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Source Notes and Resources for Further Study

Introduction

Journalist John Grossman’s inside account of the ideation session appeared in the cover story, “Jump-Start Your Business,” Inc. Magazine, May 1997.

Chapter 1: What It Takes to Drive Growth

“The old Borg-Warner would have said ‘you can’t organize the innovation process’”: author interview with Simon Spencer, B-W Innovation Champion. The Corporate Strategy Board study of 3,700 companies was summarized in “The Growth Imperative,” by Jude T Rich, Journal of Business Strategy, March/April 1999.

Just 23 percent of acquisitions earn their cost of capital; the McKinsey study was summarized in “Growing Your Company: Five Ways to Do It Right,” by Ronald Henkoff, Fortune, November 25, 1996. Also see “How Big Companies Grow,” Harvard Management Update, May 1999.

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The PricewaterhouseCoopers survey is titled Innovation & Growth: A Global Perspective, by Trevor Davis.

The major study of radical innovations, conducted by a team of researchers at Rensselaer Polytechnic Institute, was reported in “Getting to Eureka: Researchers Are Tracking How Breakthroughs Are Made,” BusinessWeek, November 10, 1997- See also the important book Radical Innovation: How Mature Companies Can Outsmart Upstarts, by Richard Leifer, Mark Rice, et al., Harvard Business School Press, Boston, 2000.

Chapter 2: Leading Innovation

In industry after industry, leading firms almost always become losers. See: Winning Through Innovation: A Practical Guide to L·ading Organizational Change and Renewal, by Michael Tushman and Charles O’Reilly, Harvard Business School Press, Boston, 2002.

“We’re going to become a five billion dollar organization”: John Fiedler’s quote is from “Want Innovation: Oil the Machine, and Water the Garden,” by Thomas A. Stewart, Fortune, 2000.

“Peter always had straightforward objectives for management”: Progressive Insurance senior vice-president Alan Bauer’s quote is from an interview with the author.

The Borg-Warner case study was compiled from interviews with Simon Spencer, B-W’s Innovation Champion, and David Sutherland, founder and managing director of The Launch Institute, Atlanta, Georgia. Trek Consulting’s white paper is titled, Cultivating Innovation: Lessons from America’s Chief Innovation Officers, Summer 2006. See www.trekconsulting. com/Publications/Articles/Cultivatinglnnovation.pdf for further information.

Journalist Jena McGregor’s article is “Dawn of the Idea Czar,” BusinessWeek

Online, posted March 23, 2007.

“A lot of times the best marketing ideas don’t come from marketing.” Jon

Letzler’s comments from an interview with the author.

“Let’s say you pay on division profit sharing”: Paul Guehler’s comments are from an interview with the author. 193“You stupid old geezer”: This paraphrase of an oft-told story is most often told by philosopher and proponent of intrinsic rewards, Alfie Kohn. See “Unrewarding Rewards,” by A. J. Vogl, Across the Board, January 1994.

Chapter 3: Cultivating the Culture

Before its collapse and bankruptcy, Enron’s internal environment was most often described by business writers, Wall Street analysts, and consultants as the very model of an innovative culture. After the fall, further revelations about the culture revealed an “unrelenting stress on growth and an absence of controls” that “helped push execs into unethical behavior” to meet targets. See for example, “The Environment Was Ripe for Abuse,” by John A. Byrne, BusinessWeek, February 25, 2002.

“I recall an instructor whose way of checking to see”: Mary Jean Ryan’s quote is from her essay, “Driving Out Fear: One CEO’s Personal Journey,” Healthcare Forum Journal, July/August 1996.

“The very cultural traits that made these companies successful may preclude their ability”: see Charlan Jeanne Nemeth’s article “Managing Innovation: When Less is More,” California Management Review, Fall 1997-”After 10-15 years of these programs, most have been terminated”: see the report, The Future of Corporate Innovation Centers, by Jack Hippie, produced under the auspices of the Association of Managers for Innovation, and available via their website. See www.innovationresource.com for current contact information.

