Kathy Mast Consulting

Best Books on Innovation

Kathy Mast — Tue, 10 Feb 2009 12:16:52 -0600

BusinessWeek's 2008 list of best books on innovation includes "The Game Changer - How You Can Drive Revenue and Profit Growth with Innovation," by A.G. Lafley and Ram Charan. While I haven't yet read the book (it's next on my list), I watched a video interview of A.G. Lafley on the topic of innovation at Proctor and Gamble where he is Chairman of the Board and Chief Executive Officer. The interview was conducted by Scott Anthony, published by Harvard Business School Press and it is available on the Internet at: http://discussionleader.hbsp.com/anthony/2008/05/reflections_on_front_end_of_in.html

I was especially impressed with his overview of how innovation practices at P&G have changed over the years. In the past, innovation reviews spanned days and each innovation came with a briefing book that was about two inches thick. In 2007, quick, visual and high quality presentations became the format. The books were replaced by posters. He likened the new sessions to a science fair. The presentations include a poster, working prototypes, if they exist, and 3 - 5 pages of documentation. Innovations can be reviewed in 2 - 4 hours. At P&G, posters, prototypes and involving consumers early in the process are best practices and a formula for success.

Another key point that Mr. Lafley stresses is to continually question whether the innovation strategy is in line with the business strategy. The business strategy must come first! In my next post, we'll look at some important reminders for setting business strategy for 2009! Check back in a couple of days! For an advance copy, send me an email request for strategic planning best practices or a recap of A. G. Lafley's suggested innovation process. Please indicate if you would like one, or both, and send your request to kathy@kathymastconsulting.com.

Let's make strategy and innovation our priorities for 2009!

A Vision for Innovation

Kathy Mast — Thu, 15 Jan 2009 11:14:50 -0600

A couple of months ago I had the opportunity to speak at a CEO Netweaver's meeting in Dallas. It seems that CEO Netweaver's is one of the best business networking organizations in the metroplex. The goal of the CEO and service provider organization is servant leadership or "to help each other and their communities without expecting anything in return." If you are looking for a premier networking organization, I highly recommend CEO Netweavers.

As I speak regularly to C-level executives in various organizations and companies, I have to say that the attendees at this meeting truly distinguished themselves when it came to our topic of "Creating an Environment of Innovation." They participated through discussions, insights, suggested books to read and superb questions. They also asked for links to research on innovation that I offered at the end of the session. How impressive!

In thinking about research on organizational executives who drive innovation, 36% are CEOs according to Boston Consulting Group's 2007 Senior Executive Innovation Survey. The survey and my experience show there is a significant gap in driving innovation between CEOs and other C-level executives. The responsiveness that I got from the CEO Netweavers group supports this research. It confirmed that there is a great opportunity to work together to create coaching and workshops for companies to share in the knowledge and vision of their CEOs. A few recommendations are as follows:

Collaborate with innovation leaders to create workshops and training to broaden the vision, understanding and commitment to innovation. Make sure it is customized for your organization
Begin idea generation programs and track their effectiveness
Create special teams dedicated to achieving faster innovation for products and services - there are some great models to follow.

As I reflect on 2008, I think the identification of the gap in knowledge and execution for innovation between the CEO, the other C-level executives and the organization as a whole is significant. Addressing this disparity immediately and executing on the new shared vision and innovation goals can make all the difference in organizational performance this year.

Call me! Let's start 2009 with the resolve to maximize innovation for breakthrough results in the New Year! Watch for more insights on how to succeed in 2009.

A New Season

Kathy Mast — Mon, 01 Sep 2008 10:57:23 -0500

Ah - the end of summer. It is delightful to linger and languish in the last few days before fall rushes in with all its activities. It has been nice to take a break from some routine work, putting it on the "back burner" while we've vacationed and read books on the beach about how to improve our businesses. So now is a great time to think about what we've gleaned over the summer and want to accomplish in the last four months of the year.

I definitely want to connect more with you, my readers and clients. It's time for me to get back to posting on my blog, finishing up preparations for new speaking presentations and wrapping up a couple of consulting engagements before year end. What's on your list?

