The Other Side of Innovation Solving the Execution Challenge By Vijay Govindarajan Chris Trimble

1. The Other Side of Innovation Solving the Execution Challenge By Vijay Govindarajan Chris Trimble

2. About Vijay VG is the world�s leading expert on strategy and innovation. He earned his chartered accounting degree in India and an MBA and Ph.D. from Harvard. VG has taught at Harvard, Dartmouth, the Indian Institute of Management, as well as a few others. Vijay has written many articles that have appeared in academic journals, magazines, and newspapers, such as Fast Company and The Harvard Business Review. VG has written 9 books over the span of his career, many of which have landed on the Wall Street Journal�s Top Ten Recommended Reading List. VG is the founding director of the Tuck Center for Global Leadership at Dartmouth and is the Earl C. Daum 1924 Professor of International Business at the Tuck School of Business. VG has worked with many Fortune 500 companies including GE, IBM, Colgate, Boeing, and Sony. Due to his vast knowledge and background, VG has earned many awards from Business Week, Fortune, The London Times, and The Economist.VG is the world�s leading expert on strategy and innovation. He earned his chartered accounting degree in India and an MBA and Ph.D. from Harvard. VG has taught at Harvard, Dartmouth, the Indian Institute of Management, as well as a few others. Vijay has written many articles that have appeared in academic journals, magazines, and newspapers, such as Fast Company and The Harvard Business Review. VG has written 9 books over the span of his career, many of which have landed on the Wall Street Journal�s Top Ten Recommended Reading List. VG is the founding director of the Tuck Center for Global Leadership at Dartmouth and is the Earl C. Daum 1924 Professor of International Business at the Tuck School of Business. VG has worked with many Fortune 500 companies including GE, IBM, Colgate, Boeing, and Sony. Due to his vast knowledge and background, VG has earned many awards from Business Week, Fortune, The London Times, and The Economist.

3. About Chris Chris received his bachelors degree from the University of Virginia and later earned his MBA from Dartmouth. Prior to becoming a management consultant Chris was a nuclear submarine officer for the US Navy. Chris has also spoken as the key note speaker at many conferences on strategy and management. Like VG, Chris has worked with many Fortune 500 companies including Microsoft, Fidelity, and the New York Times Company/Chris received his bachelors degree from the University of Virginia and later earned his MBA from Dartmouth. Prior to becoming a management consultant Chris was a nuclear submarine officer for the US Navy. Chris has also spoken as the key note speaker at many conferences on strategy and management. Like VG, Chris has worked with many Fortune 500 companies including Microsoft, Fidelity, and the New York Times Company/

4. The Partnership Vijay and Chris have written five books together: How Stella Saved the Farm, Ten Rules for Strategic Innovators, Reverse Innovation, How GE is Disrupting Itself, and the Other Side of Innovation. Vijay and Chris have written five books together: How Stella Saved the Farm, Ten Rules for Strategic Innovators, Reverse Innovation, How GE is Disrupting Itself, and the Other Side of Innovation.

5. A Long Ten Years� In 2000, the authors began their research on innovation in Fortune 500 companies. Multi-year cases were studied as well as interviews requiring transcripts, creating a very lengthy and costly process. In 2005 Vijay and Chris wrote a mid-term report in the form of a book called Ten Rules for Strategic Innovators-From Idea to Execution. This book was based on special cases of high-risk, high-growth potential new ventures, the most extreme form of innovation. This book is a study of small process improvements to high-risk initiatives. While innovation in an organization is daunting, it is attainable and replicable. The book laid out the process for replicating the process however readers with less severe innovation cases wanted guidance. The Other Side of Innovation was written in response to the overwhelming demand from readers. The Other Side of Innovation is a step-by-step guide to conquering the difficulty of innovation. While this book gives advice, it has many examples from the companies interviewed and researched by the authors. The authors also give considerable time to the logic behind their advice and reasoning. They share their management skills and offer guidance in difficult decisions.In 2000, the authors began their research on innovation in Fortune 500 companies. Multi-year cases were studied as well as interviews requiring transcripts, creating a very lengthy and costly process. In 2005 Vijay and Chris wrote a mid-term report in the form of a book called Ten Rules for Strategic Innovators-From Idea to Execution. This book was based on special cases of high-risk, high-growth potential new ventures, the most extreme form of innovation. This book is a study of small process improvements to high-risk initiatives. While innovation in an organization is daunting, it is attainable and replicable. The book laid out the process for replicating the process however readers with less severe innovation cases wanted guidance. The Other Side of Innovation was written in response to the overwhelming demand from readers. The Other Side of Innovation is a step-by-step guide to conquering the difficulty of innovation. While this book gives advice, it has many examples from the companies interviewed and researched by the authors. The authors also give considerable time to the logic behind their advice and reasoning. They share their management skills and offer guidance in difficult decisions.

