Professional Documents
Culture Documents
Innovation Process
The Cauldron
The PacMan
The Cauldron
Unleash entrepreneurial energy in a concentrated mixture of
talent, ideas and resources
Key Levers
Internal markets for new ideas
Venture capital model of internal entrepreneurs seeking funding
from both internal and approved external sources
Use of peers, rather than bosses, to screen and evaluate
opportunities
Loose structure and frequent organizational changes
Example: Enron
You cannot control the atoms within a nuclear fusion reaction. We
allow people to go in which ever direction that they want to go. And
theyre incented to do all the steps of innovation themselves. And
around that, we put broad risk-reward controls.
Ken Rice,
Enron Capital & Trade Resources
2
Key Levers
Manage the overall portfolio of core competencies and strategic
assets
Bring people together across organizational boundaries to share
information and discover opportunities
Create mechanisms that gather, disseminate, and track new ideas
and learnings for all employees
Determine when and if to spin off a growing business
Examples
Emerson Electric (Growth Process)
Royal Dutch/Shell (Gamechanger)
Lucent Technologies
3
Key Levers
Create a profound sense of core purpose
Let everyone know their innovation contribution is important
Give teams the leadership and autonomy they need to win
Create a culture of experimentation and commitment to learn
Examples
Charles Schwab
British Airways
Allstate (BVP Process)
The PacMan
Acquire successful innovators and integrate competencies
into existing businesses
Key Levers
Use strategic intent to guide the entrance into new markets and
development of new competencies
Develop alternatives early in the innovation process
Take stakes in promising start-ups, using the market as a
screen
Assess competitive responses to strategy innovations
Examples:
Cisco
Microsoft, WorldCom
5
The Explorer
Unleash entrepreneurial energy in a concentrated mixture of
talent, ideas and resources
Key Levers
Aspire beyond what seems possible
Design and carry out effective and low-cost experiments
Use Strategic Intent to guide the entrance into new markets and
development of new competencies
Emphasize continuous, cumulative learning
Examples:
Monsanto (15 years to shift from chemicals to life sciences)
Corning (12 years to develop optical fiber)
Motorola (10 years to develop cell phones)
6
Develop new
rapidly
Improve on
existing
business?
Spiral Staircase
Create new
businesses?
Cauldron
Leverage
existing over
time
Fertile Field
Acquire in
marketplace
PacMan
Develop
internally
7
Explorer