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Dr. Min Basadur

Creative Learning Innovation Marketplace

Lisbon, Portugal,

October 15, 2009

How to make innovation a way of life by engaging the creative

thinking skills of every individual

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Min Basadur

• Engineering Physics, University of Toronto

• Procter & Gamble

• McMaster University

• Basadur Applied Creativity

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Characteristics of an Effective Organization

Flexibility React

Efficiency Routine

Adaptability Proactive

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Adaptability

Anticipating problems, trends, opportunities

Seeking new technologies and methods

Deliberately disrupting

Finding new work

Accepting new ideas promptly

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Good Examples

Flexibility Tylenol

Efficiency Toyota

Adaptability 3M

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Adaptability Requires DifferentThinking Skills

Problem Finding is the key

Innovative Organizations do not wait for problems.

They find them!

They Deliberately Drive Change!

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Problem Finding Cultures

• Toshiba

• Japanese Employee Suggestion Systems

• Procter and Gamble

• Frito-Lay

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Problem Finding Culture

• Toshiba

-New Scientists and Engineers

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Japanese World Class Employee Suggestion Systems

Not optional

Golden eggs

Natural work teams- find, solve and implement

Motivation, group interaction, job satisfaction

Top down impetus; strategic alignment

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P&G’s Situation

1 Revenues flat

2 No new products

3 A bad economy (never before experienced)

4 Acquisitions blocked

5 Oil embargos: uncertain supplies of raw materials

6 Culture not used to dealing with uncertainty

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P&G’s Innovation Strategy

1 Communicate a compelling business need– set a motivating goal

2 Create inter-disciplinary teams all over the organization

3 Employ a common creative process for problem solving

4 Share information to identify best opportunities

5 Track implementation

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P&G President’s Concrete Goal

Improve Costs by 4% of Sales Annually

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Creative Problem Solving Process

The Structure:Inter-disciplinary teams deliberately seeking changes

The Goal: $400

Million Savings

P&G’s Innovation Strategy

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P&G’s Connect + Develop Program

Look externally first for innovation needs.

Define innovation broadly - technology, products, markets, packaging, design, manufacturing processes, new business models, new ways to go-to-market

P&G is Still Changing

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QUESTION: What is Leadership in the 21ST Century?

Answer #1: Driving change

Answer #2: Developing new leaders who can engage others in driving change

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• Start with PRIORITIES…..

• Get your BEST people on it.

• You need a PROCESS for change…..

• Then you MEASURE it…..

• There must be CONSEQUENCES…..

• Teach EACH other (how to do it best).

• Permanent change TAKES TIME…..

How DO You Drive Change?

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Frito-Lay’s Situation

CostsProfit

Margin

1970s 1990s1980s

Revenues

Projected if inflationary costsnot flattened

2000s

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Frito-Lay’s Goal

CostsProfit

Margin

1970s 1990s1980s

Revenues

2000s

Flatten Costs inFive Years

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Creative Process

Inter-disciplinaryTeams

Offset

Inflation

Frito-Lay’s Innovation Strategy

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Frito-Lay: Make the Business Need as Measurable as Possible and Start at the Top

Apply a Creative Process

Begin With Vice-Presidential Inter-disciplinary Team

Goal: $500 Million in

Five Years to the

bottom line

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Creative Process

Commercialization Teams involving R&D, Sales, Marketing, Manufacturing, and Customers

Commercialize More New

Products Each Year

Another Specific Innovation Strategy

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Creative Process

Structure (e.g. interdisciplinary teams)

Problem or Business

Need

A Generic Innovation Strategy

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Creative Process

So what is a “creative process”?

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The Process Has Four Stages

Generating“Getting things

started – finding new problems &

opportunities”

Conceptualizing“Defining problems &

putting ideas together”

Optimizing“Turning abstract ideas into practical solutions

and plans”

Implementing“Getting things

done”

But we all have different styles…

Innovative Results

=Content

+Process

+ Process Skills

+ Style

+Tools

Different Process Styles

Optimizer

Implementer Generator

Conceptualizer

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Some People Have Strong Process Preferences

Strong Implementer

Strong Optimizer

Strong Generator

Strong Conceptualizer

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What Our Research Shows about the Different Process Style Preferences

1 Everyone is a blend of preferences

2 States not traits

3 You can be skilled in all four quadrants

4 Heterogeneous teams perform more innovatively (but have less satisfaction)

5 Generators are in short supply in corporations

6 Different jobs/functions favour different quadrants/styles (this can cause much wasted time and frustration)

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Not Enough Time Devoted to Conceptualization and Optimization

An organization attempting to

establish new financial products

quickly in a very competitive

environment, but encountering a

high percentage of failures.

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Not Enough Generators

A typical group of managers from a large aerospace

company serving the aircraft, airline,

and aerospace industries and having trouble expanding into

new products and new markets

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Great ideas but no action!J24

Slide 32

J24 take out company nameJanet; 30-03-2009

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Directors College

Many directors have enjoyed successful careers due to their implementation skills

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A small “Spin Off”company especially

created for generating new

product opportunities but

only a few trickling in…..

