INNOVATION & CREATIVITY

1. INNOVATION & CREATIVITY HOW TO MOTIVATE AND INSPIRE INNOVATION Developed for FASSET by SynNovation Solutions

2. Workshop Objectives Part 1 To create awareness and understanding of the key factors that promote – or could prevent – innovation and creativity in a business. Part 2 To equip delegates with proven practical skills and tools to foster innovation in their own firms, and in those of their clients.

3. INNOVATION & CREATIVITYPart 1 : Awareness and Understanding WHY, WHAT & HOW OF INNOVATION DEFINITIONS, BENEFITS, THINKING STYLES AND CLIMATE

4. Workshop overview Part 1 : Why, what and how of innovation • Definitions and thinking styles • Benefits of innovation • How to foster innovation : Climate and behaviours • Ground rules • Overview of key creativity and innovation approaches • Part 2 : How to get and grow new ideas • Idea generation : Ground rules and tools • Selection of ideas • Idea development : Ground rules and tools • Conclusion : Taking this back to business • Systems approach to integrate innovation

5. Definitions of Innovation & CreativityBUZZ SESSION • In 2s or 3s – discuss how you would define Innovation • What is the link between innovation and creativity?

6. Innovation is people creating value by implementing new ideas. Innovation: the creation of business value through the development and implementation of new ideas. Some definitions of Innovation "Innovation is creativity with a job to do“. John Emmerling

7. Some more definitions of Innovation “The successful exploitation of new ideas” - DTI in UK • Vincent Nolan : This leaves a great deal unsaid - • “like defining Reproduction as ‘the birth of healthy babies’ which, while accurate, leaves out a lot – the exhilaration of the conception process (including the unsuccessful attempts), the nurturing and monitoring of the incubation process, and the upheaval and pain of the delivery process. “People doing new things, things they have not done before” – taking risks in business, community and personally….

8. Defining Innovation & Creativity Creativity – • mainly in the fields of the arts? • any kind of novel ideas we get • Innovation – • selecting new ideas with potential • developing them so you can make them happen “The trick is not the inventive idea: discoveries which will set the world alight are a dime a dozen. The trick is co-ordinating the 101 little things that make an idea happen. Think of the percentage of boardroom decisions that never get further than the minute book”. Clem Sunter & Chantell Illbury

9. Levels of Innovation • Incremental, Adaptive • Improve systems that already exist • Better, faster cheaper • "Market Pull" Innovation • Radical, Breakthrough • New technologies, new business models • Breakthrough businesses • "Technology Push" Innovation. Continuous improvement • Quality Assurance, ISO 9000

10. The 2 worlds of thinking Select few ideas to develop Various possible solutions Rules Procedures INNOVATION CYCLE Refine OPERATIONAL CYCLE Speculate Laws Buy-in Problem / Opportunity Decision Success Routine Pilots Review Thinking is Creative Discovering Experimental Future oriented Thinking is Analytical Familiar Operational In the present Known solutions

11. Analytical Problem = deviation from the norm Requires analysis Fixing what went wrong One, “right” solution often obvious once identified Requires in-depth knowledge of the problem Problem = gap between where you are and where you want to be Problem SolvingAnalytical vs. Creative Creative • About a future state – analysis of the past does not really help • Creating a new solution • Solution not immediately feasible or obvious • Little knowledge of the problem is needed

12. Part 1 Why, what & how of InnovationOutcomes of Part 1 By the end of this session participants should be able to • Identify the benefits of innovation to their businesses • Identify what they need to do more of to succeed with innovation • Identify how to implement known strategies that support innovation • Demonstrate awareness of the behaviours that help or hinder innovation • Demonstrate that all have the ability to innovate and how little time it takes 12

13. The benefits of innovation Research by Synectics in the USA and DTI in the UK has shown: • 80% of companies say that innovation is important for future success • Only 4% of companies say they are good at making innovation happen 13

14. INNOVATIVE STARS HIGH PERFORMING companies who have successfully INTEGRATED innovation and creativity into their way of thinking and behaving - into daily business practices SPECTATORS Firms SAY innovation is important but do not back that view up with action. Often avoid formal innovation programmes and are reluctant to look for outside ideas and perspectives The benefits of innovation • BUSINESS RESULTS • Increase in sales (%): 11 vs 5,7 • Increase in profits (%): 51 vs 14 • Increase in market share (%): 59 vs 27 • Employee retention (1-5): 3,9 vs 3,4 • Employee satisfaction (1-5): 3,5 vs 2,6 • Rating of service quality (1-5): 4,1 vs 3,4

15. INNOVATION STARS 83% 68% 68 % 55% 48% 66% 79 % 75% 3,9 3,9 SPECTATORS 35% 25% 19% 27% 30% 45% 42% 36% 2,9 2,4 How to foster innovation WHAT THEY DO DIFFERENTLY • ACTIVITY • Use complete recognised process for creative problem-solving • Formal idea generation programme • Formal Innovation programme • Use of designated highly skilled facilitators • Use of outside consultants • Using suggestion boxes • System to reward individual innovation and creativity • System to reward team innovation and creativity • Leaders work together (1-5) • Break down barriers between different functions (1-5) 15

16. CEO involved in innovation and innovation reflected in policy/mission Place importance on managing change High importance on cross-functional communication Open to ideas from outside Emphasis on talking to customers Formal programmes for idea generation innovation and problem-solving Invest in R&D Reward individual creativity and innovation Spend lots of time in productive meetings with innovative results How to foster innovation WHAT STARS DO IN COMMON • INNOVATIVE STARS • HIGH performing companies who have successfully INTEGRATED innovation and creativity into their daily business practices 16

17. Strategies to succeed at innovation EXERCISE 2 Research has recommended that the following strategies could assist organisations to become more successful at innovation. • Encourage team work and open communication • Ensure meetings are more productive and creative • Create formal innovation programmes to create and develop ideas • Look for ideas from external sources Discuss what you think can be done to implement ONE of these in your firm/s 17

18. Strategies to succeed at innovation Encourage team work and open communication • Encourage interaction between different divisions, reduce “turf” • Overcome communication barriers between functions • Allow everyone to be heard • Give constructive feedback • Encourage cross-functional teams, rotate jobs. Ensure meetings are more productive and creative • Plan meetings and set goals and time lines • Use ground rules to create a positive climate • Focus on doing “new” or “undoable” things • Get different perspectives 18

19. Strategies to succeed at innovation Create formal innovation programmes to create and develop new ideas • Have a shared process for creative problem-solving • Train staff in innovation skills at various levels • Have formal idea generation programmes • Have formal innovation programmes and plans / structures to implement • Have designated facilitators for idea generation and development • Have a system for recognising innovation Look for ideas from external sources • Successful financial companies in other countries • Successful firms – large or small – in other industries or professions in SA • Your clients • Customer satisfaction information 19

20. Factors that promote innovation and entrepreneurship in SA companies Supportive internal environment, characterised by management support, rewards for CE and autonomy of employees Within control of management Degree of entrepreneurship of an enterprise, reflected in the innovative, risk-taking and proactive orientation of an enterprise Munificent environments, filled with technological opportunities, demand for new products and dynamic changes Study in 315 JSE listed & ITC companies – Retha Scheepers 20

21. From the King III Code, 2009 Innovation, fairness, and collaboration are key aspects of any transition to sustainability – innovation provides new ways of doing things, including profitable responses to sustainability; fairness is vital because social injustice is unsustainable; and collaboration is often a prerequisite for large scale change. Collaboration should not, however, amount to anti-competitiveness.

