BUILDING A CULTURE OF INNOVATION: Process or People?

Snap-on A Leader From the Start in Meeting Customer’s Needs Innovative product idea gave company its start in 1920 (sockets) “ Five does the work of 50” Pioneered direct-to-mechanic sales and financing Still driving growth through innovation today… Launched Innovation Works (Innovation Center) in 2009.

A variety of global brands, serving a broad range of customers

Snap-on Value Creation Principles We Apply To Create Value Principles and Processes We Apply To Create Value Snap-on Value Creation Principles We Apply To Create Value Safety Quality Customer Connection Innovation Rapid Continuous Improvement

Driving Innovation through Customer Connection Engage associates across the organization to identify customer insights 6

CREATE A DIVERSE INNOVATION TEAM Leverage individuals across the organization (not just those working in innovation!) Key Traits: Deep expertise … in something Extremely curious High level of empathy Creative Risk-takers Diverse interests Ability to synthesize complicated information Story tellers

Building a Culture of Innovation Be Able to Tell a Great Story Have Empathy Be Customer Centric – Listen and Observe Get Out and Explore Have a Learning Agenda

Getting to Great Ideas – Tell A Story! Strategy – define your innovation sandbox Deep Dive – customer connection, competitive analysis, market, etc. Voice of the Customer: user observations (what you saw, what you heard) Customer Insights (AHA’s) Opportunity Areas IDEAS

Secrets of Great Story Telling Get out and do things! Very few great stories come from sitting at your desk. Observe! Pay Attention! You have to see interesting events happen to have something interesting to talk about. Have Empathy! Stories are much better when you empathize with the main characters. What is the insight? Keep it Simple! Keep it Short! Forget about the extraneous details that are not pertinent to the tale. Have a Punch Line! What is the so what? In the world of business and innovation, what is the implication?

100 Calorie Packs

Building a Culture of Innovation Have Empathy Walk a mile in the shoes of your customer Make it a multi-sensory experience Listen and Observe

Secluded Shops of Dirt and Darkness

Building a Culture of Innovation Be Customer Centric Listen Observe Ask great questions (but Listen!)

Tropicana Packaging What defines Fresh?

2% MILK REDUCED FAT CHEESE 2% Milk Cheese WellBrook Farms Cheese with yogurt FULL FAT DAIRY 2% MILK REDUCED FAT CHEESE

Building a Culture of Innovation Get Out and Explore Get out of the office! Allow for Serendipity (let chance happen, take time to think – doodle, play) Look for the unusual and the unexpected

Wind Tower Hatch

Wind Tower Hatch

Wind Tower Hatch

Building a Culture of Innovation Have a Learning Agenda Create a diverse innovation team Be a life long learner Foster Curiosity

Young Technicians: Extreme Faceshields

Brand: Tatoos

Brand: Tatoos

Brand: Tatoos