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Building Sustainable Collaborative and Open Innovation Programs – University of Ljubljana

I will be giving an invited lecture at the Raziskovalni center Ekonomske fakultete (Faculty of Economics) of the University of Ljubljana on February 15, 2010. My talk will focus on how organizations can design collaborative innovation programs.

Organizations cannot innovate in isolation. Ideas, knowledge, expertise, and processes needed for innovation are often distributed in the marketplace across a wide-assortment of actors from business partners, to customers, government agencies, and even competitors. Organizations have to find ways to collaborate and develop open, rather than closed, innovation programs. Collaboration calls for the ability to share required artifacts from ideas to knowledge and expertise, and even processes, with external entities. Being open requires an organization to unlock, and make available, its innovation process to external entities. Developing Collaborative and Open Innovation (COI) programs can be a daunting challenge. Issues such as ensuring trust, governance structures, rewards and incentives, and mechanisms for rent sharing from innovations can seem insurmountable. In this presentation, I will share actionable knowledge on how we can build sustainable COI programs. I will draw on research and consulting on designing organizational innovation programs in over 50 global organizations. I will share a framework for organizations that want to collaborate on innovation. This framework will outline methods for collaborative idea generation and mobilization, idea advocacy and screening, idea experimentation, idea commercialization, and idea diffusion and implementation. Examples will be used to illustrate how leading organizations collaborate with external entities for innovation and build open innovation programs that external entities can plug-into.

Building the UW X-Prize Lab

Along with Ann Bostrom and Sandy Archibald, I am developing the X-Prize Lab at UW. Our initial plan is to offer two courses through the Evans School of Public Affairs. The first course will examine prize-driven innovation. We have an assembled an amazing list of speakers, see our blog. In this course leading innovators and philanthropists will introduce the how prize philanthropy can foster innovation to solve global developmental challenges. The second course will focus on building prize concepts and proposals that solve complex policy challenges from water resource management to education.

To see the news release from the Evans School, please click here [LINK]
To learn more about the X-Prize Foundation, please click here [LINK]

What do you mean by a “good idea”?

Here is a simple exercise: Find 20 people in your organization. Ideally, choose people across the various hierarchical levels and functional departments of your organization. Ask each person two questions: How would you define a good idea? How do you recognize a good idea? Chances are high that if you work in a typical organization, you will arrive at 20 different answers! Some individuals may not even be able to articulate what is a good idea or to clearly describe how to recognize good ideas. Is this a problem? You bet it is! One of the major challenges faced by organizations as they try to come up with good ideas is the lack of a definition of what constitutes a good idea. It is common to find organizations that take the stance that a good idea is in the eye of the beholder, or in contrast, that a good idea is like pornography, you will recognize it when you see it. Similarly, most organizations lack a clearly defined process on how to recognize good ideas. As one manager put it, “employees may not recognize a good idea if it smacked them right on their faces.”

The organization that wants to foster a spirit of intrapreneurship must: 1) clearly define what is, and what is not, an idea, 2) arrive at a typology for the various types of ideas, 3) articulate a process for refining thoughts into ideas and then into ‘good’ ideas, 4) reward employees for sharing ‘good’ ideas, and 5) reward employees who serve as brokers (or intermediaries) for mobilizing ideas from one corner of the organization to the next.

What are some practices that your organization has in place to address these issues?

For more details, please stay tuned for my new book on intrapreneurship…or drop me an email!

Advocating and Screening for Ideas

If you have ideas, what should you do with them? How do you know which ideas to pursue (and which to abandon)? As an idea creator, how do you know which ideas will get the attention of managers or how to present ideas for consideration? As a manager, how do you screen the numerous ideas you get from your staff? These are not simple questions to answer. Unfortunately, this stage of the intrapreneurship process represents the Achilles' heel for most organizations. Too many organizations spend a lot of time, effort, and resources to get ideas from their employees but then do not know what to do with them. Equally discomforting are cases where employees spend too much time creating ideas for which there is no organizational interest or need. The end result is a lot of waste – from the individual to the organizational level.

Consider the case of a global technology organization. The organization, founded in the mid 1990s, had seen unprecedented growth during the Internet boom days. As one senior executive remarked, “we were not only running on all cylinders, but were actually borrowing cylinders and fuel rods to keep up with demand.” The organization grew from humble beginnings (3 students!) to just under 200 employees in five years. It now has 10 clients in US states and 3 international clients (based in London, Brussels, and Amsterdam). As soon as the glory days came to a screeching halt with the dot.com bust, the organization, like many of its compatriots in the industry, had to do some hard thinking to redefine business strategies. To this end, the organization solicited ideas from its employees concerning the company's direction for the future– the slogan – 10 for 10: 10 big ideas for the next 10 years! The goal was to get the firm to think big and to identify 10 broad areas that 1) they would want to invest and build capability in, 2) they would want to build collaborative capacities by reaching out to start-ups and established firms, and 3) they would require re-tuning (or complete obliteration) of their current strategic focus. The company did what any other organization would do; It solicited ideas from employees across all ranks. The company commissioned online “idea drop boxes.” Employees could send in their ideas via filling in a brief online questionnaire. Within a week, the company had over 500 ideas (about 2.5 ideas from each employee!); and by the end of the four week idea solicitation period they had captured over 1200 ideas (a little more than 6 ideas per employee!) As one executive remarked, “we underestimated the whole [idea solicitation] thing…employees were scared…their friends were losing jobs, companies like ours were closing, venture capitalist were getting tighter with the purse strings…all of this contributed to fear…employees wanted to help the company, and themselves, by sharing their best ideas that would not only keep us afloat but secure a better future…” This was the easy part-- getting ideas-- the big challenge ahead for the organization was what to do with these and how do to go about screening them. Over the course of the next five months, the firm tried its best to bubble up the best ideas through applying various screening procedures, getting comments and feedback on ideas from internal (i.e. employees), as well as external (i.e. board of directors, collaborators from academia, venture capitalist, etc), sources.

Unfortunately, the organization did not have a robust process for advocating and screening ideas. The end-result is best summarized by a statement made by the CEO – “absolute disaster…we ended up pissing off more staff than those we appeased, lost good employees who felt their ideas were not duly considered, and what hurts me most, is employees lost faith in the organization as a place that valued ideas…front-line programmers and system designers who are our most important assets felt ideas get promoted based on ones political network and clout…we all lost, I will never do this again…we might never recover the trust and camaraderie that we had prior to this undertaking.

The bad news for organizations is that the advocacy and screening stage of the intrapreneurship process is fraught with difficulties.

To learn how to build sustainable processes for idea advocacy and screening, please contact me (or wait for a future posting…or my new book)

A New Work Force Wave: Managing Millennials (See beyond the stereotypes of the ‘Me Generation’ to harness creativity)

I was recently interviewed for an article on innovation by Colin Simpson of the Bellingham Business Journal. To retrieve the article, please click here [LINK]. As I continue to study innovation practices in high-technology organizations, I continue to be amazed by the innovative capacities of the ‘Me Generation’….