Transcript Slide 1

Innovation, an EFQM
perspective
Hervé legenvre
[email protected]
My background
• Trained at the university of technology of
Compiegne in technology transfer management
• Worked with product development teams Renault
• Head of major account and Knowledge
development – EFQM
• Phd on history of inventors – Paris sud
economic department
EFQM: Our structure
EFQM, the driving force to Sustainable Excellence
Over 700 EFQM Member Organisations across every
sector and size – both public and private
EFQM Governance Board
CEOs from 10-12 Members
EFQM CEO
& Management Team
Major Accounts &
Knowledge
Development
•Pact
•Leadership events
•Communities of Practice
Membership
Services and
Operations
•Training
•Publication
•Benchmarking
•Conferences
European Awards
& Recognition
Schemes
•Committed to Excellence
•Recognized for Excellence
•EFQM Excellence Award
•Assessor network
EFQM vision
THE VISION
BACK TO BASICS AS A
FOUNDATION
• Active membership
• 1000 ambitious and active
members
• Leadership group as role
model
• A new and visible Pact across
different industries
• Redefining the forefront of
excellence
• Leadership event and cases –
Connecting with Executives
• Strong relationship with
EEC
• More visible and upgraded
recognition
• The enabling network to
implement Lisbon Strategy
• One integrated EFQM
Excellence Award and
recognition scheme
Some key ideas I will share with you
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Uncertainty is the source of all innovation
We live in a very uncertain world
Innovation is not just luck
Leading innovation
Innovation strategy
Developing people for innovation
Innovation process
Measuring innovation
Innovation
Why should we care?
Uncertainties ahead
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Death
Energy
New competitors
Climate changes
Human enhancement
Aging population
Innovation
Is it about luck?
One view on innovation
The lucky one
One view on innovation
Penguin effect
More hype than real innovation
What is Innovation?
Characteristics of Innovative Organisations (I)
100
90
98 98
95
93
90
90
85
80
84
75
70
69
in %
60
74
68
62
59
50
52
40
30
20
10
0
Innovation
1 as a
top priority
Innovation support
by
2
conscious exemplifying
and encouraging
Innovative organisations
Source: BDU 2004
Innovation
as
Systematic
3 detecting
4
part of the
of market and
technology trends organisation strategy
Less innovative organisations
Innovation
5
budget
Not innovative organisations
What is Innovation?
Characteristics of Innovative Organisations (II)
100
90
80
84
84
77
in %
70
60
63
67
60
50
63
67
58
40
37
30
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20
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Innovation
1 is
driven by ideas of
people
Innovative organisations
Source: BDU 2004
Innovation is
2 driven by
the knowledge level
of employees
Less innovative organisations
3 comes
Innovations
from a pushing
position
Innovation
4 is a
reaction to market
requirements
Not innovative organisations
Innovation supports a Strategy
Cost-Leadership
Technology
leadership
Customer
solutions
Reach target
cost faster!
Best
performance !
Customer
intimate!
innovation
How can we make it happen?
The EFQM Framework for Innovation
Characteristics
• Complementarily between
Excellence and innovation
• European flagship for innovation
• Strengthen the innovation
capability and results of the
organisation while taking into
account different stakeholder
perspectives
• Value Creation through
innovation
• Assessment specialized in
innovation
An alternative view on innovation
Leadership
People
People
Results
Policy &
Strategy
Customer
Results
Partnerships
& Resources
Processes
Key
Performance
Results
Society
Results
The EFQM framework for innovation
Enabling innovation
How do you make
your people
more innovative?
As a leader,
how do you
encourage
innovation?
How do you plan
for innovation?
How do you
involve suppliers,
use information and
ensure appropriate
funding for innovation?
And, of course how do you measure success?
How do you make sure
that in the end
Innovation
delivers results?
Criteria of the EFQM Framework for Innovation
Leadership (Overview)
Excellent leaders cultivate an innovation culture. They are personally
involved in developing and enhancing a clear set of directives for
successful innovation used by everyone in the organisation. They
interact with stakeholders on innovation.
They consider the following points:
 Promoting innovation
 Personal involvement
 Engaging with stakeholders for innovation
Criteria of the EFQM Framework for Innovation
Leadership (Engaging with stakeholders)
• Engaging with customers and other stakeholders as a
source of innovation
– „The divisions‘ technical directors are responsible for
communicating their customers‘ needs to the technologists
throughout 3M. It‘s a 3M axiom that ‚products belong to the
division, but technologies belong to the company.‘” (3M)
Source: Coyne 1997
Criteria of the EFQM Framework for Innovation
Policy and Strategy
Excellent Organisations continuously scan for innovation
opportunities. They develop innovation policies and strategies that
are integrated within the organisation overall strategy before being
communicated, deployed, reviewed and updated. They consider
the following points:
 Scanning for innovation
 Deciding on innovation priorities
 Managing innovation as part of overall management
system
Criteria of the EFQM Framework for Innovation
Policy and Strategy (Scanning for Innovation)
• Collecting innovation ideas from employees: IBM
(“InnovationJam”)
– Brainstorming with 140.000 people (including employees’
families and customers) in 104 countries in an internet workshop
– 37.000 new ideas
– Up to 100 million dollar funding is committed to develop the best
ideas of the jam process
www.globalinnovationjam.com
Criteria of the EFQM Framework for Innovation
Policy and Strategy (Deciding on Innovation Priorities)
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Defining the organisation’s appetite for innovation
– BMW: Leading innovation
– Dell: “"We're not the company that's going to convince you that one
architecture is better than the other. But we are the company that's going to
deliver the most popular ones at the best value."
