1.  Module: SILA www.aipmm.com SILA

2.  Module: SILA www.aipmm.com R ELATED R EADINGS Booz & Company. (2011). Why culture is key: The 2011 global innovation 1000. Retrieved from http://www.booz.com/global/home/ what_we_think/innovation_1000_2011 Beckhard, R. & Harris, R. T. (1987). Organizational transitions: Managing complex change (2nd ed.). Reading, MA: Addison-Wesley (p. 98). Hofstede, G. & Hofstede, G. J. (2004). Cultures and organizations: Software of the mind. New York, NY: McGraw-Hill. Kotler, P. (2011). Marketing management. New York, NY: Prentice Hall. Patterson, K., Grenny, J., Maxfield, D., McMillan, R., & Switzler, A. (2008). Influencer: The power to change anything. New York, NY: McGraw-Hill. Senge, P. (1990). The fifth discipline: The art and practice of the learning organization. Random House.

3.  Module: SILA www.aipmm.com SILA: S TRATEGIC I NNOVATION L EVERAGE AND A LIGNMENT 1.Strategic: Comprehensive, purposeful, essential 2.Innovation: Focused on product innovation to achieve objectives 3.Leverage: Power to act effectively and wisely 4.Alignment: Harmonizing organizational mission, culture, and resources (AIPMM)

4.  Module: SILA www.aipmm.com SILA: S TRATEGIC I NNOVATION L EVERAGE AND A LIGNMENT Concerned with how the pieces of the organization fit together How the pieces support each other Are we staged for success? Corporate Strategy Mission Vision Values Culture Objectives Systems Thinking NPD Strategy NPD Process Organizational Structure Allocation of Funds Organizational Capabilities … (AIPMM)

5.  Module: SILA www.aipmm.com W HY SILA? Only about half of the most innovative companies have: –A corporate culture that supports their innovation strategy –Alignment between the innovation strategy and the corporate strategy Nearly 20% do not have a well-defined innovation strategy. “…companies with unsupportive cultures and poor strategic alignment significantly underperform their competitors.” (Booz, 2011, p. 1) (Booz, 2011)

6.  Module: SILA www.aipmm.com K EY E LEMENTS OF AN I NNOVATIVE C OMPANY Focused innovation strategy Winning business / corporate strategy Deep customer insight Great talent Proper set of capabilities Supportive culture (Booz, 2011) SILA An expression of the thread necessary between these elements

7.  Module: SILA www.aipmm.com E XAMPLE : 3 M “Companies whose strategic goals are clear, and whose cultures strongly support those goals, possess a huge advantage. Palensky [CTO] articulates his company’s innovation strategy clearly: ‘We call it customer-inspired innovation. Connect with the customer, find out their articulated and unarticulated needs, and then determine the capability at 3M that can be developed across the company that could solve that customer’s problem in a unique, proprietary, and sustainable way.’” (Booz, 2011, p. 4) (Booz, 2011) Strategic Goals + Supportive Culture

8.  Module: SILA www.aipmm.com I NPUTS (AIPMM) Mission, Vision, Values Innovation Strategy Corporate Strategy Culture SILA

9.  Module: SILA www.aipmm.com I NPUT : M ISSION, V ISION, AND V ALUES Mission & Purpose VisionValues (Latham, 1995) Today Identifies customer(s) Identifies critical systems or core competencies States level of performance Tomorrow Inspirational Clear decision-making criteria Timeless What is honored What is avoided What is not tolerated “I didn’t believe this ‘vision thing’ made any impact on organizational performance..... My (research) data showed just the opposite ---- I found that a clearly articulated vision, fully implemented across an organization, in fact makes a profoundly positive difference.” (Lipton, 1996. p. 83)

10.  Module: SILA www.aipmm.com I NPUT : C ORPORATE S TRATEGY The plan that is driven by an organization’s mission, vision, and values. A company's game plan for achieving its long term objectives in light of its industry position, opportunities, and resources (Kotler, 2011) Strategy = Plan + Objectives

11.  Module: SILA www.aipmm.com I NPUT : C ORPORATE S TRATEGY P ROCESS 1.Decide what your business is. 2.Decide who your customers are and what you want to offer them. 3.Decide how you will play the game. 4.Identify strategic assets and capabilities. 5.Create the right organizational environment. (Markides, 2000)

12.  Module: SILA www.aipmm.com I NPUT : I NNOVATION S TRATEGY Need Seekers: Actively engaging current and potential customers to shape products. They are the first to market. Examples: Apple, 3M, GE Market Readers: Incremental innovations based on closely monitoring customers and competitors. They are the fast followers. Example: Visteon Corporation Technology Drivers: Breakthrough and incremental innovation based on their technological capabilities. They are R&D / engineering driven. Examples: Google, HP (Booz, 2011) Source: Booz & Company

13.  Module: SILA www.aipmm.com I NPUT : I NNOVATION S TRATEGY G OALS (Booz, 2011) Source: Booz & Company. The 2011 Global Innovation 1000 Report

14.  Module: SILA www.aipmm.com SILA: S TRATEGIC I NNOVATION L EVERAGE AND A LIGNMENT 1.Strategic: Comprehensive, purposeful, essential 2.Innovation: Focused on product innovation to achieve objectives 3.Leverage: Power to act effectively and wisely 4.Alignment: Harmonizing organizational mission, culture, and resources (AIPMM)