AN EXECUTIVE S APPRAISAL THE NEEDS FOR VALUES …AN EXECUTIVE’S APPRAISAL THE NEEDS FOR VALUES CENTERED INNOVATION Between September 2009 and January 2010, IBM surveyed over 1,500

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Between September 2009 and January 2010, IBM surveyed over 1,500 CEOs, general managers

and senior public sector leaders who represent different sizes of organizations in 60 countries

and 33 industries around the world. They produced a report entitled Capitalizing on Complexity

(www.IBM.com/CEOStudy2010).

Samuel J. Palmisano, Chairman and Chief Executive Officer of IBM summarized the study:

Three widely shared perspectives stand out in relief:

The world’s private and public sector leaders believe that a rapid escalation of

“complexity” is the biggest challenge confronting them.

They are equally clear that their enterprises today are not equipped to cope effec-

tively with this complexity in the global environment.

Finally, they identify “creativity” as the single most important leadership compe-

tency for enterprises seeking a path through this complexity.

The report further stated:

Creative leaders invite disruptive innovation, encourage others to drop outdated approaches

and take balanced risks.

While the leadership quality most cited by the 1,500 CEO’s was creativity (60%), the next top-

rated qualities were integrity (52%) and global thinking (35%).

DEFINING A SENSE OF STRATEGIC URGENCY AND PRIORITIES FOR INNOVATION

To what degree does the executive team agree on a sense of urgency for each of these domains? Revenue-producing (top-line) innovations – For example, innovations in:

Products / services Technologies Design Brand experiences Marketing and sales Advertising

Process (mid-line) innovations – For example, innovations in:

Re-engineering TQM / Kaizen Six-sigma Productivity improvement Supply-chain management Distribution channels

Talent and knowledge innovations – For example, innovations in:

IT systems for Knowledge Management Knowledge creation Talent and character development Centers of Excellence Communities of Practice Intrapreneur-ism

Leadership innovations – For example, innovations in:

Business models Business strategy Organizational culture Organizational design Leadership development Management practices

Stakeholder innovations – For example, innovations in:

Supplier relations Brand identity Customer loyalty Academic alliances Strategic partners Community relations Environmental sustainability Corporate Social Responsibility

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Which end of this spectrum best describes how the executives develop a business strategy?

To what degree are executives accountable for, and appraised, on the following:

A strategy based on a single forecast and set of assumptions

A composite of multiple strategies based on multiple

sets of assumptions <<<< >>>><<<< >>>>


4. Stakeholder impact, such as: Uplifting the economic, health and education well-being of communities and society Supporting the viability and sustainability of our planet’s natural resources Developing brand reputation based on sincere values Promoting the well-being of all stakeholders, including customers, suppliers, academics, government, and non-profit NGOs

3. Employee impact, such as: Fostering a healthy workplace that brings out the talent and wisdom of employees Finding effective ways to create and share new knowledge Developing people in alignment with personal values and a balanced lifestyle Engaging each person’s physical, mental, emotional and spiritual capacities

2. Financial impact, such as: Offering products and services that meet customers’ true needs in a sustainable fashion Marketing and selling in a way that demonstrates trustworthiness and integrity Implementing work processes that make jobs more meaningful as well as effective Demonstrating wisdom about expenditures and the use of resources

1. Character impact, such as: Fostering meaningful innovation with high ethical standards Integrating human values (good character, moral virtues) into the organization culture Developing leaders (leadership) based on the wisdom of both the East and West Instituting business models that serve constituents with a symmetry of benefits

DEVELOPING AND SUSTAINING A CULTURE FOR INNOVATION

To what degree does the executive team as a whole carry out their role as sponsors of a robust culture for innovation – a culture characterized by:

Values-centered vision, purpose and goals to give people meaningful “stretch goals” to strive for

Dual-results are esteemed: achievement + new learning to ensure that knowledge-creation is assessed along with tangible accomplishments, especially when “stretch goals” are involved

Strategically urgent priorities for innovation, with sufficient risk-taking to focus everyone on the most important priorities for innovation

Personally meaningful and empowering engagement

to provide the energy, motivation, courage, and character of people throughout the organization to work on those priorities

