Culture of Innovation

Jay RaoProfessor

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Culture 6 Building Blocks

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© Jay Rao

Culture of Innovation6 Building Blocks & 18 Factors

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© Jay Rao & Joe Weintraub

Culture of Innovation6 Building Blocks, 18 Factors & 54 Elements

© Jay Rao & Joe Weintraub

MeritocracyTeam >> Individual

SafetyForgiveness than Permission

Dedicated TeamFacilitatorBossM/C Shop

Constraints — $, TimeNeeds – Safety, Checkout,…# of PrototypesCustomer feedback

Encourage wild ideasBuild on wild ideas

Do not criticizeStay focused

OpenFun,

PlayfulFlat

Direct contact with customerAnthro researchVotingBrainstormingRapid Prototyping

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IDEO’s Process:Opportunity Identification Development Capture

LearningExperimentation

Accept failureLong term orientation

A-TeamVenture CapitalistsCustomer ideasCollective IBM expertise

Big $1 B hitsBusinesses & not technologiesMilestones for progress

Spend time on emerging businessesI don’t know & will learn

Discover, Learn, AdjustSupport and Coach

HumorCelebrate

FailureSecurity

Small pilotsMarket experimentsProof of ConceptQuick KillsSlow to Staff-up

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Lattice Enterprise250 people/plant

Minimal BureaucracyPatient about success

Sharing/Collaboration

Employee OwnedLeaders have followersJudged by peers and teamCompensation = Contribution

Real, Win, WorthIdea marketplaceExperimentationGift economySupport mentoringBreak up to remain smallCommitments, not assignments

Act with utmost integritySelf motivated

InitiativeRecruit Followers

Personal relationshipsDirect 1to1 communication

Freewheeling small R&D task groupsPTFE knowledgeFree dabble timeSupport for experiments

Make money, have funFree spirits

All are leadersHigh trust, Low fear

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Pathologically ObsessedHigh-Touch

CollaborationContinuous Learning

Speed

Service is Sales Enabler Guilty until proven innocent

CEO 600 customer calls/yrEverybody Makes Customer Calls

Problem Solver, Responsibility, Ownership

Preemptive “Phone Home” Tech.Customer interaction skills trainingCustomer Councils & EMC WorldOne level of service to all customersCollective Expertise to Solve Problems

CEO 500 customer visits in 10 yrs

Executives very tacticalNo heroes in the field

Team playersEmbed yourself into

customers’ lives

Single level of service8hr problem escalation to CEOHiring & Training ProcessesTCE Executive Summit

80% of sales to repeat customers99% customer retention rateIndustry experts’ accoladesStealing market shareMetrics, incentives aligned to CC

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Youngest FleetHighly trained CrewDisciplined LeadershipManagement Expertise

Told what to doNo cliques

Lots of rulesFollow procedures

Stringent HiringTrain, Train, TrainMonitor & FeedbackMandatory retirement

Top DownRigid

ParanoidStructured

Best Customer ExperienceYoung, Fresh, Youthful

Worldly & SophisticatedOperational Excellence

AwardsBest of the Best#1 in the WorldHigh Profitability

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Responsibility, AccountabilityMeaningful Relationships

Wellbeing, TrustOwnership, Inclusive

Measured on StabilityMeasured on InnovationsMutual Fun end points – cost, learningBonus for community serviceEngaged even after retirementLow turn-over Meaningful relationship

FreeNon-threateningEnjoying, Social

Belonging, CaringCommunity, Homely

Seniors assigned to GuidepostsCommunity, Mutual FunAdventure CapitalCommunity service timeKnowledge base (who?)Quiet Genius

HiringWelcome partiesSocial periodMutual Fun SoftwareOne Year Forcing Function2-people ruleEmployee newsletter

UpbeatOpenness

OptimisticCollaborativeParticipation

How you thinkVolunteerCoaching

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Flat Org.Open door

Mgt. by walking aroundSharing

Fair & FearlessSelf Mgt. / Self Supervision

High ProductivityHigh QualityProfit SharingLow Cost ProducerHigh Equipment Utilization

Constant MonitoringFeedbackModular workLots of communication

Self motivatedHard work

InitiativeENTREPRENEURIAL

Management TalentHome grown talentTechnology expertise

TRUSTBelief in individuals

Reward for performanceEgalitarian

Pride

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Fun, WeirdLifestyle

High EnergyOwnership

No DoorBuild your own workspace

Family – Coworkers socialize

Customer ObsessedEmployee Happiness

Learning = Energize, Engage, EnableTrust you will make the right decision

Purpose, Not ProfitLong Term Focus

Team

Lots of opportunities to LearnTraining CoursesCustomer Service = investment not expenseFree Food

Positive Emotional ConnectionHumilityHonesty

CommunicationNo Scripts

Flexibility not EfficiencyPassionate & Determined

ApplicationHiring – Technical +Cultural FitTraining – 4 Wks$2000 offer to Quit after trainingMore with lessEvery one starts in the call center & warehouse“Customer Service Platform”

Net Promoter Score7% churn vs. 150% churn50% Technical 50% CulturalLong Term OrientationFortune’s Best Places to Work

© Jay Rao