22. Strategies to succeed at innovation EXERCISE 2 Research has recommended that the following strategies could assist organisations to become more successful at innovation. • Encourage team work and open communication • Ensure meetings are more productive and creative • Create formal innovation programmes to create and develop ideas • Look for ideas from external sources Discuss what you think can be done to implement ONE of these in your firm/s 22

23. Who can innovate • Most people have simply unlearnt their creative thinking ability • It requires the right environment to re-access creativity • Anyone has the creative thinking ability that can lead to innovation 25

24. Creating the climate for innovation Energy available for task and success Trusting, open-minded Sharing, encouraging others Building on others’ ideas Total Energy of Individual/Team Looking after self Challenging others Protecting own turf, defensive Energy required for emotional survival Threatening Neutral Supportive Cooperative Adversarial Climate

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26. Negative behaviours Be pessimistic Preach /moralise Be judgemental Be critical Disapprove Act distant Do not Listen Be inattentive Do not join Use silence against Pull rank Get angry Scare Blame Put burden of proof on others Ask questions Cross examine Give no feedback Be non-committal Put on a stone face Point out only flaws Misunderstand Disagree Argue or challenge Reduce chances of success React negatively Discount / Put down Be cynical/sceptical Correct Insist on early precision Make no connections Assume no value Be impatient Nitpick Interrupt Be bored Play devil’s advocate Be dominant Command Threaten/ warn Order Demand Be competitive Name call /make fun of Set up win/lose

27. “No ??s” applies mainly in Creative Cycle Be aware: Questions can * make people defensive * hide ideas * get you in the “hole” How to limit, manage questions at work Therefore * Limit why? questions * Tell people the thought behind the question, and what info you need * Paraphrase to check understanding YOU NEED LESS INFO THAN YOU THINK… NO NEED TO BE EXPERT

28. Creating the climate for innovation Ground rules to create a climate for creative meetings • Assume positive intent • Handling of questions and information • - Avoid questions that get you in the “hole” • - Paraphrase for understanding • - Give a brief description of task • Find value in ideas – every idea has merit • Recognise and build on ideas • Suspend judgement – own & others’ ideas, anything goes • Share the airtime 30

29. Overview of leading creativity and innovation approaches • Brainstorming – Osborne • Buffalo Approach – Creative Problem-solving • Synectics – George Prince & Bill Gordon • Edward De Bono – “Six hats” • TRIZ – Technical approach based on key factors • Michael Hicks – Comparing 3 key approaches • Many websites with new developments and examples

30. Links between innovation, diversity, creative behaviours and leadership • Emotional, Social and Cultural intelligence • Diversity – far more than culture, gender and race • Ubuntu culture – Respect, Recognition, Relationships • Transformational v/s Transactional leadership • Thoughtful and responsive v/s Forceful and directive

31. Ground rules for classical brainstorming Principle 1: Suspend judgement: Evaluate ideas later, not during brainstorming No criticism – verbally, nonverbally, or in your own head Freewheel – Anything goes: impossible, immoral, illegal, irrelevant Principle 2: • Quantity will result in quality • Go for quantity of ideas: Keep up the pace • Hitch-hike: Give credit and build on others’ ideas. • Give others air time 33

32. Where are creative ideas born? Buzz session Where/when do you get your best ideas or do you feel your most creative ideas are born? • Bed, Bar, Bathroom, Bus • Give your ideas a “home” Ideas can flourish in an environment… …. where judgement is suspended. 34

33. Where do we get creative ideas? SOURCES OF IDEAS • Identify places and people that trigger bright ideas for you • Keep an ideas book, review from time to time • Read, use, innovation websites & newsletters (see resource kit) • Keep magazines or pictures handy • Read / keep magazines on topics you know nothing of – fresh perspectives • Include other functions, “naïve” resources in your firm in discussions Creative Ideas come from building links between… …. seemingly dissimilar objects, functions or worlds. 35

34. INNOVATION & CREATIVITYPart 2 : Practical approaches HOW TO GET & GROW NEW IDEAS IDEA GENERATION & DEVELOPMENT

35. Workshop Objectives Part 1 To create awareness and understanding of the key factors that promote – or could prevent – innovation and creativity in a business. Part 2 To equip delegates with proven practical skills and tools to foster innovation in their own firms, and in those of their clients.

36. Part 2 – How to get & grow ideasOutcomes of Part 2 By the end of this section learners should be able to • Identify and use sources for new ideas • Identify and use tools and rules to generate ideas • Demonstrate that even ridiculous ideas can have merit • Identify and use tools to developideas • Demonstrate knowledge of what tools to use for various tasks and situations 38

37. Idea generation (unfocused) Idea Generation • Idea selection (on intrigue) Selection Development of idea Idea development (focused) SynNovation Approach Basic parts of the process

38. Idea generation: Ground rules GROUND RULES FOR IDEA GENERATION • Learn to listen for ideas • Phrase ideas so everyone knows an idea is coming • Don’t judge ideas – verbally, or in your head, others’ ideas, or your own • Quantity will produce quality during idea generation sessions – So have many ideas, and record ALL 40

39. Tools to generate & develop ideas • Lateral thinking • Wish-thinking • Comparisons & differences • Linking different worlds • Constructive evaluation

40. There is nothing in a that tells you it's going to be a ... Buckminster Fuller Idea Development Rules & Tools

41. Typical brain storming vs. Innovation Selection of Ideas Low High NEWNESS Low High PERSONAL INTRIGUE Low High FEASIBILITY 43

42. Idea development: Ground rules • Don’t judge ideas verbally or in your head – too early • Select based on newness/ fascination rather than on feasibility • First see the value in ideas • Use concerns for direction – put concerns as “how to…” • Combine with “linking different worlds”, tools of Comparisons and Differences, if you get stuck finding new ways of doing things, for Actions to address Concerns, or for activities like “communication”, “getting buy-in” 44

43. Summary – Taking this back to work Part 1 : Why, what and how of innovation • Innovation benefits go far beyond better business • Use positive behaviours and ground rules to build an innovation-friendly climate • Management support, autonomy and reward are key Part 2 : How to get and grow new ideas • Basis for creativity and innovation is seeing connections where there seem to be none • Use ground rules and tools, open-mindedness • Select on newness rather than feasibility Back to business • Model positive behaviours to encourage innovation • Systems approach to integrate innovation into strategies

44. Summary of tools and where to use them Idea generation • Wish-thinking – for any situation, more so with customer or future oriented tasks • Lateral linking – to improve products or services • Linking different worlds and comparisons – to improve the way things are done Idea development • Constructive evaluation – to evaluate and develop any idea (whether feasible or not) – to turn into action plan • Linking different worlds – to gain fresh perspectives on an “action” identified in constructive evaluation, for example communication, finding funding, promotion 46

45. Suggested Action No. ACTIONS – KEY WORDS WHO WITH WHOM WHEN 2. & 5. Survey client needs 3. & 8. Explore possibility of branch office 4., 6. & 7. Use Intranet to improve in-house communication 7. Develop induction plan for new staff From Ideas to Action Plans – Example

46. What you do Enabling strategic innovation, through creativity Integrated Innovation Programme How you do it Optimising operations and systems, for implementation Why you do it Energising people and ideas, fostering climate What you need Developing, enabling individuals, through autonomy, skills & knowledge A systems approach to innovation

47. Integrating Innovation in the organisation strategy An open Innovation Programme & Change Management System Implementation Process & Measuring ROI In Innovation (ROIII) 3. TRAINING 5. IMPLEMENT 1.TEAM Practical, participative Select quick-win sites innovation skills, Deciding who for pilots, and tools & groundrules will drive innovation cascade the system on various levels, through organisation through all levels Empower individuals Phase 6 Phase 3 Phase 5 Phase 1 Phase 4 DEVELOP REVIEW & DEVELOP IMPLEMENT TEAM SKILLS CELEBRATE SYSTEM Phase 2 CONSULT 2. DEFINE & DESIGN 4. SYSTEM & ACTION 6. CELEBRATE & DEFINE Activities & systems Measure current status. Measure, review results. for sustainable What system needs to ROIII, Reward. innovation, & to do for the organisation. Celebrateachievements measure ROIII Initial programme plan and improvements

48. INNOVATION & CREATIVITY Thank You Fasset Call Centre 086 101 0001 www.fasset.org.za Developed for FASSET by SynNovation Solutions