Performance Matters on Innovation by RWD Technologies, LLC

Performance

MATTERS VOL2|ISSUETHREE|SUMMER2008

Solutions That PerformTM

Innovation H O W A R E YO U PAV I N G T H E ROAD?

FROM DR. DEUTSCH

RWD and the Power of Innovation INNOVATION

Tomorrow’s Greatest Culture INNOVATIVE & POWERFUL

Simulation for Critical Thinking Development

VOL2|ISSUETHREE|SUMMER2008

LETTER FROM THE EDITOR Innovation is putting creative ideas into valuable action. Simply being creative or hiring creative people is not enough. Successful organizations are able to move ideas from conception to evaluation, through a new product development process, and then launch. It can be thought of as a business process that is managed similarly to other business processes like quality assurance, sales, or finance. The difference is that the innovation process is one companies can use to grow. This issue is a collection of innovative ideas put into action, together with some suggestions about how you can generate innovation in your organization.

Performance

MATTERS 1 Message from Dr. Robert W. Deutsch Innovation is the lifeblood of our civilization.

As always, I would love to hear what you think of this issue and any other suggestions for improvement of our publication.

2 Innovation: Tomorrow’s

Thanks for reading. Sue Varner | Editor Kayla Hartford | Associate Editor Corporate Marketing & Communications For questions and additional information on the content of this newsletter contact Sue Varner at 1.800.677.3688 or svarner@rwd.com.

Greatest Culture Redefine what it means to be truly innovative in today’s corporate culture.

A Message From

ithout innovation, human progress—in business and every other field of endeavor—would grind to a halt. It is the lifeblood of our civilization. Still, it’s important to remember that conceiving and implementing innovative processes or products can be counterproductive if they’re not done with great care and preparation. Nowhere is that truer than in what seems to be one of the great recent business innovations—outsourcing. The new issue of

4 Innovation Through Outsourcing Moving from transition to transformation.

12 Enterprise Resource

8 Simulation for Critical

13 An Innovative Approach

Thinking Development Innovative tools that develop critical thinking skills.

11 What’s keeping you from

successful innovation? You can’t innovate if. . . What hurdles are in your way?

Planning Sustainment Strategy Optimize your investment and sustain your success. Addressing the issue of student ethics on campus.

14 uEmulateTM

RWD provides an all-in-one learning delivery solution.

Dr. Robert W. Deutsch

RWD and the Power of Innovation

Performance Matters features an article on just this subject, called “Innovation through Outsourcing: Moving from Transition to Transformation.” This is partly a cautionary tale about how leaving organizational change management issues to an outsourcing provider can lead to problems or even outright failure. More important, it clearly lays out how the approach we advocate at RWD effectively addresses the human and psychological impacts of a major outsourcing campaign, and lays the

foundations for success. In another article, Mike Koper writes that “the act of innovation is predicated upon the building of an innovation ecosystem…” An innovationoriented workforce has to have depth of understanding and expertise…breadth of knowledge…and intellectual and demographic diversity. RWD has created its share of innovations over the years. For example, in this Performance Matters you can read about our work at Loyola College (Maryland) to craft an online course to promote students’ academic integrity and ethical research practices. Also in this issue are stories on: Our approach to business scenario

simulations; how we help with the vital job of service-staff training with our leading-edge uEmulate™ product; and the importance of sustainment post-ERP implementation. Clearly, true innovation is hard work. But organizations with the proper vision and dedication can climb that mountain— with, of course, a little help from RWD. Dr. Robert W. Deutsch | Chairman

Innovation: Tomorrow’s Greatest Culture

Innovation Workforce

By MIKE KOPER | RWD

Webster’s defines innovation as 1. the act or process of innovating, 2. something newly introduced; new method, custom, device, renew, alter, etc.; change in the way of doing things.

nnovation on America’s landscape has been scattered throughout the industrial age and spans everything from hearing the “first words spoken over a telephone,” March 10, 1876 to the modern innovation of nylon stockings first going on sale, May 15, 1940 to the widespread growth of the internet in the mid-1990’s. Since those days, American companies continue to innovate. A Bank Boston Study conducted with MIT reported, “The only trouble is that as fast as we learn to duplicate and improve upon technologies, we start to run into shortages of the raw materials that make that technology common place.” Man’s ingenuity may be infinite, but we have learned that our resources are very finite. Even the resource of intellectual human capital has recently been tested with the departure of first-wave baby boomers exiting the workforce. Today’s multinational companies worry about how the workers’ technology expertise will transfer to the next set of workers all at a time when information is in a rapid state of change.

very resistant to change and “argumentative” throughout its evolution (much like the television-portrayed stereotype of grumpy old men). On one hand, the change can yield spectacular returns on worker performance. On the other, it can sink ships when implemented incorrectly. Innovative solutions must be connected to collaboration; this formula tends to be the secret ingredient to successfully reaping the fruits of change management in both human capital and the manufacturing of goods. To succeed in repeating the formula, the act of innovation is predicated upon the building of an innovation ecosystem that enables and supports bringing the deep specialist competencies to collaborative efforts for dissemination to other job/task performers.

A recent report from the National Association of Manufacturers, the National Innovation Initiative Working Group Report, indicated that “out-of-the box” thinking when woven into a cultural way of thinking can drive a comparative advantage to those in the global economy. The report also went on to describe critical attributes for workforce characteristics, skills for innovation, and evaluation of attributes. The shaping of an Innovation Workforce highlighted a workforce exhibiting the following: A. Depth—a strong disciplinary

base—everyone should “know something” that they can bring to a collaborative effort. Depth of understanding and expertise remain essential. More clearly put, the workers must not only be able to know their job and perform it in the most effective manner, they must also look for the cracks in the process to find areas of continuous improvement. Much of the gain in this area is not from academic studies but from the actual task performed hands-on to develop a true sense of knowing. B. “GEL” (Goal Expectation Learning)—linking collaboration to understanding to the nature and context of innovation— effective collaboration arises

Change Changing the ways things are done is a delicate balancing act. Business processes in general, if established, can be

among individuals who know a great deal about differing subjects and are able to bring their knowledge to bear outside of their given area of expertise. They must speak a common, widely understood vocabulary while adhering to standards for individual as well as institutional performance. Front Line thinkers with first hand knowledge are essential to broadening the team’s knowledge base. C. Width—inclusiveness of a diversity of perspectives—the innovation workforce should be intellectually diverse, drawing upon demographically diverse specialists from across multiple disciplines and with varied

perspectives, drawing fully upon the entire population. The innovations of the 21st century will have to sell on a global scale, and a workforce that taps into diverse knowledge will be most effective. The skills of tomorrow will vary with respect to technical knowledge. However, essential skills that must be present are incorporated from the Intelligence Quotient (IQ), a measurement designed to support the innovation process. Individual skills include: coachable, reliable, consistent, flexible to change, encouragement to others, ability to take on responsibility, and communication completeness. Each individual

Within the innovation the innovator’s

ecosystem,

The Working Group Report also found that innovation must be evaluated on a regular basis to ensure continual growth to finding solutions. As stated before, individuals play a pivotal role in innovation. Additionally, institutions and culture also enter into the mix of key contributors for innovation. Institutions must

mission is to imagine

the impossible.

must come to the “table” with a depth in a given field, along with expanded technical knowledge, be able to function within a team environment, understand how work activity provides value to the marketplace, and the ability to work within a structure of systems. Individuals are the critical factor in innovation and knowledge is the fuel for solutions.

be agile in the 21st century and have well-designed reward mechanisms for highlighting performance systems, intellectual property protection systems and support a platform for a cross-functionalization of ideas. A culture must exist that accepts collaboration as a mainstay to the innovation formula. Within the innovation ecosystem the innovator’s mission is to imagine the nearly impossible, manufacture the solutions while managing risks, allocate capital, encourage partnering and recognize the potential of all participants. WHO IS MIKE KOPER? Mr. Koper is the Stamping, Powertrain, TCF Manager for RWD’s Manufacturing group and has been a leader in the company for 11 years. As a certified Project Manager, he works to Interface with client’s plants while establishing new and maintaining current training programs. He brings over 20 years to the manufacturing industry and has authored over 15 articles in trade magazines.

Innovation Through Outsourcing

Outsourcing Transformation versus a mere transition to outsourced services through outside providers.

By BUTLER NEWMAN | rwd

1) Maximizing Value: The Cost of a Cost View

Moving from Transition to Transformation Of course the World is Flat, as Thomas Friedman aptly described in his 2005 book of the same title about the globalization of real-time communication and collaboration.

he formation of execution risks. and execuConsider the tion of a global revelation of an No matter strategy has executive at where a company is many implicaa leading US tions for all headquartered today, it company: aspects of The stage had is competing in a business, been set with the global not the least the decision of which is a to outsource marketplace. sourcing and deIT, Finance, livery strategy deHR, Procurement veloped from a global and Customer Service perspective. In fact, accordOperations. Paying $3 Billion ing to AT Kearny, “the Global to a large Outsourcing Provider, Delivery Model will become the the focus from the start was on next major innovation in corpothe date when this “transition” rate organizational design.”1 was to occur. The rumor mill For many boardrooms this message is interpreted as “cut cost in sourcing and delivery functions at all costs.” This conclusion is easily understood, especially given the end state promises presented by exuberant providers in this space. Nonetheless, the global competitive wind, the enticing benefits of labor arbitrage, pervasive provider exuberance, and the need to innovate have combined to create a burgeoning outsourcing and offshoring phenomenon that is reminiscent of the rush to enterprise software systems in the 1990’s. In 2007, the total contract value for global outsourcing and offshoring topped $80 billion with the average deal exceeding $150 million for an average 5.5 year contract.2 Such huge initiatives are complex and filled with layers

was churning. Nervous people were wondering if they were going to lose their jobs. Others were wondering what their new employer was going to be like. With little or no preparation for the “retained organization” and the Outsourcing Provider being so date driven, the Executive Sponsor had an 11th hour catharsis. As he put it, “My daughter is getting married in a few months, and it’s not about gaining a son-in-law, I’m losing her to a different lifestyle than the one we have today. It’s the same for the organization, we need to help our folks deal with a sense of loss and prepare them to operate in the new environment.” This scenario is not unusual. Many companies do not address the human and psychological effects of this kind of change, both in terms of the people becoming part of another

entity or the changed roles of those who remain. Just leaving the organizational change management issues to an Outsourcing Provider, particularly if part of the arrangement includes an “offshore” component, can leave many people and organizational issues unresolved and risks a growing sense of resentment by those who have been “outsourced” and those who remain. This example illustrates one symptom of what is best described as “transition without transformation.” While some experienced players like American Express, GE and BP are experiencing success in this new world, most are not. Consider one statistic that at least half of US companies surveyed have prematurely terminated an outsourcing relationship.3 Successfully executing innovative strategies, especially those that fundamentally transform the structure of an organization demands the complete attention of the executive team from concept to full realization. As companies develop innovative approaches to sourcing and more specifically to outsourcing, there are five essential principles the executive team needs to consider to achieve a true

The great disparities of labor cost around the globe have created a classic arbitrage opportunity. It is the magnitude of the delta in labor cost in emerging economies when compared to developed economies that fuels the outsourcing movement. This delta (or opportunity) is of course measured first and foremost in dollars. It is important for companies to keep two other important factors in mind, however: 1. Dollars are only one currency for measuring cost. There are many currencies including, customer satisfaction, employee retention, product or service quality, company reputation, etc. 2. The goal is not necessarily to attain the lowest cost possible but rather to keep a vigilant eye on a global cost differential.4 To enter into a multi-year, multi-million dollar outsourcing contract, based exclusively on cost, is fraught with peril. A broad range of value measures must be understood and clearly communicated from senior executives to midmanagement and ultimately to the outsourcing provider in the form of contractual service level agreements (SLAs), operating guidelines and a governance framework. The outsourcing contract

To focus solely on dollar savings and narrowly- focused SLAs overlooks significant opportunities to increase total performance. This ties the business to a long-term outsourcing contract that often shortchanges the results and benefits possible to shareholders and customers—while the business transition risks remain high.

itself should reflect a holistic approach defining the value expected during the multi-year partnering arrangement and the operating guidelines and governance approach that will be used. 2) Experience: Independent Advisor All too often a company’s motivation to enter into a multi-year outsourcing contract is driven by a Board level decision to cut cost by sourcing providers who have ties to developing economies. Once the decision is made and the direction set, implementation is passed on to mid-level managers who often bring little or no outsourcing experience to their newly delegated task. This situation creates an execution gap. Such a large gap greatly increases the risk that any outsourcing relationship will be judged a success by the executives who made the decision to outsource. Those left to implement do not have clarity on the potential value to the organization and therefore have great difficulty in

developing and bringing clear requirements to the outsourcing process. This lack of clarity, combined with a cost focus creates an additional and perhaps even larger gap between the company and their ultimate outsourcing provider—causing “provider misalignment.” The execution gap and provider misalignment are best overcome by deploying an independent advisor to help shape, guide and at times steer, both the internal activities as well as the external interfaces. A true independent advisor brings four critical areas of experience to the table. 1. A deep understanding of outsourcing providers, their business model, motivations and ability to execute against “value measures.” 2. Experience in business transformation and the elements required to successfully execute the new sourcing arrangement. 3. Ability to drive internal alignment around the true intent of the initiative, provider alignment to the value measures, and a strong partnership to achieve the realization of the intent. 4. Ability to identify and mitigate risks. This includes customer, contractual, operational, organizational and strategic risks. Good advisors work in partnership to narrow the “execution gap” and remove “provider misalignment,” greatly improving the probability of buyer satisfaction and provider performance.

It is not enough for a client organization to “trust” that the provider has “done this before” and will automatically manage the performance aspects of their workforce. A comprehensive

people

strategy must be developed and deployed. organization, the management team, and those separated from the company. For the provider, those critically affected are the management team, the staff identified for start-up and new staff brought in during the duration of the engagement. Client Workforce

Outsourcing, at its core, moves a business process and its associated people from client ownership and employment to provider ownership and employment. There are three segments of the client’s workforce that are affected. First there are those moving from client employment to provider employment. When the outsourcing “switch is flipped,” the people in this group wake up for work the next morning and report to the same desk as always. They unexpectedly find themselves, however, in new relationships with long-time associates, in newly forced isolation from the company culture, in new compensation packages and a range of other personal and interpersonal issues.

3) Change: People in Transition

Second are those whose jobs have been eliminated overnight at the flip of the outsourcing switch. The range of emotions and challenges for the people in this category are well understood and documented. This doesn’t make their transition any easier however.

Outsourcing is peoplecentric. The very nature of an outsourcing initiative affects large numbers of people on both sides of the partnership. For the client, the people affected include the retained

And finally, the third segment is the retained organization. This is often an overlooked group as it is not obvious that anything has changed for them. However, they must learn to manage the relationship with

the outsourcing provider, which often involves managing a new type of interaction with long-time friends. Additionally, they may struggle with new perceptions of their company, its core values and the nagging question, “Am I next?” As the previous utility example illustrated, there are a host of change management issues to be uncovered, understood and addressed in every outsourcing initiative. Provider Workforce

When the outsourcing deal is struck, the provider accepts the responsibility to have its people ready to perform at acceptable levels. Failure in this area, however, will greatly impact the client organization. It is therefore, incumbent on the client organization to understand how the provider will train the start-up staff, where these workers will be located, and how they will address other critical areas such as staff turnover and continual learning. 4) Business Process: Performance Impact On the day the switch is thrown, will the “machine” continue to hum along as if nothing has changed? Of course this is the hope. This is the promise. What will make it the reality? Most companies believe that they understand the processes deployed within their organization. At the macro level of inputs and outputs they undoubtedly do. When it comes to outsourcing, however, this macro level understanding can lead to a false sense of comfort

Once the decision is made and the direction set, implementation is passed on to mid-level managers who often bring little or no outsourcing experience to their newly delegated task. This situation creates an

execution gap.

The good news is that process details are attainable by developing new RummlerBrache process diagrams, RACI charts, role descriptions and role responsibilities. This is not breakthrough work; it is however the type of spadework that must be accomplished for the outsourcing transformation to be successful. 5) Life Cycle: Sustainability Outsourcing a business process is not a point solution. Instead it must be viewed as a longterm commitment that requires regular care and feeding. In the technology arena for example, CIOs have long since learned that the decision to purchase and implement a new technology is not a onetime discrete transaction. Instead CIOs have learned to view both the decision and the implementation as part of a multi-year life cycle. The same holds for the successful outsourcing of a business process. Decisions must be taken with the entire life cycle in mind. Fundamental to this mindset is the creation of the basic systems required to sustain and improve the outsourcing initiative. Three specific systems form the underpinning of a healthy and sustained business process outsourcing initiative. These are: Maintaining alignment across client and provider stakeholders is critical to achieving a long-term, viable Governance:

The governance model defines the touch points between the client and provider, as well as those with other service providers that operate within the client’s operational ecosystem. It drives the business relationship between the parties, sets the initiative tone, maintains focus on the strategic benefits and shapes the impact on the stakeholders as well as other affected entities across the enterprise. A robust governance model ensures alignment of people, processes, and technology to realize strategic benefit, and ensures that a comprehensive communication and training strategy is in place to drive all phases of the outsourcing lifecycle. Accurate, up-to-date and relevant knowledge is the lifeblood of any lively business process. Take a snapshot of process knowledge on the day that the outsourcing contract is signed, on the “transition” date, and six months into the new operation. Relevant knowledge will undoubtedly have changed significantly between each sampling. A process that forces relevant, changing information to flow to the right parties is non-negotiable for success. This process must be well defined, agreed to by the client and the provider and have routine checks to ensure its proper operation. Knowledge Strategy:

The workforce of today’s outsourcing providers is often in a constant state of flux. Annual turnover rates as high as 50 percent in some instances Training:

16%

Human Resources

15%

22%

Sales & Marketing

All Others

Finance

11%

Admin Information Technology

28%

www.offshoreitoutsourcing.com

For a specific business process to be successfully outsourced, the details must be anticipated, verified and documented. In one example, where this did not happen, the outsourcing cost doubled for a global financial services company when transnational aspects of the baseline process it outsourced were not understood.

business partnership. The aim of strategic outsourcing governance is to ensure seamless, end-to-end delivery of quality services in the context of the sourcing strategy, while protecting the client’s interests and mitigating the risks associated with unplanned activities that fall outside of the initiative’s scope.

How does the outsourcing pie get sliced?

S OUR CE:

regarding the effort required to move an entire business process from the company’s sphere to that of a separate organizational entity.

Any number of business processes may be outsourced or offshored, but shown above are the most common. Whether large or small, long-term or short, in India or Indianapolis, successful outsourcing projects take into account five essential principles: maximizing value, experienced counsel, managed change, business processes readiness, and life cycle view.

have been reported. The fact that the provider’s start-up workforce has received training and can demonstrate baseline proficiency becomes irrelevant in the space of three months. An ongoing training process that is tied to the Knowledge Strategy is a requirement for even minimal performance standards to be met. Closing Points Successful innovation depends on more than a fresh idea. It depends on focused execution. For new global delivery models, specifically global outsourcing initiatives, successful execution should consider five essential principles: maximizing value, experienced counsel, managed change, business processes readiness, and life cycle view. WHO IS BUTLER NEWMAN? Mr. Newman is a leader in the Business Transformation Optimatization (BTO)

practice at RWD. He focuses on the people, process and tool strategies required to align, implment and sustain optimal sourcing strategies within an enterprise. Mr. Newman has over 22 years of experience developing and managing high impact initiatives in major global and U.S. companies. He has a reputation for helping companies implement solutions that achieve business goals. He is a seasoned executive who focuses on holistic solutions for effective performance improvement, human performance, planning, execution and change management.

References 1

Execution is Everything: The Keys to Offshore Success, A.T. Kearny Study, 2007.

Plunkett’s Outsourcing & Offshoring Industry Almanac 2009, Plunkett Research, Ltd.

DiamondCluster International, Inc. 2005 Annual Study of Information Technology Outsourcing

Globality, Competing with Everyone from Everywhere for Everything, Harold L. Sirkin, James W. Hemerling, and Arindam K. Bhattacharya, Business Plus New York, 2008

Simulation for Critical Thinking Development INNOVATIVE AND POWERFUL

by Rick Contel | RWD

argeted to multiple learning styles and based in a risk-free, learn-by-doing environment, simulations quite simply are some of the most value-adding components of any performance improvement program. The subject of this article is Business Scenario Simulations (BSS). RWD BSS provide significant advantages over linear learning program design. Simulations are not linear; they are like real life, which just happens. This requires a holistic approach in the design process and enables insight beyond the linearity. Participants deal with issues in the simulation that may not have been discussed yet in training so that the design can go beyond a typical Learn g Apply g Review format. RWD uses BSS when the targeted audience needs to

exercise judgment in the topic being addressed. When there is no procedure to follow and learners must think about what they are going to do and use that way of thinking in many different situations with different characteristics, BSS can provide that experience. For example, project managers face many situations like the example here (see figure 1, bottom left) where there are trade-offs for each of their options. BSS can bring the experience of the seasoned professional to the novice.

When it is important that the participants experience the consequences of their decisions, BSS provide this in a riskfree environment. Although simulations are risk-free, when participants make decisions in the simulation world they will live with the consequences, good or bad, so that they can experience the outcomes of their actions both in the short and long term. For example, nurses routinely face a balancing act in how best to use their time. The consequences, as in the example here (see figure 2, bottom right), can have significant short and long term impact. It is important that once participants have used judgment and experienced consequences that they understand why and receive detailed feedback. In this way, as the issues come up again in the simulation, they will have

the opportunity to think about them in a different manner and determine if they will respond differently. Simulations are so powerful because often, experience is more important than just knowledge. Simulation puts content into a realistic context enabling the participants to experience working through the scenario, living the consequences and getting feedback on why those consequences happened. The focus is to improve critical thinking and accelerate decision making, not on showing them what to do and how to do it. Simulation Delivery While it is typical to think of a simulation as a learning

Simulation-based learning is one of the most powerful approaches to human performance improvement todayâ&#x20AC;&#x201D;combining technology with the social aspect of human interaction to create rich, engaging learning experiences.

FIGURE 1. An example in which a user must exercise judgement.

FIGURE 2. An example in which a user experiences consequences.

event like an eLearning course, simulations lend themselves to a variety of rich learning experiences. With simulations, organizations can deliver learning as part of in-person or virtual collaboration. This allows the instructor and experienced expert to be role models as well as provide guidance and feedback from their experience. Simulations can be deployed as follows:

Just like the real thing.

• Single or multi-day workshop—Standup instruction is delivered in person or virtually. After the “lecture,” the teams break up and work through a simulation of the type of events covered. The teams then debrief and learn from each other.

TOP LEFT

• Part of a longer program— Short “simulettes” of 10 to 15 minutes can be integrated into longer programs. • Web deployed using virtual conference tools—Distributed organizations can use conferencing technology to deploy simulations across the globe. • Enhanced one-to-one coaching—Coaches can use simulations to diagnose behavior in minutes what might normally take months. • Standalone product

RWD Business Scenario Simulations (BSS) provide significant advantages over linear learning program design. Simulations are not linear; they are like real life, which just happens. There are many types of simulations, but most fall into one of four categories. Equipment Simulations: flight simulator. TOP RIGHT Calculation Simulations: retirement planner. BOTTOM LEFT Software Simulations: RWD uPerform®. BOTTOM RIGHT Business Scenario Simulations: call center training.

deployment—Simulations can be stand-alone, supported by blogs and threaded discussions building a distributed virtual community. Simulations can be developed with forms, tools and processes linked directly into the decision making process. This helps participants practice using these tools in a realistic setting and get feedback from the simulation as well as the experienced leader instructors.

Summary Simulations, properly blended with other learning interventions, provide a solution that is experientially driven. In terms of affecting performance and behavior, experience provides far greater efficacy than knowledge transfer alone. Simulation is all about moving from knowledge to the experience that will guide future behavior. Expert knowledge and experience is leaving our organizations at a rapid pace and the need to “accelerate experience”

in new hires is increasing. BSS can quickly provide the experience that it took many of us years to accumulate and allow learners to make mistakes and ask questions in a risk-free reality. WHO IS RICK CONTEL? Rick is

the Director of Strategic Initiatives for RWD Technologies. Over the last 20 years, he has been deeply involved in the field of learning and human performance improvement as a practitioner, thought leader and business builder. As Director of Strategic Initiatives, Rick currently helps identify and bring new product and service offerings to market.

“

Innovation

Help people to cultivate their innate innovative capabilities.

should not be a state we are trying to achieve or a skill set we wish to develop. We are innovative by nature. Our goal is to create cultures that allow people to play and capture the results. Human nature will take care of the rest.

”

Darren Eger Executive | Central Group Pty Ltd

Creative ideas become

innovations at the

intersection of

persistence and insistence. LINDA NAIMAN | CORPORATE ALCHEMIST

olstoy had a famous saying that all happy families are all alike, and every unhappy family is unhappy in their own ways. Likewise, successful innovators are usually very much alike, and firms that fail often fail for a variety of reasons. As we believe you learn more from failure that success, here’s a list of reasons that many firms can’t seem to innovate:

Leadership—while senior managers talk about innovation, the evaluation structures, compensation, investment and other factors necessary for innovation to succeed simply aren’t provided.

Culture—often, even if a management team wants to be innovative, and is willing to provide resources and funds for innovation, the culture can’t change quickly enough. Most firms have a bias towards idea generation and innovation, or towards cost and risk control. Firms with the latter bias are rarely innovative—it simply isn’t in their nature.

Expectations and communication—often there is dissonance between what the executive team wants and what gets filtered down to the average worker bee. If we clearly communicate the need for disruptive ideas and that communication is received and understood, and the culture reflects those requirements, a firm can be innovative.

Commitment—few firms succeed with part-time innovators. Either decide to commit or hang up the cleats now. If you are familiar with the story of the chicken and the pig at breakfast, we need “pig” like commitment.

Funding and transition—many firms are able to generate ideas, but they aren’t able to transition them to commercial products or services because there was no ownership in the ideas from the product teams or no funding available or the list of projects was simply too long. A defined innovation process flow—from concept to product or service—is required

Fear of risk, change and failure—Innovation requires that you introduce risk into the business. It requires changing existing processes. More than likely, some ideas will fail. If your firm can’t stand these risks, then become a fast follower.

Lack of vision—To be an innovator, you have to have a vision for the future—what unmet needs or undiscovered markets may exist and how can we exploit them? If you don’t have the vision, there are ways to acquire that insight, but you’ve got to have it.

Thinking of innovation as a project rather than a competency. Most businesses are organized around persistent business processes. It’s clear what people aligned to those processes need to do each day to make the business hum. However, many firms are very comfortable creating finite innovation projects -here today, gone tomorrow. There’s no clear process and continuing effort around innovation, and given the risk and effort, as soon as the project is over, innovation is dropped. I doubt this is an all inclusive list—feel free to add your own as you see fit in the comments area at http://innovateonpurpose.blogspot.com. However, these are the issues that we see most often as reasons for failure when firms seek to innovate. Jeffrey Phillips is VP Marketing and a lead innovation consultant for OVO. OVO works with its clients to create a sustainable, repeatable innovation capability by aligning innovation goals to strategic intent, defining and implementing innovation processes and teams, and implementing idea management systems. Jeffrey recently published Make us more Innovative, a book focused on building innovation capabilities, and blogs regularly at http://innovateonpurpose.blogspot.com.

What’s keeping you from successful innovation? We’ve compiled a list that we believe represents a significant number of the hurdles to sustainable, repeatable innovation. By JEFFERY PHILLIPS

Optimize Your Investment—Sustain Your Success

Enterprise Resource Planning Sustainment Strategy bY TOM STERLING | RWD

Companies have to wonder, “What will our quality of life be after an ERP go-live?” Businesses thrive with an integrated system if their business is also integrated.

he ideal outcomes of any Enterprise Resource Planning (ERP) implementation are:

system, leading to strong business/IT integration

• Achievement of the expected benefits and ROI

• A strong, centralized Center of Excellence (COE) is established during the initial project

• Stronger business analysis and management capabilities

• On-going ERP end user training is provided

The reality is often different. Research varies, but consistently more than half of the companies surveyed reported that their implementation was either a failure or less than satisfactory; only one-third of the companies reported that they are fully satisfied with their implementation outcomes.

• Super User (or Power User) strength is maintained and they continue to provide a strong link between the COE and end users

What most businesses are missing has little to do with the quality or effectiveness of their ERP implementation. It has much more to do with their performance in the post go-live environment. After the structure, rigor, and linear project orientation of an ERP implementation, the post golive environment looks much less clear and more ambiguous. That leads to many executives having a difficult time understanding the post go-live environment. It doesn’t have to be that way. Research and experience tell us that there are very distinct best practices that contribute to long-term success and the achievement of business benefits. Some of those include: • The business stays involved in the management of the

• Governance and program management structures and processes are in place • There is a high level of process standardization across the enterprise • Continuous process improvement is widely practiced • Performance of expected business outcomes is measured through a core set of Key Performance Indicators (KPIs) • The COE maintains a customer focus and manages their Service Level Agreements (SLAs) effectively A well-planned strategy of integrating the key pieces of the business is critical. The diagram illustrates the pieces of the business that require integration and some of the components required to execute the integration.

If business executives are looking back at their implementation and wondering why their results are less than expected, the first step is to conduct a thorough analysis of the current performance. The analysis outcomes include a well-ordered set of priorities and actions that constitute a Sustainment Strategy and make the path forward look clear and manageable. If business executives are looking forward and planning for the post go-live environment, establishing a Sustainment Strategy helps manage expectations, measure outcomes of the implementation and achieve the business results expected. The Sustainment Strategy puts the enterprise on track to become one of a minority that will look back at their original decision

to implement an ERP system and count it as a significant milestone in the success of the business. WHO IS TOM STERLING? Tom

has over 30 years of business management and consulting experience. He joined RWD Technologies 8 years ago, and within that time has worked on several ERP projects. RWD’s Sustainment Strategy solutions were developed to help our clients succeed in their post go-live ERP environment and to fill a void our clients previously experienced.

“

WHAT ARE PEOPLE SAYING?

The implementation methodologies of nearly all systems integrators end at the go-live point, thus obligating clients to form their own postimplementation business/IT organization. Michael Doane

The ability to continually and quickly improve processes will be more important than getting the process right the first time. The Gartner Group

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A well-planned strategy of integrating key pieces of the business is critical. 12

Addressing the Issue of Student Ethics

An Innovative Approach In early 2007, RWD Technologies and Loyola College in Maryland partnered to develop an online course to teach students about academic integrity and scholarly research—they needed fresh ideas that engaged a class of web-savvy freshmen.

he first year of a college students’ life is full of challenges and opportunities. They are forced to transition from a state of dependence to one of independence. For many incoming freshmen, this is the first time they must make choices independent of parental guidance. Some of those choices include: What is the best use of financial credit? How do I protect my identity? What are the rules with regards to drinking alcohol, and how much? Is my academic conduct acceptable? What are the boundaries and what is expected of me? One concern, the issue of ethics on campus, has become more glaring with the proliferation of the Internet as a research tool. Loyola College wanted

to develop the tutorial as a Web-based course because it felt this medium would be more assessable and enjoyable to incoming first-year students who were all primarily savvy to the digital world. It was released to incoming freshmen class that fall. The project involved content development, course design, course build, and project management. Despite the serious topic covered by the course, a cartoon/illustration style flash piece was designed to be both entertaining and informative for the young adults entering college. The course contained five episodes, case-in-points (reallife examples of individuals whose careers, and lives, were changed due to their integrity

Many students cannot distinguish when it is appropriate to use the Internet, what is considered quality content or research to use, or how to correctly cite sources and information.

or lack of), reader’s choice elements, and quizzes that were designed to provide feedback to students and to assess their retention of the information. The distinguishing features of the course included: • Design using thematic-based (comic book style), scenariobased, and exploratory-based approaches developed using Flash and Fireworks • Cartoon Characters: Two main characters were the College’s greyhound mascot and Integrity Guy, and a number of minor characters • Audio for opening/closing remarks from Loyola’s Honor Council Student Chair, and remarks from Integrity Guy at the beginning/end of each episode, end of episode quizzes, and case-in-points • Video welcome message from the College President • Question presentation formats varying from arcade

Undergraduates are required to take the on-line ethics course as in-coming freshmen or transfer students. 13

game style and Play 4 Points (Jeopardy style), to standard multiple choice single and multiple correct answers, all with unique feedback per item selected With the help of RWD, Loyola College deployed a course that included: • Soft skills instruction (teach a young adult student population to distinguish what is integrity; and what is ethical, scholarly research) • The ability to instruct a large number of students (approximately 1,000 students) over a short period of time • A fun and engaging approach to learning • Installation online and configured as SCORM 1.2 conformant with the ability to run and track student progress through the Blackboard LMS platform • An online course that can be maintained by the client in the future Loyola College was able to achieve their goal of producing a course that students could readily access, consume, and acquire knowledge about established campus ethics. As one student put it, “I thought it was a very clever way to teach very pertinent information.”

an all-in-one learning delivery solution

RWD uEmulate

By MARK DEANS | RWD

Organizations are continually faced with challenges as they look to improve service-related workforce performance. Implementing leading-edge technology platforms is critical to remaining competitive and realizing efficiencies whenever possible.

he purpose of RWD uEmulate™ is simple: rapidly package modular learning objects and a fully functional emulation of your system, deploy it across your organization, and easily maintain it. RWD uEmulate blends leading edge multimedia development and XML data rendering to create a learning solution that can revolutionize learning delivery. The Emulation Learning Cycle For a diverse workforce that needs to acquire specific and immediate knowledge to perform optimally, RWD uEmulate is an all-in-one learning delivery solution that provides a single sourced, selfcontained learning platform. What does RWD uEmulate do for you? Let’s think about your workforce and their acquisition of knowledge for the systems they use to do their jobs. Successful learning consists of the following key components: Introduce Why you do something is often as important as how you do it. Every lesson developed in RWD uEmulate begins with a strong sense of why the activity is being performed. Not only does the employee read a basic introduction, the coach’s guide includes recommended introductory text managers can use to kick off each lesson.

Learn The systems that RWD uEmulate is intended to support are typically simplistic and straight-forward. However, even these simpler applications require detailed explanation. Each individual lesson includes clear cut, action-oriented steps that are simply stated and easy to follow. Your employee now has the why and the how of the activity and is ready to apply this new knowledge. Practice Practice is not always possible in most applications. Viable and controlled training modes do not exist or are costly to maintain, and data can easily be consumed or corrupted leaving employees unable to run through what they have learned. RWD uEmulate provides a safe environment where employees can experience the reality of a system without putting your business or your customers at risk. Because the system is self-contained, exercises can be executed repeatedly without impacting the others in the organization and their ability to perform the exercises. RWD uEmulate can even include a Free Play mode to allow your employees to experiment with the system. Reinforce In most service-related fields, line managers often spend more than half of their day

coaching and mentoring their staff. How can you ensure that your managers are delivering the consistent messages that are critical to your employees’ successful adoption of a new system? Use RWD uEmulate to produce coaching guides that precisely describes how to introduce, monitor, support and sustain learning at each location in your organization. Support Whether learning is delivered through traditional methods or the latest in multimedia technologies, people will not retain everything you deliver the first time. Certain activities are done less frequently, or require repetition to master the skills required. Though RWD uEmulate is a powerful learning delivery tool, it is but one component of a blended learning approach.

can’t recall the proper steps? RWD uEmulate can export the core steps to perform any activity and present them to your employee in a meaningful, easy to use format. Whether it is a searchable library of support documents, or a booklet of quick tips, the content you have already created and delivered in the emulator is readily available in the hands of your employees. WHO IS MARK DEANS? As a Principal Learning Consultant at RWD, Mark Deans maintains an expertise in learning industry trends, requirements of the modern “knowledge worker” and strategic business drivers that our clients face on a daily basis. Mark works to design leading-edge learning solutions that align with our client’s business requirements and maximize the return on investment.

How do you support your employees through the more difficult moments, when no one is around to help? For example, what if they are faced with a transaction or activity they have seen only once, and

Oops!

In the Spring edition of Performance Matters, our dedicated readers pointed out that the article “The 3 Interpersonal Pirates of Performance” had an error in it—the St. Louis Gateway Arch is not a perfect semi-circle, but an inverted catenary curve. This fact does not however change the true purpose of the puzzle which was to highlight what is called the vertical-horizontal illusion. Most observers overestimate the length of a vertical line relative to a horizontal line that has the same length.

Performance

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Solutions That PerformTM

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