Along with researching and preparing to write on new topics, I've received specific requests over the summer to write about current challenges and issues in the workplace. I'm always pleased to know more about content of interest to you, and I'll address a few of those topics in upcoming blogs. I'm also updating content for the Merger & Acquisition market and how best to achieve a greater ROI in today's global business environment. Watch for new posts on that topic.

A new Web site launch for balancing women's business issues with everyday life comes from www.w2wlink.com. I'm beginning my second series as the writer/leader of a network circle on w2wlink titled "Mastering the Art of Innovation." Plan to join the network circle, whether you are female or male, and participate in discussions on best practices for innovation, contribute successful examples from your business and read about the latest products, services and processes for innovation.

My goal in both of these blogs is to hear from, and dialog with, you! A dynamic and interesting interchange of practical, usable ideas will help us keep our businesses at the forefront of the global marketplace and build a sustainable competitive advantage.

"Fun" with Governance

Kathy Mast — Fri, 06 Jun 2008 14:41:52 -0500

In speaking to a group of I/T executives this week, I suggested a few tips on improving their governance process. I suggested that they find ways to make it "fun." One of the audience members said something to the effect of "if you have any suggestions on how to do that, we'd like to hear them." That, of course, brought ripples of laughter.

As I thought of that question during the course of this week, I recalled some techniques that were effective, and sometimes fun, in managing governance of a major business initiative and division financial reporting that directly affected the bottom line. While they may seem a bit different from governance meetings and processes, I recommend that you consider adapting similar strategies for the governance of I/T.

The first example was a tracking mechanism of status for a major acquisition initiative. The company itself used a "stoplight" method of reporting status to the executive staff. I remember applauding the I/T consultant managing the transformation team for adapting the same reporting scheme. It wasn't long before we started getting calls a couple of days before the status meetings to ask the "color" we would be reporting for particular departments. They didn't want a report of anything other than green! We lightened the tone of the meetings by giving out small awards for delivery over and above or for ideas for solutions to complex issues.

The second example is somewhat similar in nature. The new executive in charge for a privately owned company with multiple divisions simply began distributing financial results for all divisions to their leaders. The numbers themselves led to a spirit of competition and financial results began to steadily improve.

Contrast these examples to others I've witnessed, and participated in, where managers require reporting and tracking but it's loosely administered. That approach results in a spirit of contention, criticism and loss of respect and, ultimately, lack of meaningful participation.

The Google culture of innovation says, "Data is apolitical." Create metrics in which the numbers and results speak for themselves. Combine the meetings and reporting of results with healthy competition, recognition and reward to create the tone and participation you want to achieve. Educate everyone on the benefits and contribution to ROI from governance.

If you have ideas, or have participated in highly effective (and fun would be nice) governance processes, please send us your examples. Check out the well-written blog post on SOA governance at: http://www.infoq.com/articles/governance-gernot-starke

The CFO's Role in Innovation

Kathy Mast — Wed, 07 May 2008 08:09:00 -0500

New research from IBM provides a very good definition of "An Agile CFO." It is the best definition I've found recently for the role of the CFO in innovation. It is taken from The Institute for Business Success, The Agile CFO, IBM Business Services. The research says that the CFO is ideally positioned to lead innovation because CFOs possess:

"A real and deep understanding of revenue sources and revenue generation
A tactical understanding of expenditures
Keen insight into market levers
Intimacy with the board and leadership
Bottoms up knowledge of the company's health and abilities
An affinity for numbers
Vital power in making decisions and driving change"

In another leading survey from Boston Consulting Group, the CFO is the biggest driving force for innovation in companies of only one percent of the respondents. However, many leading companies have CEOs who were formerly CFOs. CFOs can use their talents and skills to greatly affect the success of their organization and prepare themselves for even greater roles of leadership in the process.

Roles & Responsibilities for Innovation

Kathy Mast — Mon, 05 May 2008 14:59:07 -0500

I've been speaking frequently on the topic of innovation since the beginning of the year, and I continue to be excited and thrilled with the opportunities. The responses that I'm getting from the engagements and in reviewing leading industry and academic research indicate that innovation is still THE most important and urgent business topic today. If innovation is not the #1 priority for a chief executive, it remains in the top 3 priorities making it critical to most everyone's business plan. Whether my audience is composed of executives from large firms or a group that contains people in non-management roles, the top questions I receive are "how can I contribute to innovation," and "how do we create a more innovative environment?"

