Create an innovative culture. Birgitta Burman HR Head, Supply, Ericsson

Transcription

1 Create an innovative culture Birgitta Burman HR Head, Supply, Ericsson

2 From the report: Culture matters, enormously. Studies have shown again and again that there may be no more critical source of business success or failure than a company s culture [Winter 2011] Ericsson AB Page 2

3 What is innovation? Value creation in focus, broader than invention, technology Innovation is taking a bright idea, an invention or a critical insight, and creating real value out of it and making it succeed Innovation in everything we do, using the abilities of all employees Ericsson AB Page 3

4 Innovation is... about business renewal, improving our offerings, processes and ways of working everything from incremental improvements to radical and disruptive changes a statistical game involving uncertainty and managed risk-taking Ericsson AB Page 4

5 capabilities to performance All parts of the organization are involved Innovation capabilities Leadership & Strategy, People & Culture, Skills & Competencies, Structures & Organization, Processes & Ways of working, Methods & Tools Innovation performance Smarter ways of providing current value Add value by driving growth from the core Create new value for superior future position Ericsson AB Page 5

6 challenge #1 Balancing efficiency & creativity

7 challenge for leaders How can we manage to drive efficiency while at the same time stimulate a creative and innovative organization? Ericsson AB Page 7

8 Performance versus exploration Performance engine Efficiency-driven with focus on productivity and performance to maximize the value of current business Exploration engine Creativity-driven with focus of renewal and innovation to explore new opportunities and ways of working Structure, stability, control Standardized processes and measurements Reduce uncertainty, waste and streamline operations Informal, flexibility, explorative Challenge conventional ways of working Create space for creative actions and managed risk-taking [Sources: Jan Forslin, Vijay Govindarajan & Chris Trimble] Ericsson AB Page 8

9 Leading to Ensure the Balance Performance Short term planning External motivation Project management Line structure Information in silos Best practise thinking Individual evaluation Professional style Exploration Long term planning Internal motivation Flexible projects models Network structure Transparancy of information Next practise thinking Team-based evaluation Entrepreneurial style Ericsson AB Page 9

10 Challenge #2 Shaping an innovative culture

11 Shaping an innovative culture Your actions as a leader will shape or break innovation! Six levels of innovation culture can be identified The first three slogans, incubation and compliance form an engineering approach to shaping culture The last three attention, disruption and interaction form the mindful approach [Source: Ben Bryant, Professor at IMD] Ericsson AB Page 11

12 First three levels Compliance Innovation competitions Ideation tools & incentives Innovation Days 2. Incubation 1. Slogan Innovation funnel Establish an innovation initiative, e.g. Innova at Business Unit Networks, Development Unit IP & Broadband It Begins with Us: Innovate.everyday Ericsson AB Page 12

13 ...and the last three 6. Interaction Day-to-day interaction Individual Performance Management Innovation Action Workshop 5. Disruption Manage the tension between conformity and disruption 4. Attention Recognition & reward Risk-taking, openness, diversity Celebrate success, learn from failure Ericsson AB Page 13

14 ( Is creativity profitable? YES! Creativity is necessary to drive long-term growth and renewal as well as coming up with new and efficient ways to working. YES! The bonus profit is healthier employees. Enthusiastic, committed and positive people that lowers stress and cost. [Source: Farida Rasulzada, researcher] Ericsson AB Page 14

15 climate for creativity and innovation 1. Challenge: Be involved, have passion for the operations and goals. 2. Freedom: The employees independence in the organization trust & delegate. 3. Idea support: The way new ideas are taken, accepted, incubated and refused. 4. Trust: Feeling secure with your relationships in the workplace. 5. Energy: The workplace dynamics, speed, enthusiasm and drive. The extra mile. 6. Playfulness: An easygoing and unconstrained atmosphere without hidden agendas. 7. Debates: Meetings and collisions between ideas, opinions, experiences and knowledge. 8. Conflicts: Lack of conflicts and tension between individuals and organizations. 9. Risk taking: Leave the comfort zone, openness for failure, learn from mistakes. 10. Idea time: The amount of time to use for elaborating ideas. Ericsson AB Page 15 [Source: Prof. Göran Ekvall]

16 Challenge #3 Driving Innovation excellence

17 THREE THINGS must BE IN PLACE Innovation Excellence: The right CULTURE The right PROCESSES The right ACTION Ericsson AB Page 17

18 THE READY, SET, GO OF INNOVATION EXCELLENCE ACTION: Speed in decision making and execution, not being afraid of change, willingness to be a bold innovator that changes the name of the game PROCESSES: Having processes in place for selecting, implementing and creating value from new ideas, and for identifying new trends and opportunities in the market CULTURE: Having an open and inspiring climate where new ideas, teamwork and knowledge sharing is encouraged Ericsson AB Page 18