The story of Post-it Notes has been told in numerous places. See for example Breakthroughs: How the Vision and Drive of Innovators in 16 Companies Created Commercial Breakthroughs That Swept the World, by P. Panganath Nayak and John M. Ketteringham, Rawson Associates, New York, 1986. “We had a difficult time building the buy-in for Post-it Notes”: See “Interviews with Innovators,” Fast Company, April 2000. Diagnosing and objectively understanding your organization or work group’s barriers to innovation is an important first step toward improvement. There are various assessment tools and benchmarking surveys available—some are free for the downloading, others are proprietary and available only in the context of a consultative project. For a list of the climate surveys we recommend, visit www.innovationresource.com. 194Innovation Best Practices Survey Report produced jointly by Innovation Network and Global Best Practices, privately published. Knowledge workers receive 52 phone interruptions, 36 emails: these totals were contained in the article “Message Overload Taking Toll on Workers,” by Kirsten Grimsley, The Washington Post, May 20, 1998. “Room Sealed by Order of ‘No Meeting Day’ Police,” see “Memo to Staff: Stop Working,” by Joann S. Lublin, Wall Street Journal, July 6, 2000. 3M’s policy of 15 percent free time “is not a written rule”: Paul Guehler’s comments are from an interview with the author.

“Sometimes the ideas compete with something the company is already doing”: Dr. Glen Nelson’s comments are from interviews with the author. “Pat Farrah is just a wild man”: This former executive’s comments appeared in “A Free Spirit Energizes Home Depot,” by James R. Hagerty, Wall Street Journal, April 11, 2000.

“When people are faced with a majority of others who agree”: Charlan Jeanne Nemeth’s quote is from her article “Managing Innovation: When Less Is More,” California Management Review, Fall 1997.

Michael Kirton’s 33-question survey, the KAI Inventory, is used to assess an individual’s preferred creativity style. Only certified practitioners may administer it. You will find resources at www.bottomlineinnovation.com, www.kaicentre.com, and http://web.indstate.edu/soe/blumberg/KAI.html. Check these sites if you want to find a certified practitioner or to explore certification for yourself

“The people bring high value to any business”: Charles Prather’s comments are from interviews with the author.

Starbucks’ popular Frappuccino drink’s origins were reported in “Ground-Level Innovation,” Harvard Management Update, August 2000. “We have yet to find a success that happened without a strong champion”: Gifford Pinchot’s comments are from his book, Intrapreneuring: Why You Don’t Have to Leave the Corporation to Become an Entrepreneur, Harper & Row, New York, 1985.

Findings from the 3M team’s efforts to identify signs of innovative potential were reported in the book, The 3M Way to Innovation: Balancing People and Profit, by Ernest Gundling, Kodansha International, Tokyo, Japan, 2000.

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Chapter 4: Fortifying the Idea Factory

The Monday Morning Wake Up Brain e-zine is available free of charge to members and nonmembers of The Innovation Network. See www.innova-tionresource.com for details on how to register.

“We were not about to abandon our product development processes”: Comments from Robert Goss, Whirlpool Corporation’s innovation leader are from an interview with the author.

The illustration of the Idea Factory is from Inside the Innovation Elite, an online executive overview of the best practices of innovation from the world’s most innovative firms. Available for purchase at www.innovationresource. com.

The Kathryn Kridel anecdote was originally recorded in the book, Corporate Creativity: How Innovation and Improvement Actually Happen, by Alan G. Robinson and Sam Stern, Berrett-Koehler Publishers, San Francisco, 1997. Our study of Dana Corporation’s continuous improvement program was made possible by Gary Corigan, corporate communications director, and from numerous articles. See especially: “How to Harness Gray Matter,” by Richard Teitelbaum, Fortune, June 9, 1997 ·

“We believe our people doing the job are the true experts in their area”: Joseph M. Magliochetti, Dana chairman, was quoted from an interview with the author.

“We have an open door policy that any employee”: Melinda Lockhart, global innovation manager at EDS, was quoted from interviews with the author. Information on Disney’s Gong Shows is from “A Mickey Mouse Way to Run Companies,” by Anne Fisher, Fortune, March 29, 1999, and from The Disney Way, by Bill Capodagli and Lynn Jackson, McGraw-Hill, New York, 1998. Disney chairman Michael Eisner’s book is Work in Progress, with Tony Schwartz, Random House, New York, 1998.

Alsa Petchey’s story is recounted in “Reinvent Your Company: 10 Rules for Making Billion-dollar Business Ideas Bubble Up From Below,” an excerpt of Gary Hamel’s book, Leading the Revolution, in Fortune, June 12, 2000. Procter & Gamble’s new venture approach is the subject of Harvard Business School case study 9-897-088, “Corporate New Ventures at P&G,” and author interviews with Craig Wynett, innovation chief at P&G.

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EDS’s case study was reported based on extensive interviews with Melinda

Lockhart, innovation maven, and company documents.

Xerox’s sale of PARC was reported in “Xerox to Spin Off Research Center,” by Karen Kaplan, Los Angeles Times, December 12, 2001.

Appleton Paper’s Growth Opportunities (GO) program is spearheaded by

Dennis Hultgren, and this case study is based on interviews by the author.

“We had this internal market of people we weren’t tapping”: Nancy Snyder,

Whirlpool’s vice president of strategic competency creation, was quoted in

“Recipe for Growth,” by Fara Warner, Fast Company, October 2001.

Chapter 5: Mining the Future

“We get 50 proposals a year”: Quotes from Dave Austgen, Shell Chemical’s GameChanger leader, are from interviews with the author. The front end of innovation appears to represent the greatest area of weakness”: This quote is from a research project that collectively determined a theoretical construct for the Fuzzy Front End of innovation. See the article summarizing the research, “Providing Clarity and a Common Language to the ‘Fuzzy Front End,’“ by Peter Koen, Robin Karol, et al., Journal of the Industrial Research Institute, Spring 2001.

How Progressive made lemonade from a regulatory lemon: details are from “Progressive Makes Big Claims,” by Chuck Salter, Fast Company, November 1998.

See Winning the Innovation Game, by Denis Waitley and Robert B. Tucker, Fleming H. Revell, Englewood, New Jersey, 1986.

The author’s interview with Frederick Smith, founder and chairman of Federal Express, appeared in “The Man Who Created Overnight Delivery Says You Absolutely, Positively Have to Innovate—If Only to Survive,” Inc., October 1986.

BMW Group’s Future Scan System was reported from interviews with company officials in Palo Alto, and David Sutherland, innovation consultant to BMW and founder of The Launch Institute, Atlanta, Georgia. “Our company works best when we continue to ask questions”: Maxie Carpenter’s quote is from “Always Reinventing… Always: Wal-Mart Has Maintained a Staggering Growth Pace Thanks Largely to Its Commitment 197to Trying New Things,” by Lois Flowers, Life@Work Journal, Spring 1999. “We have literally turned the pyramid upside down”: Lewis L. Edelheit’s comments are from “GE’s R&D Strategy: Be Vital,” Research-Techno logy Management, March/April 1998.

See “First to Market, First to Fail: Real Causes of Enduring Market Leadership,” by Gerard J. Tellis and Peter N. Golder, Sloan Management Review, Winter 1996.

This section on first mover advantages and disadvantages was greatly enhanced by several discussions with Joe Gilbert, Ph.D., professor of business administration at the University of Nevada, Las Vegas, a leading expert in this area of innovation. See his definitive article, “Innovation Timing Advantages: From Economic Theory to Strategic Application,” Journal of Engineering and Technology Management, Spring, 1996. BusinessWeek’s estimate of marketing expenditures for Miller Lite was reported by Tellis and Colder, previously cited.

