Transcript Title Here

Fostering Innovation
David Spong
President American Society for Quality
Former President Aerospace Support,
Integrated Defense Systems, Boeing
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Innovation
The Key to Sustainability
“Innovate or die.”
“This is the New Economy. The Old
Rules do not apply…”
“But it must be relevant so we must
forecast the future!
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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What Is Innovation?
Instituting significant change that adds value:
•
Increasing efficiency
•
Increasing effectiveness
•
Reducing costs
•
Developing new profit streams
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Needs for Aerospace/Manufacturing
Products
Processes
• Reduced Cycle Time •
• Reduced Tooling
•
• Just-In-Time Inventory •
• Lean Six Sigma
•
Lightweight Structures
Increased Reliability
Reduced Maintenance
Improved Fuel Consumption
4
Microsoft, Redmond, WA 30 September 2010
So What’s the Problem:
Obstacles to Innovation*
External
• Government and
other legal restrictions
• Economic uncertainty
• Inadequate enabling
technologies
• Workforce issues
arising externally
Internal
• Unsupportive culture
and climate
• Limited funding for
investment
• Workforce issues
• Process immaturity
• Inflexible physical and
IT infrastructure
• Insufficient access to
information
* IBM 2006 CEO Study
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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How do we facilitate Innovation?
The Compelling Case For the Three “I’s”:
Integration, Involvement & Innovation
All Embedded in the
Right Culture
Involve
Integrate
Innovate
The “Sweet Spot”
Only at the intersection
do you get relevant
innovation
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19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Signs of Lack of Innovation
• Fear of failure is palpable (shoot the
messenger)
• A complex process with multiple levels of
approvals exists for screening new ideas
• A small group is the expected source of new
products or services for the organization
• Suppliers and customers seldom contribute to
new product and process ideas
• Ideas that originate inside of one country are
rarely adopted by others
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Signs of Dis-integration
• Each part of the organization seeks to
maximize its own profit or “success”
• Strategies and plans are developed
independently and often in competition
• Financial and operational measurement systems are not linked with or
reinforced by reward and recognition
systems
• Suppliers and stakeholders held at
arms length
• Customers viewed only as sources of
revenue and irritation
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The Common Denominator:
Organizational Culture
• Observed behaviour
• Group norms: standards and values
• Espoused values: published, public
• Formal philosophy: mission
• Rules of the game
• Climate: group interaction
• Embedded skills
• Habits of thinking, acting, paradigms
• Shared meanings of the group
• Metaphors or symbols
* Organizational Culture and Leadership by Edgar H. Schein
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Leadership
Cultural aspects of an
organization can only be set
and sustained by leadership!
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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How do you foster Innovation?
“Innovation has nothing to do with how
many R&D dollars you have. When Apple
came up with the Mac, IBM was spending
at least 100 times more on R&D. It's not
about money. It's about the people you
have, how you're led, and how much you
get it.”
Steve Jobs, Fortune, Nov. 9, 1998
US computer engineer & industrialist (1955 - )
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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The Leader’s Role
Leadership
Management
Set of processes that creates/adapts
organizations to significantly change them
Set of processes used to keep people
and technology running smoothly
Captain
The “Leader”
Uncharted
Waters
Steering
Communi
cations
Engines
Navigation
Catering
Entertain
ment
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Leadership Attributes
• Display high integrity & honesty
• Drive for results
• Establish stretch
goals
• Taking
responsibility for
outcomes/initiativ
Focus on
Results
Leading
Organizational
Change
Character
Personal
Capability
• Technical and professional expertise
• Solving problems & analyzing issues
• Innovation
• Practicing self-development
• Developing strategic
perspectives
• Championing change
• Connecting outside
world – networking
Interpersonal
Skills
• Communicating powerfully
and prolifically
• Inspiring/motivating others to
high performance
• Building relationships
• Developing others
• Collaboration & teamwork
2-20
From the “Extraordinary Leader”, Zenger & Folkman (2002)
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Culture – A Set of Shared Vision/Values/Beliefs/Goals
Integrity
Learning
Shared Value
Filter
Corporate
Citizen
Quality
Stakeholder
Requirements
& Expectations
Diversity
The Organization
Teamwork
Safety
Innovation
Customer
Satisfaction
Sharing &
Supportive
Agility
The Leader establishes the culture to be shared by his/her behavior
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Mission, Vision & Values
Culture/Integration
Mission
Provide world-class sustainment
solutions to our aerospace customers
Vision
People working together as the
world’s number one provider of
innovative sustainment solutions
10 Year Objective
We will be a recognized world-class,
global business, providing
sustainment solutions aligned with
our customers’ evolving needs
Values
Leadership
Integrity
Quality
Customer satisfaction
People working together
A diverse & involved team
Good corporate citizenship
Enhancing shareholder
value
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Leadership System
Continuously
Improve
Set and
Communicate
Direction
Be Role
Models
Vision & Values
Organizational
& Employee
Learning
Stakeholder
Requirements
& Expectations
Organize, Plan,
and Align
• Customer
• Work force
• Suppliers
• Community
• Shareholders
Motivate
Employees
Reward &
Recognize
Empower
Teams
Perform
to Plan
Analyze
& Compare
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
GP30117.ppt
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Focused Survey
Culture
IDS
Aerospace Support
– 58 Questions
–1 Narrative question
– 58 Questions
– 3 Narrative questions
+
– 28 Focused questions
– Results to only the Business,
Function, Department? Level
– Results to the Business, Program,
Function, Site, to the manager level
with 5 or more D/R
– Results not actionable
– Results actionable
Summary for 17 key issues
Exec summaries for each Bus,
Site, & Function
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Code Of Conduct
Enabled by the correct behavior
where messengers don't get shot
and failures are not punished but
learned from
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Operating Principles
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Culture
We insist on integrity, first and foremost
We tell it like it is
We communicate openly and candidly in all our dealings
We respect, honor, and trust one another
We work toward consensus
Disagreement is healthy and encouraged, but once a decision is made,
we proactively support it
We have one conversation at a time
Our silence is consent
We focus on issues and ideas rather than titles or personalities
We actively listen and question to understand
We do not attack the messenger
We identify clear objectives and expectations for our meetings
We start on time, observe time limits, and end on time
We praise in public, we coach in private
We have a bias for velocity
Have Fun. . . Enjoy the journey and each other
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Employee Involvement
A Human Resource Focus on
developing a team-based culture
with a robust recognition and
rewards program
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Employee Involvement
• The extent of workforce commitment – both
emotional and intellectual – to accomplishing the
work, mission, and vision of the organization
• Members of the workforce find personal meaning
and motivation in their work
• An engaged workforce benefits from trusting
relationships, a safe and cooperative environment...
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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EMPLOYEE INVOLVEMENT (EI)
Involvement
 Is it a Culture?
 Is it Teams?
 Is it a Belief?
 Is it Belonging?
 Is it a Way of Life?
 Is it a Process?
"It is not a new program, project or process. EI is a
cultural change in the way we treat each other and work
together. It is a journey in which people apply their
skills to improve individual, team and organizational
performance continuously. This leads to employee
satisfaction and improved business results.“
Raj Kanungo
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Leadership Drives the
Employee Satisfaction Index
80
78
ESI Percent Positive
Culture
73
70
71
Great
Leadership
Results in Top
Quartile
Satisfaction
66
Good Leadership
Results in Okay
Satisfaction
62
60
58
60
52
50
47
Poor Leadership
Results in Low
Satisfaction
40
39
30
1
2
3
4
5
6
7
8
9
10
Leadership Effectiveness Deciles
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Percent Positive on Employee Involvement
Leadership Drives
Employee Involvement
Involvement
100
90
Great Leadership
Results in Top
Quartile EI
80
70
Good Leadership
Results in OK EI
60
50
40
Poor Leadership
Results in Low EI
30
1
2
3
4
5
6
7
8
9
10
Managers Level of Leadership Effectiveness (Deciles)
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Boeing Aerospace Support’s
employees are more motivated
66
62
New Leader
ESI
EI
50%
58
54
50
1999
2000
2001
2002
2003
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Cooking the “Soup” or
Creating an Innovation Culture
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011
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Cooking the “Soup” or
Creating an Innovation Culture
Vision &
Values
19th Annual Conference on Quality in the Space & Defence Industry 14 March 2011