Systemic understanding and a common language for innovation to gain a “systems integrity” and view needed for wholistic solutions to emerge

Evocative and self-spreading participation in ideation to bring out the natural capacity of people to contribute their original, creative ideas

Decisions taken with input from all stakeholders to strengthen the collaboration needed to implement any decision, especially when multiple stakeholders are impacted

Commitment to change is role-modeled by top leaders to provide the unity of thought, word and deed essential to implementation


To what degree do executives need more effective capabilities and methods to:

Effectively diagnose their organization’s strengths and deficiencies for producing innovative results

Actualize the organization’s knowledge management potential Encourage a “systems thinking” approach to identify the source of

a problem and solve it more fully and efficiently Align innovation initiatives to a higher purpose, so people are

energized to use their full talent Reshape the approach to achieving tangible business results, so the

goals and measures become a natural driver of innovation

How well do the executives consciously work together to increase the organization’s Intellectual Capital - in each of these five ways:

Increase “Renewal Capital” by strengthening the ability to develop new product and service innovations

Increase “Process Capital” by strengthening the ability to

embed wisdom into everyday work processes Increase “Human Capital” by strengthening the talent pool

and finding effective ways to create and share new knowledge Increase “Leadership Capital” by strengthening innovative

business models, organization design and culture Increase “Relationship Capital” by strengthening relationships

with customers, suppliers, academics, NGOs, and society


GUIDING AND LEADING COLLEAGUES AND SUBORDINATES TO BE INNOVATIVE

To what degree do the executives role-model the following mindset

and skills for being innovative:

Commitment to vision + human values to maintain a momentum throughout the entire innovation process, from start to finish

Conscious risk-taking

to respond to the urgency of new opportunities, challenges, and external pressures

Character and courage to evoke the innovative best of each person to channel their energy towards fulfilling the vision, mission and goals

Cooperative learning

to gather and create needed knowledge, which becomes the stimulus for innovative thinking

Creativity to develop original, novel solutions using curiosity and resourcefulness while taking advantage of diverse styles, talent and experience

Collaborative decisions

to ensure buy-in and engagement to implement, and to ensure that innovation is practiced within and between all parts of the organization

Congruence in thoughts, words and deeds

to generate the trust, credibility, and togetherness needed to implement any innovative solution

Celebration of achievements and new knowledge

to provide a sense of completion that re-energizes the capacity for sustainable innovation


Purposeful: see the big picture; envision what’s important

Dauntless: are comfortable with ambiguity; take prudent risks

Self-aware: are open to new ways of doing things; maintain

confidence in tough situations

Incisive: assess situations systemically, holistically; gain clear

insights in complex situations

Inventive: generate many options; look at problems in new

ways

Evaluative: make decisions based on values; look beyond “the

numbers”

Transforming: energize self and others; act with integrity to

keep agreements

Rewarding: share credit; seek to see the positive in others

To what degree do

executives embody the

following qualities for

leading innovation:

Expand the depth and breadth of innovative thinking Coach associates to develop innovative solutions that have

a meaningful impact Cultivate a healthy respect for differences, to reduce

conflict and increase group innovativeness Help workgroups gain insights and inspiration about the

future they can create together Promote the character and courage that people need to

“rise to the occasion” with innovative challenges

To what degree do

executives need more

effective capabilities

and methods to:


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No. B7, MIMS Gulmohar, ECC Road Whitefield, Bangalore 560 066 Karnataka, India

www.VCIhome.com [email protected]

Tel: 91-9880347767

If you would like to have a conversation with us about how we can work together to meet your innovation needs, please contact us

The VCI curriculum enables you to develop your competencies for the art and discipline of innovation

There are 5 streams and 13 integrated modules that strengthen your aware-

ness, skills and knowledge for innovation, using a 4-step adult learning model

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AN EXECUTIVE S APPRAISAL THE NEEDS FOR VALUES …AN EXECUTIVE’S APPRAISAL THE NEEDS FOR VALUES CENTERED INNOVATION Between September 2009 and January 2010, IBM surveyed over 1,500