6. �Genius is 1% inspiration, 99% perspiration.�-Thomas Edison innovation = ideas innovation = ideas + execution innovation = ideas + motivation innovation = ideas + process innovation = ideas + leaders innovation = idea + leader + team + plan When we think of innovation we think of ideas. If it were so simple to be innovative, all we would need to do it come up with ideas. However that is not the case-many people, many companies have great ideas but that does not make them innovative. To be innovative we need to move a step further and execute these ideas we have come up with. The authors asked executives of Fortune 500 companies to rate their companies using this equation: innovation = ideas + execution. These executives were to rate their companies on a 1 to 10 scale from a low of 1 to 10 for high. They should give idea generation a score as well as a separate score for execution. The authors found that while many companies were great at generating new ideas, they were having a difficult time executing the idea to become a success. This book focuses on innovation execution. When exanimating other companies the authors found other models for innovation including these. This book focuses on innovation = idea + leader + team + plan. Innovation requires an idea with a leader to lead the innovation process. A team will implement the innovation process and plan the process every step of the way.When we think of innovation we think of ideas. If it were so simple to be innovative, all we would need to do it come up with ideas. However that is not the case-many people, many companies have great ideas but that does not make them innovative. To be innovative we need to move a step further and execute these ideas we have come up with. The authors asked executives of Fortune 500 companies to rate their companies using this equation: innovation = ideas + execution. These executives were to rate their companies on a 1 to 10 scale from a low of 1 to 10 for high. They should give idea generation a score as well as a separate score for execution. The authors found that while many companies were great at generating new ideas, they were having a difficult time executing the idea to become a success. This book focuses on innovation execution. When exanimating other companies the authors found other models for innovation including these. This book focuses on innovation = idea + leader + team + plan. Innovation requires an idea with a leader to lead the innovation process. A team will implement the innovation process and plan the process every step of the way.

7. Part I: Build the Team Divide the Labor Dedicated Team The Performance Engine Assemble the Dedicated Team Manage the Partnership Part I of the book is to build the team. Step 1 is to divide the labor between the dedicated team and the performance engine. The Dedicated Team members are those employees that spend their time working solely on the innovation plan. Successful businesses strive for productivity and efficiency and evolve in the pursuit of low cost, high profit operations. Innovation, however can be defined as �something new or different�. Due to their opposing nature, companies have a difficult time innovating while at the same time successfully running the business. The needs to foster and promote innovation are very different than the needs for productivity and efficiency. The Performance Engine refers to the part of the business that make the product or produce the profits. The Performance Engine team is responsible for implementing the ideas by the Dedicated Team. Step two is to assemble the dedicated team and step three advises on how to manage the partnership between the dedicated team and the performance enginge.Part I of the book is to build the team. Step 1 is to divide the labor between the dedicated team and the performance engine. The Dedicated Team members are those employees that spend their time working solely on the innovation plan. Successful businesses strive for productivity and efficiency and evolve in the pursuit of low cost, high profit operations. Innovation, however can be defined as �something new or different�. Due to their opposing nature, companies have a difficult time innovating while at the same time successfully running the business. The needs to foster and promote innovation are very different than the needs for productivity and efficiency. The Performance Engine refers to the part of the business that make the product or produce the profits. The Performance Engine team is responsible for implementing the ideas by the Dedicated Team. Step two is to assemble the dedicated team and step three advises on how to manage the partnership between the dedicated team and the performance enginge.

8. Part II: Run a Disciplined Experiment Formalize the Experiment Break Down the Hypothesis Seek the Truth Part II is to run a disciplined experiment. Step one is to formalize the experiment. The innovation process is essentially an experiment. Innovators need to plan, analyze, and evaluate each step in the process of innovation. The results also need to be broken down and analyzed. If each step can be explicitly documented, the process may be replicated. Step two, break down the hypothesis is about the need to manage each step, how to allocate the budget in each step, and managing cause-and-effect relationships. The third step is to seek the truth. In other words innovators need to interpret the results accurately and not bend from the pressure of upper management. This chapter explains how to deal with bias and emotions when interpreting results and how to manage defensiveness. The chapter then goes on to accountability measurements of innovation leaders and how companies can create the right mix of incentives. The book closes with a description of the right supervising executive and falsifies commonly held myths about innovation and those who practice it. There are also tools at the back of the book that help with various steps in the book, like dividing the labor between the dedicated team and the performance engine.Part II is to run a disciplined experiment. Step one is to formalize the experiment. The innovation process is essentially an experiment. Innovators need to plan, analyze, and evaluate each step in the process of innovation. The results also need to be broken down and analyzed. If each step can be explicitly documented, the process may be replicated. Step two, break down the hypothesis is about the need to manage each step, how to allocate the budget in each step, and managing cause-and-effect relationships. The third step is to seek the truth. In other words innovators need to interpret the results accurately and not bend from the pressure of upper management. This chapter explains how to deal with bias and emotions when interpreting results and how to manage defensiveness. The chapter then goes on to accountability measurements of innovation leaders and how companies can create the right mix of incentives. The book closes with a description of the right supervising executive and falsifies commonly held myths about innovation and those who practice it. There are also tools at the back of the book that help with various steps in the book, like dividing the labor between the dedicated team and the performance engine.