION: • The process of turning ideas into money • Implementation of great ideas • Convergent thinking • Quality driven process • Implementation of great ideas • Convergent thinking • Quality driven process

21. Can you help TiVo? • Problems: • TV networks & advertisers hate TiVo’s ad skipping functionality • TiVo loses advertising revenue • Customers miss ads that could actually be useful

22. “Of all the core functions of most companies, innovation has the most competitive value —and is managed with the least discipline.”Booz Allen Hamilton

23. Mess CLARIFY IDEATE DEVELOP IMPLEMENT Pinpoint the problem to solve Come up with new ideas Refine ideas into strong solutions Put the plan into action Stakeholder Plan Data Reframe Idea Clusters Complete Solution Set Project Plan Risk Analysis Creative Problem Solving Process

24. THE MESS: How can we make our space look better?

25. Clarify • What data do we need in order to fully understand our problem? • Tool: • 5W’s & an H • Who • What • Where • When • Why • How • How might we reframe our original problem statement to make it more solvable, profitable, or innovative?

26. REFRAME: How can we make our space look better? • How can we create a “green” space? • In what ways might we construct our space to promote productivity? • In what ways might we construct our space to promote creativity? • How can we foster knowledge sharing through the use of open space design? • How can we eliminate the need for space?

27. Ideate • Go for quantity & explore a wide range of ideas • Tools: • Brainwriting • SALE • Converge and chose the ideas that have the greatest potential

28. Develop • Strengthen the ideas from multiple angles – customer experience, features, marketing, sales, etc. • Tool: • PPCO – • Pluses • Potentials • Concerns • Overcomes

29. Paint by Numbers Yes Quest know WHAT to do Fog Movie No No Yes know HOW to do it Implement: Project Types Eddie Obeng, All Change: Project Manager's Secret Handbook

30. CPS Fundamental Concepts

31. Remember: When doing creative problem solving -- • Notice interesting problems • Defer judgment • Question assumptions • Seek diversity • Look at ideas affirmatively