“Begin with the end in mind”: Steven R. Covey’s book is The Seven Habits of Highly Effective People, Simon & Schuster, New York, 1989.

Chapter 6: Filling the Idea Funnel

George Buckley’s quote is from “3M’s Innovation Crisis: How Six Sigma Almost Smothered Its Idea Culture,” by Brian Hindo, BusinessWeek June 11, 2007.

Doug Green’s quote about his now-famous “Doug Days” is from an interview with the author.

“Respect the newborns, tomorrow we’ll strangle them”: Ideation specialist Doug Hall’s quote, as well as insights into his methods, are from “Jump-Start Your Business,” by John Grossman, Inc., May 1997. While Doug Hall is a leader in this burgeoning field, there are a number of others. Check out our list at www.innovationresource.com.

“I was really proud of everybody and the ideas submitted”: Marsha MacArthur is quoted from an interview with the author, and company documents.

Additional information on the Bristol-Myers Squibb (BMS) program is available from Imaginatik, a Boston-based software company. Its Idea Central product, adopted by BMS and other companies, is an idea management 198application “designed to focus the creative brainpower of employees and extended enterprise partners to generate business-focused ideas, develop those ideas, and then evaluate and select the best concepts for implementation or further development.”

The study of 123 firms concluding that new products are most often initiated by ideas from customers is reported in “The Impact of Product Innovativeness on Performance,” by E. J. Kleinschmidt and Robert J. Cooper, Journal of Product Innovation Management 8, no. 4 (1991).

Information about BMW’s Virtual Innovation Agency is available on the automakers website.

Automaker’s aren’t the only ones using ethnography as a way of getting a jump on what consumers will want next. See, for example, “Consumers in the Mist: Mad Ave.’s Anthropologists Are Unearthing Our Secrets,” by Gerry Khermouch, BusinessWeek, February 26, 2001.

The PT Cruiser design team’s use of archetype research methods pioneered by G. Clotaire Rapaille is reported in “But How Does It Make You Feel?” by Jeffrey Ball, Wall Street Journal, May 3, 1999.

My understanding of the unarticulated needs of customers was enhanced by Speed: Linking Innovation, Process, and Time to Market, a Conference Board Report researched and written by Marilyn Zuckerman Michaels, available from The Conference Board. See www.innovationservice.com for information on obtaining this report.

“Hearing heart murmurs… was becoming increasingly difficult”: Jay Mazelsky’s comments are from “Listen Up: You Can’t Learn What Your Customers Want If You Don’t Know How to Listen to Them,” by Rekha Balu, Fast Company, May 2000.

“If you have any new ideas or technologies”: This senior executive’s quotes and insights are from an interview with the author. The executive asked not to be identified based on a directive from the company’s communications department.

Research by my company, The Innovation Resource, on behalf of a leading battery maker, enabled us to seek out firms with stellar relationships with their suppliers. These guidelines are a summary of our findings, based on interviews with companies in 1999. 199“We’ve learned from the best”: the quote from Robin Karol is from an interview with the author.

Chapter 7: Producing Powerful Products

Kuczmarski & Associates’ study of 209 company practices is titled The K&A Winning New Product and Service Practices Study, March 2000. wwwkucz-marski.com.

For further information on Robert G. Cooper’s Stage Gate approach, see, “How to Launch a New Product Successfully,” by Robert G. Cooper, CMA Magazine, October 1995.

While the gated approach to new products has gained tremendous popularity, it is by no means the only approach. See, for example, The Focused Innovation Technique, and the workbook, Developing New Product Concepts, by Chris Miller, founder and president of Innovation Focus, Lancaster, PA. www.innovationfocus.com.

See also The PDMA Toolbook for New Product Development, which can be purchased online. See the Product Development Management Association’s website for more information on the conferences and other publications of this group.

“What you end up with is rarely what you started with”: Gary Lynn’s comments are from “Innovation Strategies Under Uncertainty: A Contingency Approach for New Product Development,” by Gary S. Lynn and Ali E. Akgun, Engineering Management Journal, September 1998. Professor Lynn was interviewed by the author.

