| The 2007 CEO Challenges report by The Conference | | | | minimize the human factor, and of course ...no |
| Board ranks the CEO's focus on Innovation 9th in | | | | surprises. |
| importance, compared to other strategic interests. | | | | To the extent that the wrong vocabulary is used to |
| This is both good and bad news for the many | | | | promote Innovation Initiatives, these initiatives are not |
| constituencies in research, development, technology | | | | likely to get off the ground, or they may quickly lose |
| brokerage or marketing who are eager to participate | | | | top management support. Much of the popular |
| in expanded innovation strategies within their company | | | | discussion of the term Open Innovation overlooks |
| or Open Innovation outside of their company. | | | | many of these terminology landmines. |
| Innovation did beat many other competing priorities to | | | | In discussing the fundamental basis of Open Innovation, |
| make the top 10. | | | | Henry Chesbrough, in chapter 4 of his book Open |
| What are the CEO's top strategic concerns that | | | | Business Models lays out the straightforward solution |
| outrank innovation based upon this 2007 Conference | | | | to addressing top management's key strategic |
| Board survey? They are Excellence in Execution and | | | | interests AND pursuing open innovation at the same |
| Execution Consistent with Strategy. Clearly, from an | | | | time. |
| internal championing perspective, an Open Innovation | | | | His approach if adopted can address management's |
| initiative could gain more traction with the CEO if it | | | | concern that an Excellent Process is being promoted |
| could be promoted within the context of the top two | | | | and followed. He proscribes that the foundation of |
| goals. | | | | Open Innovation is to thoroughly analyze the global |
| Excellence in Execution implies the application of well | | | | intellectual property landscape for any product or |
| proven processes and continuous improvement that | | | | technology, and then to prove this understanding to top |
| complements an organization's competencies. | | | | management in terms of the company's strategic |
| Consistency with Strategy implies that new initiatives | | | | business model. Open Innovation motivated |
| should be shown as synergistic with the existing | | | | transactions of selling or purchasing intellectual property |
| strategic model. To the extent that proposed | | | | can then be framed in terms of the top two goals; |
| innovation strategies are advocated in terminology that | | | | Evaluated with an Excellent Process, and Consistency |
| is compatible with these top two goals, they stand a | | | | with the Corporate Strategy. |
| greater chance of winning and maintaining top | | | | He reports that many organizations fail to do this |
| management support. | | | | mapping, specifically, they scan and map the global |
| The Brooks Group has conducted massive studies of | | | | technologies landscape only at the level of technology |
| the persuasive value of certain words with respect to | | | | vocabulary, not in strategic business model vocabulary |
| CEOs. To align with top management's top two goals | | | | and visualizations. This leaves open the "human factor" |
| of Execution Excellence and Consistency with | | | | of interpretation, which requires "guesswork" and |
| Strategy, certain words should not be used in | | | | perhaps open ended discussions and therefore |
| promoting an innovation initiative. Brooks Group | | | | "uncontrolled progress"- all are factors that Brooks |
| suggests that the terms to be avoided at all costs, | | | | Group has shown to confound top management. |
| especially with Technologies Innovation Strategy | | | | Chesbrough acknowledges that management is well |
| focused CEO's, include: pioneering, cutting edge, | | | | justified in being concerned about the gaps in process |
| experimental, revolutionary, substantial change, and | | | | and communication, and the Conference Board survey |
| yes... innovative. Instead, Brooks Group's research | | | | reinforces why some innovation teams may be having |
| proves that winning dialog includes phrases such as: | | | | trouble getting or keeping management's attention and |
| controllable progress, no guesswork, proven and | | | | support. |
| tested, designs are similar to, protect what you've built, | | | | |