– Sony: Leader in many market niches
Defining the organisation’s appetite for innovation
– „We identify customer problems, anticipate their unarticulated needs, and
come up with innovative solutions. We are not a commodity marketer.“ (3M)
Aligning the innovation strategy with the lifecycle of existing products and
services
– Splitting itself into two companies to avoid catching only „blockbuster ideas“
but also enter small, emerging markets (high tech industries e.g. pharmacy,
IT)
Criteria of the EFQM Framework for Innovation
People
Excellent Organisations empower and educate people
by creating a context that allows innovation to happen.
They consider the following points:
 Empowering people for innovation
 Educating for innovation
 Creating an innovation friendly context
Criteria of the EFQM Framework for Innovation
People (Empowering People for Innovation)
• Providing entrepreneurial challenges
– “Our researchers often come up with their own new product
notions, which they shop around the company. In effect, our
researchers need to be entrepreneurs as well as innovators.
They play a direct role in bringing technology from the lab to
the marketplace.” (General Electric)
• Rewarding and recognising people and teams for
innovative ideas
– Implementation of annual innovation awards (different
industries)
Criteria of the EFQM Framework for Innovation
People (Innovation Friendly Environment)
• Ensuring people have the resources and space to
explore innovative opportunities
– „15 percent rule: „Allows all technical personnel to dedicate
as much as 15 percent of their time to working on projects of
their own choosing.“ (3M)
• Creating a workspace that supports creativity and
communication through co-location and connections
– Building companywide communities of practice to share
knowledge and experience (Hilti AG)
Criteria of the EFQM Framework for Innovation
Partnerships and Resources
To innovate, excellent organisations continuously
build on their network of partners. They manage
finance, technology and knowledge accordingly.
They consider the following points:
 Partnering for innovation
 Funding innovation
 Managing technology and knowledge for innovation
Criteria of the EFQM Framework for Innovation
Partnerships and Resources (Partnering for Innovation)
• Building an innovative partnership network
– Scoring the world for the top scientists to develop new
refrigerants. Networking with them to save time, energy and
manpower. (DuPont)
Criteria of the EFQM Framework for Innovation
Processes
Excellent organisations develop and enhance relevant
organisations structure, processes, methods and
tools to successfully manage innovation projects and
activities that focus on customer current and future
needs. They consider the following points:
 Developing appropriate structures
 Managing / enhancing the innovation process
 Managing innovation projects / programmes
Criteria of the EFQM Framework for Innovation
Processes (Developing appropriate structures)
• Using small entrepreneurial cross-functional teams to
quickly scope ideas and opportunities
– Setting task forces to explore the potential of discoveries.
(Different industries)
• Establishing separate structures or ventures to
enable radical innovation
– Establishing a process that actively manages spin-offs to
foster innovation that doesn’t fit into the overall innovation
strategy (different industries)
Criteria of the EFQM Framework for Innovation
Processes (Managing the Innovation Process)
• Using a structured stage-gate logic to steer and
manage the innovation process
– Stage gate process with a mixture of examination / critique
of senior scientists / research managers and benchmark
data from other projects. (Pfizer)
• Eliminating innovation bottlenecks and optimising
time to market
– Integrating testing groups into innovation teams at the very
early stages of development to reduce sources of errors
(e.g. software development)
Criteria of the EFQM Framework for Innovation
Processes (Managing Innovation Projects – Innovating
Together with Lead Users; 3M)
The lead user process
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Phase 1: Laying the foundation
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Phase 2: Determining the trends
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Talking to experts to find out where the trend leads to
Phase 3: Identifying lead users
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Identifying markets
Identifying key stakeholders within the company
Identify users at the leading edge of the target and related markets
Gathering information to identify especially promising innovations / ideas that may lead
to breakthrough products
Begin to shape preliminary product ideas / assess the business potential
Phase 4: Developing the breakthroughs
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Move preliminary concepts toward completion
Hosting workshops with marketing / technical people and the lead user team
Develop recommendations and present them to senior managers
At least one member of the lead user team should stay involved in further steps of
development
Source: Von Hippel, Thomke, Sonnack 1999
Criteria of the EFQM Framework for Innovation
Results
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Excellent organisations comprehensively
measure and achieve outstanding results.
They consider the following points:
Customer Results
People Results
Society Results
Key Performance Results
The EFQM Framework for Innovation
How the frameworks can be used
• An idea box and a set of guidelines to fuel the
organisation with improvement opportunities
• A way to demonstrate that it is possible to have an
integrated management framework (bringing things
under one roof)
• A framework for assessment as part of an
improvement project on innovation management…
• A regular assessment framework integrated or not
with the EFQM excellence assessment