‘“Shared space’ is the dominant medium for collaboration”: Michael Schrage’s comments are from “The Path to Innovation: MIT’s Michael Schrage Explains How Corporate Culture Contributes to Innovation in the Age of the Internet,” by Kim Austin Peterson, IQ Magazine (Cisco), undated article.

Chapter 8: Generating Growth Strategies

“Interesting and innovative ideas do not a business make”: Michael Schrage’s quote is from “The Path to Innovation: MIT’s Michael Schrage Explains How 200Corporate Culture Contributes to Innovation in the Age of the Internet,” by Kim Austin Peterson, IQ Magazine (Cisco), undated article.

“Category killers will be a diminishing force”: Richard W. Latella’s quote is from “Category Killers Go From Lethal to Lame in the Space of a Decade,” by William M. Bulkeley, Wall Street Journal, March 9, 2000.

See Expanding the Innovation Horizon: The Global CEO Study 2006 available free for downloading at ibm.com.

Readers interested in pursuing their study of strategy innovation might well start with a definitive article called, “Strategy, Value Innovation, and the Knowledge Economy,” by W. Chan Kim and Renee Mauborgne, Sloan Management Review, Spring 1999. See also their article “Creating New Market Space,” Harvard Business Review, January/February 1999.

The case study of the evolution of Tyson Foods is based on press articles, excellent assistance from Archie Schaffer of Tyson’s public relations office, and interviews with Don Tyson, former chairman of the company.

See “DIRECTV Beats Forecasts, Cuts Hughes’ Loss,” Los Angeles Times, January 17, 2001.

“There’s a whole movement taking place from fix-me dentistry to transformme dentistry”: see “Seeing Green in Pearly Whites: Teeth Whitening Has Grown into a $600 Million Industry,” by Marc Ballon, Los Angeles Times, October 20, 1999.

“It was a wake-up call”: Peter Lewis’ quote is from “Progressive Makes Big Claims,” by Chuck Salter, Fast Company, November 1998.

Chapter 9: Selling New Ideas

“Sure, innovation is critical, but it doesn’t”: Doug Engelbart’s quote is from “Interviews with Innovators,” Fast Company, April 2000. The Consumer Electronics Association estimate of new product introductions is from “Deluge of Electronic Goodies Overloads Customers’ Circuits,” by P. J. Huffstutter, Los Angeles Times, January 6, 2001. Computer manufacturers are struggling to deliver meaningful-enough innovation, see “As More Buyers Suffer From Upgrade Fatigue, PC Sales Are Falling,” by Gary McWilliams, Wall Street Journal, August 24, 2001.

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For details see, “Whirlpool and P&G Hope to Alter Consumer Habits,” by Julian E. Barnes, New York Times, March 16, 2001.

Information about the slowness of advertisers to accept USA Today is from a Harvard Case Study of the newspaper, by Hilary Weston under the supervision of professor Robert Simons, 1990.

For background information on Webvan, see “Will Webvan Ever Find a Better Way to Bring Home the Bacon?” by Kara Swisher, Wall Street Journal, October 2, 2000.

“I’d say, ‘this machine will do this and this’“: Tom Lambert’s quote is from “Innovation Strategies Under Uncertainty,” by Lynn and Akgun, previously cited.

“We had it tested for strength and stiffness”: Stephanie Kwolek, Kevlar’s co-inventor, was quoted in “Interviews with Innovators,” Fast Company, April 2000.

“Haber is a discreetly ponytailed mensch”: See “Jack Haber: Getting Totaled,” by Christine Bittar, Brandweek, October 12, 1998.

The case study of Colgate’s Total is based on author interviews with Jack Haber, numerous published accounts, and company documents.

Chapter 10: Taking Action in Your Firm

A special thanks to Linda S. Mayer, senior vice president marketing and product development at Moen Incorporated, for her suggestions on taking action to implement the ideas and strategies in this book.