How to build a R&D organisation for the next decade in a volatile world?

Rue de la Loi 81A 1040 Brussels, Belgium Tel: +32 (0)2 233 11 80 - Fax: +32 (0)2 231 08 35 - www.eirma.org guidlines for open office export to pdf with letterhead guidlines for open office export to pdf with letterhead How to build a R&D organisation for the next decade in a volatile world? Round-Table, 10 March 2017 Procter&Gamble, Brussels, Belgium EIRMA/16.090 Summary R&D organizations are faced by a volatile, uncertain, complex and ambiguous world (VUCA). Exponential technologies disrupt industries. A startup culture needs to be balanced with increased automation of the R&D engine enabling existing global businesses. Effective innovation organizations need to integrate and balance these needs. This will lead to multimodal cultures, team structures and measures. Different measures, KPIs and reward systems have to be balanced across the portfolio to maintain agility, to take advantage of disruptive change and to reduce the impact of project failures. To survive, a future proof innovation organization will need to be agile and combine various cultures and inputs across disciplined measures. Different organization models are rapidly emerging covering lean, bimodal approaches, modular organizations and re-invented matrix structures. Key is to define the organizational set-up, the culture and the measures for success. This hackathon style workshop will provide insights of cutting edge approaches for the next decade R&D organization and have participants develop a set of practical options to build the future proof innovation organization and its measures for success. EIRMA members will also explore how R&D will change driven by technology, business model changes and cultural approaches Issues Addressed How to combine different business models in a R&D organization. The next decade R&D and innovation organization. Its measures, KPIs and structure. What benefit can external validation of project value propositions provide to maximise the impact R&D can have? How different organizations are needed depending on the maturity of the project portfolio? How do digitalisation and other technologies impact the R&D world? New R&D organization models How to measure success? Innovation Processes Employee autonomy versus disciplined execution Business strategy Target Audience R&D and innovation portfolio managers, organization design experts, strategic innovation marketing, cultures interest, KPI and measure experts. Chairman André Convents, Serial Innovator, Procter&Gamble Key themes Intellectual Asset Management People and Knowledge Public frameworks 8 Online registration until 1 st March 2017 http://www.eirma.org

PROGRAMME Thursday 9 March 2017 19:30 Get-together dinner at the Van der Valk Hotel Restaurant Setting the scene for the meeting: What are the challenge? Hacking today s organization Friday 10 March 2017 7:45 Departure from the Van der Valk Hotel Brussels Airport 8.15-8:30 Registration and welcome coffee meeting room InQbet area (L-building). 8:30-8.45 Start of the Hackathon: Expectations for the day and what to learn Aurélie Jablonski, Head of Programme and Members Relation Coordinator, EIRMA 8.45-9.15 The hackathon challenge: What is the R&D organization needed in tomorrow s work? Today s challenge is to develop this framework Overview of challenges of future innovation and emerging models to address them. Logistics of the hackathon, the concept, goals and expected prototypes. Organization performance model: Processes, people, structure and rewards of the future Challenges of building a top R&D organisation in a volatile world as well. André Convents, Serial Innovator, Procter&Gamble 9:15 9:45 Team session 1: formation of the squads Complementary teams will form to create the future R&D organization to outperform in innovation. Introductions and definition of the first framework to re-design organizations. Expected outcome: squads in place and direction defined 9:45-10:15 Inspiration 1: How do companies deal with the dilemmas of remaining agile and remaining top of class? Presentation on the emerging practices of balancing internal resources with things like corporate venturing and tech scouting and on how companies are coping with the increasing pace of innovation. The type of knowledge needed to develop new products is changing ever more rapidly, while R&D staffing and facilities are changing relatively slowly because they require lengthy investments. As a result companies are increasingly at risk of owning outdated R&D facilities and employing staff with knowledge that is no longer relevant. At the same time, it is not an option