Maybe we selected the wrong mix of people?

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Too Many Conceptualizers?

An organizational development team in a large health insurance company are having difficulty moving forward. They are unable to make a final decision on which innovation strategy to recommend to headquarters.

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A pretty well balanced team, wouldn’t you say?

An interdisciplinary team leading a new quality of work life initiative at a large hospital

J25

Slide 36

J25 create case study to tell the story; Well balanced group but they are having troubleJanet; 30-03-2009

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The leaders of the same large hospital. They are being asked to get involved in the new quality of work life initiative. But they are awful busy doing the day-to-day work.

What will be the interdisciplinary team’s biggest challenge?

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Slide 37

J26 Create case study on side for animation Janet; 30-03-2009

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A major high tech software company fearing falling behind

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Why teams are often not creative

• Unaware of others’ problem solving styles • No common process (for synchronizing thinking)• Impatient• Overly focused on solutions• Lacking tools for complex thinking• Mixing thinking skills

Thinking Skills

Innovative Results

=Content

+Process

+ Process Skills

+ Style

+Tools

Deferral of Judgment

Separate divergentand convergent

thinking

No JudgmentNo Logic

RelaxQuantity

Stream of optionsRadical options

Think in picturesBuild onto fragments

Yes JudgmentYes Logic

Clarify meaningsUse relevant criteria

Focus on a fewConsider risky

optionsModify and refine

Move toward action

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Killer Phrases•A good idea, but….•Against company policy.•All right in theory.•Be practical.•Costs too much.•Don’t start anything yet.•It needs more study.•It’s not budgeted.•It’s not good enough.•It’s not part of your job.•Let’s make a survey first.•Let’s sit on it for a while.•That’s not our problem.

•The boss won’t go for it.

•The old timers won’t use it.

•Too hard to administer.

•We have been doing it this way for a long time and it works.

•Why hasn’t someone else suggested it before if it’s such a good idea?

•Ahead of the times.

•Let’s discuss it.

•Let’s form a committee.

•We’ve never done it that way.

•Who else has tried it?

Killer Phrases stop innovative thinking

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Together: Process, Thinking Skills, Styles

Optimizer

Implementer Generator

Conceptualizer

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Innovative Results =

Content+

Process+

Process Skills+

Style+

Tools

A tool for Problem Definition

We can’t because…

We don’t have any others…

The bulb burned out…

It would cost too much…

It’s not on our list…

We don’t do it that way here…

How might we…?

HOW MIGHT WE?... A Culture Changing Tool

Framing problems for optimistic attack

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THE CHALLENGE for Both Large and Small Organizations …

How might we engage our employees in using their creativity in continually reducing our costs and increasing our revenues?

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The Why? / What’s Stopping? Analysis

A tool for Problem Definition

Step 1: Ask “Why? / or What’s stopping us? of the challenge

Step 2: Answer in a complete simple statement

Step 3: Transform the answer into a new challenge (How might we…?)

Innovative Results =

Content+

Process+

Process Skills+

Style+

Tools

Defining Problems Before Jumping to Solutions is Difficult for Many People

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Irish Spring

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Challenge Statement

HMW make a better green striped bar?

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Irish Spring Challenge Map

HMW make a better green striped bar?

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Irish Spring Challenge Map

HMW make a bettergreen striped bar?

HMW regain market share?

Why?

Why?

HMW make a more refreshing bar?

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Coast

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These are Extraordinary Times

Recovery will not be “Business as Usual”– consumer confidence damaged– much smarter in future spending– new unknown situation creates fear and insecurity

Only the more innovative organizations will survive– by differentiating themselves

Collaborative innovation will be highly valued– joint creative problem solving – unexpected innovative ideas for both.

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In Tough Economic Times…Enlightened Leadership is Needed

Unfortunately, many organizations do not have it.

They adopt a Reactive mindset– Make short term cost reductions which

-Reduce quality-Weaken capacity for new growth-Lose good people

Rather than being Pro-Active– Create innovative improvements which increase quality– Make strategic changes to prosper – Engage their people in using their brain power– Find ways to differentiate ourselves

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Creative Process

Structure: Engage your people in finding good problems to solve all over the organization

Business Problem or

Need:

Find new business

and improve

Costs

Suggested Recessionary Innovation Strategy

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Engaging the Brainpower of your Employees is FREE!

But it takes Creative Leadership!

Leaders must learn skills in facilitating the creative process to drive change in the 21st century

What if every leader in Portugal were a skilled facilitator?

What if every employee in Portugal were engaged in creative problem solving by their facilitative leaders?

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The Creative Process Ends in Action

Optimizing

Implementing Generating

Conceptualizing

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Your structure

Creative Process

Skills

Your Problem or Business

Need

What will be Your Innovation Strategy ?

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The End

Thank you!

Questions?