In my speaking engagements, workshops and consulting, I provide insights into these, and other, critical questions on the subject of innovation. Some of the information is educational, defining innovation and its importance in the marketplace. Some of the information will help you make changes in your culture to inspire people to contribute their best. The goal? To continuously create innovative products and services to maintain your global competitive advantage.

As I've prepared to speak to different corporate and industry groups, I've found great role definitions for innovation for various positions within a company. I'll share some of the highlights with you through this blog. If there are particular roles you would like to see defined, e-mail me, and I will respond to you personally. Together, let's define and apply best practices for people in our organizations to create a sustainable culture based on an environment of innovation.

Up next? The CFO's Role in Innovation!

Globalization Demands Innovation

Kathy Mast — Wed, 27 Feb 2008 10:53:13 -0600

In my last post, I suggested that you watch for "not to miss" upcoming posts. My absence from posting was longer than anticipated, but I want to update you with insights and incredible research from Michael Cox, senior vice president and chief economist for the Dallas Federal Reserve. He was the guest speaker for the Association for Corporate Growth (ACG) in Dallas in November. He gave a one- and- a-half hour riveting presentation on globalization based on his Dallas Fed research and knowledge and his personal experiences traveling globally. No one left the room early and, at times, the silence and attentiveness of the large crowd was palpable.

Rather than recap his presentation for you, which would require leaving out very pertinent research and facts, I recommend that you read his essay, "The Best of All Worlds," included in the 2006 annual report on the Federal Reserve website. http://dallasfed.org/fed/annual/2006/ar06.pdf

Pay particular attention to Exhibit 11, "Guide to Globalization, Productivity and Cost." Dr Cox discusses ten ways that globalization raises productivity and reduces cost. Three of the ten are directly affected by innovation: stronger competition, greater specialization, and larger market size. Sustaining competitive advantage in a global marketplace, where these conditions exist, requires that you create innovative products and services. Based on his research, and other research I've shared with you, innovation is not merely to enhance your business, it is a matter of business survival.

There is a wealth of information in the essay. I recommend that you take the time to look it up, read all of it, or key excerpts, because you will gain new insights into how to achieve and sustain global competitive advantage. To get guidance and practical suggestions on how to create a more innovative environment in your business, products and services in 2008 and beyond, call me. I'll share with you a great methodology to transform your organization into one of creativity and innovation.

"The combination of knowledge and globalization provides the U.S. with the best of all worlds--the benefits of not only our nation's intelligence but the entire planets. "Michael Cox, "The Best of All Worlds"

Marketing, Research & Innovation

Kathy Mast — Mon, 10 Dec 2007 09:52:38 -0600

I hope that all of you are enjoying the holiday season as much as I am. What a great time to share a spirit of worship and thanks, generosity through giving, and anticipation for a new year. The holidays also challenge us as we add new activities into already full schedules. I'm catching up today on writing about several recent noteworthy events.

The first thoughts I want to share come from Dr. Dwight Riskey. Dwight recently retired as senior vice president of Consumer/Customer Insights for PepsiCo, Inc. Prior to that, he was chief marketing officer (CMO) for Frito Lay International. I heard Dr. Riskey speak at an Institute of Management Consultants (IMC) meeting in mid-November. He shared many insights into his great career at the PepsiCo family of companies. Two key factors he discussed included his dedication to market research and the focus on innovation he shares with the company. Needless to say, that was music to my ears. Dr. Riskey is credited with the rather recent invention of Sun Chips.

I had the marvelous opportunity of talking with him afterward to ask his opinion of the optimal organizational structure for innovation. I asked him to choose between a dedicated innovation team or a program involving a company's traditional business units. He said, "Absolutely the former." He recommended creating an innovation team composed of your most senior people and brightest minds.

He went on to say he was fortunate that his early career research and innovation recommendations were very successful. He cautioned that lack of results from an innovation team might be a problem for several reasons. As I thought about the cautionary note later, however, I reflected back on Marissa Mayer's presentation on Googles' Top Nine Recommendations on Innovation. Basically, she said that if your top minds are working on something, don't discard it. There is always some kernel of truth or value to be found. You'll remember from an earlier blog that she also said that "data is apolitical." The important message here is to create teams focused on innovation using the best research available.