to not have state-of-the-art facilities. How do companies deal with these dilemmas of remaining agile and remaining top of class? Arij van Berkel, Research Director, Lux Research B.V. 10:15-10:45 Team session 2: Squads develop the concept The teams will develop their concept and framework for the future-proof organization. Sketching, legos etc. 10:45 11:15 Squads catch-up time of coffee break 11:15-11:45 Inspiration 2: Redefining what Corporate R&D stands for and how to run GE organization in the future Today the industrial world is progressing at a much faster pace than only a few decades ago. The introduction of new technology into industrial products has moved from a multi-annual to an almost quarterly or monthly rate. Most of this acceleration has been driven by the shift from hardware technology to the digital world. At GE we constantly review our operations, organizational structure and product and service offerings to support our strategy and meet the needs of our customers. One of GE s key success factors is our ability to reinvent and change, fueling industrial innovation and progress over the past 125 years. GE Global Research, GE s technology and research arm, is charged with inventing groundbreaking technologies across the industrial sectors that truly change the world. To deliver on this mission in the fast-paced, dynamic world in which we live, it is critical for GE corporate R&D to transform into a more focused, leaner, more agile research organization. Dietmar Tourbier, Manager Global Research, GE 11:45-12:15 Team session 3: Squads develop the processes and people design At this time of the hackathon day, the teams should have tested and experimented their future R&D organisation models through team debates, inspired by the speakers presentations. According the agile principles, some ideas already failed and they have tested new ones. What s the transition from today to tomorrow? 12:15 12:45 Inspiration 3: Agile Research & Innovation organization Making better choices As a multinational company relying on innovation to generate profitable and sustainable growth, our goal is to combine the agility and focus of a startup environment with the critical mass, depth and global reach of a large group. This session will highlight some critical changes we made in our organization and in the way we are managing our portfolio of key innovation initiatives. In particular, the discussion will focus on tools, processes and behaviors we see as critical to enable our teams to make the best possible decisions about strategic choices and doing so at the right time. Nicolas Cudré-Mauroux, Research & Innovation Group General Manager, Solvay

12:45 13:15 Team session 4: Squads develop the new structure and rewards At mid-day, the teams will have a more and more precise model for the future R&D organisation. Some of them might be really unexpected. What help is needed and technical requirement to make this happen? 13:15 14:15 Lunch break 14:15 14:45 Inspiration 4: Normalized Systems Theory and the Agile Enterprise Outline coming soon Prof. Dr. Jan Verelst, University of Antwerp, Antwerp Management School, Technical University of Prague 14:45 16:15 Final sprint: squads pull all elements together for final pitch for winning organization The team finalizes their proposition for a 3 minute pitch and win the most agile, robust and agile organization of the future. 16:15 17:15 Visit of Procter and Gamble Innovation Center site In Belgium P&G is present since 1956 with currently two sites: a plant in Mechelen that produces dish wash tabs for the European markets and the Brussels Innovation Center (B.I.C.) with over 1.300 employees. B.I.C. is P&G s biggest R&D center in Europe and is also the headquarter for Belgium. We will visit B.I.C. 17:15-17:30 Results of the competition, Wrap-up and Conclusion by Chairman 17:30 End of the meeting

Venue PRACTICAL ARRANGEMENTS Procter & Gamble Services Company NV Temselaan 100 1853 Strombeek-Bever Belgium Meeting room InQbet area (L-building). For security reasons, participants are kindly requested to bring their ID card. Accommodation Van der Valk Hotel Brussels Airport Culliganlaan 4b 1831 Diegem Tel : +32 2 277 28 11 https://www.hotelbrusselsairport.com/en A block booking with special rates have been secured in Van der Valk Hotel Brussels Airport The rate for a single room is 159, breakfast included. To book your room and enjoy the group rates please complete the attached room registration form and sent it directly to the hotel by 9 February 2017. Dinner Van der Valk Hotel restaurant Culliganlaan 4b 1831 Diegem Transportation To the Van der Valk Hotel Brussels Airport From Brussels Airport: Free Shuttle Services, 5 minutes away from Brussels Airport Shuttle rooster; click here From Central Station or South Station (Gare du Midi - Zuidstation): Take a train to Brussels Airport (Zaventem) From Van der Valk Hotel Brussels Airport to P&G On Friday10 March morning a shuttle is organized for the participants. To Procter & Gamble: click here Registration Please register as soon as possible but certainly before 1 st March 2017 The online registration form is available on the EIRMA Website The meeting registration fee 350 covers the administrative costs, gettogether dinner and lunch. Payments We prefer payment by bank transfers but can also accept credit card (Visa, MasterCard or American Express). All participants will receive a confirmation letter and an invoice or receipt as appropriate. Cancellations Please give as much notice as possible if you are obliged to cancel. We will refund 50% of the registration fee for cancellation received 1 week before the meeting. Names may be substituted at any time without charge.