It is truly amazing to think of the great growth and profitability that Dr. Riskey, and Frito Lay, have built on selling salty chips. We enjoyed stories he shared on the products and amazing statistics on our consumption of those products. You wouldn't believe it! It just goes to show what can be achieved with a focus on marketing, research and, of course, innovation.

Watch for my next post on a noteworthy event. You won't want to miss some fantastic insights into the global economy.

Innovation in the Best and Worst of Times

Kathy Mast — Sat, 24 Nov 2007 11:36:20 -0600

Whether you find your business in the best of times or the worst of times, innovation can help you grow your business. In the best of times, innovation investments will help you increase your existing competitive advantage beyond that of your competitors. In the worst of times, innovation and creativity are your best opportunities to achieve stability, produce new products and services, and optimize your investments.

Consider innovation in the best of times. Apple, Inc., made a new commitment to innovation when it put Steve Jobs back at the helm in 1997. There were still challenging times ahead, but Apple steadily progressed through a launch of new products. Since 2005, Apple has enjoyed progressive growth and returns. Not content to just further improve on the Mac, retail store investments, iPod and new products based on Intel technology, Apple launched the iPhone in January of this year. Time just named the iPhone the invention of 2007 this month. You may agree with me that the iPhone has attendant new-product problems, but it also has some great new features and technology that are groundbreaking. Apple has shown itself to be a company that is great at continuing to build market share in the best of times.

Consider innovation in the worst of times. In 2003, Boeing was beset with the types of problems you want to avoid at all costs...problems with strategy, ethics, trust and alleged impropriety at the CEO level. Focusing on lucrative government contracts yet unable to focus and achieve innovation in R&D were two large issues. How has Boeing returned to market leadership in aerospace in just three years? Boeing's new CEO, James McNerney, established a strategy for a smaller, faster and more efficient aircraft, the Boeing Dreamliner 787. Factors contributing to the success of the aircraft include:

Significant fuel efficiency over the rival Airbus 380
The use of innovation through products like carbon fiber that results in lower maintenance costs and reduced weight, i.e. lower fuel consumption and the outsourcing of manufacturing to lower costs

News of aircraft delivery delays recently at Boeing will call for a quick analysis of innovations that have been successful and those that need, well, more innovation.

Both stories are excellent examples of strategy combined with, innovation, technology and improved processes to excel and gain competitive advantage. Yet most executives admit they do not know how to begin to create an environment of innovation. Let's draw on the examples of these companies, great experience and research about innovation, and begin work on your corporate goal to be more innovative this week. Call, or email me, at:

(817) 528-4498, kathy@kathymastconsulting.com

New Tips on Strategy

Kathy Mast — Fri, 09 Nov 2007 08:43:19 -0600

I've had two invitations in the past few weeks to hear Robert Bloom speak and introduce his new book, written with Dave Conit, The Inside Advantage. Mr Bloom is an entrepreneur and advertising executive who now specializes in helping other companies grow their business. I heard his presentation this week at an SMU breakfast hosted by the Cox School of Business.

Over breakfast, one of my table-mates, who is pursuing a master's in marketing, asked why I wanted to hear a presentation on advertising. I admit that I had not really thought that the presentation might be solely focused on advertising. My best, and top of the mind, answer was that I am very interested in marketing, branding and their underutilization in business. At that point, I hoped that I was not in for a presentation that was full of advertising tales.

Well, there's good news and more good news. Mr. Bloom began his presentation by saying that he is "all about strategy." Yes! He had my interest! His stories and recommendations revolved around great strategy. His presentation and book both speak about the tangible benefits and emotional connection that are critical for success. The result is a solid and inspiring presentation with good tips on growing our businesses. Be sure to pick up one of his books and accept the next invitation you get to hear him speak.

One of the tips from his book states, "Right now, inside your business, there are growth generating customer benefits waiting to ignite your enterprise." Another yes! That statement reflects my experience in uncovering, and writing about, the hidden asset potential in your organizations or in those you acquire. Let's start evaluating those assets to help you achieve and sustain global competitive advantage.