REGISTRATION FORM Round Table 10 March 2017 Procter&Gamble, Strombeek-Bever (near Brussels), Belgium8 Online registration available on EIRMA Website PLEASE FILL IN CAPITAL LETTERS Please register on-line or return to EIRMA before 1 st March 2017 by e-mail to cternest@eirma.org. Title: (Prof./ Dr./ Mr./ Mrs.):.... First Name:.... Last Name:..... Position:... Company:...... VAT number of paying entity (mandatory for European companies):..... If no VAT nr, Official registration number.. Address:...... ZipCode:.City:.Country:..... Tel:.. Cell: E-mail:. Assistant s e-mail:.. I will / will not attend the meeting on 10 March 2017 I will / will not attend the dinner on 9 March 2017 I will / will not require the shuttle on 10 March morning between the hotel and P&G Dietary requirements: Event's fee: 350,00 (VAT excluded) for members excluded Belgium 423,50 (VAT included) for Belgian members The meeting registration fee covers the administrative costs, dinner and lunch. To be paid by Bank Transfer or Credit Cards. Our invoices are to be paid within 30 days from date of invoices. Mode of Payment qbank Transfer Account N 363-1073576-20 ING Rond Point Robert Schuman 8 1040 Brussels - Belgium IBAN: BE28 3631 0735 7620 - BIC: BBRUBEBB qcredit Card (Eurocard, Master, Visa, Amex) Card Number: I I I I I I I I I I I I I I I I I I I I Exp. Date: / Security Code: I I I EIRMA, as an international association of Belgian law, is subject to VAT (nr: BE 0847 677 159) For any further information please contact Mrs. Carine Ternest, EIRMA Operations Team Tel. + 32 (0)2 233 11 80 - Fax: + 32 (0)2 231 08 35 - e-mail: cternest@eirma.org

Van der Valk Hotel Brussels Airport Culliganlaan 4b 1831 Diegem Belgium Telephone +32 2 277 28 11 Attn. Charlotte Vossen reservations@brussels.valk.com Van der Valk Hotel Brussels Airport booking form 0903 Eirma GF22075 I would like to make a reservation in Van der Valk Hotel Brussels Airport, here are my details: First & Last Name: Address & Zip code: Company Name: E-mail: Phone number: Nationality: Arrival date: Departure date: Room Single room, breakfast included 159 ex. City tax. E-mail Address : Credit Card Type: Credit Card Number: Credit Card Expiration Date: / / (required to guarantee your confirmed reservation. Cancellation and no-show policies apply) Special Requirements: I confirm that all the above information is valid and correct. We will inform the Hotel De Valk of all amendments. I understand that this reservation is not confirmed until Hotel De Valk confirms with a booking number. Reservations can be made until February 9th. After this date the hotel cannot guarantee a hotel room. Cancellation Terms and Conditions: On receipt of your credit card details your booking will be confirmed. In case that you should need to cancel your reservation, no charges shall be charged when we receive your cancellation prior to March 9th 12.00 p.m. Shall you cancel after this date you will be charged one night s cancel. Card details provided to guarantee your reservation. Signature: Date: